market report - march 2016

Buy.Sell.Stay.March 2016 Market Report

Silicon ValleyCupertino, Los Gatos, Mountain View,

San Jose, Saratoga, Sunnyvale

2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix April 2016

Home seekers from San Francisco down to the South Bay came out strong in March following the typical winter slowdown in the real-estate sector and should see increased opportunities to purchase a single-family house in the next few weeks.

Still, robust demand and high home prices overall leave no doubt about the region remaining a sellers market. Many people are wanting to buy as evidenced by significant activity and interest at open houses, but not enough product is available to go around even as inventory has improved.

For most of the region, March saw a rise in both the number of sale listings and property sold, compared to the previous month. For instance, the Mid Peninsula (Los Altos, Los Altos Hills, Palo Alto, Atherton, Menlo Park and Woodside) experienced a 3 percent rise in listings and 104 percent jump in sales. Silicon Valley (Cupertino, Los Gatos, Mountain View, San Jose, Saratoga and Sunnyvale) was up 18 percent in listings and 62 percent in sales.

Generally, March and April bring the largest amount of listings, but the activity heading into this spring seems to have ratcheted up even more so partly because buyers have become increasingly sophisticated with the use of automated search programs that immediately alert them to an available house.

Year-over-year, though, property sales were down across the region. They decreased 20 percent in San Francisco; 54 percent in the North Peninsula (Belmont, Burlingame, Foster City, Hillsborough, Redwood City, San Carlos and San Mateo); and 13 percent both in the Mid Peninsula and Silicon Valley.

That year-to-year slide could be attributed to supply still struggling to keep up with demand. If more property is available, then the number of sales would be up.

Compared to a year ago, the regions inventory did show an uptick overall (20 percent in San Francisco and 6 percent in Silicon Valley, for example) - a good trend for buyers who have been waiting a while to make a purchase.

In particular, the inventory of upper-priced houses in parts of the Peninsula and Silicon Valley has gone up, and buyers should soon see the selection expand even more as Intero agents are increasingly hearing from those ready to sell. Home inspectors and stagers are also getting backlogged for their services, indicating that more product will become available in the immediate future.

However, prices have surged as well. The median sold price in March was up 15 percent from a year ago in both San Francisco and Silicon Valley to $1.3 million and $1.1 million, respectively. It was up 3 percent to nearly $1.6 million in the North Peninsula but down about the same percentage, albeit still pricey, to $2.7 million in the Mid Peninsula.

If a house is at a super-premium price of $2.5 million or more, fewer people can buy. But at the lower price ranges, many people are competing to get into a place.

To be successful, buyers need to work with their agent to write as clean an offer as they are comfortable and have a pre-approved loan ready.

They could also write a letter to the seller about a little of themselves and their family and the reasons why they want the house for sale. Establishing an emotional connection with the seller could prove a tipping point.

In addition, if a house has been on the market for a while, that probably indicates it is overpriced. So buyers should not be afraid to give an offer that is below asking price.

Indeed, there can be quite a gap between the listing price and how much a buyer actually ends up paying for a property. Take the North Peninsula, where the average for-sale price in March was $3.6 million (up 43 percent from last year) but the average sold price was $1.9 million (up 13 percent).

Executive Insights

Spring Supply Vs. Demand

Average Sold Price

$1,252,000

Total Homes Sold

543

Total Homes for Sale

639Average Days on Market

21

Market Highlights

Average List Price

$1,768,000

Silicon Valley

Luxury Homes for Sale*

*Homes for sale above $3 million.

66

Silicon Valley

Home PriceRange

HomesFor Sale

Year Over Year % Difference

< $500K 14 -33%

$500K - $1M 230 -23%

$1M - $3M 330 47.30%

$3M - $5M 42 0%

$5M - $10M 18 39%

$10M + 6 -25.00%

Inventory

Inventory By The Numbers

Total Number Of Homes: For Sale Sold

It is a Sellers Market! Property Sales (Sold) March property sales were 543, down 13% from 624 in March of 2015 and 61.6% higher than the 336 sales last month.

Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 36 units of 6%. This years bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 17.7% compared to the previous month.

Property Under Contract (Pended) There was an increase of 63.5% in the pended properties in March, with 806 properties versus 493 last month. This months pended property sales were 3.9% higher than at this time last year.

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416

511

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795 822 8

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543

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343 37

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770 82

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15-Jan 15-Feb 15-Mar 15-Apr 15-May 15-Jun 15-Jul 15-Aug 15-Sep 15-Oct 15-Nov 15-Dec 16-Jan 16-Feb 16-Mar

Silicon Valley

Average Prices in $,000: For Sale Price Sold Price

Pricing

Pricing By The Numbers

Average Price Per Square Foot.

Month over Month

$6515.7%

The Average For Sale Price is Appreciating The Average For Sale Price in March was $1,768,000, up 7.3% from$1,647,000 in March of 2015 and up 7.8% from $1,640,000 last month.

The Average Sold Price is Appreciating The Average Sold Price in March was $1,252,000, up 9.2% from $1,146,000 in March of 2015 and up 6% from $1,181,000 last month. The Median Sold Price is Appreciating The Median Sold Price in March was $1,050,000, up 15.3% from $911,000 in March of 2015 and up 13.1% from $928,000 last month.

$1,590$1,652 $1,647 $1,631 $1,582 $1,552 $1,519 $1,465 $1,508 $1,525

$1,655

$1,889

$1,727$1,640

$1,768

$977

$1,137 $1,146 $1,144$1,203 $1,194 $1,147 $1,150 $1,150 $1,156 $1,121 $1,090 $1,055

$1,181$1,252

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Home PriceRange

Days on Market

Year Over Year % Difference

< $500K 14 -136%

$500K - $1M 19 -16%

$1M - $3M 18 22%

$3M - $5M 103 90%

$5M - $10M 138 -13

$10M + 0 NA

On The Market

DOM By The Numbers

The Days on Market Shows Downward Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyers market, a downward trend indicates a move towards more of a Sellers market. The DOM for March 2016 was 21, down 27.6% from 29 days last month and up 5% from 20 days in March of last year.

Silicon Valley

Average Days On Market

38

29

20 1916 17

21 22 2225 26

33 34

29

21

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market report - march 2016

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