Bay Area Real Estate Market Update

Luxury Market Rebounds in Northern California and Nationwide

Nationwide, prices of luxury homes have outpaced the rest of the market for the first time since 2014, according to industry reports. In recent headlines, stock market growth, increasing home prices in all ranges, low unemployment and new jobs created across the country are encouraging homebuyers to jump into the real estate market. This upswing has finally reached the luxury market and here’s what’s currently happening in our Northern California offices:

Monterey County:

Monterey Peninsula offices show a slight increase in year-over-year sales. Values have shifted back to pre-recession prices with low supply, high demand and a market favoring sellers. Many properties are getting offers within three days of being on the market. Carmel and Pacific Grove are in high demand even with entry level prices at $1 million. There were 14 closings in the $2-5 million range. The area also witnessed a unique $25 million listing that served as a filming location for the movie Basic Instinct.


North Bay:

In Greenbrae, fewer homes are available prompting multiple offers above list price. While the luxury market rebounds, properties need to be priced well or risk sitting on the market for an extended period.


Although Santa Rosa Bicentennial’s market experienced 18 percent fewer sales in year-over-year comparisons, median prices are 9 percent higher than in 2016. With fewer properties available, sellers have a prime opportunity to list their homes. This means that buyers coming in with cash offers came out ahead. The luxury market is strong with an increase in buyer interest in the $7-plus million range.


Southern Marin also saw a seller’s market with most properties under $2 million receiving multiple offers with many closing above asking price. This trend continued in the luxury market with 27 percent of listings over $3 million under contract as opposed to the typical 10-15 percent.


Placer County:

Tahoe’s market is in full swing with summer visitors and many interested buyers. An influx of new inventory and a possibility of more in the coming weeks intrigued both buyers and investors. Sales of luxury homes priced over $1 million have decreased 15% from 2016 due to inventory, while the average sales price of luxury homes are higher than 2016 in year-over-year statistics.


Sacramento County:

In Folsom, inventory increased steadily. The increase in inventory coupled with lower interest rates made it a good time for buyers to make their move. Sacramento Fair Oaks saw more inventory, especially at $400,000 and under. Luxury market inventory is still robust allowing well-heeled buyers to remain selective.


Sierra Oaks saw an increase in listing inventory and sales year-over-year in the lower price range. The luxury market had higher inventory and slower buyer activity, making it a good time for prospective buyers.


San Francisco:

San Francisco Lombard reported continued limited inventory. The market is especially hot for entry-level homes at lower price points. Buyers are encouraged to take the asking price for homes priced under $1.5 million and bid against other prospective buyers. SF Market also saw low inventory, prompting buyers to make multiple, over-asking offers.


San Francisco Peninsula:

Half Moon Bay saw a decrease in coastal inventory levels with only two months of supply. Luxury properties are in especially high demand with buyers searching for a great view or ample acreage. The high demand means that buyers must be committed with their best offer upfront or opportunities may be lost. Simple gestures such as a letter to the seller, a family picture and of course pre-approval letters can help seal the deal.


San Mateo Downtown reported slightly lower inventory. Unlike Menlo Park and Half Moon Bay, there was a decrease in activity in the luxury market.


Santa Cruz County:

Santa Cruz saw an influx of properties going into contract last month and is experiencing historically low inventory. The luxury market has increased with more buyer demand and closings in the multi-million range.


Silicon Valley:

Cupertino saw continued low inventory with a strong seller’s market. The luxury market was strong and steady under $4 million. Los Gatos also saw this trend with inventory 20 percent less than 2016, spurring competitive offers for homes under $2.5 million. Saratoga’s market was similar with tight inventory and competition among buyers. The luxury market has been relatively steady.


Los Altos’ market was again run by sellers with low inventory and the potential for multiple offers and sales over asking price. Because of the low inventory and highly-competitive market, buyers are encouraged to have all financing ready and make strong offers to show seriousness.


San Jose Willow Glen market conditions were dictated by the low inventory. Only 40 properties were on the market – a nearly 50% decrease from last year. The market is especially popular with buyers looking for tear-down or fixer properties. For example, a 5,800 square-foot empty lot listed at $775,000 sold at $920,000.


El Dorado County:

In El Dorado Hills, many properties under $500,000 receive multiple offers. This means it’s important for buyers to scale back on requesting non-essential repairs as cancellations (from both sides) have experienced a recent spike.

