Single-family home sales in Silicon Valley picked up in March compared to the previous month, substantially rising in the counties of Santa Clara and San Mateo, according to the latest local multiple listing service report. March also saw gains in inventory, a sign that more sellers are encouraged by the market's activity.
Data for the month of March from MLSListings Inc. indicates single-family home sales rose substantially month-over-month in all of its five home counties. Compared to February, home sales in San Mateo and Santa Clara counties rose 35 percent in March; San Benito County, 33 percent; Santa Cruz County, 30 percent; and Monterey County, 5 percent.
"The very low interest rates, currently dropping well below 4 percent for a 30-year fixed-rate, and positive employment growth in San Mateo and Santa Clara counties are driving home sales. More homes are coming on the market, too. Now is the time to buy a home if you can afford to do so," said Karen Trolan, president of the Silicon Valley Association of REALTORS®.
Single-family home sales were down this time last year in all counties except San Benito, which saw a 19 percent increase. Santa Clara County had the largest drop of 10 percent in year-over-year home sales. Both Monterey and San Mateo counties were down 9 percent, and Santa Cruz County sales declined by 5 percent.
Santa Clara County's March median price of $1,060,000 was up 13 percent from $939,000 in March 2015, while San Mateo County's median of $1,210,000 was down 6 percent. The year-over-year median home price in Santa Cruz County was up 7 percent, San Benito County up 6 percent, while Monterey County's median was down 4 percent.
Compared to the previous month, the March median sales price was up 11 percent in Santa Clara County, up 6 percent in San Benito County, and up 1 percent in San Mateo County. Monterey County's median dipped 1 percent, while Santa Cruz County's median was flat.
Month-to-month inventory showed gains in all five counties, with Santa Clara up 21 percent; San Mateo, 17 percent; both San Benito and Santa Cruz, 14 percent; and Monterey, 8 percent. Compared to March 2015, inventory increased 37 percent in both Monterey and San Benito counties, and 5 percent in Santa Clara County. San Mateo County inventory fell 14 percent and Santa Cruz was down 7 percent.
Homes appear to be moving quickly. Compared to the previous month, Days on Market (DOM), which indicates the number of days a listing is active on the market, dropped dramatically in almost all counties served by MLSListings – 73 percent in Santa Cruz (37 days), 42 percent in San Benito (38 days), 35 percent in San Mateo (23 days), 73 percent in Santa Cruz (37 days), and 2 percent in Monterey (55 days).
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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