As expected, Santa Clara County home sales were down in July, dipping nearly 50% under last year. Meanwhile, prices remain high, though with little change year over year. One thing to watch is the time properties spend on the market, which is stretching out and providing more opportunity for negotiation.
According to a new analysis by Porch.com, ADUs are becoming a trendy response to the housing affordability crisis in California and the Bay Area. As of 2019, there were 1.4 million homes with an ADU nationwide, and that number is growing by 100,000 per year.
One reason for the rise is the impact that ADUs have on property values. Across America’s largest cities, homes with ADUs averaged 35% higher prices than those without. But with the average cost of an ADU in the range of $180,000 — and as much as $400,000 in the Bay Area — it may not make dollars and sense for you.
Learn more from the National Association of Realtors and contact us for a consultation.
It should come as no surprise that rising mortgage interest rates have a direct impact on home buyers and sellers. These two charts help make those impacts crystal clear, especially when it comes to purchasing power, inventory, and selling price. As you can see, an interest rate increase of just 0.5% triggers a 4.4% increase in home price but also a 4% decrease in active listings.
Meanwhile, the median house price is down 4.7% month-over-month but still up 4.5% over last year. This means home affordability is tracking down, so the time to act is now, or you risk waiting out the current economic fluctuations.
As we discussed in this week’s Chic vs. Geek, our job as real estate agents is to provide buyers and sellers with nuanced perspectives on their properties. One key element in setting home values is a Comparable Market Analysis that looks at sales activity for similar homes. Send us an email to request a report today!
It’s hard enough remaining competitive in the housing market when inventory is down and interest rates are up. It gets even harder when many homes are purchased by foreign nationals and businesses. Typically, these homes sit vacant, taking up space while their owners wait for a chance to flip for a profit.
