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 If you have been keeping an eye on my previous reports, you know that I have often referenced the market back in 2001. Well, we are now officially in a market where things are "worse" than they were in 2001.
Despite this, we still have not seen a drop in the average price of a home.
Inventory is up, sales are down and the number of homes added to the market was also down in August.
Read on for all the details.
Supply And Demand
Big increases in the overall inventory in August.
There were 4,795 homes available for sale in August, This represents a 22.2% increase from the same time last year.
Sales were down 31.1%. That gave us a grand total of 787 homes sold in Santa Clara Count in the month of August.
We did get some good news as the number of homes added to the market in August was down 8.4% from last year. This gave us 1,954 homes added to the inventory.
With our current numbers, we have 6 months worth of inventory in Santa Clara County.
In looking at past months, we see the inventory take a jump in August. This is a bit out of character for the time of year when we look at last years numbers. You can see that last year, the number of homes in inventory actually dropped from July to August.
Sales continue to trend down, despite our summer season. Notice that in August of last year, we got a little bump in sales that has just not happened this year.
Home Prices
Again, we see that home prices in Santa Clara County have risen compared to last year.
The current average home price in Santa Clara County is $1,085,590.
That comes out to a 15.5% increase from last year. That is a double digit increase - amazing when you consider our current market influences.
When we look at past months, we see the usual variation for time of year.
However, note that we see an increase from July to August that we did not see at the same time last year when values dropped a bit from July to August. From July to August, we saw an increase of 4.1% in average price.
Whenever I see variations like this, I want to focus on other market influences to try and see what might be causing this. It is often also a precursor to something bigger happening in the market. While we have not seen it yet, it may be the beginnings of a market change that brings down prices.
Days On Market
The steady increase in days on market continues in August.
When compared to the same time last year, the average days on market is up 32.6%.
That gives us 57 days that it is taking the average home in Santa Clara County to get sold.
 The numbers for past months gives us the usual seasonal influences.
We do see some interesting fluctuations from June to August of last year that are different from what we have seen this year.
From July to August, we saw an increase of 14% in days on market.
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