I often get the question, how is the market? To the common consumer, with interest rates being raised 10 times consecutively since last spring and still hovering around 6%, the common misconception is that the market is not strong. However, we have seen some life being brought back into the Real Estate market and what if I said, "the worst is truly behind us". Maybe the first sign was when the Fed did not raise interest rates during their last meeting, for the first time in almost 16 months.
With inventory levels hovering around 816 Single Family Homes in Santa Clara County alone, the demand has made prices once again go above asking on most listings. In fact, The Moles Group has sold 2 homes this month, both over asking. 816 single family homes are the lowest level we have seen in years, especially during the summer months, when the market is the hottest. Usually when the inventory levels are in the 800's, it is Halloween or Thanksgiving, not the 4th of July. The demand remains strong and with limited inventory, this will cause most homes on the market to go above the asking price with a bidding war ensuing.
The chart below is the strongest indication that the worst is behind us. If you look at the graph below, in June of 2022 our median home price was $1,800,000 with homes being sold at 116% of list price. As you look at the graph, you can tell the market was at its weakest position in February of 2023, with the median home value at around $1,500,000 and homes being sold at 112% of list price. As we move across the graph, and return to June of 2023, you can see we are back at a median home value of $1,8000,000 and homes once again being sold at 116% of list price.
So, after giving you these statistics, do you believe me when I say, THE WORST IS TRULY BEHIND US!!!!
