This has been interesting month with Brexit and its effect on volatile stock market. While the stock market is recovering in the past week, we will watch out for short time and long time effect. US real estate will feel a positive effect as investors seek to invest in relatively stable US market. Furthermore, the economic indicators this month shows a stronger economy that expected.
Here is what happened in Santa Clara's Real Estate market last month:
Mortgage rates remain historically low. This trend continues to support home buying as it translates to significant savings for buyers. As overall economic recovery remains on track, interest rate are not expected to rise as a result of post Brexit international economies uncertainty. It is great time to buy.
Number of Sales:
Existing single family houses, condos and town homes resumed on a seasonally upward trends. This was only up 2% from last month but 7% lower than May 2015. As we are summer continues, the number of sales are expected to continue to rise.
This year, the number of home sales has been lower than the past years in May.
After months of increase in median price, it decreased to $922,200 which is 2% lower than last month and 5% higher than last year.
Prices are historically high as it increased 83% higher since 2011.
Price per square feet was $664 which was 2% lower than last month but 5% up from last year.
List to Price Ratio:
List to sale price ratio was 103.60% (meaning sale price was higher than listing price). This ratio is lower than last month (1%) and was 3% lower than last year. After years of strong seller market, it seems that the market is becoming more stable.
Days in the market:
Median days in the market has increased to 12 days from 11 days last month and 10 days last year.
There is opportunity in every market:
Summer is the peak season for real estate, use this season to your advantage. Give us a call to learn more about the market and find out how we can help.