Tag Archives: Market Update

Rosie’s South Bay Market Update

With the month of May having come to a close, I’d like to give you an update on our current housing market conditions using data I’ve collected and summarized from MLSListings. Unless you’ve been out of the loop or live under a rock, you are well aware that we are in a strong seller’s market with too few homes available for the masses of buyers out there. Year to date, median prices across the board are well above $700,000 with the median sale price in Saratoga at a whopping $2.4 million! ↓

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The lengths that buyers will go to realize their American Bay Area dream is extraordinary. A Willow Glen home sold for 32% over list price…with a catch—a death occurred on the property. It sold after just one day on MLS. The upfront disclosure regarding a death on the property may have bolstered a bidding frenzy causing the sale price to skyrocket. Among these 9 select areas in the charts above and below, one home in Sunnyvale took the gold in achieving the highest sale/list price ratio at an incredible 156% or in other words, 56% over asking! ↓

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Time and again, we hear that inventory is low. In fact, it has been on the low end as far back as 2012. The problem that we face now is the lack of inventory for countless residents looking to buy in addition to the growing influx of young professionals moving into the Silicon Valley from elsewhere. Most homes remain on the market for a mere 8 to 9 days limiting buyers to a single weekend to visit the open house. Back in 2011, most homes remained on the market for a full month before selling.

inventory_may

Remember those days when buyers could get away with offers below list price, contingencies, and still get the house? Well, those days have been long gone since 2012 in the majority of buyer experiences. See the steep increase in median sale prices and sale to list price ratios below. ↓

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A couple lessons to learn:  1) Sellers, price your homes at a competitive price—meaning: do not price it ridiculously high. Buyers will be turned off and the property will sit and go stale. At a competitive price, you attract a wider range of buyers vying for your home which will naturally increase your sales price to a healthy number on par with the current market and may even result in a higher return than you expected. 2) Buyers, know how much homes are selling over asking price in the areas you are interested in and be prepared to bid within that range or take a step back and consider looking into a lower price range and less competitive areas.

Good luck, happy selling and buying, and contact me if you plan to do either one!