Real Estate Report presented by Mary Pope-Handy

September 2016 Report

Single Family Homes in Santa Clara County, Los Gatos, 19580 Change >


Median Price
$1,830,000
+1.7%
Average Price
$2,345,980
+18.2%
No. Sold
21
-32.3%
Pending Properties
23
+9.5%
Active
61
-7.6%
Sale/List Price Ratio
97.5%
-2.9%
Days on Market
40
+10.1%
Days of Inventory
87
+36.4%

Market Barometer

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Market Commentary

Median Price of Homes Below $1MM

The median price of single-family, re-sale homes dropped below $1MM for the first time since February.
Real estate in Silicon Valley continues to back off the frenzy we have experienced the past few years.
Sales of single-family, re-sale homes have been lower than the year before seven months in a row. Year-to-date, home sales are down 9% in Santa Clara County.
Pending sales rose 6.6% in August over the year before, but that was after seven straight months of being lower than the year before.
After months of double-digit gains, home prices, while still rising, are doing so only by single-digit gains. The median price rose 1.8% in August over last year.
Also, we are seeing a drop in the number of offers, especially in the high-end of the market.
A few of the reasons for the slow down in the Silicon Valley real estate market are:
As we mentioned two months ago, the IPO market in the Bay Area has dried up. While there were over 80 from 2013 to mid-2015, there has only been one so far in 2016. IPO money, and the instant riches it conferred, was a driving force in the upper end of the market the past few years. Of note, the San Jose Mercury News recently reported there were seven new IPOs announced in August.
Chinese buyers in the low and mid range have disappeared from the market.
Buyers are much more open to waiting, especially in the high-end where they are much more likely to let a property go rather than get involved in a bidding war.
All-in-all, while the high-end of the market is slowing markedly, the low and mid-range are still holding up, albeit with slightly reduced demand. 

Prices & Sales

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Days of Inventory

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Sales to Date

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Sales Price Ratio

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