With another month under our belt, it is time to take a look back and see how the real estate market is performing. I want to make sure that you can also get some context by seeing what the numbers are for the county in general compared to our local market in Morgan Hill – so I have included the numbers for San Jose and Santa Clara County.
Some interesting things to note here are just how low inventory is right now. But as you look though the numbers, think about what should be happening in terms of sales price. From what I am seeing despite low inventory without a similar drop in buyers, we should see homes selling for much more than we are. This is particularly true in Morgan Hill where we have seen a ridiculous drop off in inventory numbers.
So lets break down the biggest numbers effecting our local market.
Properties On The Market
| August 2019 | August 2020 | Percent Change | |
|---|---|---|---|
| Santa Clara County | 2,424 | 1,705 | -29.7% |
| San Jose, CA | 1,253 | 776 | -38.1% |
| Morgan Hill, CA | 134 | 57 | -57.5% |
If anything shows us just how low home inventory is right now, it is the change in total homes on the market since last year. As you can see, inventory is down everywhere, but it is down most in Morgan Hill.
New Listings In August
| August 2019 | August 2020 | Percent Change | |
|---|---|---|---|
| Santa Clara County | 1,439 | 1,708 | 18.7% |
| San Jose, CA | 777 | 869 | 11.8% |
| Morgan Hill, CA | 61 | 76 | 24.6% |
While it is good news to see more homes added to the inventory in August of this year than in 2019, we still sold more homes than were listed, as you will see below.
Homes Sold
| August 2019 | August 2020 | Percent Change | |
|---|---|---|---|
| Santa Clara County | 1,254 | 1,309 | 4.4% |
| San Jose, CA | 677 | 650 | -4.0% |
| Morgan Hill, CA | 58 | 79 | 36.2% |
Despite much lower inventory numbers, we saw an increase in the number of homes that are actually sold. This means that we are selling homes faster than homes are being added to the market, when you consider the homes listed numbers above.
Average List Price
| August 2019 | August 2020 | Percent Change | |
|---|---|---|---|
| Santa Clara County | $1,369,215 | $1,500,475 | 9.6% |
| San Jose, CA | $1,019,112 | $1,127,169 | 10.6% |
| Morgan Hill, CA | $985,018 | $1,099,198 | 11.6% |
Clearly, home sellers are listing their homes to take full advantage of the current shortage of homes. In fact, average list or asking price is up 11.6% in Morgan Hill. That is higher than the county in general and for San Jose!
Average Sales Price
| August 2019 | August 2020 | Percent Change | |
|---|---|---|---|
| Santa Clara County | $1,296,419 | $1,492,576 | 15.1% |
| San Jose, CA | $1,040,701 | $1,154,153 | 10.9% |
| Morgan Hill, CA | $1,048,896 | $1,099,296 | 4.8% |
Percent Over/Under Asking Price
| August 2019 | August 2020 | Percent Change | |
|---|---|---|---|
| Santa Clara County | 98.1% | 101.5% | 3.5% |
| San Jose, CA | 98.2% | 102.6% | 4.5% |
| Morgan Hill, CA | 96.4% | 100.7% | 4.5% |
With the very low inventory numbers, we see that we have far too many buyers for the available homes. The natural result of that is more bidders for the same house and that usually results in homes selling for over asking price as multiple offers are submitted. Frankly, given the low number of homes, I would have expected this percentage to be much higher than it is.
Total Days On Market
| August 2019 | August 2020 | Percent Change | |
|---|---|---|---|
| Santa Clara County | 31 | 20 | -35.5% |
| San Jose, CA | 31 | 19 | -38.7% |
| Morgan Hill, CA | 39 | 21 | -46.2% |
Finally, we look at the total days on market, or the number of days it took for the seller to accept an offer on their property. Across the board we have seen a significant drop in how long it takes to get an accepted offer. In most cases, this is more a case of listing agents that note in their listings that a seller will not look at any offers until a certain date. In a recent sale, I had multiple offers within 48 hours of listing the home – despite having noted that offers should not come in until a later date.
