Is Fall the New Spring in Local Real Estate?

Strong buyer demand, shrinking inventory, and record-low mortgage rates continued to fuel the real estate market in the five MLSListings counties during September. Median sales prices again grew by double-digits in all counties compared to September 2019 (+14% in both Santa Clara and San Benito, +21% in San Mateo, +31% in Monterey and +34% in Santa Cruz). Median days on market (DOM) once again dropped across the board year-over-year (YoY), ranging from -21% in San Mateo County to -63% in Monterey County. Similarly, closed sales were higher YoY in all counties, from a 27% improvement in Santa Cruz County to +59% in Monterey County. Low inventory continued to be a factor, with only San Mateo County showing a slight (1%) improvement over the already low inventory from September 2019. Inventory was down in all other counties YoY, from 27% in Santa Clara to 44% in Santa Cruz. Finally, in an indication that the normal real estate sales curve for the year is out of whack due to the pandemic, new listings entered for September were up in 4 out of 5 counties compared to last year. Only Santa Cruz saw a 5% decrease in new listings compared to 2019. Other counties grew by 7% (San Mateo), 10% (San Benito), 15% (Monterey) and 27% (Santa Clara).

In San Mateo County, the median Single Family home cost $1,780,000 and sold in 11 days for 102% of the list price based on 431 sales in September 2020.

• Inventory was up 4% from August, and up 2% from September 2019 with 707 homes available, compared to 696 homes last year.

• Average days on market (DOM) stayed at 27 days from August or 0%; median DOM decreased -1 day from the month before.

• Number of new listings for the month of September increased 6% over August, and is up 7% from September of last year.

• Closed sales increased 10% from August from 392 to 431, but was up 38% from September 2019.

In Santa Clara County, the median Single Family home cost $1,402,500 and sold in 9 days for 103% of the list price based on 980 sales in September 2020.

• Inventory was up 2% from August, but down -27% from September 2019 with 1196 homes available, compared to 1641 homes last year.

• Average days on market (DOM) decreased -2 days from 26 to 24 or -8%; median DOM dropped -1 day from August.

• Number of new listings for the month of September increased 10% over August, and was up 27% from September of last year.

• Closed sales increased 3% from August from 950 to 980 and up 33% compared to September 2019.