Silicon Valley Real Estate Market Update
Market Continues Strong
San Mateo County ended the year strong, with the overall median price for 2016 up 8 percent from 2015. The county saw an overall stall in appreciation in the high end of the market in the second half of the year, while entry level appreciation continued to rise. The Federal Reserve raised interest rates once in 2016 and is expected to raise them twice in 2017, which could spur buyers that are waiting on the sidelines to jump into the market. According to the Multiple Listing Service, San Mateo County units were down 3.17 percent overall for 2016. It is anticipated that in 2017 inventory will continue to be a struggle, job growth will continue to rise, and the overall real estate market will be much the same as the second half of 2016.
The Santa Clara County real estate market ended the year with a flurry of activity as buyers scrambled to get homes before the higher interest rates kicked in. Multiple offers were still present but in a much smaller format, with three to five offers more likely than the 10 to 15 offers that paced the earlier part of the year. Still, most single family home sellers received their full asking price, and the median sales price for 2016 was $895,000, up 6 percent from 2015. The inventory of condos and townhomes still remains above last year’s available supply, continuing to offer affordable options. All of this translates into a continued hot-but-relatively-fair seller’smarket in that segment of the market.
Robin & Les met with Leslie Appleton-Young, Chief Economist of the California Associaton of Realtors®, to look at the forecast for 2017. She sees the Peninsula and Silicon Valley economy continuing to be healthy (3% job growth, 3% unemployment), notwithstanding rising mortage interest rates (4.8% by Q4 2017). Home prices will rise, but more slowly than 2016. While affordability will continue to be challenging to home buyers, the good news is that lenders are loosening up on underwriting standards. It is now possible to buy a home here with less than 20% down payment (up to $1.8M), other loans allowing interest only or family co-signers or self-employed borrowers.
If you have any questions or are thinking about moving in the coming year, contact Robin & Les at (650)483-7661.
For buyers, we share tips on how to simplfy your home search and make it more effective. For sellers we provide information and data to help you to ready your home for market and to list it so it sells.
|For Buyers||For Sellers|