Friday, June 29, 2018

Silicon Valley Single Family Housing Market vs. the Condo Market – Who Wins?

- Intended for Students/New Analysts to Learn Analytics -

(Click on the image to enlarge)
The Silicon Valley (Santa Clara County) Single Family Housing market continues to trend up, breaking out of the extended congestion zone of $1.1M to $1.2M. In terms of growth, even on a smooth basis, market moved up from $1.0M to $1.2M, an astounding 20% growth in a year. Importantly, all three recent breakouts produced higher highs. Both trendlines are amply confirming the breach of congestion. 

The Silicon Valley Condo market trends up on a linear path. The trend is definitely linear, but not a perfect one as evident by the low r-squared. The 2-Mo Moving Average is also confirming the linear trend. While the big drop in Dec-17 (#12) is being ignored by both trendlines, they are however pointing to a breakout eclipsing the prior high of $850K. Even on a smooth basis, the market moved up from $700K to $850K, a whopping 21% growth in a year.

Both markets are demonstrating very similar growth patterns and results, proving that the contest is a close tie. Alternatively, they both are standout winners considering the overall strength of the respective market.

- Sid Som, MBA, MIM
President, Homequant, Inc.

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