Month-over-Month Changes

In May 2024, the Milpitas real estate market displayed several key changes compared to April 2024:

  • Homes Sold: The number of homes sold dropped significantly from 31 in April to 19 in May, reflecting a substantial 39% decrease.
  • Median Sale Price: There was a modest increase of 3% in the median sale price, rising from $1,605,000 in April to $1,650,000 in May.
  • Days on Market (DOM): The average days on market improved slightly, decreasing from 8 days in April to 7 days in May.
  • Percentage of List Price Received: Sellers continued to receive 109% of their asking price, consistent with the previous month.
  • Months of Inventory: The inventory saw a slight increase from 0.6 months to 0.7 months.
  • Average Dollar per Sq. Ft.: The price per square foot rose by 11%, reflecting a strengthening in property values.

Analysis

The month-over-month data indicates a cooling in the volume of transactions but a strengthening in prices and efficiency of sales. The significant drop in the number of homes sold suggests a potential tightening in market demand or supply constraints. Despite this, the rise in median sale price and the consistent percentage of list price received indicates that the market remains competitive, with buyers willing to pay premium prices for available properties.

Year-over-Year Comparison

Comparing May 2024 to May 2023 reveals several notable changes in the Milpitas real estate market:

  • Homes Sold: The number of homes sold decreased by 24%, from 25 homes in May 2023 to 19 homes in May 2024.
  • Median Sale Price: There was a notable increase in the median sale price from $1,490,000 in May 2023 to $1,650,000 in May 2024, a 36% increase.
  • Days on Market (DOM): The days on market remained constant at 7 days year-over-year.
  • Percentage of List Price Received: The percentage of list price received remained stable at 109%.
  • Months of Inventory: Inventory increased from 0.6 months to 0.7 months year-over-year.
  • Average Dollar per Sq. Ft.: The average dollar per square foot saw an increase from $947 to $1,070, marking a 13% rise.

Analysis

Year-over-year, the Milpitas market shows a contraction in sales volume but an increase in property values. The reduction in homes sold, coupled with the significant rise in median sale prices and per square foot values, suggests a robust seller’s market. The stable DOM and percentage of list price received indicate that properties are selling quickly and often above asking price, reflecting high demand and low inventory. The slight increase in inventory levels may provide some relief to buyers but still indicates a tight market.

Price Points and Quadrants

The sales details for May 2024 were broken down by quadrants, showcasing the activity across different price points:

  • Top Quadrant: 5 homes sold, Median Sale Price: $2,150,000, Median DOM: 7, Avg. $/Sq.Ft.: $944.
  • Second Quadrant: 5 homes sold, Median Sale Price: $1,700,000, Median DOM: 6, Avg. $/Sq.Ft.: $1,127.
  • Third Quadrant: 5 homes sold, Median Sale Price: $1,500,000, Median DOM: 8, Avg. $/Sq.Ft.: $994.
  • Bottom Quadrant: 4 homes sold, Median Sale Price: $1,360,000, Median DOM: 27, Avg. $/Sq.Ft.: $1,156.

Analysis

The data indicates active sales across all quadrants, with the top and second quadrants showing the highest median sale prices and relatively shorter DOM. This suggests that higher-priced homes are moving more quickly, reflecting strong demand in the higher-end market segments. The longer DOM in the bottom quadrant could indicate more competition or slower movement for lower-priced homes, possibly due to tighter buyer budgets or increased scrutiny in this price range. The consistent activity across all quadrants shows a balanced interest in various price points, though higher-priced properties seem to be particularly competitive.

Conclusion

The Milpitas real estate market in May 2024 experienced a decrease in homes sold compared to the previous month, but a year-over-year comparison shows an increase in property values and price per square foot. Despite a reduction in sales volume, the market remains competitive with quick sales and prices consistently exceeding asking prices. The breakdown by quadrants highlights a healthy interest across various price points, with higher-priced homes moving faster. This analysis provides valuable insights for both buyers and sellers, indicating a strong and competitive market.

Data provided by MLS Listings and is deemed reliable but not guaranteed.