Quarterly Summary [Q3 2023]

Santa Clara County Home Sales

Q3

Total Homes Sold
Median Sale Price
$
Total Sales Volume
$
Untitled (300 × 300 px) (6)
Total Homes Sold
QUARTER 3 [2023]

Single Family Homes

$2,160,072

Average Sale Price

$1,800,000

Median Sale Price

$1,124

Average $ / SqFt

$1,039

Median $ / SqFt

Highest Sale Price
$

1025 Lincoln Avenue

Palo Alto, California 94301

TH
Total Homes Sold
QUARTER 3 [2023]

Townhomes

$1,260,045

Average Sale Price

$1,237,500

Median Sale Price

$838

Average $ / SqFt

$814

Median $ / SqFt

Highest Sale Price
$

22 Bay Tree Lane

Los Altos, California 94022

condo1
Total Homes Sold
QUARTER 3 [2023]

Condominiums

$876,657

Average Sale Price

$795,000

Median Sale Price

$751

Average $ / SqFt

$715

Median $ / SqFt

Highest Sale Price
$

325 Channing Avenue #117

Palo Alto, California 94301

Price Rank by City

Average Townhome Price

Top 10 TH Cities

Average Condo Price

Average Single Family Home Price

Q3

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JK_headshot

Jonathan Klotz
Realtor®
DRE# 01951800

If you’re a current homeowner, you should know your net worth just got a big boost. It comes in the form of rising home equity. Equity is the current value of your home minus what you owe on the loan. Today, you’re building that equity far faster than you may expect – and this gain is great news for you.

Here’s how it happened. Home values are on the rise thanks to low housing supply and high buyer demand. Basically, there aren’t enough homes available to meet this high buyer interest,  so bidding wars are driving home prices up. When you own a home, the rising prices mean your home is worth more in today’s market. And as home values climb, your equity does too. As Dr. Frank Nothaft, Chief Economist at CoreLogic, explains:

“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth.”

The latest Homeowner Equity Insights from CoreLogic shed light on just how much rising home values have boosted homeowner equity. According to that report, the average homeowner’s equity has grown by $55,300 over the last 12 months.

Want to know what’s happening in your area? Here’s a breakdown of the average year-over-year equity growth for each state based on that data.

How Rising Equity Impacts You

     In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home. It works like this: when you sell your house, the equity you built up comes back to you in the sale.

     In a market where you’re gaining so much equity, it may be just what you need to cover a large portion – if not all – of the down payment on your next home. So, if you’ve been holding off on selling and worried about being priced out of your next home because of today’s home price appreciation, rest assured your equity can help fuel your move.

 

     …In conclusion, equity can be a real game-changer if you’re planning to make a move. To find out just how much equity you have in your home and how you can use it to fuel your next purchase, let’s connect so you can get a professional equity assessment report on your house.


Complimentary Market Reports, no sign-up or contact required. Downloadable, printable, market reports here! Email me or text me your zip code for your complimentary localized market report.


Jonathan Klotz, Realtor | (408)504-2484 | jklotz@intero.com | LinkedIn | Facebook

 

Real Estate Voted as Better Investment Than Stocks, Gold and Savings for 8th Consecutive Year

Nationally, real estate tops the list as the best long-term investment for the eighth year straight. (Source: Gallup) Real estate continues to gain traction as the best long-term investment in the country, check out the graph below.

Real Estate Best Investment Nationally

If you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, combined with rising mortgage rates, real estate sales prices continue to climb. Homeowner’s are building incredible amounts of equity as home prices appreciate.

Why Is Real Estate a Great Investment During Times of High Inflation?

With inflation reaching its highest level in 40 years, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrate, explains it like this:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.” 

James Royal, Senior Wealth Management Reporter at Bankrate (Source)

If you’re a renter, you don’t have that same benefit. You aren’t protected from increases in your housing costs, especially rising rents.

History Shows During Inflationary Periods, Home Prices Rise

As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes buying a home a great hedge during periods of high inflation.

“Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.”

Natalie Campisi, Advisor Staff for Forbes (Source)

In conclusion, housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

Jonathan Klotz, Realtor | (408)504-2484 | jklotz@intero.com | YouTube | LinkedIn | Facebook

Some Highlights

  • Heading into the end of the year, you might wonder if it’s still a good time to sell your house. Here’s what the latest data from the National Association of Realtors(NAR) says.
  • Housing supply is lower than last year, and home prices are up nationwide. Meanwhile, the average home is selling fast and receiving several offers. Listing now puts your house in the spotlight, meaning it could sell quickly – and for more than you’d expect.
  • Feeling motivated? If you’re ready to sell and capitalize on today’s market, let’s connect.

