If we look at the latest trends in our market, we see that interest rates are still low and inventory is rising.
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As we head toward summer, it’s time to consider both the positive and negative trends affecting our Silicon Valley market.
One positive trend is that conditions are still stable and interest rates are still low. The average 30-year fixed rate is between 3.625% to 3.875%, and the average 7/1 ARM rate is between 3.125% and 3.25%. This is great news for homebuyers, given the average purchase price in our marketplace.
On the other hand, inventory is piling up all around the area—especially in places that aren’t in a good school district or have a lot of condos and townhomes. When inventory increases, it tells us that prices will either stay steady or start to drop.
“This is great news for homebuyers, given the average purchase price in our marketplace.”
In areas located within good school districts, however, sales are picking up speed. Cupertino, for example, had 38 sales during the month of May, which was higher than the number of new listings (37). Sales in this area have increased each month since the start of 2019, and after spiking in March and April, the number of listings declined during May.
This means that if you’re thinking of moving to a neighborhood in a good school district, now is the time to act—an increase in the sales volume is usually followed by an increase in prices. If you’re in the market for a condo or townhome or it doesn’t matter to you whether you’re in a good school district or not, you can take your time shopping for homes.
Whatever your plan may be, my team and I would love to help you with the home buying process, so don’t hesitate to give us a call and we can get started. If you have any other real estate questions, feel free to reach out to us as well. We look forward to speaking with you.
