Market Watch - Coldwell Banker.
...Silicon
Valley
– It has been a relatively
quiet two weeks, according to our Cupertino manager. Open house traffic is
steady.
Our Los Altos manager sees continued signs of seasonal adjustments
although inventory is low as summer comes to a close and we move into fall.
New inventory has slowed of late. This lack of inventory has had a
direct impact on those homes which had been "lingering" on the market
and agents have seen additional price reductions on homes with higher than
average DOMs (days on market). Sellers are still wishing to “test the market” by bringing
their homes on at higher prices than previous sales and pendings.
However, this pricing strategy has proved to be risky, given that many
buyers' expectations are that they will still need to offer over the
asking. As a result of this type of pricing strategy agents are seeing a
“self-fulfilling prophecy” with these homes having little to no activity. These
homes end up stagnant and linger on the market, eventually having to lower
their price to generate activity. To the contrary, there has been strong
activity with properties in move in condition and priced to sell. These
homes are still receiving multiple offers that typically achieve a sales
price that is over asking. This was the case with one of our recent
listings, which had 24 offers. In short, we have experienced a slowdown of
homes coming on the market over the recent weeks. And those that are
coming on, when priced to induce offers, are being absorbed quickly.
The Los
Gatos market under $2.5 million continues to be extremely competitive.
The market over $2.5 million is a tad slower but great properties over $2.5
continue to sell.
The San Jose Almaden market had an average number of sales
for the month with 40, which is down from 44 in August and flat with the 39
sold in 2015. Prices were up with the median sales price at $1,320,000
for the month, up 7.8% from the previous month and 3.5% higher than the
previous year. Blossom Valley had a strong month in units sold with 94
closings, up from 88 last month and 86 last year. The median home price
of $751,250, up 4% from last month and last year at this time.
Cambrian
had a big jump from last month with 86 closings, 20 more than August and 4 more
than 2015. The median sales price was $937,500, up 3.9% from last month
but down 1% from September of 2015.
Santa Teresa had a lower number of
units sold at 27, down 6 from last month and down 13 units from September of
2015. The median sales price of $750,000, down 4.5% from last month but
up a whopping 11% from September of last year.
Willow Glen got a surge of new listing
inventory this past week, going from the low 60’s count to 83 active listings.
Agents are reporting slower traffic at open houses, particularly if the
property has been on the market more than 2 weeks. However, some properties are
still selling quickly with multiple offers, but typically the offers are at or
just slightly above the list price.
Thanks for reading!
Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates
Thanks for reading!
Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates