The housing market is bouncing back in Santa Clara County. Compared to previous years, 2013 was a good year. Expect 2014 to be just as good or even better, according to Moise Nahouraii, broker/owner of Referral Realty in Cupertino. Nahouraii, who is a member of the Silicon Valley Association of REALTORS®, shared data with other members of the local trade association to prove his point.
Currently, Santa Clara County is showing all signs of a healthy market. Inventory has greatly improved this year. According to Nahouraii's data, there were 1,765 single-family homes and condo/townhomes for sale in October 2013, up 32 percent from October 2012.
"We are doing better and selling a lot more," remarked Nahouraii.
Closed sales have greatly improved, as well. Data from November 1, 2012 to October 31, 2013 shows of 12,373 total closed home sales, only 11.6 percent were distressed sales (REOs and short sales), compared with 29.2 percent the previous year and a whopping 50.5 percent in 2009. Over half (53.7 percent) of all homes sold between $500,000 and $1 million dollars.
"We're losing the lower end and the rest is coming up," said Nahouraii.
The median price for a single-family home in October was $778,500, compared to $450,000 during the downturn in October 2009. The highest median home price during the peak years was $800,000.
"We are almost there," said Nahouraii.
Sales of condos and townhomes are coming back strong and it is not because single-family homes aren't selling. It is because there are fewer of them around and more condos and townhomes are being built.
A graph that showed unemployment in Santa Clara County before, during and after three recessions illustrates the fast pace the county recovers after each recession compared to the rest of the state and the nation. The county has a population of 1.7 million people, with a labor force of 923,400, of whom 864,500 have jobs and 58,900 are unemployed. Its 6.4 percent unemployment rate fares far better than the statewide unemployment rate of 8.7 percent and 7.3 percent nationwide.
The county has made a big comeback from having a 9.5 percent unemployment rate in 2011. "It's because the county is very vibrant. It loses jobs, but gains jobs fast," said Nahouraii.
According to the monthly labor force data for all counties in California, based on October 2013 figures, Santa Clara County is among the top 10 counties in California with the lowest unemployment rate. Marin is ranked first (4.8 percent); San Mateo County second (5.1 percent); followed by San Francisco and Napa (3 percent).
Nahouraii is optimistic about next year. He sees the growth especially in the northwest quarter of the county, from Palo Alto to Los Gatos. Keep track of this area, he told agents.
Is it a good time to buy? It's always a good time to buy, according to Nahouraii. "Families should buy when they are able to buy and when they find property that fits their lifestyle," he said.
To those who fear prices may start going down, Nahouraii says this will only happen if companies freeze hiring, if there are layoffs; and if inventory rises dramatically. Right now, he doesn't see all these happening in 2014.
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 email or call the SILVAR office at (408) 200-0100.