California Association of Realtors President-elect Dave Walsh shared the good news last week with Silicon Valley Realtors that even with Santa Clara County's Shelter-in-Place order in effect, home sales are still taking place and listings, many of which were withdrawn soon after the SIP order was announced, are coming back.
"We are still selling properties," Walsh told 175 members of the Silicon Valley Association of Realtors who attended the association's first Los Gatos-Saratoga district virtual meeting last week.
Walsh said he has been tracking market trends in Santa Clara County weekly. The overall seven-day change last week, April 13-19, illustrates a trend showing "a marketplace moving forward," said Walsh.
Since the March 16 SIP order, 698 properties were placed on contract in Santa Clara County - 344 vacant properties and 354 owner-occupied properties. Of the properties that were sold, 604 were priced below $2 million and 95 properties were priced above $2 million, including 15 properties priced between $3-5 million and one property priced at $7 million.
Analyzing the week of April 13-19 city by city, Walsh noted a number of cities have not fallen below their average sales. Santa Clara that week had 37 active listings, 12 which were sold, maintaining a four-week average of 10 sales. Walsh said granted with no SIP the city's sales may have doubled, what's important is even with SIP, sales are still happening in Santa Clara County. There is activity in many areas like central San Jose, Sunnyvale, Cupertino.
"Activity is happening around. There are sales being put together," said Walsh.
Typically, the county sees 200 sales per week; the week of April 20 saw 126 sales, a daily average of 18 sales/day, compared with a daily average of 28 sales per day pre-SIP, with more owner-occupied properties being placed on the market. Active listings have steadily increased from 670 single-family homes four weeks ago to 822 in the week ending April 20th.
"My belief is there are creative ways to put deals together through virtual tours and other tools. Buyers, agents and sellers are figuring out ways to put deals together," said Walsh. He believes the trend is a healthy sign and that there is "light at the end of the tunnel."
Walsh's findings coincide with the recent National Association of Realtors Economic Pulse Survey conducted April 19-20, 2020, in which more than a quarter of Realtors (27%) said they were able to complete nearly all aspects of transactions while respecting social distancing. The most common technology tools used to communicate with clients are e-signatures, social media, messaging apps and virtual tours.
"Consumers are mostly abiding by stay-in-shelter directives, and it appears the current decline in buyer and seller activity is only temporary, with a majority ready to hit the market in a couple of months," said NAR chief economist Lawrence Yun.
Some buyers appear to be waiting in the sidelines thinking by pulling out they will see better deals post-SIP. "I'm not sure I would believe that," remarked Walsh, as he expects prices will stay strong and market activity will heighten once the county's SIP order is lifted.
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.
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