Quarter One 2022 Residential Report
Residential Real Estate in Santa Clara County
Download a complimentary copy of this report: Q1 2022 Residential Report for Santa Clara County
Reports for a specific zip code or city are available now. Send me an email at JKlotz@intero.com or call/text 408-504-2484 to request your complimentary copy.
In this report I compare first quarter year-over-year statistics and year-to-date results for residential real estate in Santa Clara County. This report covers a broad area and your city data will vary from these statistics. Send me a request for your localized report based on city or zip code.
→ Monthly City Reports Available: https://www.klotzhomes.com/silicon-valley-market-stats
Q1 2022 vs. Q1 2021 (Single-Family Homes)
Single-Family: Median sales price for Q1 2022 is $1,850,000 an increase of ↑ 23.33% compared to Q1 2021
Condo/Townhome: Median Sales prices for Q1 2022 is $960,000 an increase of ↑ 12.81% compared to Q1 2021
Single-Family: Average sales price for Q1 2022 is $2,194,814 an increase of ↑ 21.52% compared to Q1 2021
Condo/Townhome: Average sales price for Q1 2022 is $1,051,793 an increase of ↑ 12.62% compared to Q1 2021
|Single-Family Home (Q1 2022)||Condo/Townhome (Q1 2022)|
Home inventory remains low in the first quarter of 2022, while homes are selling faster and for more money compared to the previous year. Less inventory means higher demand. While interest rates are rising, home buyers are feeling pressure to purchase a home now. Many home buyers are now looking to off-market listings so they do not have to compete with other buyers. Looking for off-market opportunities? Contact me at 408-504-2484
Sellers. My team and I net you more money for the sale of your home. Reach out for your complimentary consultation.
Buyers. Don’t let this competitive market bring you down. Proper representation is key to your success as a home buyer in this market. I stay current with the marketplace, keep my clients informed and assist them before, during and after they purchase their new home. Reach out to me to discover the difference I can make for you in this competitive real estate market.
Investors. I am current with off-market opportunities around Santa Clara County and San Mateo County. I’m happy to present these opportunities to my investor clients. Reach out to me for me information.
In today’s housing market, there are far more home buyers looking for homes than home sellers listing their houses. Based on the concept of supply and demand, this means home prices will naturally rise. Why is that? When there are more people trying to buy an item than there are making that item available for sale, that drives prices up. And that’s exactly the case in today’s housing market. So, knowing what’s happening with the inventory of homes for sale and the demand for housing is crucial for today’s buyers and sellers.
Demand Is High and Supply Is Very Low
The latest buyer and seller activity data from the National Association of Realtors (NAR) indicates buyer traffic heavily outweighs seller traffic today, as shown in the maps below. There are far darker blues (strong buyer activity) on the left and much lighter blues (weak seller activity) on the right. In other words, this shows how the demand for homes is significantly greater than what’s available to purchase.
What Does This Mean if You’re a Seller?
Supply is struggling to keep pace with demand. In fact, the inventory of homes for sale recently hit an all-time low. That gives you an incredible advantage when you sell your house. With so few listings, it’s likely more potential buyers will view your house – especially if you work with an agent to price it right. That means there’s a high chance you’ll receive multiple offers or buyers will enter a bidding war for your house. And that dynamic can drive the sale price of your home up.
What Does This Mean if You’re a Buyer?
As a buyer with fewer options available, you’re likely to see more competition, so you need to be strategic to win. First, make sure you have a trusted professional on your side. Your real estate agent will help you understand your local market and work with you to act quickly when the time is right. Even when it’s challenging to find a home, you can still succeed as a buyer today if you have a trusted advisor on your side every step of the way.
In conclusion, whether you’re a homebuyer, seller, or both, knowledge truly is power. Let’s connect today so you can better understand what’s happening in our local market and achieve your home buying and home selling goals this year.
Summary of New Real Estate Laws in California for 2022
Below are summaries of new state laws that affect real estate licensees and applicants. Unless otherwise noted, the laws take effect January 1, 2022
· Assembly Bill (AB) 107 requires that the Department of Real Estate collect information about military, veteran, and spouse license applications, including the number of expedited license applications, the number of expedited licenses issued and denied per calendar year, and the average length of time between application and expedited license issuance. DRE will submit an annual report to the Legislature.
· AB 502 allows homeowners associations (HOAs), regardless of size, to elect by acclamation candidates for the board of directors, if the number of candidates is no greater than the number of vacancies. To do so, the HOA will have to meet increased noticing provisions, have had a regular election in the past three years, confirmed receipt of a candidate nomination, and provided a disqualified nominee the opportunity to appeal. The HOA board must also consider the vote by acclamation at a meeting where the agenda includes the name of each candidate to be elected in that manner.
· AB 830 allows real estate licensees who change their legal surname from the name under which the license was originally issued to continue to use their former surname for business purposes. The bill also provides that the former last name does not constitute a fictitious name prohibited under real estate law. The licensee must file both the new and previous name with DRE.
· Beginning July 1, 2022, AB 838 requires that a city or county inspect a property if it receives a complaint about lead hazards or substandard living conditions. Upon inspection, it will have to advise the property owner of violations and required remedies, and then re-inspect the property. Among other provisions, AB 838 provides that an inspection not be conditioned on a tenant being current on rent or other factors. Inspection fees cannot be charged, unless substandard conditions or lead hazards are found.
· AB 948 creates the Fair Appraisal Act. Among its provisions, every sales contract for real property made after July 1, 2022, must include a notice stating that the property appraisal of the property must be unbiased, objective, and not influenced by specific factors, including: race, color, religion, gender, sexual orientation, marital status, medical condition, military or veteran status, national origin, source of income, ancestry, disability, genetic information, or age. The notice will also include information on actions a buyer or seller can take if they believe an appraisal has been affected.
· AB 1101 modifies current financial practices and insurance requirements for homeowners associations (HOAs) in common interest developments. The bill prevents managing agents from investing HOA funds in stocks or high-risk investments, and removes the ability to co-mingle funds, among other provisions. The bill also requires HOAs and their managing agents to maintain crime insurance, employee dishonesty insurance, and fidelity bond coverage, or their equivalents.
· AB 1466 changes the Restrictive Covenant Modification process. Among these changes are increasing the types of people and entities that can request a modification, expanding current notices to include information on how to request a modification, and requiring that professionals involved in property sales inform buyers and sellers about
an existing restrictive covenant and increasing their duty to assist in filing a modification. In addition, the bill creates a new $2 fee on real estate instruments subject to the SB 2 (Atkins, Chapter 364, Statutes of 2017) recording fee to fund redaction work.
· Beginning January 1, 2023, Senate Bill (SB) 263 modifies the content of two courses required to take either the real estate salesperson or broker licensing exam. The real estate practice course will include a component on implicit bias and the legal aspects of real estate course will include a component on federal and state fair housing.
Also beginning January 1, 2023, the required continuing education course for salespersons and brokers on fair housing will include an interactive participatory component and a new two-hour implicit bias continuing education course will be required.
· SB 800 extends the sunset date for both the Department of Real Estate and the Bureau of Real Estate Appraisers to January 1, 2026. The measure also allows the Department of Real Estate to use debarment notices issued by sister agencies as grounds for action, codifies the current policy of expediting license applications for veterans and partners of members of the Armed Forces, and clarifies the definition of a real estate license in good standing.
Source: DRE (Department of Real Estate) Services