The  2019 Silicon Valley Housing Market: Boom Or Bust?

The 2019 Silicon Valley Housing Market: Boom Or Bust?

Hi this is Michael tell us for the Talis
Team. Happy New Year! We want to wish joy, health, and prosperity to you and all
your loved ones as we’re entering the roaring 20s! It is time to look back at
the decade of 2010 and make some predictions for the future. I will be
using local data that will take major news sources months to compile. I also
will be able to go to details of individual cities and market segments
national press will not cover. If you still have questions about your local
market at the end of this video call or text me: 650-766-6100. I’m looking forward to answering them for you. Ten years ago
we only just started the recovery after the worst housing market crash in the
history of this country. Since then national home prices increased by 52% . The Bay Area significantly outperformed the nation: median home sale price jumped by 137% here. The homes are also selling much faster now
than in 2019. It took 29 days on average to sell a
home in Santa Clara and San Mateo Counties, comparing with 79 days a decade ago. With so few homes on the market in our area everything sells. There is only 13% in the number of home sales last year
comparing the 2009. 2019 ended up with sale price sliding by 4.8% on average.
The biggest price drop happened in Mountain View. The median sale price
decreased by 8% to $1,550,000. Redwood City fared the best with only 2.8% decrease. What’s interesting is Redwood City
median home sale price is also 1,550,000. exactly like Mountain View in 2019. Both the number of closed sales and the number of new
listings declined. That is where we see the biggest differences between the
cities. In Menlo Park, the number of new listings increased by more than 16% and the number of sales by almost 12%.Los Altos also had a
significant increase in the activity 13% more new listings and 12% more sales
than in 2018. the largest drop in the activity
happened in Sunnyvale: 9% decrease in the number of new listings
and 15% decrease in the number of sales. This was a reaction to
fast growth during the previous two years when the sale price jumped by
15% in 2018 and by 16% in 2017. But what should we
expect in 2020? assuming continued economic growth into 2020, we should expect a moderate home price growth after the market adjustment
we went through in 2019. We experienced a similar price correction in 2016 but
at the time it affected only some of the local markets: Los Altos, Palo Alto, and
Menlo Park. The shortage of inventory will continue in most markets in the Bay Area. Buyers expecting to stay in the homes for ten years or more will
discriminate against the homes that are not well prepared for sale or not well
located and demand a discount where it’s possible. We expect the average time of
the market to remain in 3-4 weeks range, with the most desirable
properties selling much faster. Typically in less than two weeks on the
market according to experts consensus. the interest rates should remain near
historic lows in 3.6%-3.9% range. Keep in mind the 2019 started with interest rates around 4.5%. Low
interest rates will help housing affordability and support high level of
buyer activity for foreseeable future. This is Michael Talis for the Talis
Team. If you are thinking about buying your first home, moving up, or investing
in real estate, dial the number on your screen. Let’s have a conversation let’s
brainstorm how we can take advantage of the current market conditions and find
the best opportunities for you.