San Mateo County March 2019 Market Report

San Mateo Real Estate

San Mateo County Real Estate

Entering the Spring Selling Season  

March 2019 Report

Spring 2018 was one of the hottest markets in San Mateo County and around the Bay Area over the last 2 decades. The market began to cool in summer and autumn – demand, sales and appreciation rates generally dropping, while supply and price reductions increased. Then the mid-winter doldrums took hold. The magnitude of these changes varied by region, and San Mateo was less affected than many other local counties – but it was still affected.

Since the recovery began in 2012, spring has typically been the most active season of the year, and often the period during which appreciation gains have been the largest. The spring 2019 market is just getting started amid a diverse set of economic indicators. Financial markets have, so far, recovered in 2019, interest rates have dropped, and big local IPOs loom. We will know much more soon.

Long-Term, Annual Trends in Median Home  

Price Appreciation

San Mateo Top Real Estate Boyenga Team

Short-Term, Monthly Median Price Changes

The February median house sales price was well down on a year-over-year basis, but February is one of the lowest sales-volume months of the year. Looking at first and second quarter price data will be a much more meaningful indicator of home price trends, as we compare spring 2019 to spring 2018 (which saw a dramatic spike in median home prices).

San Mateo Real Estate

Median House Price Appreciation  

by City, 1998 – 2018

Markets appreciate due to a wide variety of local and macro-economic reasons: economic cycles, industry booms, inflation, consumer confidence, interest rates, employment, gentrification, new construction, comparative affordability (to other nearby markets), population growth, buyers’ median age, proximity to major company HQs, commuting, fashion, and so forth. The combination of factors affecting any particular area is often specific to that market.

Around the Bay Area, more expensive homes have generally appreciated less than more affordable homes, especially over the last 3-4 years, but the picture in Silicon Valley is more complicated. For example, in San Mateo, Atherton has the second highest 20-year appreciation rate, and it is the most expensive city in the Bay Area. The city with the highest rate is East Palo Alto, the most affordable city in the county. (In Santa Clara County, Palo Alto came in first.) These percentages should be considered very approximate.

Eric and Janelle Boyenga Top Real Estate

For more context on the appreciation percentages above, below is a chart from last month’s report delineating 2018 median sales prices.

Compass Top Team Boyenga

Inventory Levels in January-February  

Year-over-Year Comparisons

January-February inventory was well up from the abnormally low levels seen during the same months of recent years, but was not particularly high from a historical perspective.

Boyenga Top Real Estate Team

The number of active listings fluctuates daily, and the numbers below are rapidly increasing as more new listings come on market. These next 2 charts are snapshots of active listings on March 1st.

Listings on Market

by Price Segment, 3/1/19

San Mateo Top Agent Boyenga

Active Listings by City

& Median LIST Prices, 3/1/19

The supply of listings available to purchase varies widely between cities, which can be a simple reflection of market size and/or an indicator of supply and demand dynamics. If median LIST prices (below) are well above median SALES prices (charted earlier in this report), it is typically a sign that the balance in listings for sale is disproportionately weighted towards higher priced properties, which take longer to sell – and/or a sign of systemic overpricing beyond what buyers consider fair market value.

As of March 1st, Atherton had a median house list price of $11 million for its 18 active MLS listings – far and away the highest median asking price in the Bay Area.

Compass Top Agent Boyenga

Market Seasonality

New Listings Coming on Market

by Month

New inventory usually starts pouring into the market right now, in early spring, to fuel the biggest selling season of the year. It also spikes dramatically in September for the shorter autumn season.

Silicon Valley Top Team Boyenga

Home Sales Volume

by Month

So far in 2019, monthly sales volumes are very comparable to the beginning of 2018, however these are typically the lowest sales-volume months of the year. March is usually the month in which the big spike in spring sales starts to show up, following the jump in new listings.

Eric and Janelle Boyenga Top Real Estate

Listings Priced $3 Million+

Accepting Offers, by Month

If anything, the luxury home market in Silicon Valley is even more fiercely seasonal than the general market.

