The Santa Clara County market continues to heat up. House inventory in February was down 17% from one year ago. Consequently, properties are staying on the market half as long and selling at 23% higher rates. The window of opportunity is open slightly wider for condos, but not by much.
Long story short: If you’re considering putting a property on the market, it’s go time!
While interest rates on 30-year fixed loans are a fraction of what they were 30 years ago, a recent spike has average rates up 50% since December and nearly double the all-time low of January 2021.
This could be explained as a reaction to inflation, but it’s hard to ignore the trends…
As urban dwellers, we’ve learned to love and appreciate parks, trails, and opportunities to get outside and enjoy nature. That’s why we’re constantly looking for ways to protect open spaces while still finding ways to build adequate housing for our growing population. And in some cases, it’s a costly endeavor that has a direct impact on housing costs.
As you can see from this chart, while a county like San Francisco only preserves about 5,900 acres of open space, that represents almost 20% of their available land, exponentially increasing the price of the remaining real estate. On the flip side, Sonoma County preserves a whopping 171K acres of open space, but that’s just 17% of its abundant available land.
The Russian invasion of Ukraine has taken a human toll that is hard to fathom if you’re not there, but you don’t have to be in Kyiv to feel the effects of the war on the free market. Inflation is on the rise, and supply chain shortages have driven prices through the roof for staples like gas, wheat, and fertilizers. And it’s no different for construction materials and home services like tree trimming. Be ready to pay extra… and wait.
Home and condo sales in January saw more of the same trends in San Mateo County that we’re seeing everywhere else in the Bay Area: Low inventory leading to rising prices and properties spending less time on a competitive market. Here’s a glimpse at how the numbers compare to one year ago.
