Market Trends Report

April 2018 Silicon Valley Real Estate Market Trend Report 

Santa Clara County (SCC): Prices Set New Highs for the Second Month in a Row

Prices for both single-family, re-sale homes and condos set new all-time highs in March.

The median price for homes has been higher than the year before by double-digits ten months in a row. The average price was up by double-digits for the ninth consecutive month.

The median price for homes rose 27.8% over last March to $1,450,000.

This is also the 73rd month in a row the median price has been higher than the year before.

The average price for homes rose 22.8% to $1,745,230.

The median price for condos gained 27.9% to $900,000. Notably, the median price for condos has been higher than the year before every month since July of 2011!

The average price for condos was up 26.9% over last March.

Multiple offers continue to be the norm. The sales price to list price ratio, or what buyers are paying over what sellers are asking remains at triple digits: 112.4% for homes and 116.1% for condos.

The ratio has been over 100% for homes since March 2012 and for condos since April 2012.

Homes and condos are flying off the shelf. It is taking only sixteen days to sell a home, on average. Condos are taking nine days.

All this is due to an incredible lack of inventory. Since January 2000, Santa Clara County has averaged 94 days of inventory. Last month it was eighteen.

March 2018 Sales Statistics (SCC)

* Total inventory is active listings plus pending     listings. Active listings do not include pending.

More information is available in our on-line report at http://avi.rereport.com/market_reports

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You can also perform your own personal search of properties for sale.

Big investment firms have stopped gobbling up California homes (SCC & SMC)

By: Cal Matters

Astronomical prices are forcing a rising share of California families to postpone buying a house. As a result, the state’s record-low homeownership rate has been a boon to one growing segment of California’s housing market: single-family home rentals.

Between 2005 and 2015, the number of owner-occupied homes in California shrunk by nearly 64,000 units, according to the Public Policy Institute of California. Meanwhile the number of renter-occupied homes increased dramatically.

California now has 450,000 more homes used as rentals than it did a decade ago. Compare that to the 1990s, when the number of rented homes grew by less than 120,000 while the state added 700,000 homes owned by the people who live in them.

The rising tide of single-family rentals has renewed attention on who actually receives the rent payments that nearly 2 million Californians make each month. Lawmakers and first-time homeowner advocates have been scrutinizing a relatively new form of landlord: private investment firms that snapped up thousands of homes during the foreclosure crisis and now rent them out.

With nearly one in four California homes now purchased in all-cash, these well-financed institutional investors have also been blamed as unfair competition against families bidding on starter homes. So how much are institutional investors impacting California’s housing prices? The data says not so much now..

The rest of the article is much too long for this space. You can access it here: https://tinyurl.com/y8ucd9fc

It is well worth the read as it also discusses the impact of foreign buyers on the local market.

Call or email me if you have any questions.

For further details and a city-by-city breakdown statistics, go to http://avi.rereport.com/market_reports.

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Do you want to be notifiedof investment opportunities across the country? send me a note with subject “investment’s opportunities

Do you want to be notified
of investment opportunities across the country?send me a note with subject “investment’s opportunities

Real estate related Articles

Avi Urban
January 2018
The Impact of the New Tax Law on Real Estate Ownership
California Today
March 8 2018
Peter Thiel Is Leaving Silicon Valley. Will Others?
By DAVID STREITFELD and JOSE A. DEL REAL
East Bay Times
March 2018
New study: SFO, Foster City, other SF Bay shoreline areas are sinking, at risk for major flooding
Paul Rogers
Real Estate Matters  Real Estate Matters. Representing both buyers and sellers: A conflict of interest? Read more Dual Agency
Michael Repka

California homeowners interested in building accessory dwelling units on their property just caught a break, potentially shaving off thousands of dollars in fees and permits.
In a move proponents say will help ease the Bay Area’s housing crisis, Gov. Jerry Brown on Tuesday signed Senate Bill 1069, making the so-called “granny units” easier and less expensive to build throughout the state.