Silicon Valley Real Estate Boyenga

Market Statistics by City

Many of the cities ranked at the top of the market-heat scale – as measured by 2 standard statistics below (for the second half of 2018) – are among the most affordable. But there are certainly other factors, as mentioned in the paragraph on appreciation rates.

Sales Price to Original List Price %

by City

Any percentages over 100% reflect overbidding of asking prices. Though these percentages have been declining since mid-2018, many of them are still very high compared to other markets.

San Mateo Real Estate Boyenga

Average Days on Market

by City

Many of these days-on-market figures are among the lowest in the Bay Area. Note that it is not unusual for more expensive homes to take longer to sell, though, again, that is not always the case.

Boyenga Top Real Estate Team

Comparing Bay Area County Markets  

Listings for Sale by Price Segment

Median Home Prices, Q4 2018

San Mateo and San Francisco Counties have been alternating by quarter for the title of having the highest median house sales price in the Bay Area.

Silicon Valley Real Estate

Active Listings Priced under $1 Million

by County

Eric and Janelle Boyenga Real Estate

Luxury Home Listings by County

Santa Clara County has the largest market in the state for homes priced $3 million and above, but San Mateo County has more listings priced at $10 million+.

Bay Area Real Estate

County to County Migration  

Coming to & Leaving San Mateo

People move to San Mateo County from all over the country and the world, and people leave to move to a vast number of locations, for differing reasons. This analysis looks at those counties with the greatest number of people moving to and from San Mateo. In many cases, there is a large exchange between 2 counties, with residents going in both directions. Often, but not always, the outward flow is greater to counties with more affordable home prices, but there are many factors – such as schools, employment, commuting and other quality of life issues – at play.

San Mateo Real Estate

Demographics Snapshot

Educational Attainment

Silicon Valley vs. U.S.

Unsurprisingly, Silicon Valley is one of the most educated places on the planet.

Silicon Valley Real Estate

Education & Income

Disparities between the Sexes

An indicator of the income-generating value of education, along with an unhappy indicator of where progress remains to be made in income equality. (As an aside, real estate is certainly one of the first professions that saw income equality established between the sexes: Women have been holding their own and, indeed, often dominating rankings of top Bay Area agents for many decades.)

San Mateo Santa Clara Real Estate

The statistics in this report are very general and approximate indicators based upon listing and sales data pertaining to assortments, of varying size, of relatively unique homes across a broad spectrum of locations and qualities. How these statistics apply to the current value, appreciation trend, and prevailing market conditions of any particular property is unknown without a specific comparative market analysis.

Contact the Boyenga Team for any of your Bay Area Real Estate needs!

Santa Clara March 2019 Market Report

Santa Clara County Real Estate

The Spring Market Begins  

March 2019 Report

Spring 2018 was one of the hottest markets in Santa Clara County and around the Bay Area over the last 2 decades. The market began to appreciably cool in summer and autumn – demand, sales and appreciation rates significantly dropping, while supply and price reductions jumped. Then the mid-winter doldrums took hold.

Since the recovery began in 2012, spring has typically been the most active season of the year, and the period during which appreciation gains have been the largest. The spring 2019 market is just getting started amid a diverse set of economic indicators. Financial markets have, so far, recovered in 2019, interest rates have dropped, and big local IPOs loom. We will know much more soon.

Median Sales Price Trends

Long-Term, Annual Trends in Median Prices

Short-Term, Monthly Median House Price Changes

Year over year, the February monthly median house sales price saw a big drop over February 2018, and from the spring 2018 peak. But February is a very low-sales-volume month, and what is much more important is what happens to the median house sales price over the next 3-4 months – a period during which median prices often peak for the year.

Median Condo Sales Prices by Month

The monthly median condo sales price actually ticked up a bit in February, year over year – but, again, this is based on very low sales volume.

Median Home Price Appreciation  

since 1998, by City

Markets appreciate due to a wide variety of local and macro-economic reasons: economic cycles, industry booms, inflation, consumer confidence, interest rates, employment, gentrification, new construction, comparative affordability (to other nearby markets), population growth, buyers’ median age, commuting, fashion, and so forth. The combination of factors affecting any particular area is often specific to that market.

