Chic vs. Geek: Year In Review

2021 has been a truly historic year in real estate, and to prove it, we’re serving up a feast of information with a side of market stats. Dig in!

CHIC (PEARL)

Empowered by low interest rates, a record number of home buyers found their forever homes. 31% of all home buyers were first-time buyers, and 92% of agents agree low interest rates continue to boost buyer demand. According to the National Association of Realtors, the median price of a U.S. home was $356,700 in 2021, a 14.9% increase from one year prior. 53% of agents report that inventory in their market is rising modestly as of Q3, and 76% of agents say homes may get multiple offers but with fewer bids per home.

GEEK (KEVIN)

Nationwide, 95% of agents report it’s still a seller’s market, no matter where you look. 46% of agents say buyers will use savings from simplified living during the pandemic to afford homes in the current environment, while 45% of agents are seeing buyers turn to relatives or generational wealth to fund their home purchases. 37% of agents have seen buyers liquidate gains in stock market wealth to put toward a home, and 64% of agents in the Pacific region have seen a recent increase in ADUs/in-law units thanks in part to newly reduced regulations.

As we celebrate the holidays, we want to express our appreciation for you and all of our clients. From Santa Rosa to Santa Cruz, thank you for choosing us to help you find your place in the world. Please reach out for insights on your next move, and never hesitate to provide us with a referral!

Geek's Number Talk: CPI hits 39-year high in November

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.

Geek's Number Talk: Local Market Ups & Downs

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.

Geek's Number Talk: Getting Low

In 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.