The Santa Clara County real estate market continues to see dropping sales prices.
The real estate market in Santa Clara County has undergone a significant transformation in recent months, as higher interest rates continue to put pressure on the market.
One of the most notable changes has been the increase in inventory, with a 82% increase compared to the same period last year. This increase in available properties is a welcome development for buyers, who may have more options to choose from when searching for their dream home.
However, while inventory has increased, the number of new listings has actually declined. In December 2022, Santa Clara County real estate saw a 33% drop in new listings compared to the same time the previous year.
Despite the decline in new listings, the number of homes sold in the area has remained relatively stagnant recently. In December 2022, there was a 45% drop in sales compared to the same time last year. It is worth noting that we saw more homes sell than were put on the market for the month.
Despite the slowdown in sales activity, sellers in Santa Clara County have still been trying to get more for their homes, with the average list price seeing a 11% increase over the past year.
However, despite these higher asking prices, the actual sales prices have actually decreased by 13% over the past year a nearly 10% further drop from just last month. This discrepancy between list prices and sales prices could be due to a variety of factors, such as changes in buyer demand or the availability of financing options.
Percent Of List Price
The percentage of list price that homes are selling for has also declined in recent months. Sellers in Santa Clara County have been seeing their homes go for 98.8% of asking price, down from 108.8% at the same time last year. Clearly, many current sellers need to recognize this change and start pricing accordingly.
Days On The Market
In addition to changes in list prices and sales prices, the Santa Clara County real estate market has also seen a longer turnaround time for homes to sell. It took 72% longer for homes to sell than it did during the same month in 2021, with an average of 31 days on the market compared to 18 days the previous year. The days on market has gone from being a relatively insignificant data point, to one of the most important. As sellers who do not adjust soon, will find themselves staying on the market longer and having to drop their prices more as time passes.
In the face of a rapidly changing market, we are seeing a dominant number of homes reducing their price. 34% of homes on the market had their price reduced. Expect this number to stay relatively high as we see homes continuing to be listed at prices too high for the current market.
It’s clear that the Santa Clara County real estate market is facing a number of challenges, but it remains to be seen how these changes will play out in the coming months. Buyers and sellers alike will want to keep an eye on the market to stay informed about the latest trends and developments. Our market report is a valuable resource for staying up to date on the latest happenings in the Santa Clara County real estate market.
Check out last months analysis
Check out the Coffee & Real Estate Live chat where these numbers were reviewed