Around the Bay Area, more expensive homes have generally appreciated less than more affordable homes, especially over the last 3-4 years, but the picture in Silicon Valley is more complicated. For example, Palo Alto, which is certainly not considered one of the more affordable cities, saw the highest 20-year appreciation rate in the county. These percentages should be considered very approximate.

For further context on the appreciation chart above, below is a chart from last month’s report with 2018 median house sales prices.

What’s for Sale in Santa Clara

Inventory Levels in January-February

Year-over-Year Comparisons

January-February inventory levels are far above those seen in the same months of the past 4 years. The level in early 2018, in particular, was crazy low, which helped fuel the spring 2018 jump in median sales prices.

Home Listings on Market

by Price Segment, 3/1/19

The number of active listings fluctuates daily, and the numbers below are rapidly increasing as more new listings come on market. These next 2 charts are snapshots of active listings on March 1st.

House Listings on Market by City

with Median LIST Prices, 3/1/19

The supply of listings available to purchase varies widely between cities, which can be a simple reflection of market size and/or an indicator of supply and demand dynamics. If median LIST prices (below) are well above median SALES prices (charted earlier in this report), it is typically a sign that the balance in listings for sale is disproportionately weighted towards higher priced properties, where demand is softer – and/or a sign of systemic overpricing beyond what buyers now consider fair market value.

Market Seasonality

New Listings Coming on Market

New inventory usually starts pouring into the market right now, in early spring, to fuel what is usually the biggest selling season of the year.

Number of Home Sales by Month

While the number of listings has been increasing, the number of sales has been declining. But a much more meaningful indicator will be what occurs in spring sales volume – beginning in March when sales usually start to soar.

Luxury Home Listings Accepting Offers

by Month

If anything, the luxury home segment is even more fiercely seasonal than the general market.

Market Statistics by City

There is a wide variety of factors in play when comparing the respective market heat prevailing in different cities – one of them is certainly proximity to the headquarters of our high-tech giants; comparative affordability is often another big factor.

Sales Price to Original List Price %

Average Days on Market

by City

Comparing Bay Area Markets

Where to Buy a Home for under $1 Million

Where to Buy a Luxury Home

Santa Clara County has the largest market for homes priced $3 million and above in the state, though San Mateo takes the lead for homes of $10 million+.  San Francisco has by far the largest luxury condo market.

County to County Migration

People move to Santa Clara County from all over the country and the world, and people leave to move to a vast number of locations – for many differing reasons. This analysis looks at those counties with the greatest number of people moving to and from Santa Clara. In many cases, there is a large exchange between 2 counties, with residents going in both directions. Often, but not always, the outward flow is greater to counties with more affordable home prices, but there are many factors – such as schools, employment, commuting times and other quality of life issues – at play.

Demographics Snapshot

Educational Attainment

Silicon Valley vs. U.S.

Unsurprisingly, Santa Clara and San Mateo are among the most highly educated counties in the country.

Education & Income

Disparity between the Sexes

An indicator of the income-generating value of education, along with an unhappy indicator of where progress remains to be made in income equality. (As an aside, real estate is certainly one of the first professions that saw income equality established between the sexes: Women have been holding their own and, indeed, often dominating rankings of top Bay Area agents for many decades.)

The statistics in this report are very general and approximate indicators based upon listing and sales data pertaining to assortments, of varying size, of relatively unique homes across a broad spectrum of locations and qualities. How these statistics apply to the current value, appreciation trend, and prevailing market conditions of any particular property is unknown without a specific comparative market analysis.

Contact the Boyenga Team for any of your Bay Area Real Estate needs!

San Francisco March 2019 Market Report

San Francisco Real Estate

The Spring Market Begins  

March 2019 Report

Spring 2018 was one of the hottest markets in SF and the Bay Area in the last 2 decades. Then the market began to cool in summer and autumn – demand, sales and appreciation rates generally dropping, while supply and price reductions increased – before the mid-winter doldrums took hold. The magnitude of these changes varied by county, with SF less affected than many others, but still certainly affected.

Since the recovery began in 2012, spring has typically been the most active season of the year, and usually the period during which appreciation gains have been the largest. The spring 2019 market is just getting started amid a diverse set of economic indicators. Financial markets have, so far, recovered in 2019, interest rates have dropped, and big local IPOs loom. We will know much more soon.

