San Mateo and Santa Clara Counties Break Records-
Home prices for San Mateo and Santa Clara Counties combined are at all time highs, surpassing the $2-million mark for the past consecutive months. The average single family (SF) home now sells for $2.6m or $1,273/SqFt. SF Home prices have risen 14% Y/Y and are up 2% since the last peak in May 2022. This was just before interest rates began spiking and driving prices down about 15% over the following six months.
However, the driving force behind these new record highs are all due to Santa Clara County. Its home prices rose 19% Y/Y while San Mateo County is up only 4% Y/Y and its average SF home price is still 9% below the May 2022 high. Overall, these two counties are the only regions in the state of California with median home prices exceeding $2 million, reflecting ongoing rising costs in these highly desirable areas.
Home Prices in California
For the whole of California, the cost of buying a home has also reached an all-time high, with the statewide median price for a single-family home soaring to $904,210 in April, marking the first time it has exceeded the $900,000 benchmark. This significant rise, reported by the California Association of Realtors, represents an 11.4% increase from April 2023. The San Francisco Bay Area and Southern California saw the most substantial year-over-year median price jumps, with the Bay Area experiencing a 15.5% increase and Southern California seeing prices rise by 12.1%.
Factors Driving the Surge in Home Prices
Several factors contribute to the surge in home prices, including a persistent shortage of homes for sale and stronger sales of higher-priced properties. Last May 2023, sales in the $1-million-plus market rose by 15.5% compared to May 2023, while sales in the sub-$500,000 segment declined by 12.2%. More homes are beginning to enter the market, potentially providing much-needed supply and facilitating higher home sales in the latter half of the year. However, tight housing supply and fluctuating mortgage rates are expected to continue placing upward pressure on home prices.
Why It’s a Good Time to Sell Your Home
Given the current market conditions, now is an excellent time for homeowners in San Mateo and Santa Clara counties to consider selling their homes. With median home prices surpassing $2 million and competition among buyers intensifying, sellers are in a prime position to capitalize on high demand and limited supply. “Homes are selling faster, and nearly half the share of homes is selling above asking price – the highest in nine months,” Melanie Barker, president of the California Association of Realtors, said. “With mortgage rates coming back down from their recent peaks and market competition heating up, the statewide median price may have more room to grow before the summer ends,” Jordan Levine, senior vice president and chief economist for the California Association of Realtors, said. More buyers are likely to enter the market, further driving up prices and creating an optimal environment for sellers to maximize their returns.
Selling or buying a home in San Mateo or Santa Clara?
Seek people who will put their full effort into representing your interests, treat you like a person and not a transaction, and experts who are well-respected in their profession. With over 30 years of combined experience and 95% of their clients coming from referrals, we take great pride and joy in exceeding your expectations.
More info about Vabrato
Contact Us
Resources
“The Cost to buy a home in California just shattered state’s previous all-time, record-high”, Palo Alto Online, by Silicon Valley Association of Realtors, May 22, 2024
“Bay Area median home prices continue to climb, now approaching record high”, NBC Bay Area, By Virgil Aspen, June 24, 2024
“$2M won’t get you a median-priced home in San Mateo or Santa Clara counties anymore”, Mountain View Voice, by Linda Taaffe, June 19, 2024