Updated May 2020
Shelter-in-place orders resulted in a 35% reduction in the supply of New Listings in April. Market demand has remained strong with very few days on market and final sales prices that still exceed list. Median prices did drop about 10% in April with YTD numbers slightly higher than 2019. I expect the market to return as SIP rules are relaxed.
Mountain View, home to Google, is a very desirable community with top schools, convenient access to freeways and CalTrain and a fun downtown area on Castro Street. Click here for additional description of Mountain View.
Mountain View homes start at $1.5M. The above chart shows the distribution single family residences by price range and number of bedrooms.
The annual average median price has declined 8.2% in 2019. It had previously jumped 17% in 2018 after a 15% increase in 2017. The annual increase in the median price for Mountain View homes has averaged 6.9% per year since 1998 (CAGR). Note that the only decline in prices over the past 20 years was during the Great Recession (18%).
Market demand for Mountain View homes declined in 2019. Average Days on Market jumped from 15 days to 21 days, a 40% increase. The average difference between the final sales price and the current list price also declined significantly from 7-10% over list to just 2.3% over list. Still a relatively strong and healthy market.
The supply of new listings for Mountain View homes continues to be relatively consistent at just under 300 homes per year. The number of closed sales is at historic lows, yet consistent with recent years.
The final sales vs. list price varies by time on market. Homes selling within the first week or two typically sell for up to 10% over list. After that, homes are selling for up to 7% below list. Note the shift in sales after 10 days to most being under the 10% over list line. This reflects a decline in the number of offers received and less need to bid-up the price.
The above chart shows both the distribution of home sizes and how the $ per SQFT varies. Each dot represents one closed sale during 2019.
The quarterly median price provides a little more insight to the market trend. Note the leveling-off in 2016 and 2019.
This monthly view of median prices for Mountain View homes provides more detail, however fluctuations may reflect smaller number of sales due to seasonal cycles: holidays, school, summer vacations.
The monthly average days on market shows a significant increase starting in the summer of 2018. These levels are higher than we’ve seen over the past seven years.
The monthly average sales price over/under list price percentage shows the sharp decline starting in mid-2018 from 10-15% over list to under 5% over list.
The inventory of Active listings has been at 7-year highs during Apr-June. The supply of new listings remains constant, the increase in inventory reflects a lower market demand.
The monthly supply of new listings for homes in Mountain View has been relatively constant (see Annual Supply chart above). Note the seasonality with December typically being the low-point during the year. The “high-season” for new listings is typically Feb-Apr.
The number of Closed Sales continues to decline during 2019. Given the supply of new listings is constant, this mostly reflects lower demand.
Sources: The data above is obtained directly from MLSlistings, the multiple listing service (MLS) serving Santa Clara and San Mateo counties. The information is deemed to be accurate, however is not guaranteed.