Median sales price in Santa Clara County: is it a good time to buy now?
The time is about right now for an update on this fairly important matter, especially for buyers who have been in the market to buy for a while, or are thinking of making a move in the near future.
My last post on the subject, "the ratio of sales price over list price", and last year's post in September "the evolution of average prices" provide some perspective on this (as well as an article last week end in the SF Chronicle, BTW).
Below is the graph showing the monthly change in median price for all homes (houses and condos) sold in the County of Santa Clara, since the beginning of last year (2014). On this graph we see the median price, and not the average price. "Median Price" means this: the same number of homes sold over that price, as the number that sold under that price. But one can see that either way, the trend is similar to the one that the average price followed last year.
All in all, it means that it is statistically a better time to buy during the last months of the year than during the first six months of the year, when prices go up - because more people are looking, and need to buy during those months, to be settled in for the next school year. Probably it also means that fewer people are looking to buy as we get closer to the winter months, and the Holidays. It can also mean that the homes that sell during that time are in general less expensive than during the first 6 months (smaller homes may be?). It is not a definitive call that a house will be bought for less money all things considered, but it certainly is worth keeping in mind the seasonal trend.
One last remark on the subject: the trends in years past are a lot more pronounced. In the past 2 years, or so, the market is such a sellers' market that the slowdown in the market is just mild towards the end of the year. One should remember that it is still very much a sellers' market, and that there continues to be a strong competition among buyers for the nicest homes. But my experience has been that buyers are less stressed when buying a house closer to the end of the year.
Thank you for reading!
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