How's the Santa Clara County real estate market? For buyers, it remains challenging and for sellers it continues to be very good overall. The most affordable homes, or those which are most affordable in areas with better schools or commute locations, have the strongest seller's market.
Home prices are rising with double digit appreciation year over year in many segments of the market. Much of the valley is at or near peak pricing, and the rest should get there this year. The average price for single-family, re-sale homes went back over $1,000,000 for the first time since November 2007. The average price for homes was up 24.5% year-over-year.
What is driving this insanely overheated seller's market? Part of the formula is the fast decline in the number of bank-owned and short sales has been credited with moving the statistical pricing numbers up rapidly.
There is something to be said for that theory. In January 2012, 40% of all homes sold were either bank-owned or short sales. Last month, that number was less than 10%. I expect as bank-owned and short sales become less of a factor in the market, price increases should start going back into single-digits.
In Silicon Valley, though, even more weight should be given to our recovering economy and jobs growth. Every week I'm contacted by folks wanting to move here as they've got job offers in hand.
One of the most striking things about the stats for Santa Clara County is the rising sale price to list price ratio, which is now at nearly 106% for the county. The days on market continue to shrink to a mere 22 and the days of inventory are now under a month. We know that the valley is comprised of many micro markets, so to have the numbers overall trend like this is a huge statement about the conditions overall. It's crazy out there!
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