DEC & YEAR END 2023 Stats for Single Family Homes in Santa Clara County are here!
Let’s first look at December as compared to November, and then we’ll compare the full year over year stats of 2023 to 2022.
The number of Active homes in December decreased by 35% from November, with 453 SFHs on market. Pending Sales down by 27% and Sold Sales down by 18%. This decrease in inventory is typical for this time of year; also evidenced in Months’ worth of inventory having gone down to only 1 months’ worth.
The Average Days on Market went up by 15%, translating into 3 days more than November, with homes taking an average of 23 days to get into contract during the month of December.
The Average Sales price for SFH went down by 4% from November, now sitting just under $1,950,000. The List to Sale Price ratio went down by 1% with the average sale still receiving just about 3% over the seller’s offer price. A reminder that buyer demand and competition for the most desired homes continued to persist even with high interest rates and end of the year holiday trends. The Average Price per SF went down by 1% from November, currently resting at $1,084/SF.
The 30-year Conforming Fixed Mortgage Rate as noted by Bankrate continued to ease through December, landing at 6.9% at the end of the month – a welcomed relief from the 8%+ rates we experienced at the end of October and early November.
Let’s now turn to compare Year over Year Stats from 2023 to those of 2022
Let’s first remember that as we ended the year 2022, the 30-year Conforming Fixed Mortgage Rate as noted by Bankrate was 6.74%. 2023 ended with this rate at 6.9%, considerably close to where we ended in 2022. However, much more time was spent in 2023 with mortgage rates rising without much reprieve. This was predicted and expected while working to get inflation under control.
We have encouraging news from the FED that no further prime rate hikes are to be expected in 2024; with the prospect that prime rate will be reduced at least a couple of times this year. That said, this isn’t expected to take place right away and may take until the second half of the year that to occur.
For the housing market, the fact that most homeowners refinanced while mortgage rates were historically low in previous years, motivation to sell was dim, making housing inventory was quite lean during 2023. It’s this classic supply and demand model that has continued to prop up the housing market in the Bay Area this past year.
We see this evidenced in the Year over Year Average Sales Price having gone down by only 1% from 2022, ending 2023 at an Average Sales Price of just under $2,090,000. The Average Price per Square Foot went down 2% from 2022, landing at $1,089/SF. Most telling is having seen the List to Sale Price stat reduced by 3% in 2023; where homes were selling approximately 7.5% over the seller’s offer price in 2022; yet quelled to approximately 4% over seller’s offer price in 2023. Buyers bringing large amounts of extra cash to the table to win the bid faded and sellers were compelled to adjust expectations and be cognizant of appraisal values.
As we head into 2024 here in the Bay Area, there is noted hope of seeing light at the end of the tunnel for inflation getting under control; yet higher prices for commodities, and services remain dominant. We saw wages increase in 2023, with short lived excitement as more households than not, have seen those wage increases get gobbled up with higher costs of living. There is continued hope that we’ll see an economic soft landing away from recession and the FED will continue to work toward this goal. That said, household budgets remain tight while building wealth and savings is challenging for many; pushing many would-be home buyers to the sidelines until costs to borrow via mortgage loans becomes more manageable.
As we have continued to see mortgage rates push a bit lower on a consistent basis since the beginning of November, it will be interesting as we watch this 1st quarter unfold. It is indeed a relief to see mortgage rates back under 7% and exciting for would-be home buyers that have their strategic plan in place for when the right home comes along and lines up with their confidence for affordability.
For those looking to purchase and sell homes this year; connecting with a trusted real estate advisor who is working in this current market is key for you to make the most as windows of opportunity arise in the market and your life. With strategic planning comes the most optimal opportunity for success when the right time presents.
If you’ve been contemplating a move and would like to discuss and strategize with no pressure, whether a seller or buyer, reach out to me for strategic, diligent, and trustworthy advice. I’ll help you reach your purchase and selling goals successfully and when the time becomes right for you. I’ve been having great success with both my sellers and buyers in our current market.
[email protected] | 408-207-3130.
Sellers – Jump start with Heather’s Strategic Selling Plan: www.LangesFreeHomeSellerCourse.com
Buyers – Jump start with Heather’s Strategic Buyer Plan: www.LangesFreeHomeBuyerCourse.com
Buyers – Start looking for your dream home the way Realtor’s do: www.LangeHomeSearch.com
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