Real Estate Market Report – May 2016

Here’s a report published by Intero Real Estate Services, Inc., about the Real Estate Market in Santa Clara County for the month of May, 2016.

May 2016 is a Seller’s market!
The number of for sale listings was up 8.7% from one year earlier and up 6.2% from the previous month. The number of sold listings decreased 3.6% year over year and increased 5.8% month over month. The number of under contract listings was down 1.2% compared to the previous month and down 3.1% compared to the previous year. The Months of Inventory based on Closed Sales is 1.2, up 9.5% from the previous year. The Average Sold Price per Square Footage was up 4.7% compared to the previous month and up 7.4% compared to last year. The Median Sold Price increased by 1.4% from last month. The Average Sold Price also increased by 4.2% from last month. Based on the six month trend, the Average Sold Price trend is Appreciating and the Median Sold Price trend is Appreciating. The Average Days on Market showed a downward trend, an increase of 5.6% compared to the previous year. The ratio of Sold Price vs. Original List Price is 102%, a decrease of 4.7% compared to the previous year.

Santa Clara County-May

It is a Seller’s Market
Property Sales (Sold)
May property sales were 1039, down 3.6% from 1078 in May of 2015 and 5.8% higher than the 982 sales last month.

Current Inventory (For Sale)
Versus last year, the total number of homes available this month is higher by 99 units of 8.7%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 6.2% compared to the previous month.

 Property Under Contract (Pended)
There was a decrease of 1.2% in the pended properties in May, with 1,115 properties versus 1129 last month. This month’s pended property sales were 3.1% lower than at this time last year.

Santa Clara County-May 2

The Average Sold Price per Square Footage is Appreciating*
The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The May 2016 Average Sold Price per Square Footage of $707 was up 4.7% from $675 last month and up 7.4% from $658 in May of last year.

* Based on 6 month trend – Appreciating/Depreciating/Neutral

 Santa Clara County-May 3

The Days on Market Shows Downward Trend*
The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for May 2016 was 19, down 5% from 20 days last month and up 5.6% from 18 days in May of last year.

The Sold/Original List Price Ratio Remains Steady**
The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 102% is down 1% % from last month and down from 4.7% % in May of last year.

* Based on 6 month trend – Upward/Downward/Neutral
** Based on 6 month trend – Rising/Falling/Remains Steady

Santa Clara County-May 4

 The Average For Sale Price is Neutral*
The Average For Sale Price in May was $1,827,000, up 7% from $1,708,000 in May of 2015 and down 6.4% from $1,951,000 last month.

 The Average Sold Price is Appreciating*
The Average Sold Price in May was $1,414,000, up 9.3% from $1,294,000 in May of 2015 and up 4.2% from $1,357,000 last month.

 The Median Sold Price is Appreciating*
The Median Sold Price in May was $1,100,000, up 11.8% from $984,000 in May of 2015 and up 1.4% from $1,085,000 last month.

* Based on 6 month trend – Appreciating/Depreciating/Neutral

Santa Clara County-May 5

 It is a Seller’s Market*
A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers.

*Buyer’s market: more than 6 months of inventory
Seller’s market: less than 3 months of inventory
Neutral market: 3 – 6 months of inventory

 Months of Inventory based on Closed Sales
The May 2016 Months of Inventory based on Closed Sales of 1.2 was increased by 9.5% compared to last year and the same compared to last month. May 2016 is Seller’s market.

 Months of Inventory based on Pended Sales
The May 2016 Months of Inventory based on Pended Sales of 1.1 was increased by 10.1% compared to last year and up 9.7% compared to last month. May 2016 is Seller’s market.

Santa Clara County-May 6

 It is a Seller’s Market*
Absorption Rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed each month.

*Buyer’s market: 16.67% and below
Seller’s market: 33.33% and above
Neutral market: 16.67% – 33.33%

 Absorption Rate based on Closed Sales
The May 2016 Absorption Rate based on Closed Sales of 84 was decreased by 11.3% compared to last year and down 0.4% compared to last month.

 Absorption Rate based on Pended Sales
The May 2016 Absorption Rate based on Pended Sales of 90.1 was decreased by 10.9% compared to last year and down 7% compared to last month.

All reports are published June 2016, based on data available at the end of May 2016, except for the today stats. All reports presented are based on data supplied by MLSListings. Neither the Association nor its MLS guarantees or is in anyway responsible for their accuracy. Data maintained by the Association or its MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

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