The Housing Market is on the Move…

Back in March of this year, we provided a report that shows where housing inventory was on the Peninsula, South Bay and Santa Cruz area. This month we have updated this report for your review.

As you may know housing inventory locally or abroad considers several factors that include:

• Interest rates…(See below for current rates)*
• Lending Guidelines (Ability to Qualify for Financing)
• The Economy (Locally and Nationally)
• Cost of Living (Up in the last 3 to 4 years)
• Infrastructure of the Area**
• The Stock Market with Dow pushing over 40k
• Job Growth
• Inflation down to 2.97

Housing Inventory is as Follows…

Santa Clara County as of July 12, 2024:

Active Listings – 1028 Houses – priced from $32,800,000 (same property as in March) to $444,000.   614 Condo/Townhome – priced from $2,849,000 to $290,000 (Listings are up by 429)

Contingent Properties – 84 Houses – priced from $16,000,000 (same as in March–these Buyers are waiting for entitlements for the land) to $799,950
65 Condo/Townhome – priced from $1,988,888 to $399,000

Pending Properties – 644 Houses – priced from $11,555,000 to $520,000 and 253 Condo/Townhome – priced from $3,388,000 to $429,000

DAYS ON MARKET – AVERAGES House – 29 and Condo/Townhomes – 38

Summary: Inventory up by 429 properties

In March of 2024, Santa Clara County was at 1213 listings (801 homes, 282 condos and 130 townhomes) and pending sales of 900 (603 in homes and 297 in condos and townhomes.

Provided by:
Dawn Thomas – Broker Associate and Founder
The Dawn Thomas Team
650-215-5990 c   Dawn@siliconvalleyandbeyond.com
DRE# 01460529

San Mateo County as of July 12, 2024:

Houses –

518 Active, 35 Contingent, 255 Pending, 12 transactions fell through, 110 price reductions, 88 Average Days on Market (ADOM)

Condos –

215 Active, 20 Contingent, 34 Pending, 8 TFT, 69 price reductions, 99 ADOM

Townhouses –

61 Active, 6 Contingent, 25 Pending, 1 TFT, 12 price reductions, 36 ADOM

Summary: Inventory up by 429 properties

In March of 2024, San Mateo County, there were 579 listings (91 of which are off market and only available to Realtors) and pending sales of 332 (51 contingent, 287 pending.

Provided by:

KIERSTEN LIGETI
Broker-Associate
THEAGENCY
#01298631
c: 650-766-8319
KPLuxuryHomes.com

Santa Cruz County as of July 12, 2024:

For Single Family Homes…

The median sales price for Single family homes in June 2024 throughout the County of Santa Cruz is up slightly from $1,362,500 in May to $1,413,000 in June.

The average days on market is up from 27 days on market in May to 28 days on the market in June. The number of active listings in June is up to 345 in June up from 344 in May. The number of new listings for June came in at 202, down from 232 in May.  And the number of closed sales came in at 112 in June which was a one property increase in sales volume from the 111 homes that sold in May. The sales price to list price ratio for single family homes came in at 99.0% in June. which is down just barely from 99.3% sales price to list price ratio in May. As for months of inventory, this number is tracking at 3.1 months of inventory, meaning if no other properties came on the market, our Santa Cruz housing inventory based on buyer demand would be sold out in 3.1 months. A neutral market, meaning equality between buyers and sellers is 6 months of inventory and we are not there yet.

For Condos and Townhomes…

The median sales price for June 2024 came in at $830,000 which is up almost $100,000 from the median sales price in May 2024 which came in at $735,000. The average days on market came in at 20 days on market, down from 27 days on the market in May.  The number of active listings in June 2024 for condos and townhomes was 89 in June up from 78, the month prior. And the number of sold condos/townhomes was down from 39 in May 2024 to 27 in June 2024. The number of new listings for condos and townhomes right here in Santa Cruz was up from 47 in May, to 60 in June. The sales price to list price ratio came in at 98.4%, in June, which is down from 99.2% sales price to list price ratio in May. And… our months of inventory for June 2024 came in at 3.3 months, up slightly from 2.2 months of inventory in May.

Summary: Inventory up by 151 properties

In March of 2024 in Santa Cruz County – There were 283 listings.

Provided by:

Shemeika Fox
Fox Realty Group, Inc.
(831) 588-2334
Sfox@YourSantaCruzRealEstate.com
YourSantaCruzRealEstate.com
DRE: 01479629

Important Note: Housing Inventory does fluctuate but historically over the last 10 years, supply has not kept up pace with demand causing overbidding on many homes sold with the exception was 2023 where residential real estate came to a standstill due to rising interest rates from January of 2023 at 3% to 7%+ (+or- .5%.)

Conclusion…

It appears housing inventory is increasing in some areas but still not to a place, where supply equals demand.  Currently its still a sellers markets where sellers have the power but that could be changing if inventory continues to rise and if demand from buyers also increases, prices will continue there way up.  More inventory also means, buyers have more to choose from and if inflation stabilizes and the federal reserve starts easing rates, buyers will pay less in rates and payments and buyer confidence will increase fueling the housing market.

In the lending industry, we all feel we won’t see rates in the 2% and 3% range but should see them in the mid 5’s.  This would be most welcomed  by sellers (that need to buy after) and buyers and lenders and any business that has been negatively affected by high interest rates in the last 12 to 18 months.

Expect to start seeing rates drop in q3 and q4 of this year (per my crystal ball) especially if the Dow and Nasdaq have recurring corrections.  Currently the 10 year treasury is at 4.22 a decent drop since July 1^st when the yield was at 4.48% and even lower when compared to 4.63 back on 5/28/24 which means rates should be dropping which they have a tad, but nothing to write home about.

In Closing…if you’re…

Selling...and would like to understand your options, please reach out to us here, by completing the following inquiry.

Trading Up or Down…please go here.  In addition, I have a great presentation (Age in Place or Right Size) on the topic which I would be more than happy to share with you.

Buying for the First Time…please go here to learn about your options and purchase power.

Any Questions, please contact me at 650-465-8957 or at Rob@101loan.com.

Best Regards,

101 Loan
Senior Mortgage Advisor
www.101Loan.com
650-465-8957 c  hello@101loan.com
CA DRE #01205444  NMLS #326829
101 Loan – 14435 C Big Basin Way, Saratoga, CA 95070

Products/Services/Accolades:

1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
4. Access to over 60 banks with over 300 “Five Star” Reviews on Yelp, Google and Linkedin.
5. Over 30 years of lending experience with over $2b in closed loan volume.

Note: Interest rates and loan programs quoted are subject to change without notice or until locked and approved by lender.