In April 2017, the median price for single-family, re-sale homes in Santa Clara county climbed to $1.16 million, which is a new all-time high. The median price for condos/townhomes crossed $700,000 which too, is a new all-time high.
Median price means half the homes sold for a higher price and half of them sold for lower dollars.
Buyers had a double whammy to contend with. Not just the home prices were going up, they were selling like a hot cake. Average days on the market for a listed property to sell has plummetted to only 17 days.
The increase in price and decrease in days on the market is being driven by a huge wedge between demand and supply. There were only 833 homes sold in April and at the end of the month buyers had less than 900 active properties to choose from. A very low inventory for thousands of potential buyers.
At this rate, the county has inventory for just over a month. That means if there were no more new listings, all currently listed homes will sell within the next 33 days. For a market to be in balance (where both buyers and sellers can have an equal say), the inventory has to be closer to 6 months.
It’s not a surprise that the average sales price was 106.1% of the list price. So, if the property was listed for $1M, on an average it would sell for $1.061M. However, some desirable properties sold for 15%-20% higher than the listed price. Some were even crazier.
Take 2 examples of extreme nature of the market:
280 Stanford, Palo Alto. A 900 SqFt tear down listed for a cool $1.927M. Sold for $623k over asking at $2.55M (see picture above).
10455 Orange Ave, Cupertino. 1 Bed, 1 Bath, 396 Sq ft Home on a 5400 SqFt Lot, sold for $1.515M.
See the listing here – http://www.mlslistings.com/property/ml81646857/10455-orange-ave-cupertino-ca-95014
Given the stats, it seems obvious that if you were thinking of selling your home – the summer of 2017 is going to make you happy, very happy.
You may also like to read – How to get your offer accepted in a seller’s market.