2023 Recap Report Santa Clara County Residential Sales

 

The 10 Bay Area Counties ended up about 26% off last year's Sales Volume. While the news made it seem like it's a huge deficit, I've been talking about the supply shortage on my Daily Live Videos

• Supply shortages are due to:
• Sales are still strong
• Biggest Winners and Biggest Losers
• Last 7 days of 2023
• Sold Prices have returned to 2022 with a shortfall of only $1,400 less than last year's Average Sale Price. 
• Recap

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Supply shortages are due to:

Historically low interest rates in 2022- 2-3.5% on average make it difficult for anyone with that rate to move. About 60% of all homes have a mortgage on them, of which about 80% have a very low-interest rate from purchase, or refinance loans.

Investors bought up a huge portion of homes. Whether they are large or mom-and-pop investors, they have participated in massive acquisitions of residential real estate over the past few years. They continue to burden regular home ownership.

Lack of new home supply. We're not seeing the numbers of new builds -across the nation - to help offset the population growth and investment buyers.

AirBnB investors. There are hundreds of Short Term Rental Gurus out there ready to sell you a course on how to capitalize on this trend.

Inflation and now higher interest rates are further making it more difficult for home buyers to purchase a home today.

Sales are still strong

That said, Santa Clara County as well as the 10 Bay Area Counties are still doing well. Napa County is the best buy where on average homes are being sold $.87 to the dollar from last year.

Looking back to 2020, you can see the peak of the market was 2021, and April was the best month to sell. No one knows when the top of the market is, so it's always better to just sell when you need.

I have Videos that talk about why selling at the bottom of the market is best when you're moving to another house. 

https://youtu.be/qNzHBOnZ5Xk?si=gUk2whIL4uIOehLy

San Mateo averaged the highest Sale Price over the other counties. As many have reported in the past, it's one of the most expensive places to live in the United States.

Biggest Winners and Biggest Losers

Every week I report on the highs and lows in Santa Clara County. It's a good visualization that proves the strategy to list low and sell high. While this may not be a prudent tactic for every situation, or area, we do see more success when using it.

Lowel Avenue had the highest sales price in Santa Clara County this year.

Stevens Canyon Had the lowest Sales price, but this isn't a typical sale in Cupertion which typically boasts higher sales prices because of its proximity to Apple and other tech companies.

Navarro Drive in Sunnyvale had the Highest List Price to sales price Ratio this year. 181.8% of list price.

Hard Negotiation and auction frenzy also have a lot to do with selling for a high price.

This house needed a lot of work, and came in right about where it should have when you look at recent sales comps in the area and it's condition.

Redwood Retreat is more of an anomaly 29% off the original List Price is more because of it's unique situation and location. But it really shows that pricing still does matter and buyers will only pay what they will for a house. 

The last thing to say is, as a seller, you control the List Price, not the sales price. Buyers are smart, they know the value of the house you're selling and if it's not priced right, your house will sit on the market.

Anything over 30 days tells buyers there's something wrong with the house. Either PRice, location, market, or condition.

Last 7 days of 2023

the Last 7 days of the year are typically slow. The numbers below reflect that. There's nothing anomalous or out of the ordinary. 

The Market slows down because of holidays and getting ready to end the year at work and start the year afresh.

5 Most Expensive Los Gatos Homes

Sold Prices have returned to 2022 with a shortfall of only $1,400 less than last year's Average Sale Price. 

This Chart shows the averages over the year on the far left column. but you can see that

Santa Clara County inventory is low now, and still averaged lower than normal numbers over the year.

Again this is because supply is low. There are still buyers out there ready and willing to buy your home. 

Recap

All in all, this was a great year to bring pricing back to the normal 5-7% increase over time.

We expect more of the same next year. Until supply comes up, Santa Clara County and Bay Area sellers will more than likely enjoy home prices going up next year too.

We do expect interest rates to come down even more so, bringing more buyers into the market.

If there are other numbers or stats you want to see, or talk about selling or buying, text me 408.705.6817

thanks for watching my videos! Please feel free to share with your friends and family

Happy New Year.

Vito Scarnecchia

Realtor®, Broker, Veteran, Dad

DRE#: 01407676

408-705-6817

Vito@abitano.com

Website: abitano.com https://www.onereal.com/vito-scarnecchia-1

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