Cupertino Home Sales Slow Down in July!
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 By John Dozier.July real estate sales activity for the greater Cupertino area continued at a moderate pace slightly down from the previous months. There were 55 closed sales in July compared with 65 for May and 49 in June. There are currently 61 pending sales, slightly more than in the previous month possibly reflecting the longer period necessary to process loans. Pending sales are homes that are under contract, or in escrow waiting to clear inspection and financing contingencies prior to close. There were 107 homes for sale at the end of July compared with 117 at the end of the June. It is significant to note that the summer market is usually a little slower than the spring and fall markets.
There are still a significant number of homes that continue to sell above their asking prices. The majority of these homes tend to be priced between $900,000 to $1,500,000. There were 16 sales that closed above asking price in June compared with 25 in May. Most, however, were not significantly over. There were only 3 home sales in the price range above $1,500,000 in the month of July. In some cases the pricing strategy has affected the outcome, whereby, the homes are deliberately priced below the selling price the seller expects to achieve. I observed one listing that languished on the market for about 60 days that was originally listed at $1,399,000. It went through a couple of price reductions, eventually dropping to $1,150,000. The home finally attracted the attention of a few home buyers who bid against one another and it sold for $1,298,000. I sometimes pause at why more home buyers don’t just make an offer on homes that have been tested on the market for a few weeks. By then, the sellers are getting anxious and buyers might be pleasantly surprised. For the most part, prices are holding steady. Buyers, for the most part are showing a disciplined approach and are doing their homework before coming to the table with an offer! I have noticed with a few buyers, that if they detect there may be competing offers on a certain property, they become hesitant and may elect not to offer at all. The supply of homes remains low by historical standards. We are experiencing a stabilized supply of homes as we experience the summer selling season. There is still an over supply of Buyers out there compared with the relatively small number of homes for sale. The bulk of the buyers tend to be seeking homes that are affordable by our standards, priced below $1.5 Million. The market trends at the moment would indicate a continued upward pressure on prices. Homes priced upwards of $2 Million are tougher to sell. Knowledgeable astute sellers who choose to act now can take advantage of prime market conditions unique to this area. Final thought: Buyers who have been disappointed in recent months while shopping the market and have been scorned by the multiple offer experience, should consider getting back in the market. We usually see an increase of supply as the Summer selling season catches steam. Employers are still hiring, interest rates are moderating and this is still the number one place to live! Above comments are pertinent to Cupertino and surrounding communities, Sunnyvale, Saratoga, Los Altos, and Los Gatos. The further you travel South in Santa Clara County, or head to the Central Valley, the more the picture looks like what you may be reading in the news about the troubled real estate market and rising foreclosure rate. |
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