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 We are officially into what is normally considered the best selling time for real estate in Santa Clara County. Unfortunately, nobody seemed to inform the market of this.
Santa Clara County as once again managed to enjoy an increase in property values when compared to the same time a year ago. However, that is in the face of record setting high inventory numbers and low sales. What is going to bring this market back into balance? So far, nothing has moved in terms of more buyers or lower prices.
Read on for all the details.
Supply and Demand
By now it should be a familiar story. Inventory is up. In Santa Clara County, tere are currently 4,448 homes for sale.
That is a 9.7% increase from this same time last year.
Only 881 homes were sold in July in Santa Clara County.
Compared to the same time last year, sales are down 12.4%.
We did get some good news in the form of fewer sellers putting their homes on the market in July. A total of 1,892 homes were put on the market in July.
That is down 15.7% from the same month last year. 
When we look at the same numbers for the past month, we can see the way the numbers have trended. Clearly, we can see the down winter period, but the big increase in inventory really tells the story.
For the last 4 months or so, sales have been very flat. While at the same time, inventory has just increased steadily.
While we have seen the county in general getting increases year to year, that is often offset by smaller communities in the county suffering drops in property values. There has not been anything drastic, but the good countywide numbers don't always apply to the smaller communities.
Home Prices
With all the numbers we have seen so far, we would expect prices to be down. In fact, I have been saying that for quite a few months now. But to date, we have not really seen a drop in prices, just a slow down in appreciation.
For the fourth year in a row, despite all the other market influences, Santa Clara County in general has enjoyed a 7.7% increase in property values over the last year.
As of July 2007, the average price of a home in Santa Clara County was $1,042,711.
When we look at the fluctuations over the last few months, we can see the usual seasonal changes and a bigger than usual bump in april and may.
For all intents and purposes, it looks as if we peaked early in our 2007 market. You can see from last year that things peaked in June/July while this year the same occurred in April/May.
Days On Market
As you can see, it is also taking longer to get homes sold. At least, it is taking longer to sell the homes that manage to sell at all.
It took 50 days on average to sell a home in Santa Clara County in July 2007.
That is a 28.2% increase from the same time last year.
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