July 2022 Market Update
Hello from the middle of summer!
We are hearing stories of fun travel adventures from many of our clients this year. It is great to see pics from beautiful places near and far! While the temperatures are going up, we are keeping close tabs on market activity as increased economic headwinds have caused a change from Q1. There is no doubt rising inflation and interest rates, the drop in the equities market have led to buyers being concerned and activity slowing down (see macro economic data we're tracking here).
While the number of new listings coming to market in both San Mateo and Santa Clara Counties is actually down compared to the same period in 2021, the number of homes going into contract has dropped by roughly 20%. This means homes are taking a little longer to sell. However, on whole, the average sale price / list price in the area is 104.5% in Santa Clara and 107% in San Mateo. Days on market has pushed up from 10 in the hottest part of the spring market to 15 in June across both counties. This is still leading to great outcomes for sellers of high quality homes.
We remain optimistic and see this as a good time to buy for able buyers. With less competition, buyers have more time to evaluate a property to make sure its a strong fit. In conversations with several of the lenders we regularly work with, it seems they've already priced in a potential fed rate hike at the end of the month into their 30 year mortgage rates. We've even seen a dip down in the past two weeks. For certain buyers there are still good ARM options under 4%.
Let us know if you'd like to chat about any options you're considering.
All the best,
Adam, Wendy and Kat