The lack of inventory remained the major roadblock to higher closed sales in the month of September, as indicated by year-over-year data provided to the Silicon Valley Association of REALTORS® (SILVAR) by MLSListings Inc.
Inventory and new listings for single-family homes in September fell compared to the same month last year in the five-county area covered by the MLSListings data report. Santa Clara County had the largest drop in inventory, down 44 percent from the same time last year. San Mateo County came in second, with an inventory drop of 42 percent, followed by Monterey County, 31 percent; San Benito County, 30 percent; and Santa Cruz County, 27 percent.
New listings were also down compared to September 2011 figures, most significantly in Monterey County, where they were down 25 percent. In Santa Clara County, new listings were down 14 percent; San Mateo County, down 13 percent; San Benito County, down 4 percent, and Santa Cruz County, down 3 percent.
The shortage of inventory has pushed down sales in some counties. Compared to September 2011, September 2012 sales of single-family homes in San Mateo County were down 17 percent, and Monterey County, down 11 percent. Sales increased in the counties of Santa Cruz, up 36 percent; San Benito, up 12 percent; and Santa Clara, up 5 percent.
The median price of single-family homes showed gains of 14 to 21 percent in all five counties compared to the previous year. Santa Clara County's September median price of $655,000 was 15 percent higher than the September 2011 median of $570,000. San Mateo County's September median of $783,000, was 21 percent higher than the September 2011 median of $646,000.
Days on market were shortened by 44 percent in September. In Santa Clara County, the typical home was on the market 71 days in September 2011. Days on market dropped to just 40 in September 2012. In San Mateo County, days on market dropped 52 percent from 71 days in September 2011 to just 34 in September 2012.
Suzanne Yost, president of the Silicon Valley Association of REALTORS®, says she hopes sellers will be encouraged by the news. "A market with low inventory and active buyers creates upward pressure on prices, particularly coupled with historically low interest rates. This pressure is causing prices to increase, which will be good for sellers as they begin to feel more confident about putting their home on the market," said Yost.
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.