The Silicon Valley real estate market has returned to near-normal levels. Below is a look at the Mountain View-Sunnyvale market for single family homes. Charts show the monthly numbers for 2019 and 2020 YTD, per MLSlistings.
Median Prices – are up 7% over the prior year. The Apr-May dip reflects the impact of shelter-in-place restrictions, with May’s numbers reflecting the final sales price reported from April sales. June-July numbers are virtually the same as pre-Covid Feb-Mar numbers. Certainly no indication of a decline in home values.
Supply of New Listings – down 9% for Jan-July. Covid had its greatest impact on the supply of New Listings, especially during our seasonal peak months of March-May. June-July are unusually high this year, reflecting pent-up supply.
Average Days on Market – declined to all-time lows in June-July. It is amazing how strong market demand is immediately following the Covid shelter-in-place orders. About 2/3’s of the New Listings in June sold within two weeks.
Final Sales Prices – averaging 3% over list price. The 2020 YTD average of 3.9% is significantly higher than the 2.5% in 2019. The July average of 2.8% is consistent with the prior year, an indicator that the market is returning to normal.
Inventory of Active Listings – returning to normal. The number of Active Listings as of the end of July is virtually the same as the prior year. This reflects that the supply-demand balance is about the same as prior years.
In summary – the market is back to normal. Desirable homes are selling within the first week or two with final sales prices averaging 3% over list. No open houses, but active showings by-appointment. On top of this, interest rates are once again at all-time lows.