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August Real Estate Market Update

The real estate market activity has picked up in the last 3 months. 

Here are some of the reasons why the market is  active:

1) The most obvious is the stock market did very well till the end of July.  Many of my buyers cash out so that they have funds available to buy

2) Inventory is still an issue.  Many homeowners want to sell, but they have loans at a very low rate.  If they buy a new place, the payment will be higher, and the living space will be much less.  Sellers are not motivated to sell.  We used to sell, on average (20 years average), 11,500 homes in Santa Clara County.  We are selling less in the last 5 years. 2018 - 10,150 homes, 2019 - 9,770 homes, 2020 - 9,920 homes, 2021 - 12,651 homes, 2022 - 8,950 homes, 2023 (year to 8/17) - 4,478 Homes

3) Inflation numbers on paper look good, but my credit card bill has not come down :).  We will hopefully see rates coming down, but we will go back to the low 2's and 3's for a while. 

4) New mortgage application is down 25%.  There is hardly anybody refinancing their house right now.  Appraisers are available the same day to appraise your house. 

Many buyers who didn't buy last year are buying inside of renting. We also noticed people moving to Bay Area for high-level tech jobs. 

We see homes flying off the shelf below the $3M range in cities with good schools. We are seeing overbidding by the $50k to $200k range.  In June and July, almost 70% of homes had more than one offer. 

The link below shows a snapshot of homes sold in Stanford Circle, which includes affluent cities like Los Altos, Palo Alto, Menlo Park, Los Altos, Atherton, Woodside, and Portola Valley. 

https://www.compass.com/marketing-center/editor/v2/flipbook/169b9c31-8f7c-46b3-944a-bf1655b2a8f7

The link below shows a snapshot of homes sold in Santa Clara County - Palo Alto and Los Altos are in Santa Clara County:

https://www.compass.com/marketing-center/editor/v2/flipbook/1c8432ae-cdc2-4c02-96d2-b920ac86a98a

The link below shows a snapshot of homes sold in San Mateo County - Atherton, Menlo Park, and Portola Valley belongs to San Mateo County:

https://www.compass.com/marketing-center/editor/v2/flipbook/a289f23a-2ce8-4039-8e47-5e8dc6055780

 

Thanks 

Umang Sanchorawala

MBA, Real Estate Professional

Compass

DRE# 01471341

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Umang holds an MBA from Philadelphia University. Umang's approach combines his Bay Area real estate market knowledge with a genuine passion to find every client a happy home to prosper in.
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