Snapshot and 30-day Trend: June 2017
Supply – or a lack thereof – and strong demand continued to define the Silicon Valley real estate market in June. In fact, the market looked much as it did two years ago, when low inventory and high demand kept pushing prices higher. The median sales price was up about 10% from a year ago and homes sold for well above their list price. The average sale occurred in 18 days. Less than 20 days is generally considered to indicate a hot market.
Inventory fell 24% from the end of May to the end of June and was 38% lower than a year ago. Every city in the region had double digit percentage declines in inventory from May. Los Altos and Sunnyvale had less than half the supply they had a year earlier. Overall, there was less than a one month supply in the Valley (0.9 months), with Sunnyvale, Mountain View and Los Altos having less than two weeks.
The median sales price across the eight cities we cover was up about 2% from May and 10% from June 2016. Los Altos had the biggest increase at 14%, while Los Alto Hills’ median fell 27%. The average sale in June was for about 107% of the list price across the region. Homes in Sunnyvale and Mountain View sold for nearly 113% of their asking price.
Sales in Mountain View took an average of only 11 days in June, the shortest time on the market in the Valley. Menlo Park and Los Altos sales averaged only 13 days. Sales in Los Alto Hills (25 days) and Palo Alto (24 days) took the longest.
There is no doubt that the scarcity or homes for sale has dragged sales down. Closed sales were flat from May but actually managed a 12% increase from a year ago. That’s strong indication of demand, when inventory was down 38% but sales still increased 12%.
The story in the beach communities of Aptos, Santa Cruz and Capitola was a bit different, and depended on which community you were in. Inventory increased overall from May but that was due to a large increase in Aptos. The median sales price increased nearly 9% from a year ago, while time on the market declined.
Aptos had a 29% increase in inventory over May but still ended June with two fewer homes for sale than a year ago. Santa Cruz was down six units from last month but 26 units (29%) from last year. Supply stood at 1.5 months in Santa Crus, 2.7 months in Aptos and 3.0 months in Capitola; all lower than May as well as a year earlier.
Homes sold for about their list price, on average, in June. Sales in Santa Crus were for 100.1% of list, while those in Aptos were 99.5% and Capitola were 97.3%.
The median sales price in Aptos declined 3.5% from May but was still nearly 10% higher than in June 2016. Capitola and Santa Cruz saw single digit percentage increases from both last month and last year.