Snapshot and 30-day Trend: December 2017
The lack of supply and high demand in December led to an increase in prices across Silicon Valley. Even in what is typically a slow month, and with ever tightening supply, more sales closed in December than November and more than a year ago as well.
Median sales prices were 18% higher than a year ago and nearly 6% higher than in November. Los Altos, Palo Alto and Sunnyvale lead the way with increases of 25% or more. On the flip side, Los Altos Hills and Los Gatos/Monte Sereno actually posted losses to both last month and last year. Homes continue to sell well above their list price (110%) for the region. Every city we track had a sales price to list price ratio of over 105%.
Homes aren’t staying on the market very long either. On average, December’s sales closed in 19 days. While that is 6.6 days longer than in November it is nearly eight days shorter than in December 2016. Sales closing within 20 days is typically considered to indicate a tight market.
In our beach communities, the median sales price dropped 7.2% from November but was still up 4.8% from last December. Even though the median price fell, homes still sold for their list price, on average. Inventory fell sharply (26%) but sales still managed a strong 23% increase. Soquel had the biggest gain at 45%. Capitola was the only community that added inventory, but that was only two units. The high demand and falling supply left only 1.2 months of inventory for the area.