Long-Term, Annual Median Price Trends

Short-Term Median Price Trends –  

3-Month Rolling Figures

Looking at 3-month rolling median sales prices, the SF median house price was virtually unchanged on a year-over-year basis, while the median condo price (second chart below) ticked up a little – but the critical issue is what will happen in the spring months, when sales volumes are much higher.

Median Sales Price Appreciation  

1998 – 2018, by District

Markets appreciate due to a wide variety of local and macro-economic reasons: economic cycles, industry booms, inflation, consumer confidence, interest rates, employment, gentrification, new construction, comparative affordability (to other nearby markets), population growth, buyers’ median age, commuting, fashion, and so forth. The combination of factors affecting any particular neighborhood or district in the city is often specific to that market.

In SF and around the Bay Area, more expensive homes have generally appreciated less than more affordable homes, especially over the last 3-4 years. On the other hand, during the last downturn after 2008, the prices of more expensive homes usually declined significantly less. These appreciation percentages should be considered very approximate.

House Median Sales Price Changes

1998 – 2018

Condo Median Price Changes

1998 – 2018

What’s for Sale in San Francisco  

as of March 1, 2019

Active Listings by Price Segment

March 1, 2019

The number of active listings fluctuates daily, and the numbers below are increasing as more new listings come on market. These next 3 charts are snapshots of active listings on March 1st.

Houses for Sale by District

with Median LIST Prices. 3/1/19

The supply of listings available to purchase varies widely between city districts, which can be a simple reflection of market size and/or an indicator of supply and demand dynamics. If median LIST prices (below) are well above 2018 median SALES prices (delineated earlier in this report), it is typically a sign that the balance in listings for sale is disproportionately weighted towards higher priced properties, where demand is softer – and/or a sign of overpricing beyond what buyers consider fair market value.

Condos for Sale by District

with Median LIST Prices, 3/1/19

Market Seasonality

New Listings Coming on Market

New inventory usually starts pouring into the market right now, in early spring, to fuel the biggest selling season of the year.

Active Listings on Market

Sales Volume by Month – General Market

The number of sales in the first 2 months of 2019 was down from the same period of 2018, but these are the 2 lowest sales-volume months of the year. A much more significant indicator will be what occurs over the next 4 months during the classic spring selling season. Sales are a somewhat lagging indicator, as they mostly reflect new listings and accepted-offer activity in the previous month or two.

Luxury Home Sales by Month

The luxury home segment is, if anything, even more fiercely seasonal than the general market. The vast majority of activity usually occurs in spring and then spikes again in early autumn.

Market Statistics by City District

In SF and around the Bay Area, higher-priced areas have generally had somewhat cooler markets than more affordable markets in recent years, which is reflected in the next 4 charts. But home price is certainly not the only factor at play in these different neighborhoods.

Sales Price to Original List Price %

Any percentage over 100% reflects overbidding of asking price. Though these percentages have declined somewhat in the past 6 months, they are still incredibly high compared to most other places in the Bay Area and the U.S..

Unlike the house market, various city districts have seen high volumes of newly constructed condos in the last 3 to 4 years, and the increased supply has affected the condo markets in those areas.

Average Days on Market by District

Comparing Bay Area Markets

Homes for Sale under $1 Million

as of March 1, 2019

Bay Area Luxury Homes for Sale

as of March 1, 2019

Bay Area Median Sales Prices, Q4 2018

On a quarterly basis, the highest median house sales price in the Bay Area has been alternating between San Francisco and San Mateo Counties.

County to County Migration

People move to SF and the Bay Area from all over the country and the world, and people leave to move to a vast number of locations, for differing reasons. This analysis looks at those counties with the greatest number of people moving to and from SF. In many cases, there is a large exchange between 2 counties, with residents going in both directions. Often, but not always, the outward flow is greater to counties with more affordable home prices, but there are many factors – such as schools, employment and quality of life issues – at play. (Cook County is where Chicago is located.)

Demographics Snapshot  

Educational Attainment

San Francisco vs. U.S.

San Francisco, as well as the greater metro area, is very highly educated against national norms.

