The market continued on pace in May with the median days to sell for all listings in both San Mateo & Santa Clara counties well under two weeks. In most cases, the median sales price remained about the same and even decreased as compared to April, but strong gains were evident when compared to the same time period last year. Despite the higher home prices, open houses are well attended and multiple offers commonplace as we continue to see inventory levels hovering around one month and below.
San Mateo County
The median sales price for single-family homes in San Mateo County decreased 9% MTM (month-to-month) from $1,740,000 in April to $1,576,000 in May but increased 7% YOY (year-over-year). From April to May, the number of new listings decreased 11% and the days on market remained about the same at 12.
The median sales price for condos/townhomes decreased slightly at 1% MTM from $1,010,000 in April to $995,000 in May and increased 17% YOY. The number of new listings increased 3% from 143 in April to 147 in May. The median days on market increased slightly from 10 to 11.
Santa Clara County
In May, the median sales price for single-family homes in Santa Clara County decreased 1% to $1,400,000 in May from $1,420,000 in April, but increased 18% YOY. From April to May, the number of new listings increased 15% and the days on market remained the same at 9.
The median sales price for condos/townhomes increased 4% from $915,444 in April to $950,000 in May and increased 35% from May of 2017. The number of new listings increased 7% from 518 in April to 552 in May. The median days on market remained about the same at 9.
Opportunities through 1031 Exchanges
Section 1031 like-kind exchanges have been under threat of repeal or reduction for many years as a way to increase federal revenue. The Tax Cut & Jobs Act passed last December left the 1031 rules intact with one important change, limiting exchanges to real estate property only. Perhaps this is an indication of how popular 1031 exchanges have been for real estate, and how beneficial they can be for the market.
The tax-deferred exchange offers taxpayers one of the last great opportunities to build wealth and save on taxes. By completing an exchange, the taxpayer can dispose of investment real estate, acquire replacement property and defer the tax that would ordinarily be due upon the sale. However this is more than a tax-deferral tool. 1031 exchanges are also a great way to reposition your real estate holdings.
Primary residences may partially qualify if they are also used for business or rental purposes, or converted to such. The same goes for that second home you hardly go to anymore. Tired of your current real estate holdings? An exchange can give you options to buy less management-intensive real estate or ones that match your current lifestyle.
Join us at our next seminar on June 20th, as our guest speaker, Ron Ricard (Vice President of IPX 1031) will go over the basics of 1031 Exchanges as well as more complex types of exchange transactions such as Improvement / Build-To-Suit Exchanges, Reverse Exchanges, combining 121 & 1031, seller financing, strategic 1031 investing and solutions for the most challenging transactions.
Sign up at the link below.
We offer several seminars throughout the year to help provide information about different topics related to real estate purchases, sales, or ownership in general. If you or anyone you know is interested in joining us for that seminar, please see the details below.
June 20th – Guide to 1031 Exchanges
September 5th – Smart Homes
October 17th – Proposition 60/90
All of our seminars will be held on Wednesdays from 6:30 – 8:00 pm at the Borel Estates Building, 1700 S. El Camino Real, San Mateo, CA 94402.
The seminars are free, but seating is limited, so make sure to reserve your seat by contacting me directly or by signing up online at: https://tinyurl.com/perisson2018.
Looking forward to seeing you there!