Whazzup in the Valley? Santa Clara Valley Real Estate News - April 2014

The pace of home sales remained sluggish in Santa Clara County in February according to the most recent data released by the Multiple Listing Service. A combination of higher prices, less-distressed sales, and new lending standards have played a role in the slower pace of sales. Prices continued to rise despite the slower sales pace, but at a much slower pace than what we saw at the same time last year. Inventory levels have continued to rise and we expect them to remain above the low levels of 2013. Interest rates have continued their slow and steady increase, and potential buyers should anticipate this general trend continuing throughout the year.

Home Prices are Up
The median price of a single family home in Santa Clara County for March of 2014 was $865,000. This represents an 8% over the February 2014 median price of $800,000, and a whopping increase of 18% over the median price in March of 2013 of $735,000.

What is really outstanding is that back in March 2009, just five years ago, the median price of a single family home in Santa Clara County was only $450,000. The $865,000 median  of a single family home in Santa Clara County represents a 92% increase over the March 2009 number.

 

 Closed Sales Are Down

The number of closed sales of single family homes in Santa Clara County was 752 in March of 2014, an increase of 36% from the 551 closed sales in February of 2014, but a decrease of 13% from March of 2013.

The put the 752 number of closed sales in March 2014 in perspective, one would have to go back to 2009 to find a March with about the same low number of sales. The peak March in the last 5 years was 2011 when there were 1,015 closed sales, 36% more than in March 2014.

Inventory is UP

The inventory of single family homes in Santa Clara County reached a total of 2,526 in March of 2014, a 35% increase over February 2014, and up 24% over March of 2013.

Although inventory is up substantially over last year, it is far lower that what it was five years ago in March of 2009 when inventory levels hit 3,951, 36% above March 2014 levels.