Archive for July, 2011

Santa Clara Valley Real Estate Report – June/July 2011

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– Sales momentum faltering.

– Median price up year-over-year for the third month in a row.

– IPO millionaires boosting Silicon Valley home prices.

– Plus, Statistics: Tracking Momentum

According to a story by Dan Levy of Bloomberg news, a surge in wealth from technology stock sales and initial public offerings is spilling into California’s Silicon Valley real estate market as newly rich workers bid up home values in suburban cities south of San Francisco.

This is most evident in the average price of single-family, re-sale homes which has been higher than the year before for the past four months,  while the median price has been lower year-over-year for the past eight months.

County Statistics
Sales of single-family, re-sale homes turned around last month after an abysmal May, rising 2.2% year-over-year.

The median price for homes in Santa Clara County has been rising, month-over-month, since February, but has been down year-over-year for the past eight months. In June, the median price rose 5.8% from May.

Pricing momentum…
while still positive, has been trending down for the past eight months and now stands at +1, a decline of one point from the month before.

Sales momentum…
turned up last month and gained one points to –8.

Pending momentum…
a harbinger of future sales turned negative in June, dropping four points to –3.

More Statistics…
Year-over-year, home inventory was down by 11.1%. This is the fourth month in a row inventory has been lower than the year before. A decline in inventory will, eventually, put upward pressure on prices.

Pending inventory was down, year-over-year, for the eighth month in a row: 3.2%.

The sales price to list price ratio rose 0.1 of a point to 99.7%.

In the condo market…
the median price was down 13.5% year-over-year.

Condos sales were up 13.4% year-over-year.

Pending condo sales declined last month, falling 0.5% compared to last June.

Inventory decreased, year-over-year, for the first time since last May, falling 12.8%.