Real Estate market in the Santa Clara County remains strong and stable in November 2015. The median home prices increased by 13.8% to $970,000 compared year over year. As we enter the holiday season, there will be less inventory on the market. We see this seasonal trend when both the active listings and the number of homes sold dropped last month in November compared with October 2014. The holiday season can also be an opportunity for serious buyers since there will be less competing buyers on the market.
Moving forward, on December 16, after the Federal Open Market Committee, Janet L. Yellen, the Fed chairwoman, is scheduled to hold a news conference that afternoon. It is widely expected that the Fed will rise interest rate. The U.S job market has strong growth and it is replacing some of the worries over global economy turmoil. The Fed has held short-term interest rates near zero since December 2008.
Another interesting development in the real estate front is that the Federal Housing Finance Agency’s (FHFA) announcement to keep the 2016 maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac at $417,000 on one-unit properties and a cap of $625,500 in high-cost areas. Home prices in California have risen sharply over the past four years, yet conforming loan limits haven’t changed during that time. Not increasing the loan limits will likely hurt California’s housing market, further exacerbating housing affordability and preventing tens of thousands of California homebuyers from entering the market.
Lack of housing affordability will continue to be the theme in our market in 2016.
Santa Clara County Sales Stats
Santa Clara County Year-Over-Year
- Median home prices increased by 13.8% year-over-year to $970,000 from $852,500.
- The average home sales price rose by 10.1% year-over-year to $1,220,730 from $1,109,020.
- Home sales fell by 2.8% year-over-year to 684 from 704.
- Active listings rose 19.9% year-over-year to 1,656 from 1,381.
- Sales price vs. list price ratio fell by 0.2% year-over-year to 102.5% from 102.8%.
- The average days on market fell by 6.7% year-over-year to 28 from 30.
Santa Clara County Compared with Last Month
- Median home prices improved by 1.0% to $970,000 from $960,000.
- The average home sales price fell by 1.7% to $1,220,730 from $1,241,810.
- Home sales down by 19.1% to 684 from 846.
- Active listings dropped 14.7% to 1,656 from 1,941.
- Sales price vs. list price ratio dropped by 0.4% to 102.5% from 103.0%.
- The average days on market increased by 6.6% to 28 from 26.