Education & Income

Disparity between the Sexes

An indicator of the income-generating value of education, along with an unhappy indicator of where progress remains to be made in income equality. (As an aside, real estate is certainly one of the first professions that saw income equality established between the sexes: Women have been holding their own and sometimes dominating rankings of top Bay Area agents for many decades.)

The statistics in this report are very general and approximate indicators based upon listing and sales data pertaining to assortments, of varying size, of relatively unique homes across a broad spectrum of locations and qualities. How these statistics apply to the current value, appreciation trend, and prevailing market conditions of any particular property is unknown without a specific comparative market analysis.

Contact The Boyenga Team for any of your Bay Area Real Estate Needs!

Portola Valley Real Estate Market and Living

Portola Valley

Situated in San Mateo County, Portola Valley is a hidden gem surrounded by wooded hills that values environment and historic heritage. Having an extensive trail system, open space, natural views, and scenic roads contribute to Portola Valley’s country feel. Because of its location there are many gorgeous and serene preservations near such as Windy Hill Open Space Preserve, Pearson-Arastradero Preserve, Russian Ridge Open Space Preserve and many more!

All things Stanford are in close distance to Portola Valley such as the university, the mall and the dish trail.

Interest in Portola Valley Real Estate Market Report? Check out what’s happening below:

Active listings in Portola Valley – 21 (-38.2% YoY)

Closed sales in Campbell – 16 (-30.4% YoY)

Median sales price in Campbell – $3.729 M (+6.2% YoY)

Median days on the market – 15 (+15.4% YoY)

 

Contact The Boyenga Team for any of your Bay Area Real Estate Needs!

Campbell Real Estate Market and Living

Living in Campbell

It started in 1878 when Mr. Campbell sold an acre of his land for $5 to the railroad. In just a short amount of time the area became the center for shipping fruit as a result of the drying grounds and canneries which made Campbell an important rail center. The city of Campbell is now one of the most desired in the area for families to settle down while also maintaining a great nightlight for singles strolling the Avenue making the real estate market hot.

Between Campbell Ave and the Pruneyard there are so many delicious dishes and craft cocktails to be had. If you find yourself in the area, some local favorites are: Aquis Campbell – known for their industrial “swirl” drinks, La Pizzeria restaurant for the most authentic Italian pizza, Orchard City Kitchen which has a great atmosphere and dishes for those who have food allergies. Located right next door is the Campbell Theater where you can dine and drink while watching the newest movie or for a lunch spot – Mendocino Farms for exquisite salads and sandwiches. Grab a brunch at Opa’s on Sunday or Stacks any day!

Looking to shop around in Campbell? We suggest popping into Stripes Boutique, Bombshell Boutique, and Simply Smashing.

Interest in Campbell Real Estate Market Report? Check out what’s happening below:

Active listings in Campbell – 149 (+22.1% YoY)

Closed sales in Campbell – 85 (-48.2% YoY)

Median sales price in Campbell – $1.32 M (+4.3% YoY)

Median days on the market – 18 (+100% YoY)

Contact The Boyenga Team for any of your Bay Area Real Estate Needs!

San Mateo County February 2019 Market Report

San Mateo County Real Estate

Heading into the 2019 Market  

February 2019 Report

As of early February, the government shutdown is over – at least for a couple more weeks – the stock market has recovered dramatically from its late 2018 plunge, and interest rates are well down from November highs. A good number of large, local, high-tech “unicorns” continue to plan IPOs in 2019. All these are positive economic indicators for the Bay Area real estate market – but indicators have proven to be quite volatile over the past 5 months, and future movements are not to be taken for granted.

As detailed in our last report, there was considerable cooling in the market in the second half of 2018, though less so in San Mateo County than in Santa Clara. The month of January typically has the fewest sales of the year, sales which mostly reflect activity during the December market doldrums: We don’t consider its data to be a reliable indicator of conditions or trends. But activity is picking up as the new year gets started, and the beginning of the spring sales season – which in the Bay Area can start as early as February – will soon provide more direction as to where the market is heading.

Market Overviews

Median sales prices can fluctuate significantly by month and by season, and they are not perfect indicators of changes in fair market values. Longer-term trends are much more meaningful than short-term changes.

