The median price for homes for sale in Santa Clara County increased to $645,000 from $550,250 a year ago. The average home price is up 16% as well to $785,447.
Days of Inventory has decreased again this month. The number of days of inventory is the number of days it would take at the current rate of sales to sell every house on the market. That number for June (on a 3 month moving average) was 74 days. That is down from 114 days in June 2009. The number of homes on the market in June 2010 was 2678 down from 3821 (29.9%) in June 09.
Santa Clara County Real Estate Sales to List Price Ratio - Once again the sales to list price ratio remains above 100% for June 2010 at 100.4%. That is 1.0% higher than in June 2009. This market indicator has remained above 100% since August of last year. The mid range market continues to see many homes receiving multiple offers and offers above list price, contributing the this continuing trend.
As always, all real estate is local and results vary by neighborhood. For complete information on your neighborhood and your home’s value, you may contact me at any time. You may sign up to receive future real estate market updates. I also provide information on current market data for all cities in Santa Clara and San Mateo Counties for you to review.
California Association of Realtors' First-time Buyer Housing Affordability Index measures the percentage of households that can afford to purchase an entry-level home in California. This Index measures housing well-being for first-time buyers. In the first quarter of 2010 this index Remain near an all time high at 66 percent in California. This means that 66%, or two-thirds, of all households could afford a home with an entry-level price of $246,240. The First Time Home Buyer Affordability Index is based on an entry level price, a 10% down payment, an ARM effective composite interest rate, and a 40 percent debt to income ratio. The index hit an all time high of 69 percent in the first quarter of 2009 when prices in much of the state bottomed out.
Results of the recent homebuyer survey showed that while the home buyer tax credit was a factor in the decision to purchase a home, it was not the only factor. Most survey respondents stated that price declines and the ability to secure favorable pricing and interest rates were the primary driving force in their home buying decision.
The California Association of Realtors recently completed its 11th annual 2010 Survey of California Home Buyers that details how home buyers have adapted to changing market conditions and the new housing market environment.
1. The share of first time home buyers increased in the past year. This was the second straight year of increase for first time home buyers. Their share of the total of all home buyers this year was 46%. This percentage is a record high since CAR began this survey. The lowest level of first time homebuyers recorded by the study was 7% in 2002.
2. The federal home buyer tax credit influenced many buyers' decisions to purchase this year. 73% of first time home buyers said they were influenced by the tax credit.
3. There was an increase in the percentage of home buyers who were interested in Bank Owned/REO's/Short Sales this year. Home buyers who purchased a bank-owned/REO property increased from 38% in 2009 to 41% in 2010. Home buyers purchasing short sales increased from 13% to 16%. First time home buyers fueled these increases in 2010. The interest in Bank-owned/REO and Short Sales by repeat buyers remained mostly flat as compared to the previous year.
4. More home buyers were optimistic that real estate prices will rise in the future. 23% of them thought that homes in their neighborhood would increase in value in the next year. This is up from only 8% in 2009.
5. Home buyers are putting a larger down payment on their new homes in 2010. First time home buyers are putting an average of 23.1% down while repeat buyers are putting an average of 37.3% down on their purchases this year. Both percentages are up when compared to 2009.
From the Silicon Valley Association of Realtors:
In 1986, California voters passed Proposition 60 that amended the State Constitution to allow property owners over the age of 55 years old to move within their current county and keep their property tax base assessment from their original property. This law gave relief to seniors who moved from paying higher basic property taxes.
In 1988 California voters passed Proposition 90 that amended the State Constitution to extend the same Prop 60 rules to property owners over the age of 55 years old moving across county lines. Since Prop 90 is a "local-option" law, counties have the choice to adopt a Prop 90 ordinance and allow these types of transfer exemptions. Currently San Mateo and Santa Clara Counties both have Prop 90 ordinances.
Prop 60
Some of the requirements for the exclusion are:
Additional Santa Clara County Proposition 60 Information
Prop 90
Both San Mateo and Santa Clara Counties have Prop 90 ordinances, meaning you can move between these two counties and qualify to keep your property tax base assessment.
The requirements for Proposition 90 in Santa Clara County are the same as Prop 60 except for the following:
There are many activities in Palo Alto and the surrounding communities to fill your leisure time. Here is a list of museums to visit and explore the culture and history of the Palo Alto area.
1451 Middlefield Road, Palo Alto - Children and their families will enjoy the hands-on interactive exhibits and the mini-zoo houses raccoons, bobcats, ferrets, tortoises, geese and lots of snakes. Admission is Free - a $3 donation per person is appreciated.
1401 N Shoreline Dr., Mountain View - At the Computer History Museum you can see and experience one of the world's largest collections of computing artifacts. The exhibits allow you to explore the computer revolution and its impact on the human experience. Admission is Free - donations are welcome and membership is encouraged.
351 Homer Avenue, Palo Alto - The Museum of American Heritage preserves and presents the evolution of American invention. They collect, conserve and exhibit the wonderfully ingenious electrical and mechanical devices that have developed over the last two centuries. They present special theme exhibits that change every four months plus permanent exhibits depicting life and technology in the earlier part of the 20th century. Admission is Free.
Lomita Drive at Museum Way, Stanford - The Cantor Arts Center displays diverse collections spanning continents, cultures, and 4,000 years of art history and include the largest gathering of Rodin bronzes outside Paris. See a wide range of changing exhibitions and take advantage of tours, lectures, talks, classes, and special events. Admission is Free.
2200 Broadway, Redwood City - The History Museum is an innovative regional history center located in the Old County Courthouse. Featuring interactive experiences, the History Museum's long-term exhibits are the place where you can explore the county’s rich and colorful history. Artifacts, exhibits, and legends are on display that keep history alive and retell the stories of the West. Admission is $4 for Adults, $2 for Students and Seniors, Children 5 and younger are free.
There are many more museums in this culturally rich and diverse community. This sampling offers suggestions for free and inexpensive outings for you and your family in the Palo Alto area.
Serving buyers and sellers in Palo Alto, Atherton, Menlo Park, Los Altos, Mountain View, Redwood City and other Penisula cities.
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