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Preparing Your Home for Sale is Easy as 1, 2, 3

Home selling season is in full swing and thoughts of putting your home on the market may have breezed through your mind. Industry experts say this is the ideal time to list your home. Those considering listing their homes should consult with a real estate sales professional and have a checklist ready – and that checklist is easy as 1, 2, 3.

First, a real estate sales professional will provide you with a sales marketing plan that includes a pricing strategy that takes into consideration competing homes, current inventory levels and time on market. That plan should also outline the online marketing approach and the initiatives you need to complete as a homeowner to ensure success.

Second, sellers should clean everything! Ensure that your home has optimal curb appeal, particularly during the hot summer months since gardens need a little extra attention. Ensure that lawns are mowed, clutter is removed, trash bins are hidden from view, exterior paint is fresh and no roof tiles are missing. It is also important to make sure your driveway is free of cracks and oil stains. First impressions are important and potential buyers do judge a house by its exterior, so be sure to invest a little time and elbow grease to win over buyers before they even walk through your door.

The inside counts too. Cleanliness is king when it comes to showing your property to prospective buyers. Make sure to clean your windows inside and out, vacuum carpets, mop floors and clear all the dust that accumulates in exhaust fans and lighting fixtures. If deep cleaning is not your forte, you can hire a professional cleaning service to scrub down your home. This may cost a few hundred dollars, but it’s well worth it.

Equally important is to declutter as minimalist interiors tend to show best. Buyers walk in and try to imagine their ideal or actual furniture in various spaces. There is nothing worse for house hunters than walking into a cluttered space and being so overwhelmed with stuff that they decide against it on the spot. Be sure to minimize extra furniture and objects by renting a small storage space while you are in the process of showing your home. The small cost is worth the large return.

Third, comfort is key. Particularly during the warmer months, so be sure to have your AC running at a comfortable temperature. If your home is not equipped with AC, then make sure the windows are open and fans are running in the extra warm spaces. It is also a good idea to ensure that shutters and blinds are drawn until just before the open house to help keep out the heat.

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Ever Thought of Owning a Vacation Home?

Vacation Homes Offer Great Income-Generating Potential

The arrival of summer is always a popular time to scout for the perfect vacation home, whether it be in the mountains or near the beach. Many people dream about purchasing a vacation home and there are many benefits to owning one. Not only can the home serve as a family retreat, it can also serve as a dream home for eventual retirement.  Additionally, vacation property owners who are open to renting their properties during peak season will often discover that the rental income generated can help offset the cost of the mortgage.

In the recently published National Association of REALTORS® (NAR) 2017 Investment and Vacation Home Buyers infographic, 42 percent of vacation home buyers plan to use their property for vacations or as a family retreat. The same chart shows that 37 percent of investment property buyers purchased to generate income through renting the property.

Given the rising popularity and availability of online resources for owners to manage short-term and long-term property rentals throughout the country, it’s no surprise that there was increased interest in purchasing second homes in 2016.  According to NAR, 44 percent of investors, and 29 percent of vacation buyers, did or tried to rent their property last year and plan to do so in 2017 – saving them hundreds or thousands of dollars.

Regardless of the reason, over the decades owning a second or more homes has typically generated income because real estate offers a tangible asset that appreciates with time, and offers many tax and practical advantages. You can’t live in a mutual fund, stock or bond, but you can live in a vacation property whenever you want or need to.

If you are considering the purchase of a vacation home, it helps to find a real estate agent who has a deep understanding of the local market. Contact me today for a great referral!

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The Strongest Selling Season in a Decade

Real estate is currently booming and experts attest that this is the strongest market since the 2006 price peak, but with the added benefit of market stability. The latest National Association of REALTORS® Confidence Index concluded that much of the country has experienced very strong, or strong buyer traffic. This is an indicator of demand, but not necessarily supply, which has been short in many states across the county. The latest highlights according to NAR indicate:

  • First-time homebuyers accounted for 34 percent of sales.
  • With fewer new foreclosures, distressed properties accounted for five percent of sales, purchases for investment purposes made up 15 percent of sales, and cash sales accounted for 21 percent of sales.
  • Amid tight supply, half of the properties that sold in April 2017 were on the market for 29 days or less compared to 39 days in April 2016. The April median days on market measure is a new low since 2011.
  • Lack of homes for sale was the main issue reported by REALTORS®. Respondents reported a mixed effect from the uptick in mortgage rates since November 2016; some buyers are encouraged to act quickly while others are discouraged by diminished affordability.

