Mountain View Real Estate Market Report - 2017 Year in Review
Available inventory in the Silicon Valley real estate market hit their lowest levels ever. Just like Cupertino and Los Altos, Mountain View inventory levels fell below one month. Total sales for the year came in lower as well due to fewer homes to sell. Both factors have forced the average sale price and price-per-square-foot to their highest levels ever. As we start 2018, we expect to see further price appreciation until either new construction increases or people move out of the area.
Overall, 2.3% fewer homes were sold in Mountain View in 2017 (559) than in 2016 (572). January 2017 started off with quite a bit less total sales than in January 2016 (35 in 2016 vs 21 in 2017). Each month after that, they increased through May. After a slight drop in June, sales began to go up again until they reached their peak of 60 in August. Eventually, they ended the year with 42 total sales in December, much higher than the 15 reported in December 2016.
Extremely low inventory could be a major factor for why year-over-year sales have tapered off. The Mountain View real estate market began 2017 with 1.1 months of available inventory. February saw a slight jump to 1.2 months (its peak for the year), but that was only temporary. From then on, inventory remained well below one month of availability. In fact, it ended the year at just 0.1 month of inventory, which translates to only a few days of inventory available.
Mountain View's extremely low inventory could also have helped force the average sale price to rise by 8.7% in 2017. Mountain View Buyers paid an average of $1,324,063 in January 2017 (10.7% below list price). This part of the Silicon Valley real estate market hit its peak in June with an average sale price of $1,712,571 (33.9% above the list price). However, by the December, it had come back down to $1,438,616 (4.1% below list price).
The price-per-square-foot for Mountain View homes started 2017 at $909 in January 2017. By May, it climbed to $1,016 and stayed over $1,000 for the remainder of the year. It reached its peak of $1,124 in November. But then, it dropped off slightly in December 2017 to end the year at $1,103.
Silicon Valley Market Report - Mountain View 2017 Year in Review Summary
The most significant concentration of homes sold throughout Santa Clara County during December was in the $800,000 to $1,000,000 range, which made up 17.7% of the total sales for the entire county. The $1,438,616 average Mountain View reported in December 2017 fell in the range of 6% of the Santa Clara County totals. Inventory levels for the county as a whole averaged around 0.3 months (or approximately ten days) available. Mountain View fell below this average. Active listings available for sale dropped from 1,990 in December 2016 to 977 in December 2017, a 51% decrease.
As prices go up and inventory goes down, Silicon Valley buyers turn to lower priced areas like Morgan Hill and Gilroy. Until more inventory comes on the market, this will continue to be business as usual in the Silicon Valley. Low unemployment and high consumer confidence have financial experts expecting to see Federal interest rates increase three times in 2018.
If you're interested in purchasing a property, please contact your Silicon Valley REALTOR@ to find out what's available in the area you're interested in. Visit our Home Buying page to learn more about the home buying process.