Market conditions continue to vary depending on location. Despite a general downturn in the housing market, some neighborhoods are actually seeing home sales increasing each month, while sales in other neighborhoods have been slashed in half in comparison to last year. Home prices also vary, depending on foreclosures and the gravity of the subprime loan problem in the area.
As always, when it comes to location, good school districts, accessibility to and from the work place and a city's amenities help maintain the value of homes in a neighborhood. It's the reason why in Santa Clara County, cities like Cupertino, Los Altos, Los Gatos, Palo Alto continue to have healthy markets, despite the market slowdown in the state, according to Silicon Valley Association of REALTORS® (SILVAR) President Leannah Hunt.
"We are fortunate that much of the Silicon Valley housing market is doing really well. As long as pricing is right, the market will continue to do well," said Hunt.
Hunt advises sellers to look to an experienced Realtor who can give them information on homes selling in the neighborhood. "Find a competent Realtor who can give you the most up-to-date information about homes and market conditions," said Hunt. "A knowledgeable Realtor can provide you with a survey of the market and good comps, which will help you price your home to sell."
Information from MLSListings Inc., the Multiple Listing Service of the Silicon Valley Association of REALTORS® (SILVAR), shows some positive trends. In the first half of 2008, the Average Days on Market for single family homes in Cupertino dropped from 27 to 26, and the median sales price increased from $1,180,000 to $1,206,000, in comparison to the same period last year. Condos and townhomes also appear to be in demand in this neigborhood, as Average Days on Market for condos and townhomes dropped almost a full week and the median sales price increased from $656,000 in the first half of 2007 to $690,000 in the first half of 2008.
In Los Altos, sellers appear to be getting their homes off the market sooner, as Average Days on Market for single family homes dropped a full week from 30 days to 23 in the first part of 2008, compared with last year. The median sales price also increased, from $1,710,000 in the first part of 2007 to $1,785,000 in 2008. Even condo and townhome sales are healthy with days on market dropping from 35 to 29, and the median sales price up from $860,000 to $874,500.
In Los Gatos, the median sales price of a single family home was down a bit from $1,434,500 during the first half of 2007 to $1,415,000 in 2008, and homes stayed on the market one day less, from 40 to 39.
Buyers may see opportunities in Mountain View and Saratoga. The median sales price for single family homes in Mountain View saw a slight drop from $1,060,000 in January – June 2007 to $1,008,000 in 2008, and the Average Days on Market has increased as well from 16 in the first half of 2007 to 25 in 2008. In Saratoga, the median sales price for a single family home has dropped from $1,688,000 last year to the current median of $1,635,000.
Homes in Palo Alto continue to maintain value. The median sales price of a single family home in Palo Alto increased from $1,520,000 to $1,575,000 in the first part of this year, while Average Days on Market declined. Sales of condos and townhomes are also brisk, and their median sales price up from $726,575 to $869,000.
Sunnyvale's median sales price has remained the same in comparison to the same period last year, at $899,500 for single family homes.
Some Santa Clara County neighborhoods, which continue to wrestle with more foreclosures and subprime loan issues tell a different story. In Gilroy, the median sales price dropped from $726,944 in 2007 to $531,000 in the first half of 2008. Campbell's closed sales were cut almost in half, while homes in Milpitas are remaining on the market for nearly twice as long. Those trying to sell single family homes in San Martin are averaging a whopping 169 days on the market.
"Whether buying or selling, there are positive trends from the first half of 2007 to that of 2008 in many of our local neighborhoods. Trends should continue, strengthening the market throughout the rest of this year," Hunt predicted.
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.
For further information, please email or call the SILVAR office at (408) 200-0100.