- Are you curious to know
what the market is like
now that we are six months into COVID?
Stay tuned.
Hello everyone. Thanks for joining me today.
I'm Amanda Vang with Keller Williams.
Today, we will be going over the market statistics
for the Five Bay area county,
as well as taking a closer look at the local housing markets
in San Jose, Sunnyvale and Santa Clara.
I just want to start off with a quick question.
What if I can show you a way on how you can stop renting
and own a million dollar plus home in five years?
Stay tuned until the end of the video
for a great tip on how starting with a small home
can enable you to buy a bigger home.
If you've ever been intimidated
by home prices in the Bay area,
I will show you how easy it can be.
(upbeat music)
August was a productive month for Bay area real estate.
Our numbers for new listings and sales
exceeded what we saw in 2019
with about 4,300 homes listed,
and 3000 homes sold versus
3,600 homes listed
and 2,400 homes sold in 2019.
Our net difference of 1300 homes
indicates an increase in inventory
and July saw similar increase of 1500 homes.
In many areas, we have seen a high level of competition.
So this increase in inventory is hopefully a welcome relief.
More supply would give the buyers more choices,
which should ideally keep competition
and overbidding within reasonable limits.
We see this effect reflected
in the percentage over list price.
Overall, when comparing 2020 performance
against 2019 performance,
we are listing more homes,
closing more sales
and putting on a little more inventory.
We had an inflection point in July
when we flipped from COVID recovery mode to outpacing 2019.
And this is a good sign for everyone.
Transitioning from summer to fall and then to winter
usually reduces the number of homes listed
and has a lagging effect on home sold, as seen in 2019.
I will show you the individual city graphs
that show this effect very well.
Earlier in the year,
buyers and sellers were both restricted
during COVID and the initial shelter in place.
So it makes sense that the repressed demand
is showing itself now
with a strong push for new listings
and sales into September.
Inventory is increasing,
but not by much
and is similar to levels seen in 2019,
which should hopefully serve as a baseline
for what we will see in the near future.
Going forward it into the fourth quarter and the winter
real estate in the Bay area normally slows down.
So we might see that happen again this year,
or if demand continues to be strong from buyers and sellers,
we might just see a small reduction
and then a return of the upward trending market
we are seeing now.
Now let's take a closer look
at the individual city housing markets.
In San Jose, the average single family home
was purchased for $1.25 million
and sold in nine days for a 103% of the asking price,
based on 448 sales in August, 2020.
This is up from 102% list price received
that we saw in July, 2020,
which indicates an overall increase
in competition and bidding prices up.
3% might not sound like much,
but when you are considering a home of $1.25 million,
3% is $37,500, which means on average,
a home listed at 1.25 million could get bid up to
$1.28 or $1.29 million.
Looking days on market,
we saw a median of nine days on market for a home to sell,
which was the same as July, 2020.
And it shows strength in the market
with a strong buyer demand
and a good level of inventory.
The low of zero days could indicate a home that was listed
and sold just for comparable purposes,
or it could be an actual sale
and offer accepted on the same day as listed.
The high of 811 days is probably tied into
a high value of luxury property
looking for the right buyer.
We saw 567 new homes listed on the market and 448 sold,
a net increase of 190 houses,
which shows a steady increase in inventory
consistent with the past few months.
Moving to our neighbors, Sunnyvale,
the average single family home costs $1.85 million,
sells in nine days for 103% of the asking price
based on 53 sales in August 2020.
July 2020 also saw the percentage list price we see
of 103%, indicating a continued level
of high competition and multiple offers.
With a $1.85 million median home price,
Sunnyvale is up there.
But the lowest cost home was purchased for $1.15 million.
So it's not impossible to find a home.
Don't forget to stay tuned until the end
to learn about how you can afford a home like this.
With a median days on market of nine,
that means homes are selling quickly.
Paired with the 103% list price received,
statistics shows that demand for housing is strong.
In August,
we saw the Sunnyvale inventory add 13 homes
with 66 new listings and 53 sales.
This is a fairly typical month.
Sunnyvale is a smaller city
and doesn't see inventory fluctuations
of more than 10 or 20 homes.
And the past few months have been showing a positive trend
of adding 10 to 20 homes per month
to the inventory with equally steady increases
in homes listed and homes sold.
Onto our neighbors Santa Clara for August, 2020.
The average single family home
was purchased for $1.5 million.
Sold in nine days for a 104% of the asking price,
based on 58 sales.
This is a big change from July, 2020,
where the average home price was the same,
but sold for 13 days at 103% of the asking price.
This shows increased competition,
which is consistent with what we are seeing in other cities.
The lowest priced home sold for $930,000
and will be a great deal
for someone looking for move up
from their first condo purchase.
And the high home of 2.5 million
is representative of a recently remodeled home
with premium finishes.
The change from 13 days on the market
to nine days on market
shows a decrease in inventory
due to more home sales than listings.
And shows that competition is increasing in this city.
The low of zero days and high of 84 days are fairly typical.
This is similar to what was seen last month
and is consistent with the other indicators
we are seeing in this price percentage
and days on market for strong buyer, demand
and good seller representation.
Thanks for listening.
Now it's time for the hot tip,
how to buy a $1 million plus home.
Let's say you're renting an apartment for $3,500.
You could take that same monthly payment
and buy a home for $600,000.
Assume that there is a 6% increase in home value per year,
also known as appreciation.
Assume that you will sell after five years
as a primary residence.
So you don't have to pay capital gains tax.
Assume that it will cost you about 10% to sell a home.
At the end of year five,
you have a net value increase of $202,935.
Assume that you won't pay any tax on capital gains
up to 250,000,
since you declare it primary residence
for a minimum two out of five years
and you are single.
Assume 10% cost to sell at $802,000.
Assume you built up $90,000 in equity over those five years,
which is average for a 3.5% down,
30 year fixed loan for $579,000.
Total potential profit is
about $212,000.
And this is enough for 20% down on a $1 million home.
How easy is that?
Get out of renting and buy a home.
If you will like me to go over your scenario,
don't hesitate to reach out to me.
My contact information is below.
Thank you for staying until the end.
I hope you found this video helpful.
Make sure to like and subscribe to my channel,
to stay up to date on all things real estate
in San Jose, California,
and the surrounding Bay area, Silicon Valley.
I will see you next time.
Bye bye.