2013 Silicon Valley Real Estate Market Report + 2014 Market Forecast

The end of 2013 is fast approaching; I hope you all have had a great year! This year, the real estate business in Silicon Valley and Bay area is a HOME RUN! Never in my realtor career had seen such significant surge and turn around. Thanks for the economy growth in our area, we are truly lucky and blessed to live here!
Let me show you some statistics in different areas such as inventories, prices, employment, and interest rates. These four areas are the true essences affect our market.

Let me show you some statistics in different areas such as inventories, prices, employment, and interest rates. These four areas are the true essences affect our market.

Inventory:
Active inventory, Single Family and Condo/T-houses for sale
October 2010 inventory 4590 homes for sale
October 2011 inventory 3076 homes for sale, a 33% reduction in inventory
October 2012 inventory 1337 homes for sale, a 56% reduction from 2011, 71% reduction from 2010
October 2013 inventory 1765 homes for sale, a 32% increase from 2012, 62% reduction from 2010

Total number of single-family homes sold and closed escrow in Santa Clara County in a 12-month period from November 1st to October 31st of the following year are as follows:

2009

2010

2011

2012

2013

Total closed sales

11,308

11,460

11,248

11,920

12,373

Distressed Sales (Bank Owned & Short Sales)

5,705

50.50%

4,115

35.90%

3,998

35.50%

3,476

29.20%

1,440

11.64%

Sales under $500K

5,450

48.20%

4,217

36.80%

4,551

40.70%

4,147

34.80%

2,033

16.43%

Sales Between $500K to $1M

4,349

38.50%

5,023

43.80%

4,600

40.90%

5,122

43.00%

6,642

53.68%

Sales Between $1M to $1.5M

1,067

9.40%

1,524

13.30%

1,375

12.20%

1,531

12.80%

1,982

16.02%

Sales Over $1.5M

590

5.20%

850

7.40%

838

7.40%

1,254

10.50%

1,812

14.64%

 

Median Price: (The Median Price is the middle point of all the homes that sold in the month)
Here are the median single family home prices since March 2009, the recovery is obvious.

March

October

October

October

October

October

 

2009

2009

2010

2011

2012

2013

Median Price

$450,000

$593,000

$641,500

$549,000

$691,000

778,500

 

Employment:

  SANTA CALRA COUNTY CAIFORNIA NATION
2011 9.5% 12% 9%
2012 7.9% 10.1% 7.8%
2013 6.4% 8.7% 7.3%

 

Interest Rates: have moved up about 1% from their lowest point. Here is a sample of rates as of first week of November 2013 with zero points:
Loans under                       $417K = 4.25% (conforming loans)
Loans between                   $417K to $625K = 4.5% (Jumbo conforming)
Loans above                      $625K = 4.9% (Jumbo loans)

Good news 1: Inventory is staying relatively low with high demand; we will see higher prices in 2014.
Good news 2: Interest rates are still near their lowest point and many buyers are scrambling to take advantage of them.
Good news 3: Higher rental rates and increasing employment numbers are causing a huge demand for homes.
CONCLUSION:
The employment in Silicon Valley is in high gear and is better than any other area. Again, high tech is the engine that is powering our employment growth. There is a lot of expansion going on with high tech companies such as Apple, Google, Facebook, LinkedIn, Twitter and many others. We are seeing more hiring and relocations to our area this year than in the previous year, again.
We anticipate 2014 will have a higher number of sales, appreciation rates is in the range of
 5% to 10%, and relatively low interest rates going in to the New Year.
There you have it! It is very hard to explain to the rest of the nation why California is the place to be. The above numbers speak themselves!
I hope the statistics provide you a quick glance of the Valley real estate business of 2013. Should you have any questions on this letter or you need statistics in specific areas and markets, please give me a call or write an email. I will be gladly providing you with free information. At the same time, if you know anybody who is ready to sell and buy real properties, please refer me a client. I am always ready to help people and family with their needs.

Wishing you and your love ones Merry Christmas and a prosperous 2014!

Jin Chen REALTOR, REFERRAL REALTY
Specialized in Silicon Valley residential, investment and RE marketing
650-207-1421 (c)   408-610-9572 (v)     Email:
jchen@referralrealty.com  BLOG: Realty Matters

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