SEP & Q3 2023 Stats for Single Family Homes in Santa Clara County are here!
Let’s first look at September as compared to August, and then we’ll compare Q3 2023 to Q3 of last year.
The number of Active homes in September increased by 7% from August, with Pending Sales down by 9% and Sold Sales down by 13%. Months’ worth of inventory went up by 27% from August; yet remains just under 1½ months’ worth of inventory available. As expected, and a typical trend for September, we saw a new burst of inventory come to market once August vacations were taken and the new school season got under way. We’ll see what October brings as we move closer to the holidays.
The Average Days on Market went up by 11%, translating into 2 days more than August, with homes taking an average of 20 days to get into contract. Buyers continue to take their time and are being selective about the homes they bid on and homes that are priced well for location and condition are getting into contract more quickly than those needing more work or in less desirable locations.
The Average Sales price for SFH went down by 1% from August, now sitting just under $2.2ML, with the List to Sale Price ratio remained steady at 5% over seller’s offer price – again, revealing that there is still multiple bidding taking place, even if less competitors are coming to the offer table. The Average Price per SF went down by 2% from August, currently resting at $1,119/SF.
The 30-year Conforming Fixed Mortgage Rate as noted by Bankrate rose by almost a quarter of a point from this time last month, now sitting at 7.55%
The housing market has continued to remain steady, even with higher interest rates. Lack of inventory has had a lot to do with home prices remaining strong, all-be-it equity gains have slowed compared to previous years; yet this has been the overall goal of the FED, along with the goal to cool the economy in general while working to bring inflation down. As we now turn to compare this time last year to this year’s 3rd Quarter, we’ll see that equity gains are present and are continuing to be projected throughout the rest of this year.
Turning to the comparison of Q3 of 2023 to last year’s 3rd Quarter:
We thought 3rd Quarter inventory was low last year at just over 1 ½ months’ worth; yet we see that inventory went down by 13% in 2023’s 3rd Quarter, resting just under 1 ½ months’ worth of inventory.
The Average Sales Price grew between last year’s 3rd Quarter and this year’s by 8%, with the Average Price per Square Foot up by 7% from this time last year. Indeed, equity growth is still taking place, even with higher interest rates being more than ¾ point higher than this time last year.
Buyers who can afford current higher rates are using this opportunity to get into the market on what they can currently afford, with the plan to use home ownership as a long-term wealth building asset, that will eventually help them leverage into their next property down the road. The advantage current buyers have in the Bay Area is less competition while costs to borrow is higher. When rates begin to ease and fall, inevitably more buyers will enter the marketplace, which in turn and while inventory is tight, will raise home prices further.
The FED chose not to increase the prime rate in September, but has not eliminated the possibility of increasing it again this coming November. Indeed, inflation has slowed, yet there are several variables being watched in addition to inflation, including the political climate of getting budgets passed, the auto union workers strike and the renewed possibility of entering a recession.
Experts are sharing it is most likely that we’ll now continue to live with high interest rates through most of 2024 as the FED is wanting to ensure the economy gets stubborn inflation down to the 2% mark.
For the near future of the Bay Area housing market, we are likely to continue seeing low inventory and opportunity for Buyers to negotiate with Sellers when homes are not priced well for their condition and location. Most homes on market these days seem to be those needing to sell for reasons such as job relocation, divorce, or in the event of death with probate/trustee sales.
That said and again, sellers who are pricing their homes within the correct quadrant of the trading range are seeing success and selling for top dollar in our current market.
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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