Snapshot and 30-day Trend: March 2017
The real estate market in the Silicon Valley continued to pick up steam during March. Sales increased sharply, keeping inventory low (even though more homes were for sale at the end of March than February). Prices firmed but homes stayed on the market a little longer in March.
The number of homes for sale in the Silicon Valley continued to increase in March, logging a 19% gain in the communities we follow. That was, however, still only 75% of the level a year ago. Only Los Gatos/Monte Sereno and Mountain View saw inventory fall during the month.
Closed sales rose even faster, posting a 57% increase from February and matching the number from February 2016. Every community increased sales, except for Menlo Park, which decreased by one unit. Menlo Park’s sales increased 154% and Los Gatos/Monte Sereno’s increased 79%. With sales rising faster than inventory, the supply relative to sales dipped from 1.9 months at the end of February to 1.4 months at the end of March. Mountain View’s market was particularly tight, with only a two week supply.
Median sales prices generally increased and were up about 10% across the region from February. Menlo Park and Palo Alto had the biggest gains (33% and 25%, respectively). On the other end, Los Gatos/Monte Sereno and Saratoga saw prices fall about 5%. The sales price to list price ratio also increased in all but one city (Mountain View) and was up about 10% across the region. Palo Alto’s and Los Altos’ ratios were each over 108%.
While time on the market varied by community, in general, homes were listed for more days in March (22) than February (18). Los Altos Hills had the biggest gain and the longest time on the market (29 and 36 days, respectively). Sales in three communities took less than 20 days (on average), Sunnyvale (11), Los Altos (16) and Palo Alto (17).
The market was not as strong in the beach communities of Aptos, Santa Cruz and Capitola but we are beginning to see some forward momentum. Both sales and inventory increased in March. While the median sales price fell in all three communities, the sales price to list price ratio increased and homes were on the market an average of 11 fewer days.
Inventory increased 17%, on average, with all three communities posting gains. Closed sales increased an average of about 24%. Supply relative to sales was little changed at 2.1 months.
The sales price to list price ratio increased nearly 2% and was back over 100% at 100.8%. Only Capitola at 99.6% was below 100%. The median sales price fell in all three areas, on average by about 8%.