 


Jonathan Klotz Realtor®

Intero | A Berkshire Hathaway Affiliate

DRE #01951800

(408)504-2484

JKlotz@Intero.com

Facebook | LinkedIn


If you’re looking to buy or sell a house, chances are you’ve heard talk about today’s rising home prices. And while this increase in home values is great news for sellers, you may be wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall?

To answer that question, let’s first understand a few terms you may be hearing right now.

  • Appreciation is an increase in the value of an asset.
  • Depreciation is a decrease in the value of an asset.
  • Deceleration is when something happens at a slower pace.

It’s important to note home prices have increased, or appreciated, for 114 straight months. To find out if that trend may continue, look to the experts. Pulsenomics surveyed over 100 economists, investment strategists, and housing market analysts asking for their five-year projections. In terms of what lies ahead, experts say the market may see some slight deceleration, but not depreciation.

Here’s the forecast for the next few years:

As the graph above shows, prices are expected to continue to rise, just not at the same pace we’ve seen over the last year. Over 100 experts agree, there is no expectation for price depreciation. As the arrows indicate, each number is an increase, which means prices will rise each year.

Bill McBride, author of the blog Calculated Risk, also expects deceleration, but not depreciation:

“My sense is the Case-Shiller National annual growth rate of 19.7% is probably close to a peak, and that year-over-year price increases will slow later this year.”

Ivy Zelman of Zelman & Associates agrees, saying:

“. . . home price appreciation is on the cusp of flipping to a decelerating trend.”

recent article from realtor.com indicates you should expect:

“. . . annual price increases will slow to a more normal level, . . .”

What Does This Deceleration Mean for You?

What experts are projecting for the years ahead is more in line with the historical norm for appreciation. According to data from Black Knight, the average annual appreciation from 1995-2020 is 4.1%. As you can see from the chart above, the expert forecasts are closer to that pace, which means you should see appreciation at a level that’s aligned with a more normal year.

If you’re a buyer, don’t expect a sudden or drastic drop in home prices – experts say it won’t happen. Instead, think about your homeownership goals and consider purchasing a home before prices rise further.

If you’re a seller, the continued home price appreciation is good news for the value of your house. Work with an agent to list your house for the right price based on market conditions.

Bottom Line

Experts expect price deceleration, not price depreciation over the coming years. Let’s connect to talk through what’s happening in the housing market today, where things are headed, and what it means for you.

     An important metric in today’s residential real estate market is the number of homes available for sale. The shortage of available housing inventory is the major reason for the double-digit price appreciation we’ve seen in each of the last two years. It’s the reason many would-be purchasers are frustrated with the bidding wars over the homes that are available. However, signs of relief are finally appearing.


According to data from realtor.com, active listings have increased over the last four months. They define active listings as:

The active listing count tracks the number of for sale properties on the market, excluding pending listings where a pending status is available. This is a snapshot measure of how many active listings can be expected on any given day of the specified month.”

What normally happens throughout the year?

Historically, housing inventory increases throughout the summer months, starts to tail off in the fall, and then drops significantly over the winter. The graph below shows this trend along with the month active listings peaked in 2017, 2018, and 2019.

What happened last year?

Last year, the trend was different. Historical seasonality wasn’t repeated in 2020 since many homeowners held off on putting their houses up for sale because of the pandemic (see graph below). In 2020, active listings peaked in April, and then fell off dramatically for the remainder of the year.

What’s happening this year?

Due to the decline of active listings in 2020, 2021 began with record-low housing inventory counts. However, we’ve been building inventory over the last several months as more listings come to the market (see graph below):

There are three main reasons we may see listings continue to increase throughout this fall and into the winter ➡ 

  1. Pent-up selling demand– Homeowners may be more comfortable putting their homes on the market as more and more Americans get vaccinated.
  2. New construction is starting to take off – Though new construction is not included in the realtor.com numbers, as more new homes are built, there will be more options for current homeowners to consider when they sell. The lack of options has slowed many potential sellers in the past.
  3. The end of forbearance will create some new listings– Most experts believe the end of the forbearance program will not lead to a wave of foreclosures for several reasons. The main reason is the level of equity homeowners currently have in their homes. Many homeowners will be able to sell their homes instead of going to foreclosure, which will lead to some additional listings on the market.

Bottom Line

If you’re in the market to buy a home, stick with it. There are new listings becoming available every day. If you’re thinking of selling your house, you may want to list your home before this additional competition comes to market.


Jonathan Klotz

Realtor® | DRE #01951800

(408)504-2484 | jklotz@intero.com

www.KlotzHomes.com | Facebook

Howard Bloom Real Estate Team

Intero Real Estate Services A Berkshire Hathaway Affiliate
496 1st St, Ste. 200  Los Altos, CA  94022