The percentage of active listings undergoing price reductions spiked in mid-2018 and has remained elevated since then. The big factor behind the spike was that the late 2017/ spring 2018 market was extremely hot, with year-over-year appreciation rates and home prices jumping. When the market began to cool off, sellers and listing agents – relying upon recent sales data to set new listing prices – were wrong-footed by the significant softening in supply and demand dynamics. Sometimes, it takes a while to adjust pricing to changing market realities.
Percentage of Active Listings Reducing Price in Month – Santa Clara County Real Estate Market since 2012.
The percentage of listings reducing asking price illustrates both the strength of market demand, and specifically, the scale of any mismatch betweeen buyer and seller expectations regarding fair market value. Besides an indicator of general market trends historically, this statistic is typically firecely seasonal in nature as sellers of unsold listings attempt to recapture the attention of buyers.
To learn more about the real estate market, contact Eric & Janelle Boyenga of the Boyenga Team today!
The Property Nerds at the Boyenga Team are pleased to welcome a new nerd to the team, Meiyi Cheng. Having graduated from MIT with a bachelor’s degree in Management Science, we are thrilled to have her join us and provide in depth analysis into the Silicon Valley real estate market. This market we are immersed in is always changing (for better or worse), and it is imperative to have someone on our team who will be able to analyze trends and data. As the first real estate team in the nation to utilize a data scientist to dig deeper into the Silicon Valley real estate market, here’s what you can expect going forward.
Meiyi will be developing the first Home Sale Index focused entirely on Silicon Valley. The new index will be known as the Property Nerds Silicon Valley Home Sales Index. It is being developed to keep consumers, agents, and brokers educated and informed about what is happening in the market. Also along with this will be an ongoing segment tailored for those who are interested in deeper analysis of real estate trends in the Bay Area. Updated frequently, this will be your one-stop-shop for market conditions updates and news about real estate here in Silicon Valley.
Next, we are introducing a new segment called the “Data Dojo”. Within this, Meiyi will be providing consumers, agents, and brokerages with unique insights utilizing complex data points and predictive analytics. Whether it’s a fresh take on standard metrics such as days on market or list vs. sales price, or it’s an inside look into the relationship between two seemingly unrelated data sources, www.ThePropertyNerds.com will be your go-to resource for expert examination of the housing market. You will be able to come here anytime, read, and learn about all we have to share revolving around the real estate industry we love.
Lastly, all of our work we will be backed by Meiyi’s expertise as a data scientist to help ensure we are bringing you accurate, relevant, and informative data. Through this, we will offer consumers the full breadth of Silicon Valley real estate experience. With over a century of combined real estate experience our team can offer our clients a stress free and predictable real estate journey. If you’d like guidance navigating through the sale or purchase of a home, we are here to help. Contact the Property Nerds at Boyenga Team to find out how we can engineer your real estate happiness.