A report from the region's local multiple listing service indicates housing market activity in Silicon Valley lost some steam in the month of August, despite low interest rates. While month-over-month median prices of single-family homes increased, they did so at a slower pace. In some counties like San Mateo and Santa Cruz, the median fell 12 percent and 10 percent, respectively.
MLSListings Inc., which serves the counties of San Mateo, Santa Clara, Santa Cruz, San Benito, and Monterey, reports a month-over-month drop in single-family home sales in the five-county area. Closed sales of single-family homes in August were down from July by 20 percent in San Benito County, 15 percent in Santa Clara County, 12 percent in San Mateo County, 5 percent in Santa Cruz County, and 4 percent in Monterey County.
Inventory of single-family homes was down in all counties, except Monterey, which had a small increase of 1 percent. In San Mateo County, inventory fell 6 percent for single-family homes, but increased 10 percent for condos/townhomes. Santa Clara County's inventory dropped 4 percent for single-family homes and dipped 2 percent for condos/townhomes from the previous month.
When compared with August 2013, closed sales were down in all counties - in Monterey, by 4 percent; San Benito, 16 percent; San Mateo, 3 percent; Santa Clara, 13 percent; and Santa Cruz, 5 percent.
"The month-over-month drop in sales is consistent with seasonal trends. With the start of the school year, the month of August is a busy time for families," said David Tonna, president of the Silicon Valley Association of REALTORS®. "Last year was a good buying year as we saw the economy quickly recover and buyer confidence returning. We're now seeing a balancing of the market. Prices that climbed too steeply and negatively impacted housing affordability, are now tempering."
With the exception of San Mateo and Santa Cruz counties, August median home prices increased 9 percent in Monterey County, 2 percent in San Benito County, and 1 percent in Santa Clara County. San Mateo County's median in August was $1 million, down 12 percent from the July median of $1,138,000, while Santa Clara County's August median of $875,000 was a slight increase from the July median of $865,000.
Year-over-year comparisons continue to show median price increases for single-family homes across the five county area: Monterey, 17 percent; San Benito, 10 percent; San Mateo, 1 percent; Santa Clara, 7 percent; and Santa Cruz, 3 percent. The median price for a single-family home in San Mateo County in August 2013 was $989,500. In Santa Clara County, the median in August 2013 was $815,000.
Upon analyzing a 12-month trend for sale price and listing price, MLSListings finds that generally, for the reported counties, homes are selling higher than the list price, with the peak in April 2014. Since April 2014, the ratio has been decreasing.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.