Median House Prices since 1991

Median Condo Values since 1996

In this long-term chart on median condo values, monthly and seasonal fluctuations have been smoothed out.

Rent Rate Appreciation since 2010

Generally speaking, there should be a relatively close correlation between home prices and rents: They constitute the 2 main options for paying for one’s housing. It is not an apples-to-apples comparison, because there are other issues at play, such as building home equity, the ability to remodel and improve, certain tax benefits (though diminished by recent tax law changes), and so forth. Still, if one rises and the other does not, most economists would suggest an imbalance in the market that will probably be corrected sooner or later.

The most common home sale type in San Mateo County is a 3-bedroom house with a median size of 1500 square feet.

Silicon Valley Home Sales by Price Segment

Since the recovery began in 2012, the number of Silicon Valley home sales under $1 million has dramatically decreased as prices have migrated steadily higher. In 2018, more than half of those sales occurred in San Jose, which features many of the most affordable neighborhoods in the region. Generally speaking, in San Mateo County, smaller homes and the more affordable communities are in the north, close to the SF border.

San Mateo County Higher-Price Home Sales

since 2012

In 2018, a new high in luxury home sales volume was hit in San Mateo, led by an enormous spike in Q2. Q2 is typically the biggest quarter of the year for high-end sales and home sales generally, a quarter we will soon be entering again.

Median Prices, Average Dollar per Square Foot   

& Median Home Size by City

City values are influenced by many factors, including location, of course, but median home size is another basic consideration. All things being equal – especially in general quality of location – a smaller home will have a lower price, naturally, but typically a higher average dollar per square foot value.

When the community with the largest homes, Atherton, also has the highest $/sq.ft. value (and by far the highest prices), you know you have found the most expensive real estate in San Mateo – a county with many, very expensive cities and towns. In fact, by almost any measure, Atherton has the most valuable homes in the Bay Area. (Lot sizes are also a factor.)

The 2-4 Unit Building Market

The residential investment market of 2-4 unit buildings has seen a similar appreciation trend to that of homes, but sales volumes have been declining for the past 4 years.

Era of Housing Construction

The vast majority of home construction in San Mateo County occurred in the 4 decades from 1940 through 1979. As a point of context, in San Francisco, almost half of all housing units were built prior to WWII, when Silicon Valley was still very sparsely populated.

A Very Multi-Cultural Place – 

Bay Area Demographics

Before looking at the charts below, here is today’s demographics quiz question:  What 4 nationalities account for the origin of the highest numbers of Bay Area residents?

Market Dynamics by Price Segment

The next 3 charts measuring the Silicon Valley homes market are all consistent: 1) The first half of 2018 was crazy hot and then cooled off in the second half, and 2) Supply and demand dynamics in all price segments under $3 million were very similar, but a somewhat softer market prevailed in luxury home sales (which is not unusual).

Stock Prices & Interest Rates

As seen in the first chart below, the changes in the S&P 500 Index have been dramatic since the 2016 election, seeing an enormous jump to its most recent peak in September 2018 before entering a period of substantial volatility. Ups and downs and major volatility in financial markets – and their effects on household wealth – can play a large role in local real estate markets, especially in the higher price segments.

However, as illustrated below, the movements in the S&P 500 look distinctly modest compared to the stock price changes of some of our local high-tech giants. It has been has been a wild, queasy ride for investors and stock-owning employees – and for many home buyers.

If the big, Bay Area unicorn IPOs go forward as expected, and the market greets them enthusiastically, that could play a substantial role in demand as thousands of employees suddenly feel considerably more affluent.

Interest rates are a major factor in housing costs and the ability to qualify for home loans. After hitting its most recent high in November, rates have dropped off considerably. Such declines sometimes spark renewed buyer motivation to move forward quickly.

Contact The Boyenga Team for any of your Bay Area Real Estate Needs!