First-time buyers made up a large portion of activity in recent home sales, meaning it’s a great time to sell that investment condo or townhome if you’ve been holding on to it for more than a decade (12-15 years). According to NAR, buyers 34 and younger accounted for approximately 30 percent of residential buyers in April 2017, compared to 26 percent in 2013.

We’re now seeing many parents help their adult children make their first home purchase. Presenting cash for a 20 percent down payment isn’t the norm in this market.  According to NAR, among first-time buyers, only 21 percent managed that and among all buyers, only 37 percent could avoid PMI (private mortgage insurance).

As interest rates are expected to rise, buyers are currently hitting open houses and searching for prime buying opportunities. There are currently no deals or steals, but a strong, stable market that both sellers and buyers can be confident in.  Summertime is notorious for seeing an influx of buyers, so if you’re considering selling it’s an opportune time. The combination of near-peak real estate prices, and still-low interest rates, makes it a great time to get top-dollar for your home, whether an investment property or primary residence.

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Bay Area Real Estate Competitive Market

Price it for a Competitive Market


The real estate market in Northern California is seeing varying activity depending on the counties, cities, neighborhoods and homes. This issue of Market Watch is a strong indicator of this shifting dynamic. Competitively-priced homes in any range are expected to sell steadily and swiftly, and properties under $750K are not sitting on the market for long. The sub-$750K homes are also seeing tighter inventories than higher-priced homes.


With additional inventory expected to appear over the coming days and weeks of summer, buyers who have been waiting for new listings will be competing for homes that are priced right and primed to sell. Sellers testing the market with listing prices above the competitive range will see their homes sitting longer, and the perception among buyers will be unfavorable. It’s critical even in this market to list at the right price for the county, city, neighborhood and home. Now more than ever, sellers and their agents need to be mindful in determining a listing price.


Hot markets like San Francisco will continue to experience more buyers competing for less properties, which will drive up closing prices significantly in desirable communities. Here’s what was happening in our local Northern California offices since the last issue of Market Watch:


East Bay – In the Berkeley area there has been a steady increase of both listing inventory and sales activity. Some of the largest markets in the region include Oakland with 248 available properties and 279 under contract; Richmond/El Sobrante with 81 active houses and 94 under contract. Pleasanton has also seen steady listing inventory increasing by 22 properties.


El Dorado County – El Dorado Hills has solid inventory at the high-end market. Although properties are selling, some are overpriced due to the message of an inventory shortage. There have been multiple offers on properties under $500,000 and cash proves king in this range.


Monterey County – Monterey launched Coldwell Banker Global Luxury since the last update and it has been well received. The high-end market had recent price adjustments of $1-3 million. The mid-range market has slower activity at open houses, limited listings and tight supply. However, the market is expected to pick up as we enter summer and more listings appear.


North Bay – North Bay has seen a market favoring sellers, driven by demand and an increase in sales activity. Areas such as Marin saw homes going 15-22 percent over asking price. With approximately 365 available properties, only 65 are listed under $1 million. Although Santa Rosa Bicentennial had an increase in sales activity, it also experienced a slowdown in offers. The development indicates that the trend is home-specific in this area as opposed to a market indicator.


Placer County Tahoe offices saw a decrease of approximately 18 percent in sales for luxury properties over $1 million from 2016. This is also reflected in the year over year sales; 2017 had 75 sales while 2016 sold 92 properties for the same period. The median sales price for luxury properties in 2017 is $1.4 million, a five percent decrease from 2016.  The average sale price of luxury homes in 2017 stands at $2.1 million compared to $2.3 million in 2016, an eight percent decrease. As more homes are expected to be listed, savvy buyers and investors will be searching over the coming weeks as mortgage interest rates remain favorable.

Sacramento County – Folsom has experienced increased listing inventory and an increase in sales activity with 35 ratified offers. Fair Oaks saw decreases in listing inventory and sales due to a surplus of sellers and a lack of buyers. In the $450,000 price range, there were multiple offers on properties indicating a continued sellers’ market. Elk Grove has seen a 12 percent increase in listings with a 25 percent increase in pending sales. Homes under $350,000 have been in especially high demand with less than .2 months of inventory.


San Francisco – San Francisco has had mixed results since the last update. SF Lakeside saw a slight slowdown in overall activity including open houses. SF Lombard had slowdowns in the $2.5-$3 million range and high-end markets. However, single family homes have remained hot with multiple offers and sales over asking price. SF Pacific Heights had tight inventory with decreased listings, but still had an increase in sales activity.


