When housing market data talks – we listen! While our Homes of Silicon Valley team understands the emotions and lifestyle impacts of buying, selling & investing – we balance all of that with the real data behind the real estate headlines. This week we wanted to share what the Santa Clara County housing market data is saying – and what you can about it.

When June began, we waited for the May housing market statistics to be finalized. Based on the headlines and reported consumer sentiments, we honestly expected the data to demonstrate a larger shift. But the truth is, the numbers are in, and we don’t have any trend reversals to report.

As you can see from the data above:

- Homes are still selling above asking price, maybe just at 2-4% less OVER than the month prior.

- The average days on market is still hovering above 10, not even two weeks!

- Median home prices are still nearly 16% above where they were last year, and 1.3% less than the month before.

- Inventory is improving but still far from a balanced market, with inventory levels setting around 1 month and balanced market would be 5-7 months supply.

With the rise of rates (now projected to be 5.5% by year end) and the inventory increases, we will no doubt see a shift in the number of still qualified buyers, the number of offers and the sales to list price ratio. However, it is still a seller’s market and housing prices are stable. While first-time buyers may be hampered the most by affordability, existing homeowners wishing to move up may be benefit from all-time high equity levels (just reported by The Wall Street Journal).

The bottom line: This is not 2008. This is not 2021. The trends we are seeing halfway through 2022 are not a dramatic bubble bursting or continued home price surge. 2022 may likely be defined as the start of the return to market normalcy; a season in which home prices rise more slowly or stabilize, in which inventory starts to increase and in which strategy becomes paramount in the wake of rates we haven’t seen in years. None of this is a reason to feel paralyzed with fear, but instead empowered with knowledge that changes are happening and we are here for them.

Just keep doing what you do – making the best decisions you can with the data that is available and using the professionals who are here to support you (that’s us!).

All my best,

Mark

MARK BARBER

HOMES OF SILICON VALLEY / A SERENO GROUP TEAM

DRE 01220031

408-316-8112 DIRECT/TXT

MARK@HOMESOFSV.COM