We are not done with May yet but it appears the trends of rising home prices will continue in 2014. According to data released by California Association of Realtors, sales of existing homes sales rose 1.3% in May 2014. However, the numbers are still 6.7% lower than the sales levels in 2013 indicating a cooling off from the 2013 peaks.
Median home prices as we reported on a previous blog, has increased dramatically as well. In fact, for counties in SIlicon Valley, the median home prices have already reached record levels in April 2014.
- Alameda: $615,000 – highest since August 2007
- Contra Costa: $475,000 highest since November 2007
- Santa Clara : $810,000 new high ever
- San Mateo: $883,050 down from $860,000 in March
Perhaps that’s why some of our buyers are starting to consider rent as an option which is not a good sign for the health of the market. Compounding the problem for some buyers are that they are competing with cash buyers who are paying up to $150,000 over the list price for some homes in San Jose, Los Gatos, Campbell and Saratoga.
In another sign of the market’s trend towards normalcy is the reduction of percentage of distressed home sales as part of the overall market. Distressed home sales including Short Sale, REOs, Auctions only accounts for 18-20% of the market. In fact, with the exception of some specific neighborhoods in San Jose, we rarely see distressed sales in Los Gatos, Campbell and Saratoga.
Would rising prices temp you to sell your home?