The Bureau of Labor Statistics reported Friday that consumer price inflation (CPI) rose 6.8% over a 12-month period ending in November and reached its highest level since June 1982. This shouldn’t surprise anyone who’s been out shopping for the holidays, with prices soaring and supply chain shortages creating inventory backlogs. CNN has more.
Silicon Valley buyers are continuing to pay well over asking price, especially in cities like Cupertino, Los Altos Hills, and Sunnyvale. Prices are still on the rise month-over-month, with the highest sales in Atherton ($24.5M), Los Altos Hills ($10.1M), and Menlo Park ($9M), but properties are staying on the market slightly longer. Compared to 2020, homes in nearly every city are selling higher and faster.
The number of new listings declines as we enter December before rebounding in late January or February.
Read MoreIn case you missed it, real estate inventory is in short supply, particularly in the Bay Area. That means fewer sellers selling, more buyers bidding, higher offers mounting, and... a partridge in a pear tree?
Looking at this chart, you’ll see that Santa Clara County has 53% less active listings than one year ago — and that was at the height of the pandemic! It’s not much better in San Mateo County, where there are 47% less active listings year over year.
The first thing holiday sellers should know is that winter buyers aren’t messing around. They are ready to buy and will make offers based on need rather than want. For example, someone moving due to a job transfer or other professional opportunity will be more motivated to secure a new home right away.
Don’t forget about end-of-year tax breaks! Buyers can deduct the mortgage interest, property taxes, and interest costs of their home loan if the sale closes on or before December 31. Bottom line: If you have someone interested in your home during the holidays, it's a good idea to take them seriously.
