The Silicon Valley real estate market continues to settle down as it does this time almost every year. Fall brings a continued decrease in homes available for sale (inventory) as well as less buyer activity. This becomes more pronounced as we get into the Holiday Season. Buyers are being distracted from a Silicon Valley real estate search for a home and are more worried about arranging travel plans and hosting or attending parties.
While this is evident, there is a window of opportunity for buyers between now and perhaps ending in mid-January. Since there is less competition from other potential buyers, there stands a better chance to negotiate an offer without the prices going crazy. In my view of the market conditions, this is the best period for buyers in quite a while. Come Spring (early spring), we’ll see much higher levels of activity from buyers and yes, more listings.
Prices, as measured by the median price, have been “choppy” and will remain in that mode until buyer activity picks up in the Spring. Santa Clara County median price for a single family residence stood at $780,000 in October, flat from September. However, San Mateo County turned in an increase to $942,000 from $915,000 last month as a higher percentage of higher-priced homes sold moving the measure up due to the higher proportion sold. Compared to the prior year levels, the Silicon Valley real estate trends continues to be positive.
Percentage of homes sold above list price continues to drop but is still at a very healthy 55% in Santa Clara County. Highest is the Cupertino and Sunnyvale market area with 75% and lowest is in South County (Morgan Hill to Gilroy) with 38%. For San Mateo County, the overall percentage is 68% with the highest level in Redwood City and the Bay Cities of Belmont, Burlingame, Milbrae, San Carlos and San Mateo with 77%. The lowest percentage of homes that sold above list price is 37% on the San Mateo Coast.
With an average days of unsold inventory (DUI) at 40, the hottest market area in Santa Clara County is the Los Altos and Palo Alto area with 22. Coolest is in the Los Gatos and Saratoga area at 94. For San Mateo County with an average DUI of 44, the hottest is the Bay Cities area comprising Belmont, Burlingame, Milbrae, San Carlos and San Mateo with 20 and the coolest is on the San Mateo Coast with 122.
For questions, comments or a market update in your neighborhood, feel free to leave them in the contact form and I’ll personally respond. Thanks for reading!