 

Santa Clara County February 2019 Market Report

Santa Clara County Real Estate

Heading into the 2019 Market   

February 2019 Report

As of early February, the government shutdown is over – at least for a couple weeks – the stock market has recovered dramatically from its late 2018 plunge, and interest rates are well down from November highs. A good number of large, local, high-tech “unicorns” continue to plan IPOs in 2019. All these are positive economic indicators for the Bay Area real estate market – though indicators have proven to be quite volatile over the past 5 months and future movements are not to be taken for granted.

As detailed in our last report, there was considerable cooling in the Santa Clara market in the second half of 2018, especially as compared to the white hot conditions of last spring. The month of January typically has the fewest sales of the year, sales which mostly reflect activity during the December market doldrums: So, we don’t consider its data to be a reliable indicator of conditions or trends. But activity is picking up, and the beginning of the spring sales season – which in the Bay Area can start as early as February – will soon provide more direction as to where the market is heading.

Market Overviews

Median House Sales Prices since 1990

Median home prices fluctuate by month and by season, sometimes without great reference to changes in fair market value. But one can see the tremendous spike in prices that occurred at the end of 2017 through spring 2018, which then fell back in the second half of the year.

Median Condo Value Appreciation since 1996

Monthly and seasonal fluctuations are smoothed out in this median condo value chart.

Rent Rate Appreciation since 2013

Generally speaking, there should be a relatively close correlation between home prices and rents: They constitute the 2 main options for paying for one’s housing. It is not an apples-to-apples comparison, because there are other issues at play, such as building home equity, the ability to remodel and improve, certain tax benefits (though diminished by recent tax law changes), and so forth. Still, if one rises and the other does not, most economists would suggest an imbalance in the market that will probably be corrected sooner or later.

City Snapshot: Palo Alto

Few cities anywhere have seen the extreme rate of appreciation since the market’s post-financial-crash bottom that has occurred in Palo Alto.

3 & 4 bedroom house sales dominate the Santa Clara County market. As an interesting point of context, in San Francisco, the most common sale is of a 2-bedroom condo.

Since 2012, the percentage of home sales under $1 million have steadily dropped as prices have migrated higher. In sheer number of sales, Silicon Valley is dominated by the San Jose market – which also contains many of its more affordable neighborhoods.

Median Price, Average Dollar per Square Foot   

& Median Size, by City

City values are influenced by many factors, including location, of course, but median home size is another basic consideration. And this varies widely between communities, as illustrated in the third chart below.

All things being equal – especially in general quality of location – a smaller home will sell for a lower price, naturally, but at a higher dollar per square foot value. This is one factor in the extremely high average $/sq.ft. values seen in Palo Alto – the highest of any city in the Bay Area.

Higher Price Homes Sales since 2012

New highs in sales volume occurred across the spectrum of higher-priced homes in 2018, but it was caused by a huge spike in sales in Q2: Sales in Q3 and Q4 actually dropped on a year-over-year basis. The second quarter is usually the most active of the year for luxury sales, seeing the highest buyer demand and most competitive market conditions. The question now is: What will we see in spring 2019?

The 2-4 Unit Building Market

The residential investment market of 2-4 unit buildings has seen a similar appreciation trend as that of homes.

Era of Construction

In San Francisco, almost half of its housing units were built prior to WWII, while Santa Clara remained virtually empty. The biggest boom in construction here occurred between 1960 and 1979.

Market Indicators by Price Segment:  

Santa Clara & San Mateo Counties

In recent years, market heat in Silicon Valley has divided to a large degree by price segment. As illustrated in the following 3 graphs, supply and demand dynamics have been similar for all price segments under $3 million, while the luxury home segment has been somewhat softer (which is not unusual). These charts also illustrate the extreme heat of the market at the end of 2017 through the first half of 2018, and the cooling that occurred in the second half. Q2 is typically the highest demand quarter of the year, which we will be entering soon.

 

 

A Very Multi-Cultural Place –  

Bay Area Demographics

Before looking at the charts below, here is the demographics quiz question for today: What 4 nationalities account for the origin of the highest numbers of Bay Area residents?

Stock Prices & Interest Rates

As seen in the next chart, the changes in the S&P 500 Index have been very dramatic since the 2016 election, seeing an enormous jump to its most recent peak in September 2018 before entering a period of substantial volatility. Ups and downs and major volatility in financial markets – and their effects on household wealth – can play a large role in local real estate markets, especially in the higher price segments.

