Silicon Valley Market Report
The October 2016 Silicon Valley Market Report indicated that the average price for a Silicon Valley home is on the rise. Cupertino's prices rose the most (8.6%) while Los Altos had the highest average price ($2,588,404). Cupertino, Los Altos, Mountain View, San Jose and Sunnyvale are all experiencing Seller's markets right now. Inventory levels in the cities we track, except Los Altos, are less than a month. Read on to learn more about the specific market conditions in each area.
Cupertino Home Sales for October 2016
Prices may have gone up for Cupertino Real Estate last month, but total sales were down. The average sale price of a Cupertino home in October 2016 was $1,643,796. The average sale price was 8.6% higher than October 2015's average sale price. This puts the average price-per-square-foot at $1071, a 26.6% increase from the same time last year. While the selling price continues to climb, Cupertino Buyers are offering at list price or slightly less than less price instead of paying over the list price a typical event last year. Total sales dipped slightly from 29 in 2015 to 28 in 2016. Inventory levels decreased to 0.8 months on hand. This situation is not unusual as the holiday season approaches; we often see a drop in inventory until mid-January/early February.
Los Altos Home Sales for October 2016
Los Altos home prices increased slightly last month. Buyers paid an average sales price of $2,588,404 in October 2016. This was just 1.5% higher than October 2015. The price-per-square-foot decreased 7.9% from one year ago to $1134. The list-price-to-sale-price average dropped from 121% to 113.2%. Total Los Altos home sales also dipped slightly, from 27 in October 2015 to 25 in October 2016. Even though inventory levels increased to 1.1 months on hand, this still makes Los Altos a Seller's market.
Mountain View Home Sales for October 2016
Like Cupertino and Los Altos, Mountain View Real Estate prices were higher. The average sale price for a Mountain View home in October 2016 was $1,420,941, a 6.3% increase from last year. The average price-per-square-foot came in at $937, an 8.4% increase from October 2015. However, the list-price-to-sale-price ratio decreased significantly. Buyers paid an average of 114% of the list price back in October 2015. That fell to 91.2% last month. A total of 61 homes sold in Mountain View during October 2016, up from 53 last October. Inventory on hand dipped slightly to less than three weeks (0.7 month's supply).
San Jose Home Sales for October 2016
San Jose also saw a higher average sale price in October 2016: $872,368 vs. $818,920 last year. The average price-per-square-foot increased to $552. While the list-price-to-sale-price ratio decreased, Buyers still paid more than the list price to complete the deal for a San Jose home at an average of 101.8%. Total sales increased from 69 last year to 75 last month. Inventory on hand continues to be less than a month.
Sunnyvale Home Sales for October 2016
Finally, Sunnyvale Real Estate sales continued the price increase trend with an average sales price of $1,246,025. This was 5% higher than October 2015. The average price-per-square-foot increased 2.1% to $830. The list-price-to-sale-price ratio also increased from 99.6% to 102.7%. A total of 75 Sunnyvale homes sold in October 2016, an 8.7% increase from October 2015. Inventory on hand dipped from 0.9 months to 0.7 months supply.
Inventory levels for Silicon Valley homes are extremely low across the board. Lack of inventory helped push the average sale price up in each area. Every region featured in this October 2016 Silicon Valley Market Report had an average sale price of over $1 million except San Jose. If you are planning on financing your next home, you might want to think about doing it now. Rumblings are going around the financial sectors that the Federal Reserve may decide to raise interest rates at their next meeting in mid-December. When you are ready to look for your next home, contact your Silicon Valley Real Estate expert.