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Peninsula home sales at a glance
- San Mateo County’s median home price jumped 10.5% from August to September
- Santa Clara County’s median home price jumped 4.1% from August to September
- The median home price in San Mateo County was $2.1 million in September
- The median home price in Santa Clara County was $1.92 million in September
- On average, Peninsula buyers paid 5% over asking price
- Home sales in San Mateo County increased 2.2% from August to September
- Home sales in Santa Clara County decreased 15.8% from August to September
- Bay Area home sales increased 5.1% overall compared to a year ago
California home sales dropped to a nine-month low in September despite the sharpest decline in interest rates since spring.
According to a housing report from the California Association of Realtors, the number of single-family homes sold statewide dropped to 253,010 (3.4%) from 262,050 during the previous month of August and from 290,020 in February, which marked the highest number of sales so far this year. While year-to-date home sales have edged up .9% compared to the first nine months of 2023, California’s sales pace has remained below the 300,000-threshold for the past two years, according to the report.
The San Francisco Bay Area was among the only three regions in the state to record sales increases from a year ago. The state’s Far North region (Shasta, Butte, Lassen, Trinity, Siskiyou, Plumas and Tehama counties) recorded a 7.2% increase, followed by the Bay Area with a 5.1% increase and Southern California with a 1.1% increase.
The decline in home sales can be partially attributed to buyer hesitation.
“Economic uncertainty and hopes for lower interest rates may have caused many buyers to hold off on a home purchase,” said Jordan Levine, C.A.R. senior vice president and chief economist for the California Association of Realtors. “As a result, home sales declined for the second consecutive month, reaching their lowest level this year. However, the recent rebound in bond yields is a reminder that rates will continue to fluctuate, and waiting may not be the best strategy when it comes to homebuying.”
According to the association’s calculations based on Freddie Mac’s weekly mortgage survey data, the 30-year fixed-mortgage interest rate averaged 6.18% in September, down from 7.2% in September 2023.
Housing prices
The state’s median home price also declined. The price for a single-family home dropped 2.3% from $888,740 in August to $868,150 in September. Despite the month-over-month decline, the median home price continued to grow from a year ago, but at the slowest rate since July 2023.
September’s figure was 2.9% higher than a year ago. The year-over-year gain marked the 15th consecutive month of annual price increases.
According to the report, home prices could soften further in the coming months as the market enters the traditional off-season but should continue to post year-over-year growth for the remainder of the year.
San Mateo and Santa Clara counties
In San Mateo County, September home sales increased 6% compared to the same time last year and were up 2.2% from the previous month of August.
In Santa Clara County, September sales increased 2.4% from the same time last year and were down by 15.8% compared to the previous month of August.
The median home price increased year-over-year and month-over-month in both counties during September. The median sales price in San Mateo County shot up to $2.1 million, or 7.4% higher than September 2023's median price of $1.95 million and 10.5% more than the median price of $1.9 million in August.
Santa Clara County’s September median price of $1.92 million was 4% higher than September 2023's median price of $1.85 million and 4.1% more than the median price of $1.85 million in August.
“It’s been generally a solid year for sellers, with pretty significant price swings, particularly in San Mateo County," Eileen Giorgi, president of the Silicon ValleyAssociation of Realtors, said. “(Silicon Valley) is seeing a bit more strength in our marketplace. … Buyers can expect to pay 5% over asking.”
For buyers waiting on the sidelines for even lower interest rates, Giorgi said timing the market may not be the best strategy when purchasing a home in an area like Silicon Valley where the housing supply is limited.
"A lot has to do with inventory, which is slowly climbing," she said. "This will mean more competition in the marketplace.”
Silicon Valley Association of Realtors (SILVAR) is a professional trade organization representing 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term Realtor is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics.
