Glimmers of Hope as Real Estate Restrictions Relax

The resumption of in-person showings of occupied residences (under strong guidelines) on May 4, 2020, likely alleviated some of the negative effects of the pandemic in May by keeping real estate transactions moving and encouraging new listings to enter the market. Pricing showed gains in three of the five MLSListings counties, with Monterey and Santa Clara each showing a 2% year-over-year increase in median price and San Benito reporting a 10% gain. Demand in Santa Clara County remained surprisingly robust, as median days on market (DOM) declined from 12 to 11 when compared to last May (although DOM increased in the other four counties).

Not all news was good, however, as closed sales fell across the board compared to May 2019, from a low of (38%) in Santa Cruz County to a high of (63%) in Monterey County; Santa Clara reported a decline of (52%), San Mateo (45%), and San Benito (59%). Inventory dropped across all five counties as well year-over-year, with San Mateo showing the lowest decline (9%) and Santa Clara showing the highest decline (27%); Monterey inventory declined (18%), San Benito decreased (15%), and Santa Cruz dipped (14%).

In San Mateo County, the median Single Family home cost $1,643,750 and sold in 12 days for 100% of the list price based on 232 sales in May 2020.

• Inventory was up 12% from April, and down -9% from May 2019 with 577 homes available, compared to 631 homes last year.
• Average days on market (DOM) moved up 5 days from 21 to 26 days or 24%; median DOM increased 3 days from the month before.
• The number of new listings for the month of May increased 39% over April but was down -25% from May of last year.
• Closed sales increased 19% from April from 195 to 232, and was down -45% from May 2019.

In Santa Clara County, the median Single Family home cost $1,365,000 and sold in 11 days for 101% of the list price based on 497 sales in May 2020.

• Inventory was up 19% from April, but down -27% from May 2019 with 1302 homes available, compared to 1789 homes last year.
• Average days on market (DOM) increased 6 days from 17 to 23 or 35%; median DOM went up 3 days the month before.
• The number of new listings for the month of May increased 43% over April, and down -29% from May of last year.
• Closed sales decreased -12% from April from 567 to 497 and down -52% from May 2019.