Happy Summer! As we officially start off the third quarter of the year, let’s take a look at the local Bay Area real estate market. Interest rates have nearly doubled in recent months and the stock market has taken a hit, which has definitely impacted the market, compared to just a few months ago. Diving into the stats below, we can see how things have changed in both San Mateo and Santa Clara County, the home of Silicon Valley Real Estate.
These two tables and the graphs below show market statistics for San Mateo & Santa Clara counties and compare the months of June and May for 2021 and 2022.
May 2022 to June 2022
The average sale price is lower and the number of sales is down and the number of new listings up (although Santa Clara County had fewer sales and new listings).
May 2021 to May 2022
Here we see that the average list and sale price is up, dollar per square foot price up, and both number of closed sales and new listings down.
June 2021 to June 2022
The number of new listings is higher in SM County yet lower in SC County, the number of closed sales significantly lower, the average list and sale price is slightly lower in SM County and higher in SC County, and the dollar per square foot price is is higher.
Where do we go from here?
Looking at these numbers, and from what I’m seeing in the real estate market in real-time, it doesn’t seem like we’ll see prices shoot back up immediately or we’ll return to the same ultra-competitive market we were in a few months back. Personally, I don’t believe we’ll see a sharp downshift either. It sounds crazy, but we’re just a couple of months away from fall. If this year is anything like the last 15 years I’ve been in business, we’ll run into an inventory shortage by October, which should last into the spring, and we’ll be back to seeing multiple offers and overbidding through April or May 2023.
If you’re thinking about buying or selling, please reach out to me so we can discuss timing and options. Please also feel free to pass on my info to your family and friends 🙂
Cliff Whearley is the Broker at Whearley & Co. Real Estate. He has been a resident of Redwood City for over 29 years. If you’re buying or selling a home or have any real estate questions, he would love to work with you!
July 8, 2022