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August Real Estate & Housing Update: Ups & Downs Signal A Reversal of Fortune in the Silicon Valley Housing Market
10/4/2013

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MLSListings Market Indicators Report: August 2013

(Monterey, San Benito, San Mateo, Santa Clara, and Santa Cruz Counties)

August Real Estate & Housing Update: Ups & Downs Signal A Reversal of Fortune in the Silicon Valley Housing Market

We have seen a reverse cycle in the Silicon Valley since January. Multiple offers on properties aren’t as common as they were only a few months ago. While inventory in single family homes has stabilized over the summer months we have seen a moderate incline in median home prices. This may be a factor of moving out of the prime selling season, and the rise in interest rates, however inventory remains pretty thin in all the counties, so this could also be affecting the strength of sales. The high point of the summer housing market really was in condos/townhouses.

Quite the opposite has been detailed in the condo/townhouse market since January 2013. Sales in August were very strong, up 59% from January 2013, and inventory is also increasing. This may, once again, be the “new entry market” now that the single family prices are beyond the entry level buyer. Data for month-over-month comparisons can be found on www.mlslistings.com

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August single family sales are starting to show some weakness compared to August of last year and also to July of this year. Compared to July, August sales dropped 10% in San Mateo County, 6% in Monterey County, and 4% in San Benito, Santa Clara and Santa Cruz Counties. Compared to last year, sales are down 1% in San Mateo County, down 3% in both Santa Clara and Santa Cruz Counties, down 4% in San Benito Counties and down 15% in Monterey County. Overall, sales in all counties were positive to the year prior, but dropped to negative levels from July 2013 to August 2013.

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Note: MLSListings data is tabulated from the 3rd of the month to the 3rd of the following month, primarily to account for late corrections and additions by agents; these updates are often not included in most market reports. MLSListings’ Market Data report reflects the most current information on the day the reports are generated.