Market Update - April 2021
April showers are on track to bring a ferocious Seller's Market! Find out what you need to know as a buyer to navigate this market.
Let’s kick things off with a look at inventory trends!
As of April 28th, we currently have 649 homes, condos & townhouses available for sale...across the city of San Jose. Compared to last month, when we had 578 active listings. So, as to be expected during this time of the year, we are seeing an increase in the number of homes coming to market, which is GOOD news for those looking to purchase as increased inventory leads to increased choice for buyers.
However, when compared to a year ago when there were 810 homes for sale, buyers today have 20% fewer homes available for them to shop…hopefully, as we head closer into summer, we’ll continue to see an increase in homes coming to market.
Now, to get a general sense of whether the market is moving quickly, or slowing down, let’s check out how buyer demand has been behaving lately. As of the time of this publishing, there are a total of 997 homes, condos & townhouses currently under contract of sale, meaning that the seller has accepted an offer and a binding contract has been formed between the seller and a buyer.
Compared to last month, when we had 836 listings under contract…indicating that demand is not showing any signs of slowing yet. And, with pending contracts still outpacing inventory levels, the market is moving VERY quickly... and continuing to favor those looking to sell, as home prices tend to rise when inventory is gobbled up by demand. And, just to give you a better sense of JUST HOW QUICKLY our market is moving, if no new properties were listed to the market, we’d run out of inventory to sell in less than 30-days!
But just how quickly are prices on the rise from the imbalance in supply and demand?
The median sales price is currently hovering around $1,212,000...up 3.0% from last month, and up 19% year-over-year. The last market indicator that we track, is the sales-to-list-price ratio, which is the difference between the price that a home sells for versus the price it was listed at on the market.
This statistic provides us a glimpse into what buyers and sellers can expect when negotiating on a home’s pricing. And, with this month’s average sales-to-list-price ratio running at 109%, slightly up from last month’s ratio of 107.5%, we’re continuing to see buyers offer much more than a home’s listed price, indicating increased levels of competition.
The Bottom Line
We’ve got bidding wars…
We’ve got outrageously high sales prices…
We have record low-interest rates…
And, we have memes comparing homes to apples going viral…
Funny thing is that It just may be easier to sell houses in San Jose than apples!!!
We are continuing to see inventory levels struggle to keep up with demand, which is being fueled by record-low interest rates…
This is resulting in the majority of homes for sale selling well above the asking price, within 7-10 days on market, and with multiple offers!
If you’re looking to buy now, you’ve got your work cut out for you…
You should have your pre-approval completed, or, better yet, ask a lender to fully underwrite your application in advance.
Be prepared to make several offers on numerous properties.
And, do your homework, or work with an agent willing to scope out the competition on your behalf.
If you’re looking to sell, the market is favoring you, but it doesn’t mean that we’re not seeing homes that don’t sell…
Be sure to price your home correctly and competitively.
Take time to thoughtfully prepare your home by completing some maintenance or even cosmetic updates, especially if you want very favorable terms
If you do this, then you’re likely to sell quickly with multiple offers...
So, if you’re still considering a move into your first home or your next home, and you haven’t updated your pre-approval in a few months, it’s a great time to find out how these low rates have improved your purchase power.
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