In Real Estate, we see many highs and lows, every week brings a different perspective on which way the market is heading and what we can expect moving forward. We at The Rose Group take great pride in analyzing the market data and statistics in order to provide our clients with the most up to date information on the current market, as well as insight into where the market may be going when looking at business cycles of years past. And, below is a synopsis of what our data is telling us currently.
Historically, we have seen inventory levels in the 4,000 range with the Winter and Fall months being in the 3,000 range and Spring and Summer months in the 5000 range. We have seen lower than average home inventory levels since 2013 and historically, low home inventory levels since October of 2017. With an average of only 1,070 active homes on the market in September of 2017, this made the market increase at record rates, with the Santa Clara County average sale price going from just over $1,000,000 to $1,300,000 in May. The inventory reached an all-time low of 379 active homes on the market in December 2017.
Since December of 2017, the inventory went from 379 up to 1,023 in April 2018. Since the end of April 2018, we have seen a 30% increase in inventory from 1,023 to 1,294 active homes in the 3rd week of May 2018. We have also seen homes receiving fewer offers, staying on the market longer, more price reductions than in recent months and buyers being pickier on the house they write offers on. Along with the volatile stock market, rising mortgage rates and historically high prices, buyers are getting fatigued with the home buying process. Prices seemed to have peaked, and the next two seasons of the economy will be a downturn, followed by a bottom. The question is when and how long will it take to get there?