Home prices in Silicon Valley continued to rise in May, but at a slower pace. According to the MLS, counties like Monterey, San Mateo and Santa Clara saw month-over-month gains in the median price of a single-family home, while the counties of San Benito and Santa Cruz saw their median decline during the same period.
"The market appears to be softening as home prices correct themselves. We are still seeing high demand and some multiple offers, but it is not as frenzied a pace as a few months ago. There's been a slight rise in inventory in some places. That's always good for buyers and helps the market environment overall," observed Chris Isaacson, president of the Silicon Valley Association of REALTORS®.
MLSListings Inc. reports in most Silicon Valley counties, the median price of a single-family home rose in May compared to the previous year, but the month-to-month median price data, including price gains, varies. The median price of a single-family home in Monterey County rose 17 percent from $460,000 in April to $539,500 in May. San Mateo County's median price of $1,347,500 was 5 percent higher than its April median of $1,285,000. In Santa Clara County, the May median of $997,500, was 3 percent higher than the April median of $965,500. San Benito and Santa Cruz counties saw their median home prices drop 4 percent and 9 percent, respectively.
Only the counties of Santa Cruz and Santa Clara saw single-family home sales rise compared to May last year. Closed sales of single-family homes increased 12 percent in Santa Cruz County and 2 percent in Santa Clara County year-over-year. Compared to May 2014, home sales were down 12 percent in Monterey County, down 10 percent in San Mateo County, and down 2 percent in San Benito County.
The MLS reports month-over-month numbers also show a softening of closed sales. Compared to April, sales dropped 2 percent in Monterey County, 6 percent in both San Benito and Santa Clara counties, and 8 percent in San Mateo County. Sales showed a modest gain of 5 percent in Santa Cruz County.
Only Santa Cruz and Santa Clara counties saw a rise in inventory of single-family homes for sale from the previous month. Santa Cruz County saw month-over-month inventory of single-family homes rise 9 percent. Santa Clara County had a 3 percent increase in month-over-month inventory and a 32 percent increase in year-over-year inventory.
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.
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