Santa Clara County Market Conditions April 2007

Single Family Market

The disparity between the number of homes coming on the market and the homes selling continues to grow as we approach the summer months. Clearly, the number of homes sold is lower this year compared to last. The fascinating thing is that despite this disparity and the lower sales numbers, the prices are continuing to rise as we will see (one would expect the opposite). What does this tell us? Buyers certainly have a wider selection of properties from which to choose overall, however, there is still competition for the ‘prime choice' properties in great condition and excellent school districts. Location becomes extremely important in this market place. Again, depends on where your home is located.....

Why is there a continuation of homes coming on the market outpacing those getting into contract? Probably we are still seeing the residual impact of the sub-prime markets. Those borrowers who were unable to keep up with their mortgage payments are still unloading their homes before going into default.

No surprise, but the prices continue to rise. The average square feet fell slightly to $553 from March but look at what it was the prior year.

Of the houses that are selling, they are selling slightly higher than list price and the time it is taking to get into contract is decreasing.

Condo/Townhome Market

The trend for condos is consistent with the Single Family market. The listing activity spiked upwards while the sales activity remained fairly leveled throughout the year but lower than the previous year.

Price point went from an average of $435 for the year ending in April 06 to $447 in April 07.

Days on Market is falling and returning to the level of below 30 days.

Steve Mun, Silicon Valley Realtor
www.stevemun.com

Graphics courtesy of Trendgraphix.