The MLSListings and Aculist September Market Trends Report shows Santa Clara County recorded the highest median price this year - $1,407,500, up from $1,400,000 in August. Closed sales were at 976, the highest for the month of September since 2016. The county had 1,244 new listings, 10 percent higher than in August and 27 percent higher than in September 2019.
Michelle Ronco, senior product market manager with Aculist, told members of the Silicon Valley Association of Realtors, "Bottom line for Santa Clara County is high prices, high premiums (103%)."
The median sales prices of local cities are exhibiting double-digit percentage increases year-over-year, with Saratoga at $3,075,000, its highest median price all year. Days on market are in the single digits, a sign that homes are selling quickly.
"Everything is speeding up; it's a tight, tight market," said Ronco. "Santa Clara County has held its ground all throughout the pandemic."
California Association of Realtors Deputy Chief Economist Jordan Levine recently told Realtors California's housing market did not perform as bad as originally thought with the pandemic. Economic indicators have improved and there has been a robust housing rebound. New construction is coming back, retail sales are back to pre-crisis levels, consumer spending has hit all-time highs. Consumer confidence is starting to rebound. Interest rates are still at record lows.
"Expectations for recovery have grown stronger," said Levine.
Due to the flexibility working from home brings, the home has become more important than before. "Housing is still the American dream," said Levine.
The high-end market is particularly vibrant because most job losses are concentrated in lower-wage industries, said Levine. Homes priced at $5 to 9 million and ultra-high-end homes priced upwards of $10 million are selling quickly.
According to Judy Bogard-Tanigami, a Realtor with Compass Los Altos, "Prices of homes in Los Altos Hills have risen exponentially at the high-end. Demand is very robust at this point, but we're lacking the units we need. Buyers are looking for homes with more space and larger yards to accommodate their elementary, high school and college kids who have come home. Parents are stretched thin for space as they, too, work from home."
Michael Dreyfus, with Golden Gate Sotheby's International Realty in Palo Alto, remarked, "The market is so Covid-driven now."
Dreyfus indicated acreages have made a comeback, as have pools, home theaters, larger home gyms. Buyers are wanting suite bedrooms and more bedrooms.
"The home is everything. The home is your resort and your office," said Dreyfus.
Covid has become "the accelerator" for families who have been thinking of moving. While there are families entrenched in Silicon Valley, the high cost of housing and threat of higher taxes could nudge others to think of moving or question premiums paid for homes close to work when proximity to the office may no longer be necessary.
Despite positive signs, Levine cautioned there is still a lot of uncertainty and pain in the industry. Foreclosures and evictions loom and the lack of supply is impeding recovery.
"It isn't smooth sailing yet because the virus is the greatest wild card," said Levine.
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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