SF Peninsula –Burlingame, Half Moon Bay and Menlo Park each saw steady listing inventory and steady sales activity, but with different results. Burlingame’s tight supply prompted multiple offers on properties and many sold above asking price. Half Moon Bay also had tight inventory and carefully managed pricing. Overpriced properties linger on the market and typically bring in lower offers, so appropriate pricing is key. Palo Alto had increased listings and sales, but comparisons show inventory and sales are down from 2016. Redwood City had a slight decrease in inventory and sales activity, but remains competitive. One local buyer finally purchased a home after losing out on 14 previous properties, so demand remains high for competitively priced homes. San Mateo saw an increase in listings and sales, a good sign for a hot summer sales season.


Santa Cruz County– In Santa Cruz, the price of high-end homes is currently $3-$4 million. Single family residences were in low supply with 320 active properties and demand remained steady. Overall, the county saw the number of properties that have gone into contract continue to be nearly as high as the number of new listings to the market.


Silicon Valley – Cupertino reported multiple pre-emptive offers with a hot market and high activity. Listing inventory and sales activity increased and the area ended the period with 30 ratified offers.

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How To Price Your Home

Trying to price your home to sell? Not sure how much it’s worth? Read some of these pointers and determine the right price for your home.

You’re contemplating listing your home on the market, but you’re not sure how much its worth. You have a vague idea about a general price range, but you want a more accurate understanding.

Don’t worry – you’re not going to need to determine the price of the home yourself. Your real estate agent is a listing price expert! Your agent will guide you through the process, helping you understand how much your home may be worth and how quickly it may sell, based on a wide and complex array of market conditions and variables.

Your agent will consider factors like the home’s characteristics and market comparables when they’re determining a price. Here are some of  some of the factors that agents consider when they’re pricing your home.

1. Your Agent Will Look for Comps

Let’s take a moment to explain the concept of ‘comparable’ properties, and how these relate to the unique features in your home. This is what your agent will weigh when he or she is determining a price for your home.

Let’s illustrate this with an example. Imagine that you own a 3-bedroom, 2-bath single-family home built in 1990. Three neighboring single-family residences have recently sold for $280,000 to $330,000, so you presume your home value is somewhere within that range. But that assumption might not be accurate.

Your neighbor’s homes feature different qualities than yours. Your neighbor’s house has 4 bedrooms; another neighbor has only 1.5 baths. One house has a fireplace and swimming pool; another has a larger yard. One has Viking appliances. One neighbor has hardwoods throughout, while another has wall-to-wall carpet. One is sold as-is. Are you starting to see the differences?

Your agent can’t just look at the raw sales numbers for these houses. To arrive at an accurate pricing picture, your agent must adjust the sales numbers based on variables such as:

  • Property age
  • Square footage
  • Bedrooms and bathrooms
  • Condition of property
  • Upgrades and features

Real estate agents are professionally trained in adjusting for these variables to arrive at a true comparison.

Ask your real estate agent to walk through the comps with you, explaining how he or she arrived at the final numbers. You might find yourself pleasantly surprised at how much your property is worth.

2. Ask About CBx

CBx is a proprietary platform that homebuyers, home sellers and real estate agents use in order to make the process of determining an accurate valuation of your home run more smoothly.

Ask your agent to explain the many special features of CBx when you’re pricing your home. Your agent will explain how it is a useful solution for determining the best price for your property.

3. Understand the Trade-Offs

Finally, initiate a conversation with your real estate agent about a critical question: Do you want to sell your home for top dollar, or do you want to sell it as quickly as possible?

Some homeowners and agents jointly make a strategic decision to slightly underprice their homes, just by a small amount, to facilitate a quick sale. These are self-described “motivated sellers” who want to unload their home as quickly as possible. They may be moving to another state, for example, or they may need to sell their current home before they can buy another one.

That being said, however, there are many ways you can position your home for a quick sale at full price. Making small improvements, such as fresh paint and exterior landscaping, can be effective at creating a ‘wow’ factor. Staging your home is another great way to entice buyers to make an offer.

Speak with your agent about how you can price your home for top dollar, without sacrificing speed.

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Bay Area Real Estate Market Update

Northern California Starts Spring Homebuying Season Strong

Northern California had a strong start to the Spring home buying season notwithstanding low inventory. The housing market continues to experience an abundance of buyers, and in most cases, multiple offers on reasonably priced listings. New listings continue to come on the market, but not at a rate that meets buyer demand.

