Takeaways from the data one full month after Shelter in Place orders took effect:
- Median Sale Price: On a month-over-month basis, single family homes in San Mateo County experienced a moderate decrease of 6% with only a 1.4% decrease in Santa Clara County. Interestingly, condos & townhomes experienced slight increases in both counties. On a year-over-year basis, median sale price increased in all categories except for condos/townhomes in Santa Clara County with a decrease of 4.6%. Considering the current situation, these numbers are actually very promising as they indicate a market that is still fairly stable (no major drop on the horizon).
- The number of Closed Sales decreased in every category on both month-over-month and year-over-year comparisons, which is no surprise considering Shelter in Place restrictions from mid-May.
- Likewise, the number of New Listings also experienced a steep decrease of about 40-50%, as many homeowners decided to hold off putting their homes on the market. The hope is that many of these homeowners just delayed their plans rather than deciding not to sell completely, and most economists and real estate brokers are expecting the number of new listings to “rebound” as restrictions are loosened in the coming weeks and months. We see this same effect on the Months of Inventory, which are still very low at around 2 months or so, which keeps us in “seller’s market” territory.
- Days on Market: This is a statistic that we are keeping for comparison but with a BIG caveat, as the Multiple Listing Service (MLS) stopped the clock from March 17th to May 16th, which means this data is going to be less informative for us. So, if you’re happy (or stressed out) about the 7-9 days on market datapoint, keep in mind that it may not be a good indicator of what’s happening on the ground.
We will keep you posted with our weekly updates while the coronavirus situation continues to impact our daily routines. If you are thinking to buy or sell in the coming year, please don’t hesitate to reach out to me to discuss your specific needs, as it’s more important than ever to be strategic in your real estate goals.