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Market Summary for real estate sales in January in Santa Clara County

The following summary is based on data from the California Association of Realtors and FRED interest rates. The sales data used is updated till January.


The median home sales price YoY (Year-over-Year) has been up in California, but MoM (Month-over-month) prices have declined. The difference in the SF Bay Area is more stark. 


The decline in month-over-month prices indicates that the high-interest rates are having a dampening effect on house prices. People are limiting their purchases of higher-priced homes. Although, Santa Clara County has not seen the MoM (Month-over-month) decline. This indicates a strong demand continuing in Santa Clara County despite the high interest rates. As well as San Francisco County has actually seen an increase in MoM sales. So San Francisco market seems to be favoring higher-priced home sales. This indicates high-priced property buyers are jumping into the market irrespective of the interest rates. This growth might be driven by increased stock valuation for some of the tech sector companies.


However, both of these price movements in Santa Clara and SF counties are paired with lower MoM sale volumes. SF Bay Area (-24%), Santa Clara County(-23%), and SF County (-21%) all saw lower sales activity MoM.



While the interest rates marginally reduced from Dec to Jan. The decline was not enough to bring in buyers who were on the sidelines. The following chart shows monthly average interest rates calculated from the weekly interest rate numbers published by FRED.


Citation:

Freddie Mac, 30-Year Fixed Rate Mortgage Average in the United States [MORTGAGE30US], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MORTGAGE30US, March 3, 2024.


While these buyers were looking for the rates to further reduce, February interest rate numbers have ticked up slightly. So it might again prove risky for the home buyers to stay on the sidelines as the interest rate might continue to increase.


If you are thinking of buying your home in the next 3 months, it is recommended that you start reviewing the properties coming on the market. Finding a realtor who can help navigate your needs to find the right home and get you connected with a great mortgage company is a good first step. If you would like to have a consultation about real-estate trends and start your home search, get in touch with me.


Vishal Karnik, REALTOR

www.VishalKarnik.com

DRE# 02232852

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