Santa Clara County - Real Estate Market Report OCTOBER 2023
Santa Clara County, CA Monthly Market Report Summary
Economic challenges have been evident since the onset of the fall selling season:
- Rising interest rates persisted into early October.
- Stock markets have been declining since mid-summer from their year-to-date peaks.
- The country narrowly avoided a federal government shutdown, but another potential shutdown looms.
- Markets are unpredictable, often responding negatively to good economic news, as they anticipate new inflation data and the Federal Reserve's response. The full effects on real estate from these events will be clearer once Q4 data is out.
Santa Clara County Market Highlights:
- Among the strongest markets in the Bay Area.
- Q3 median house sales price increased by 9% from Q3 2022.
- Condos and townhouses saw smaller price hikes.
- Listings for sale are scarce, significantly below historical averages.
- Q3 home sales decreased by 15% year over year, mainly due to limited supply and rising interest rates.
- Luxury home sales (priced $4 million+) in Q3 rose by 9% compared to Q3 2022.
2024 Market Forecast by CA Association of Realtors® (CAR):
- Positive outlook: "California housing market will rebound in 2024".
- Predicted 23% increase in existing single-family home sales in 2024.
- CA median home price is projected to rise by 6.2%.
- Average 30-year fixed mortgage interest rate expected to drop to 6%.
- Housing supply will stay below average, even with a 10%-20% rise in active listings.
- Despite improving market conditions and lending environment, the proportion of CA households able to buy a median-priced home will remain low.
Read the full report below:
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