Happy New Year to all
ALL DATA IS SINGLE FAMILY HOMES ONLY, ALL INFORMATION FROM THE MULTIPLE LISTING SERVICE
Happy New Year to all! I think it safe to say 2020 was a memorable year even though there’s a lot about it we’d be only too happy to forget! In review, 2020 began with a lot of promise, the market was booming and all was good; how quickly life can change! By mid-March all our lives were upended when Shelter in Place started due to the Covid virus. As we adjusted to our new reality of working remotely and staying at home, many businesses either had to close or make drastic adjustments to a new reality. With unemployment increasing, times were (and still are) tough for many.
Initially, real estate was closed for business for around six weeks, even longer when you consider the adjustments that were made with listings and showing properties. While the initial shut down was drastic and immediate, once real estate was classified an essential business the ramp up was quick. With interest rates at an all time low, it wasn’t long before real estate hit new heights.
How was it that sale prices hit an all time high in most every Peninsula city? There were several reasons. For one, low interest rates had many buyers enter the market who previously couldn’t have afforded to buy. In addition the pandemic changed the needs of how people use their home space; working from home ensured a demand for larger homes, making houses with 4+ bedrooms in high demand, and if the house had a large yard, that ensured multiple offers (think home office space, study room, and back yard socializing). Let’s not forget a new reality, working remotely meant many could leave the area, either selling or renting out their homes; coastal, mountain, or country properties reached a new level of desirability. All of these, together with a strong stock market led to real estate exceeding the previous year’s value.
Looking at the data, all the cities I track increased in average sale price over 2019. Notable are: San Jose increased a whopping 11.34%, followed by Sunnyvale at 8.55%, Campbell at 8.02%, Menlo Park at 6.71%, Santa Clara at 6.51%, and Redwood City at 5.45%. Palo Alto had the least increase in value, coming in at .4%.
When it comes to which city is leading in average sale prices: Los Altos comes in at $3,644,643, followed by Palo Alto at $3,481,848, Saratoga at $3,078,650, Menlo Park at $2,976,381, Los Gatos at $2,345,952, and Cupertino at $2,328,615.
We’re starting 2021 with low inventory pretty much across the whole Peninsula. Where’s it the lowest? Cupertino, Sunnyvale, Santa Clara, Los Altos/Saratoga, Campbell, and Mountain View are all cities with super low inventory, meaning these cities in particular are going to have a lot of demand.
My prediction for 2021 is we’re going to continue with high demand driven by low interest rates, homeowners needing more space, and low inventory. While this is a fast paced market, I am seeing escrows taking longer to close due to demand in sales and the number of loans being refinanced; all parties need to be patient! If you plan on buying or selling a home in 2021, please contact me, I’d love to help you plan and make your move a reality. Contact me; I’m here to help!
