In September, the Bay Area maintained its position as California’s most in-demand region for real estate. According to the September California Association of REALTORS
® report, six of nine Bay Area counties had less than three months’ supply of inventory, and of the six – two had less than a two months’ supply. The report indicated that San Mateo took the No. 1 spot with the highest price per square foot at $883/sq. ft., followed by San Francisco ($875/sq. ft.), and Santa Clara ($687/sq. ft.). Read more about what’s happening from our Silicon Valley offices.
SF Peninsula – Half Moon Bay reported an all-time low in inventory supply. Although this makes the housing market tough for prospective buyers, many were still encouraged by low interest rates.
Palo Alto downtown also saw low inventory that led to multiple offers on most, if not all properties.
Redwood City experienced a healthy demand and saw many sales exceeding asking prices. One instance was an uninhabitable house in southern San Francisco that listed for $550,000 and received 29 offers, selling well above the listing price. The luxury market remained active, although properties did not move as quickly.
San Mateo saw an increase in both inventory and prices. The luxury market was active, but slower with properties priced above $2.5 million.
Silicon Valley
Cupertino saw an active market, at times with more pending sales than active listings. Buyers are encouraged to start house hunting as Silicon Valley is a uniquely strong region with exceptional demand. The luxury market remains active with several sales exceeding $6 million.
Gilroy and Morgan Hill saw low inventory and over 65 percent of the 54 available homes sold for over $1 million. Entry-level homes can be challenging to find, although the average list price of Gilroy is slightly lower. Overall, the area remains a sellers’ market with multiple offers and homes selling for above asking.
Los Altos experienced a continued sellers’ market with low inventory and multiple offers on most listings. The average days-on-market remained low, ranging from 13 days in
Sunnyvale to 35 in
Los Altos Hills. Sellers need to ensure their homes are priced and primed for a competitive sale. And buyers must be prepared with financing and a knowledgeable, trusted agent to represent their best interests. Buyers must also be aggressive as the market is highly competitive and sellers are more responsive to solid offers. The luxury market priced above
$4.5 million in Los Altos is steady and flat. On average, time on market is 44 days. Inventory is steadily increasing and the number of sales in the high-end market is down slightly.
Los Gatos saw a sustained sellers’ market, and luxury activity remains strong and active.
San Jose saw inventory at a record low. That coupled with low interest rates has created an increasingly competitive market for buyers. Even with the strong demand, sellers are encouraged to price their home competitively – at or slightly below market price – to avoid pushback from buyers. Because of the current competitive landscape, buyers should be ready to make an offer quickly because hesitation may cost them a great opportunity.
Saratoga saw multiple offers on most of its listings and a continued sellers’ market. Buyers who are ready to make a move should have all financing in order. The high-end luxury market experienced an increase in listings with 24 properties for sale in September, a 9.1 percent increase from August 2017, and a 71.4 percent increase from September 2016.
Any questions about your real estate situation? Let me know!
Thanks for reading!
Francis Rolland
Trends: Local prices and graphs.
