Housing market remains resilient.

It may not be the sticker shock of last year’s tariff-palooza, but war with Iran is causing economic volatility and uncertainty to surge higher every day. However, the housing market has not seen significant impacts — at least not yet. That could change in a hurry.

As of April 13, the average daily 30-year mortgage rate had risen to 6.41% after briefly dipping below 6% prior to the war. And as anyone with a gas-powered car has experienced, oil prices have soared, causing inflation to jump from 2.4% in February to 3.3% in March.

Prior to the ceasefire, consumer confidence fell to its lowest reading ever going back to 1978. Following the announcement, stock markets have dramatically rebounded.

Will there be a Spring rebound?

Spurred by an AI boom and relatively robust economy, median home prices in Santa Clara County have skyrocketed year over year, at rates vastly outpacing any other Bay Area county. Meanwhile, inventory looks to be on the rise, so we should start to see some movement in the market over the months ahead.

As usual, stay tuned to this space for updates!

We’re not out of the woods yet.

Driven by a local boom in the AI field, Santa Clara County median house and townhouse sales prices spiked 9% over 2023, topping $1.8 million and setting all-time highs. And while the median condo price was basically unchanged, the numbers of new listings and sales rose substantially. Still, sales volume remained well below what we’ve come to expect, and time on the market did not substantially drop.

If you’d like a full report, send us an email and we’ll send one your way!

Investing in home.

According to recent reports, homeownership remains one of the best ways to protect your finances against inflation, helping you build wealth over time. In 2019, homeowners had a net worth 40 times greater than renters, and this gap is expected to widen even more by the end of 2024.

Unfortunately, as rising home prices and interest rates make affordability a challenge, people are waiting longer to make this investment, with the median age of first-time homebuyers increasing to 38. If you’re ready to take the leap, we’re ready to help!

Source: Median Net Worth from Federal Reserve Survey of Consumer Finance, NAR

Market Update: August 2024

The numbers are in from August, and sales of single family homes continue to be on the rise in both Santa Clara and San Mateo Counties, the heart of Silicon Valley. And from the Good News for Buyers department, prices have leveled off and even come down in some areas year over year. You can also expect to have a little more time to poke around as properties spend more days on the market.