The Silicon Valley Market Report for January 2017 showed a mixed bag. Some communities, like Cupertino, Los Altos, and Sunnyvale, saw increases in home sales. The average sale price increased in every market except Mountain View and Santa Clara. However, one thing remains uniform across the board: inventory is low. As I said in my Silicon Valley Market Report 2016 Year in Review last month, we most likely won't see inventory start returning to "normal" until sometime in the next couple of months.
Silicon Valley Market Report - January 2017
Cupertino Market Report - January 2017
A total of 20 Cupertino homes were sold in January 2017. That was 25% higher than January 2016. Inventory dipped slightly from 1.3 months last year to 1.1 months supply last month. The average sale price for a Cupertino home came in at $1,854,949, a 5.6% increase from January 2016. Buyers paid 7% over the list price on average in January 2017, reflecting high buyer demand for this community. At the same time last year, they were paying 4.3% under the list price on average. The price-per-square-foot came down slightly, from $969 last year to $943 last month.
Los Altos Market Report - January 2017
Los Altos experienced a year-over-year increase in sales as well. A total of 17 Los Altos homes were sold in January 2017. While this was slightly less than the 20 sold in December, it was 70% higher than last January's home sales. Inventory levels increased from 0.9 months last year to 1.2 months in January 2017. The average sale price of a Los Altos home went up significantly. It was $2,029,215 last January. However, last month, it shot up to $3,254,235, an increase of 60.4%. Buyers went from paying 24.9% under the average asking price last year to paying 5.9% higher than the average list price in January 2017. As you can imagine, the price-per-square-foot has increased from $1,091 last January to $1,163 last month.
Mountain View Market Report - January 2017
Mountain View is the first community in my Silicon Valley Market Report for January 2017 whose sales decreased from last year. A total of 21 Mountain View homes sold in January 2017, 28.5% lower than the same time last year. Inventory levels slipped from 1.3 months in January 2016 to 0.9 months on hand in January 2017. The average sale price decreased significantly as well. Buyers paid $1,494,282 in January 2016. However, last month, the average sale price came in at $1,324,063. While Buyers were willing to pay 15% over the average list price last year, they paid 10.1% under the list price last month. The price-per-square-foot in January 2017 was 9.4% lower than the previous January ($909 vs. $1,003).
San Jose Market Report - January 2017
San Jose remains the most active of all the communities in my Silicon Valley Market Report. Like Mountain View, total sales of San Jose homes declined from 458 last year to 420 last month. Inventory levels shrunk slightly as well (from 1.3 months in 2016 to 1.1 months supply in 2017). The average sale price, on the other hand, increased from $774,646 in January 2016 to $843,871 in January 2017. Buyers paid 8% lower than the asking price on average last month, only 1% higher than last January. The price-per-square-foot rose from $511 last year to $539 last month.
Santa Clara Market Report - January 2017
Year-over-year total Santa Clara home sales dropped significantly, from 44 last January to just 26 last month. Inventory levels, on the other hand, surged from 0.9 months to 1.4 months supply. Buyers will be happy to note that the average sale price decreased from $1,002,508 in January 2016 to $849,423 in January 2017. Instead of paying 13.5% over the list price on average like last year, Buyers now pay 12.9% under the list price. The price-per-square-foot decreased 4.6% from last year to $677. We will be watching Santa Clara home sales intently over the next few months to see if the market in this community is starting to lose favor or if January 2017 was simply an anomaly.
Sunnyvale Market Report - January 2017
Finally, a total of 39 Sunnyvale homes were sold in January 2017. That was an increase of 14.7% from the same time last year. As a result, inventory got even tighter, with just 0.8 months on hand (one-third less than last January). The average sale price increased 7.3% from last year to $1,182,663. Buyers paid slightly more than the list price on average (less than 1%) just like they did last year. The price-per-square-foot for a Sunnyvale home increased from $777 last January to $810 last month.
Experts predict at least two more 1/4 point increases from the Federal Reserve this year. Any rise in Fed Fund's rate will translate into higher mortgage interest rates in 2017. High demand for Silicon Valley real estate continues to put pressure on home prices. Now is a great time to sell. If you're interested in putting your Silicon Valley home on the market, Contact Us right away. I'm always happy to help.