For more read California eases restrictions on ‘granny units’
and http://www.hcd.ca.gov/policy-research/AccessoryDwellingUnits.shtml

Helpful resource for home owners

Many new home owners or owners who consider remodeling or rebuilding their homes should take advantage of their county Tax Assessor web site. These web site and their respective city building departments web site typically have vest information regarding the process for applying for permits, the impact on their taxes and many other resources that home owners should be aware are available for them.
For the San Mateo County Tax Assessor office visit http://www.smcare.org/default.asp
For Santa Clara County Tax Assessor visit https://www.sccassessor.org/index.php

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The Silicon Valley 150 Index Corner

The Silicon Valley’s Real estate market is a derivative of the local economy–it prospers and withers depending on how well the local innovation-based sector performs. The San Jose Mercury News tracks the performances of the largest 150 publicly traded companies headquartered in Silicon Valley through an index called the SV150, which may be found at www.mercurynews.com. Stocks are valued based on several criteria, but one of the more important criteria is a company’s future earnings. Therefore, I see the SV150 as a leading indicator for Silicon Valley’s real estate market.

Investors Corner

S&P CORELOGIC CASE-SHILLER NATIONAL HOME PRICES:  ALL 20 CITIES UP YEAR-OVER-YEAR

NEW YORK, MARCH 27, 2018 – S&P Dow Jones Indices today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for January 2018 shows that home prices continued their rise across the country over the last 12 months. More than 27 years of history for these data series is available, and can be accessed in full by going to https://goo.gl/vCnFQ2

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San Mateo County (SMC): Median Prices Set New Highs, Again

The median price for both single-family, re-sale homes and condos set new all-time highs in March, for the second month in a row.

The median price for homes has been higher than the year before by double-digits seven months in a row. The average price was up by double-digits for the fifth month in a row.

The median price for homes rose 20.0% over last March to $1,610,000. That is a $5,000 gain over the record high set in February.

This is also the 24th month in a row the median price has been higher than the year before.

The average price for homes, which set a new record in February, was up 27.6%, year-over-year.

The median price for condos gained 12.4%. The average price for condos was up 12.3% over last March.

Multiple offers continue to be the norm. The sales price to list price ratio, or what buyers are paying over what sellers are asking remains in the triple digits: 113.3% for homes and 111.8% for condos.

The ratio has been over 100% for homes since April 2012 and for condos since June 2012.

Homes and condos are flying off the shelf. It is taking only fifteen days to sell a home, on average. Condos are taking nine days.

All this is due to an incredible lack of inventory. Since January 2003, San Mateo County has averaged 83 days of inventory. Last month it was twenty-three.

Condos have averaged 92 days since 2000. Last month it was fifteen.

As of April 5th, there were 262 homes and 58 condos for sale in San Mateo County.

March 2018 Sales Statistics

* Total inventory is active listings plus pending listings. Active listings do not include pending.

You can get more information at: http://avi.rereport.com/market_reports

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Call or email me if you have any questions.

For further details and a city-by-city breakdown statistics, go to http://avi.rereport.com/market_reports.

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Looking to Downsize?

Keep Your Property Tax Base

Under Proposition 60, California homeowners 55 and older get a one-time chance to sell their primary residence and transfer its property-tax assessment to a new one, but the market value of the new home generally must be equal to or less than the market value of the old home.

Prop. 60 was designed to help longtime California homeowners who want to downsize but don’t want to give up the low property-tax assessment they enjoy in their existing home.

Under Proposition 13, homes are reassessed for property-tax purposes when there is a change in ownership or new construction. In between ownership changes, the assessed value can go up by an inflation rate not to exceed 2% a year. (Homeowners can get temporary reductions when property values go down.)

Prop. 60 lets homeowners 55 or older transfer their base-year value from an existing primary residence to a new primary residence, but there are restrictions.

The new home must be in the same county as the old one or, as Proposition 90 added, in one of eleven counties that accept transfers of base-year value from other counties. The eleven counties are: Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne and Ventura.

Also, the new home must be purchased or built within two years – before or after – the sale of the original property.

If the new house is purchased before the old house is sold, the market value of the new house on its purchase date cannot exceed 100% of the old home’s market value on the date it is sold.

 

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