According to the National Association of REALTORS® (NAR), existing-home sales reached their highest pace in 10 years during March largely due to low inventory.

“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home,” said Lawrence Yun, NAR chief economist. “Sales will go up as long as inventory does.”

Northern California continues to sustain a sellers’ market due to its low inventory. Most reasonably priced listings receive multiple offers because buyers continue to outnumber the listings. However, there are not as many buyers for luxury properties in most regions.

Northern California has continued to maintain its strong Spring start into May. Here’s what was happening in our local Northern California offices earlier this month:


East Bay – The year-over-year first quarter statistics for the East Bay area: Alameda saw its overall median sales price increase 4 percent from $818,500 to $849,500 reflected in a 6 percent leap in short sales and foreclosures from $935,000 to $990,000 and a 10 percent jump in condos and townhomes from $655,500 to $722,250. Oakland’s overall median increased from $550,000 to $625,000, representing a 14 percent increase. Short sales and foreclosures moved from $550,000 to $650,000, representing an 18 percent increase, and condos and townhomes moved from $556,144 to $561,254, representing a 1 percent increase. Berkeley now has an overall median price of $1,055,000, representing a 21 percent leap. Short sales and foreclosures grew from $901,000 to $1,100,000, showing a 22 percent increase. Condos and townhomes went from $565,900 to $762,500, increasing 35 percent. Albany grew from $733,000 to $870,000, showing a 19 percent increase, with single-family houses jumping from $848,888 to $975,750, which is a 15 percent increase, and condos and townhomes moving from $418,000 to $525,000, which is a 26 percent increase. El Cerrito also saw significant gains with the overall median moving from $740,000 to $885,000, representing a 20 percent increase, and short sales and foreclosures moving from $775,000 to $915,000. Buyers continue to outnumber the listings as inventory remains less than a one-month supply.

Monterey County – The top five companies in Monterey County for the month of May saw a 25 percent decrease in units and sales. The average price is hovering around the $1 million mark. The last seven days, 14 properties went into contract in all price points, but the under $1 million price point still continues to be the most competitive. The inventory has tightened and prices seem to have peaked. As a result, buyers appear to be waiting for price adjustments or making low offers to get the negotiations started.

North Bay – For Greenbrae, inventory continues to be outpaced by demand, and multiple offers continue to be prevalent. Buyers are negotiating more once they get into contract, which has led to more escrows falling out than normal. In Novato, the luxury market over $1 million has improved. Currently 50 percent of the inventory is in contract with the majority in the $1 million to $1.5 million range. A new listing in Novato this week priced at $1.2 million sold less than seven years ago for $600,000 with little remodeling done. Prices will continue to trend upwards as inventory remains low. During April, the number of units sold in Novato was slightly higher than last April and prices were up 5 percent to a median price of $915,000. The average days on market went down 10 percent to 26 from 29 last year. There has been an increase in listing inventory, but it only equates to two months of available inventory. Currently Novato has 55 active properties and 80 properties in contract. In Santa Rosa, many properties are receiving multiple offers and many buyers continue to write offers even though their previous offers have not been successful. Total sales for April were 15 percent below sales from April of last year and more than 4 percent below sales from March of this year. April over April median price in Sonoma County is up just under 10 percent. In Sebastopol, listing agents are seeing offer dates come and go on properties in all price ranges, but buyers’ agents are still competing for properties. Interest rates still remain low, and more buyers are heading north from the Bay Area.

Placer County In Tahoe, the luxury sales for properties priced above $1 million are down 20 percent from 2016. For 2017, there have been 65 luxury properties sold as compared to 82 sold last year for the same period. The median sales price for luxury properties in 2017 thus far is $1,425,000, which is down 3.5 percent from the median sales price of $1,476,405 in 2016. The average sale price of luxury homes in year to date stands at $2,148,121 as compared to $2,371,101 in 2016 and is down almost 10 percent.

There continues to be considerable interest in the market as many buyers and investors are actively looking for homes. With the continued favorable mortgage interest rates and inventory coming, buyers will be able to acquire homes in many of the Lake Tahoe and Truckee resort communities.

