Jeff’s Mid-Year Real Estate Market Snapshot
Peninsula Market Slows During Q2-And That’s Normal!
The super-hot Peninsula real estate market cooled slightly in Q2. As a result, the number of homes sold during the first half of 2018 in most communities was flat or down (see stats table below). However, the number of multiple offers and percentage paid over-the-asking price remains high, indicating the market is still strong- just not as strong as Q1’18. Additionally, the median price of most homes on the Peninsula experienced double-digit gains on a year-over-year basis.
The current drop in the number of home sales does not mean the real estate cycle is beginning to change. The market usually slows down in June when children get out of school and families vacation during late June and July. The market usually picks back up in August, and remains strong until the end of October. But will the market strengthen in August this year?
By every metric, the current hot real estate market cycle is mature. For example, it has been 10 years since the last market cycle ended in 2008, average and median prices have more than doubled, and affordability is nearing lows that appear at the end of a cycle. However, we believe the market will hold until next year. The factors we consider: the stock market corrected in Q1 without going into free fall, local and national economies are strong, and the inventory of homes for sale remains near all-time lows (15 homes for sale in Los Altos as we write you). Until something occurs (like the fall elections) to change one or more of these factors, the local real estate market will remain strong.
WANT MORE SPECIFIC INFORMATION?
If you would like an in-depth analysis of market trends in your neighborhood, or assistance with home preparation or repair, give me a call at 650/823-8057, or email: Jstricker@apr.com, or visit my website: Jstricker.com. I would enjoy assisting you!