Housing Market Update for May 23rd, 2020

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Real Estate


Within the last 10 days, there has been a marked increase in buyer activity. We are a little more than 2/3 of the way through May, and the number of properties that accepted offers has already surpassed April. I submitted an offer for a client this week, being outbid, and there were a total of 6 offers received. Depending on the property, competition can still be fierce.  

Even though we haven’t completed the month, and the number of sales to give data is much lower than the same month in past years, I was still curious to see how the median sales price compares to past months. The median sales price in Santa Clara County for single family homes, townhouses and condos, month-to-date, is $1,2640,00. That is the highest since May of 2018, which was the peak of the market and the highest the prices have EVER BEEN. 

Out of curiosity I checked the average sales price (not a metric I use often because very low or high sales can skew the number) but that indicated the same thing; prices are the highest they’ve been since the peak of the market. I feel that I don’t have quite enough data to fully trust that number (the market feels strong, but not that strong).  

But not all South Bay Area cities/areas feel like that. What areas are propping up the values? So far for this month the stand-out areas for appreciation have been South county cities Morgan Hill and Gilroy, and then Sunnyvale has also been a stand-out city. 
While most areas saw prices pull back starting in March, Sunnyvale prices have stayed strong over the last 3 months.  

This week, as many counties have entered “Phase 2” of reopening, it has opened the door to retail shopping, albeit curbside pickup, as well as manufacturing, childcare facilities, some offices and a number of other industries.  But there are also restrictions being placed in Santa Clara County (although strict enforcement is not expected). As of Friday, May 22nd, Santa Clara County requires masks while inside businesses, even if outdoor businesses. The San Jose police chief has said they will not strictly enforce this.  

I’m curious to see how we finish out the month, so stay tuned!