Sacramento County – In Fair Oaks, the market is bifurcated. There is more luxury inventory than buyers, but the under $400,000 market is still a sellers’ market with listings receiving multiple offers. In Sierra Oaks, the luxury market is strong with an increase in activity. Overall, there are more listings and buyers moving forward. In El Dorado Hills, there is luxury market inventory for up to a year, but the luxury market has slowed. Four luxury homes were listed and only two luxury homes went into escrow. None of the homes that closed during this period were in the luxury market. There is little inventory of homes under $600,000. Open houses have anywhere from six to 35 groups each week, which produce many leads. There are still numerous buyers from the Bay Area, especially East Bay, but there has also been an increase in buyers from the Elk Grove to El Dorado Hills area. There was a large open house held at Serrano last week with a great turn out with people from the Bay Area. These large open houses happen every second Sunday of the month—weather permitting. Land seems to be selling at a greater pace than seen in recent years. Builders are looking at buying several lots. New subdivision lots are selling as well as previously sold lots. There is some seller financing on some of these lots that is very attractive to many buyers. There is still little affordable workforce housing available in many areas. Programs are being proposed that would streamline some of the processes and fees to aid in the construction of new homes as well as second homes on properties that already have one home. In Elk Grove and West Sacramento, there has been an increase in the number of listings in the past two weeks. However, inventory remains below one month and is down 25 percent from last year at this time. Average sales prices in Elk Grove for the month of April were over $400,000, which is up 11 percent from April 2016. The average days on the market has continued to decline and is 45 percent less than the 2016 average days on the market. There is a huge demand for homes in Elk Grove in the under $350,000 range and a lack of homes available in that price point. In several cases offers on properties have come in well above asking. For example, a listing at $450,000 received offers as high as $45,000 over asking price while a property listed at $390,000 received offers as high as $30,000 over asking price. In many cases, buyers in the under $400,000 price point marker must submit several offers before one gets accepted. Open houses have continued to see huge turnouts with several this past weekend including up to 25 or more attendees. There have been many buyers from outside of the local market, with the majority from the Bay Area.

SF Peninsula – In Burlingame, the demand for all properties is once again high due to low inventory. Inventory is growing, but it is still historically low. Almost all of the properties that sell are receiving multiple offers and are selling for much more than the list price. In Half Moon Bay, there are 45 listings currently for sale. Most experience an average 60 days with a low of four days and high of 365 days. There are currently 17 pending listings. Most experienced an average of 42 days on the market with a low of one day and high of 269 days. There were a total of 32 recently sold listings. They spent an average 31 days on the market with a low of one day and high of 220 days. Half Moon Bay has a little over a two-month supply of inventory. Menlo Park continues to have low inventory. Listings in the lower price ranges of $2 million and below, and listings above $2 million sell very fast. For Palo Alto, inventory in year-to-date is substantially lower in the area as well as in the North and South. In Redwood City, there continues to be low inventory but each mid-peninsula city and town is gradually gaining a little more inventory. Buyers are becoming a little more cautious with their offers, which means there are not as many multiple offers, but most property listings still receive two to five offers. In San Mateo, inventory is picking up. Woodside and Portola Valley still have very low inventory and most homes receive preemptive offers.

Santa Cruz County– The number of homes listed for more than $1 million is approximately the same as 2016. The number of sales for properties over $1 million dollars is slightly lower than those of April 2016. There have been several additional sales this April compared to last year, which appears to be a trend that will sustain through the summer. The real estate market in Santa Cruz County is still showing attributes of a sellers’ market. There are multiple offers on well-priced properties, primarily for properties listed under $1 million dollars. There are approximately nine single-family homes hitting the market per day. However, the total inventory of single-family homes in Santa Cruz County is 317, which is quite low. Inventory is approximately 20 percent below 2016.

Silicon Valley – In Cupertino the luxury market remains steady. Last week saw the most sales pending in Santa Clara County for year-to-date. Inventory has increased but there is still high demand for more inventory to satisfy buyer needs. New home developments are springing up all through Morgan Hill and Gilroy. Many developers are offering upgrade incentives and mortgage assistance to attract more potential buyers to their new homes. As a result, house tours now include new home developments as well as lived in properties. In Los Altos, the luxury market — homes priced over $4.5 million — is steady, but multiple offers continue to be the exception. Overall, inventory levels are still very low compared to buyer demand. Currently, there is less than one month’s worth of inventory in Los Altos. Most homes are receiving multiple offers, which typically leads to a sales price that is over asking. The market in Mountain View is even hotter with barely two weeks’ worth of inventory. The number of homes coming on the market for sale each week is slowly on the rise in both the Los Altos and Mountain View areas. However, these homes are being absorbed quickly and are selling very fast. Most homes coming on market are priced to induce offers and are selling in less than 10 days. The markets of Los Altos and Mountain View are still very strong and extremely robust.

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