I’m not quite sure what to make of the Sunnyvale real estate market right now. The statistics do not point to a clear trend. Even though inventory has been declining, it feels like the market is moving toward more inventory and greater buyer options. Pending sales, which hit a four year high last month declined in June, as did closed sales. Price indicators have been mixed the past few months but homes that sell have done so in an average of only 12 days during that time. There is still strong demand from buyers but they are being more selective. We are even seeing more contingent offers; something there has not been much of for quite a while. The general sense is that the market is trending toward “normalization”, away from the frantic pace and double digit price increases of the past couple of years.
Median Sales Price
After falling for four consecutive months, June’s median sales price increased 14% or $205,000 in June, from $1,477,500 in May to $1,683,000. June’s median was also nearly 11% higher than a year ago. The sales price to list price ratio fell from 108.4% in May to 106.5% in June. While still a very strong percentage, it was the lowest since December and well of June 2015’s 115%. The price per square foot was little changed at $938 in June. That compares to $934 in May and $940 a year earlier.
21 fewer sales closed in June (51) than in May (72). June also had four fewer closed sales than a year ago.
For Sale vs. Pending
Pending sales fell 12% in May, although that was from May’s four year high of 74. June’s 65 pending sales were 11 more than June 2015’s 54. 82 homes were actively listed at the end of June, six less than at the end of May and 12 less than a year ago. A 1.3 month supply was on the market at the end of June, up slightly from 1.1 months at the end of May.
Days to Sell
June’s sales closed in an average of only 12 days, the same as the previous two months and one less day than a year ago.
Analysis by Price Range
Under $1 million
15 homes priced under $1 million were actively listed at the end of June, one less than at the end of May. 13 sales went to contract during June, two less than in May. Supply was little changed at about 1.1 month. This segment accounted for 18% of inventory and 20% of pending sales.
$1 million to $1.5 million
Pending sales of homes price from $1 million to $1.5 million dropped sharply in June, from 34 in May to 20 in June. Those 20 sales were 31% of all sales in Sunnyvale. Inventory was little changed at 27 units, one less than at the end of May. 32% of all inventory was in this price range. Supply relative to sales increased form 0.8 months at the end of May to 1.35 months at the end of June.
$1.5 million or over
The $1.5 million and up market segment made up 49% of both inventory and sales. 40 of these homes were on the market at the end of May, four less than at the end of May. 32 sales went to contract in June, up seven from May’s 25. A 1.25 month supply was available at the end of May, down from 1.75 months at the end of June.
Check out these other Real Estate Market Conditions Reports for June 2016: