Santa Clara County real estate continues its fundamental shift under the stress of higher interest rates.
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.
Inventory
One of the most notable changes has been the increase in inventory, with a 56% 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.
New Listings
However, while inventory has increased, the number of new listings has actually declined. In November 2022, Santa Clara County real estate saw a 24% drop in new listings compared to the same time the previous year. This decrease in new listings could be a sign that sellers are hesitant to put their homes on the market, potentially due to concerns about the current market conditions.
Homes Sold
Despite the decline in new listings, the number of homes sold in the area has remained relatively stagnant recently. In November 2022, there was a 50% drop in sales compared to November 2021. While this may be concerning for some sellers, it’s important to keep in mind that real estate markets can be cyclical and that changes in sales activity can vary from month to month.
List Price
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 12% increase over the past year.
Sales Price
However, despite these higher asking prices, the actual sales prices have actually decreased by 5.2% over the past year. 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 99.6% of asking price, down from 108% at the same time last year. This decrease could be a sign that buyers are becoming more cautious and are more selective about the properties they are willing to purchase.
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. In November 2022, it took 61% longer for homes to sell than it did during the same month in 2021, with an average of 29 days on the market compared to 18 days the previous year. This increase in the time it takes for homes to sell could be due to a variety of factors, such as changes in buyer demand or the availability of financing options.
Price Reductions
In the face of a rapidly changing market, we are seeing a dominant number of homes reducing their price. In November of 2022, 41% of homes on the market had their price reduced. This is down from last months number, which is to be expected as the market continues to adjust.
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
Santa Clara County Real Estate Market Report October 2022
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