What happened to the housing market from january to may 2021

​TLDR

• The South Bay Peninsula SFH saw an increase of more than 15% from May last year to May this year, and this year it has shown a monthly increase.
• The South Bay Peninsula SFH has both surpassed 18-year highs.
• CONDO/TH has seen an obvious recovery this year, and it can also be seen that the \”monthly rise\” state, but the increase is not as good as SFH. On the other hand, they are close but not yet back to their 18-year highs.
• In fact, remote bay areas such as santa cruz showed a 50% increase. It has been proved that the main force of this rise is the beautiful view room of BROAD.
• In the next issue, we will continue to talk about the trend of housing prices.

Many friends may have heard that this year\’s housing market is particularly ruthless. Before the data for the beginning of the year came out, we showed a few extremely hot houses, saying that it might be difficult to bid this year. This time let\’s look at the data.

South Bay SFH median price

The median sale price in the South Bay in May 2020 was 1.37m, which has reached 1.61m in May this year (a 17% increase). We can see that there was an obvious jump of about 10% for houses that closed in February this year. rise. Because most houses take 30 days to close, there is about a 30-day lag in housing market data. The houses that were sold in February represent the houses that entered into the contract at the beginning of the year. After the jump, the increase in house prices has become smaller, but it has shown an upward trend.

In a very hot market, monthly rises are common. In the same community, everyone uses the latest transaction price as a reference, but because of the very eager \”grab\” mentality, many people add some money to the last transaction price to ensure that they can win. More commonly, because there are more buyers, the seller can use the situation of secondary auction to push buyers to a higher price.

The fiery and madness of the market this time is easily reminiscent of the situation in 18 years. In 2018, more than 30 offers could be seen everywhere, but in 2019 the housing market was deserted a lot. For most of Santa Clara, current prices have surpassed 18-year highs:

Peninsula SFH housing market

The median selling price on the peninsula in May 2020 was 1.6m, and in May this year it reached 1.95m (an increase of 18%). Similar to the South Bay, it jumped in January, and continued to rise thereafter, month by month.

The median price on the peninsula has also been well over 18 years old.

Condo/TH Market

Here, we put together the condo/TH market of the South Bay Peninsula. The reason is that the condo/TH inventory of the South Bay is about three times that of the Peninsula, and the number of new communities developed in the South Bay is far more than that of the Peninsula, so we simply put it on the peninsula. Let\’s talk together.

Recovery for 2021

We all know that because of covid, many potential buyers do not want to share a wall with their neighbors, and more people realize how important it is to be independent and tall. So condo was hit by a huge epidemic. But in 2021, with the dawn of hope for the end of the epidemic, many people gradually feel that condo may not be so unacceptable. Before entering 2021, the condo market, which had looked hopeless before, slowly began to pick up.

In May 2020, the median price of condo/th was 840k, and there was a relatively large drop in June, and now it has recovered to 920k. Although 2021 is also a month-to-month increase, the increase is still not as obvious as sfh. In addition, the average price of condo is relatively low, and the increase in price will not be as ruthless as that of sfh, and it is more difficult to provide the kind of \”star room\” with a price increase of more than 1m, so it has been relatively low-key.

Compared with 2018, although condo/TH has rebounded significantly this year, it has not returned to the high point of 2018 (950k), although it is very close.

other remote areas

In fact, compared to other remote areas, the increase in the Bay Area is nothing at all. For example, santa cruz, you can look at the past three years, this area is running wild. Not only did it not fall much in 2019, but during the epidemic, it rose from 850k in May 2020 to 1.3 million in 2021 (50% year-over-year increase). Compared with the ups and downs of the bay area, this kind of remote area can be regarded as singing all the way forward.

It is said that most people who buy houses in santa cruz are second homes. Such an astonishing increase once again reflects the gap between the rich and the poor in American society.

We will chat about some views on the future trend in the next topic, don\’t miss it.