As illustrated below, the movements in the S&P 500 look distinctly modest compared to the stock price changes of some of our local high-tech giants. It has been has been a wild, queasy ride for investors and stock-owning employees – and for many home buyers.

If the big, Bay Area unicorn IPOs go forward as expected, and the market greets them enthusiastically, that could play a substantial role in demand as thousands of employees suddenly feel considerably more affluent.

Interest rates are a major factor in housing costs and the ability to qualify for home loans. After hitting its most recent high in November, rates have dropped off considerably. Such declines sometimes spark renewed buyer motivation to move forward quickly. It is famously difficult to predict interest rate movements with any accuracy.

Contact The Boyenga Team for any of your Bay Area Real Estate Needs!

Boyenga Team in Sunnyvale

Coming Soon in Sunnyvale

Known for its great school district and proximity to tech, Sunnyvale is one of the most well known cities in the Bay Area. It’s downtown offers a variety of local businesses with shopping, clubs, restaurants and so much more. It offers a great farmers market every Saturday from 9am to 1pm on Murphy Avenue or serene parks to take a stroll such as Las Palmas and Baylands.

Sunnyvale Real Estate remains one of the strongest in Silicon Valley!

1403 Mallard Way

Sunnyvale 94087

4 BED / 2 BATH / 1,963 SQFT / $2,098,000

729 Dartshire Way

Sunnyvale 94087

4 BED / 3 BATH / 2,644 SQFT

 

RECENTLY SOLD

1511 Emperor Way

Sunnyvale 94087

4 BED / 2.5 BATH / 2,097 SQFT

876 Nantucket Ct

Sunnyvale 94087

3 BED / 2.5 BATH / 1,640 SQFT

729 Saranac Dr

Sunnyvale 94087

4 BED / 2 BATH / 1,657 SQFT


Contact our team today if you want to call Sunnyvale home!

www.boyengateam.com
408.373.1660

homes@boyenga.com

Home Is Where the Heart Is!

Home is where the heart is!

The Property Nerds of the Boyenga Team want to wish you a Happy Valentine’s Day! Clients like you are the heart of our business.

Featured News

Spend your Valentine’s Day at the restaurants we LOVE!

Orchard City Kitchen (3 course meal)

Alexander’s Steakhouse: Valentine’s Day Chef’s Dinner: (5 course tasting)

Valentine’s Day Dinner 2018 at Mountain Winery

The Cost of a (Home) Crush:

59% of women and 70% of men surveyed reported that their home crush is IN their price range.

Of the women included in the survey, 29% cultivate a new home crush weekly.

Of the men included in the survey, 46% long for outdoor living spaces.

Local Happenings:

Loma Brewing Company Happy Hour:  Every Mon through Fri from 3pm to 6pm in Los Gatos

Los Altos First Fridays: Live music,  refreshments & evening shopping in Downtown Los Altos the first Friday of every month!

Sunnyvale Farmers Market: Every Sat. from 9 am to 1 pm

Sharing the love with a free home evaluation today!

Boyenga Team’s Luxury Listings in Willow Glen

Boyenga Team’s

Luxury Listings in Willow Glen

After walking down the quaint tree lined streets of downtown Willow Glen there’s no surprise why the small town nestled in the city of San Jose is so sought after. On Lincoln Avenue you can find sidewalk cafes, coffee shops, boutiques, vintage shops, and doggie water bowls all along the street.

It offers more than 250 retail, dining, service and professional businesses that provide personal service that only small business owners can give you. Thousands come to annual street festivals which showcase the area to the greater San Jose and Bay Area as well as the local community events that are held monthly.

Willow Glen Real Estate market is coming back strong!

1325 Prevost St

San Jose 95125

4 bed / 3 bath / 2,602 sq ft

$2,298,000

2867 Richland Ave

San Jose 95125

5 bed / 4 bath / 3,700 sq ft

2369 Plummer Ave

San Jose 95125

4 bed / 4 bath / 3,000 sq ft


Contact our team today!

www.boyengateam.com
408.835.4119

408.440.7822

jennifer@compass.com

amber@boyenga.com