Spring has not even officially sprung… but home prices sure have! If you remember a period in time not so long ago when we talked about the slower pace of home price acceleration – well those days are already gone. Check out the 3 home price stats that appear to be setting the stage for one super seller’s market. (And buyers… this means  if you buy soon, you can start building equity THAT fast).

#1: January home prices accelerated 4% on an annual nationwide basis in January. REALTOR.com has called this a home price re-acceleration. Meanwhile, California home prices have risen 4.3% since November, surpassing the 2020 state home price increase estimates of 2.5% already.

#2: Santa Clara County median home prices are up 13.7% year-over-year, from $1,170,000 in February 2019 to $1,330,000 in February 2020. That figure also represents a 12.5% increase in median home prices over the previous month, January ($1,182,000).

#3: Perhaps the most surprising sales stat resides in the sales-to-list price ratio in Santa Clara County for 2020. Now at its highest since July 2018, the current sales-to-list price ratio has jumped from 100.9% to 104.4%. Yes – that means multiple offers are once again driving home prices over-asking. It’s also a reiteration that demand is high, and inventory is not high enough.

Resources Used:

Homes of Silicon Valley Real Estate Report

Low Rates and Rising Income Boosted Home Price Growth in January

California Housing Market Report & Predictions 2020

Please feel free to reach out if you have any questions about how this home price acceleration may impact your own buying, selling and investing timeline.

Warm regards,

Homes of Silicon Valley