Market Update - August 2019
As we transition from the summer months and look forward to some cooler temperatures, there’s similarly a lot of talk about a potential cooling of the real estate market. When we look at the numbers for August, San Mateo County is actually NOT showing many signs of a cooling as people might think. The number of closed sales compared to both the previous month (July) and last August, but this may be more a component of the low number of listings, as inventory levels remain low at 1.4 months for single family homes and 1.2 months for condos & townhomes. The median sale price for single family homes decreased slightly as compared to July (2.8%) while experiencing a slight increase (1.1%) compared to August 2018. Condos & townhomes fared even better with >10% increases on both a month-over-month and year-over-year basis. This may have to do with the fact that condos & townhomes are in a more affordable price range (if you can call $900K-$1M “affordable.”)
Santa Clara County experienced more significant decreases in median sale price for all categories of homes on both a month-over-month and year-over-year basis with the exception of a 4.9% increase for condos & townhomes compared to the month before. The number of sales decreased overall, but inventory levels, while higher than San Mateo, are still fairly low at 1.6 months for single family homes and 2.1 months for condos & townhomes.
It’s customary to experience a seasonal bump in new listings after Labor Day and as many homeowners are finished with summer traveling and want to sell their homes before the holiday season, and we are already seeing an influx of more new listings this month. With mortgage rates still at historical lows in the mid 3% range and continued low inventory levels, it’ll be interesting to see if the fall season will be one of a continuing active market or show signs of the cooling that many are talking about and anticipating. Whatever happens, we’ll continue to keep you posted – feel free to contact me any time to discuss your specific real estate goals!