Santa Clara County Real Estate Market Rebounds from COVID-19 Plunge
 
July 2020 Report
Despite the ongoing health and economic crisis precipitated by COVID-19, the real estate market made a dramatic recovery from the steep declines in March and April. The median house sales price in Q2 was only a tad below its 2018 peak, and high-end homes, in particular, have seen extremely strong demand – this applies to virtually every market in the Bay Area. More affluent buyers – the demographic least affected by COVID-19, unemployment, and also having the greatest financial resources – have been jumping back into the market to a greater degree than other segments. 
 
The first chart below illustrates the big rebound in buyer demand, as the number of listings accepting offers in June 2020 rose higher on a year-over-year basis. 
Demand for luxury homes has soared in the last 2 months. 
Inventory started out low in the beginning of 2020,
and remains well below the levels of last year. 
Three angles on house value trends: median sales price and average dollar per square foot by quarter, and then a longer-term perspective. 
The condo market has been softer than the house market, as measured by both sales activity and median sales price. This is a common dynamic around the Bay Area. 
Average days on market were quite low in Q2. 
The overbidding of asking prices has declined very dramatically from 2018, when Santa Clara County was probably the hottest market in the country. 
Median home prices by city or San Jose neighborhood, by bedroom count. 
The Bay Area markets with the largest year-over-year increases in the number of listings accepting offers in June 2020 were the 4 outer Bay Area counties of Monterey (up 61%), Santa Cruz (58%), Sonoma (47%) and Napa (37%). They also have among the lowest population densities in the Bay Area. The most urban counties saw modest y-o-y increases: San Francisco (6%) and Alameda (7%). Santa Clara County at 19% was between the two poles. 
Interest rates, once again, hit a new historic low. 

Source: Compass

It is impossible to know how median and average value statistics apply to any particular home without a specific comparative market analysis. These analyses were made in good faith with data from sources deemed reliable, but may contain errors and are subject to revision. It is not our intent to convince you of a particular position, but to attempt to provide straightforward data and analysis, so you can make your own informed decisions. Median and average statistics are enormous generalities: There are hundreds of different markets in San Francisco and the Bay Area, each with its own unique dynamics. Median prices and average dollar per square foot values can be and often are affected by other factors besides changes in fair market value. Longer term trends are much more meaningful than short-term.

Compass is a real estate broker licensed by the State of California, DRE 01527235. Equal Housing Opportunity. This report has been prepared solely for information purposes. The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information. Compass disclaims any and all liability relating to this report, including without limitation any express or implied representations or warranties for statements contained in, and omissions from, the report. Nothing contained herein is intended to be or should be read as any regulatory, legal, tax, accounting or other advice and Compass does not provide such advice. All opinions are subject to change without notice. Compass makes no representation regarding the accuracy of any statements regarding any references to the laws, statutes or regulations of any state are those of the author(s). Past performance is no guarantee of future results.