We are initiating coverage for Campbell and West San Jose (Willow Glen + Cambrian). These two additions provide a richer look at the Silicon Valley, since they are both large markets. Campbell and West San Jose have significantly more inventory and sales than the seven cities we have covered until now.

Sales were down 26% from last month in the Valley but were about on par with a year ago, primarily because Sunnyvale and Palo Alto were up 79% and 62% respectively.

Inventory fell 18% across the region from where it was last year but is up 14% from last month. Months of inventory increased by about three weeks, from 0.7 months at the end of January to 1.5 months at the end of February). Every city showed an increase in this statistic for February.

Median sales prices were up 23% from last year, led by Sunnyvale (39.5%), Campbell (28.1%) and Palo Alto (20.9%). Mountain View was up 52% from a year ago but that was based on only five sales in February, a low number than can result in misleading averages.

The rise in the median sales price was accompanied by the average home selling for 113% of its list price across the Silicon Valley.

Inventory in the beach communities is down 8% from last month and 10% from last year. Sales are down 33% from last month driven by lack of inventory, even with the high demand in the area. Homes are selling about even with their list price.