April 2020 Stats are here!
Inventory in Santa Clara County is UP by 13% from this time last month. With the strict SIP Mandate in place since March 17th, we can see that inventory has increased steadily over the past month.
Pending Listings were down by 28% from March and Sold Listings down by 15% from those that sold in March. This was to be expected with the SIP Mandate fully in effect during APRIL.
The Days on Market stat fell by 36%, down to an average of 14 days on market opposed to 22 days in March. Vacant homes were the only properties available for buyers to view in person, making them much easier to successfully get into contract than the occupied homes on market. That said, buyers could still write offers subject to visual inspection once SIP Mandate is relaxed. That time has come and now, ALL homes, both occupied and vacant, can be shown by appointment with 2 buyers and an agent and social distancing in place; it will be interesting to see how this adjustment results for comparison of next month stats.
The average sales price went down 4% in April, evidence that COVID19 has afforded buyers a bit more negotiation power. That said, the List to Sale Price ratio only went down by 2% from last month. This may reflect Sellers pricing their homes more strategically toward actual market value as opposed to pricing their home lower to with the goal of soliciting multiple interest.
Thus far, despite the enormous economic slowdown generated by the COVID-19 SIP Mandate, Silicon Valley home prices are remaining relatively steady. This is evidence by no marked percent change in price per square feet between March and April.
Factors that have helped contribute to home prices remaining steady are:
- The supply-demand of homes has remained relatively balanced over the past several weeks.
- The current recession (not yet officially declared) hasn’t been caused by a collapse in the housing market as it was in the Great Recession of 2008, so seeing an effect on home sales is likely to be delayed
- Big Tech Companies are a pillar of Silicon Valley’s economy, and they have not yet resorted to widespread layoffs. Watching our local job market over the next months will be most telling for our economic recovery and the effect on home sales as we move through the year.
Mortgage rates have gone down 6% from last month and rest around the 3.51% mark. This too is helping to drive buyers into the market place and supports pent up demand for housing. If you’re thinking of making a move – now is a great time to reach out to get diligent, strategic and trustworthy advice and service. Message me or reach out to [email protected] 408-207-3130.
Sellers – Jump start with Heather’s Strategic Selling Plan: www.LangesFreeHomeSellerCourse.com
Buyers – Start looking for your dream home the way Realtor’s do: www.LangeHomeSearch.com