Santa Clara County's housing market is re-adjusting itself to the new conditions brought about by the coronavirus pandemic, and real estate experts see the market coming back as more shelter-in-place restrictions are lifted. They say the resumption of in-person showings under strict health and safety guidelines in May has helped keep real estate transactions moving and led to an increase in new listings in the market. While Realtors expect sales activity to remain below pre-pandemic levels, they foresee a marked improvement in home sales as the phased reopening of the economy continues and more consumers feel confident about returning to the market.
A monthly Google poll conducted by the California Association of Realtors in early June found market uncertainty has not curbed the optimism for homebuying. Forty percent of consumers responding to the poll said it is a good time to sell, up from 29 percent a month ago, and 32 percent of the consumers believed that now is a good time to buy a home, sharply higher than last year, when 26 percent said it was a good time to buy a home.
C.A.R. president-elect Dave Walsh was especially upbeat when he spoke to members of the Silicon Valley Association of Realtors last week because weekly market stats he has tracked show the market continuing on an upward pace. Sellers are returning to the market and buyers are even bidding on homes.
Walsh's data for Santa Clara County shows sales since March have been increasing to an average of 200 a week. Sales dropped to a mere 99 the week after county Shelter-in-Place order was imposed. Countywide, the overall 7-day change from June 1 to June 7, 2020 showed that inventory for all homes, single-family homes and condos, was at 1,511, up by 24 in a single week. Pending sales were at 1,193, up 56 from the prior week.
"Our Realtors are very good at pulling buyers and sellers together no matter what the situation is, even in a pandemic," said Walsh. "Our market is recovering faster than any other market in the state. We all are fortunate to be in Silicon Valley."
Many areas have been performing well above expectations, despite the current pandemic situation. South County has been "on fire" with its affordable, expansive housing. Walsh said a reason for this is buyers are gravitating to larger open areas, away from cramped units in cities.
Milpitas has been hot from the start, according to Walsh. Santa Clara, Central San Jose and Sunnyvale "have never retracted and have stayed unbelievably hot with a zero slowdown." Santa Clara had 13 sales over the last week; its 4-week average is 10 sales. Central San Jose had seven sales; its 4-week average is five sales. Comparing the prior week's sales to their 4-week averages, these cities have exploded: Sunnyvale 19 sales (avg. 7), Cupertino 13 sales (avg. 7), Los Gatos 10 sales (avg. 6), Saratoga 8 sales (avg. 3). Positive changes are seen in Willow Glen, which had 17 sales last week (avg. 7) and Mountain View, 9 sales (avg. 3).
Since Santa Clara County's March 16 SIP order, 2,369 properties have been put under contract. Of those properties, 1,968 were priced below $2 million, 122 were priced over $3-7 million, and six properties sold at over $7 million.
"This tells us there is a lot of confidence in our marketplace, confidence in our consumers that work and live in Silicon Valley, confidence in employers and their stock portfolios. I cannot emphasize it enough. Our market is hot, our market is strong. If you price it correctly, it will sell. You should communicate that to your sellers," Walsh told the local association's Realtors.
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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