Francis
These are the average and median prices for all sold homes combined in the County of Santa Clara over the past 2 and a half years, month after month.
In this graph we can see that:
- while January is always lower, the best months for a higher sales price (in average) are March to June. while we note that, we have to remember that January average prices are the results of DEC. sales, so all months graphs are the results of the previous months sales. It is not true of all transactions, of course, but we are talking "statistics" here. This is over a large number of transactions.
- the arrows point to the usual rebound in prices in September and October, after the months of July and August, which are traditionally slower.
- the months of November and December are traditionally slower and prices are down during these months - as an average. This was not true this past year though in 2021, and this is noteworthy. In fact, "in the trenches", us Realtors were surprised to see the level of activity in November and December. In general at that time of the year buyers can expect a more relaxed and slower market. Well, not in 2021!
- prices in 2022 are geared for an overall up year as an average; the market started very strong at the beginning of the year, and as we now know has slowed down significantly around may (which is more visible on the median price graphs). However the market is still very active, just not at the high of April-May. The market is now more balanced, with fewer multiple offers and prices which have scaled back at the level of six to nine months ago.
It is important to remember that:
1/ multiple offers depend on the asking price. A very low asking price will draw multiple offers.
2/ it is not expected that prices will "crash" as demand is still very strong, and interest rates are still historically low, as the 3rd graph shows.
3/ a recession, even if it comes around, does not equate necessarily to lower real estate prices - see the last graph.
4/ most analysts and banks forecast real estate prices up every year for the coming years.
Francis
Source: The Skimm
Read the full article here.
Francis
In some cases, a property’s chain of title may go hundreds of years, back to
when the government first granted the right of ownership of the land, by way of
Patent - and perhaps the home’s first owner. Today, when a new buyer closes,
and the paperwork is filed with the local office that handles real estate
records and filings, the new owner’s name will join that chain.
Francis
This article is: of the NAHB
According to NAHB analysis of quarterly Census data, the count of multifamily, for-sale housing starts increased during the first quarter of 2022. At 11,000 units started, this was the best quarter for condo construction since the third quarter of 2008.
This is particularly important for us in the Bay Area because land is so scarce. We do see a lot of new condos popping up, although a lot of the new construction in the past 3-4 years has been in apartment complexes, with high rents.
Francis
Source: Realtor.com
Francis
These figures are Average sales prices for all houses, condos and townhomes combined.
SCC: +41% - between Jan. 2020 and Dec. 2021 - SMC: +40%
Along with these figures, here are a few data points:
Nationwide, borrowers had a record $9.4 trillion in tappable home equity collectively, or an average of $178,000 per borrower, according to Black Knight. In California, home sellers typically pocketed a net cash gain of $322,500 from the sale of their homes in 2021 – a 96% increase from the purchase price.
Francis
Tough times for buyers....
My advice, after working through several of those up and down cycles: save yourselves all the rookies mistakes in purchasing a home (like working with a discount agent): hire an experienced professional who is patient and persistent, and well-known in the Realtors community.
Francis
