As the year comes to a close, the Silicon Valley real estate market continues to slow. Fall turns to winter on December 21st but already there has been the normal decrease in the amount of homes available for sale (inventory). While potential buyers in the mode of a Silicon Valley real estate search are out Christmas shopping or readying travel plans, buyers looking for a home have less competition. Still 54% of closings in Santa Clara County had a sale price greater than list price — 61% in San Mateo County. But these percentages have fallen from the levels experienced earlier in the year which makes it a much better time for buyers. Historically, the Silicon Valley real estate market shifts more toward a seller’s market after Super Bowl Sunday.
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 $785,000 in November, a slight increase from October. However, San Mateo County turned in a decrease to $917,000 from $942,000 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. For instance, Santa Clara County’s median price stood 14.6% higher than in November 2012.
As mentioned above, the percentage of homes sold where sale price was greater than list price continues to drop but is still at a very healthy 54% in Santa Clara County. Highest is the Cupertino and Sunnyvale market area with 85% and lowest is in South County (Morgan Hill to Gilroy) with 38%. For San Mateo County, the overall percentage is 61% with the highest level in Redwood City and the Bay Cities of Belmont, Burlingame, Milbrae, San Carlos and San Mateo with 66%. The lowest percentage of homes that sold above list price is 36% on the San Mateo Coast.
With an average days of unsold inventory (DUI) at 37, the hottest market area in Santa Clara County is the Los Altos and Palo Alto area with just 11. Coolest is in the Los Gatos and Saratoga area at 77. For San Mateo County with an average DUI of 39, the hottest is the Bay Cities area comprising Belmont, Burlingame, Milbrae, San Carlos and San Mateo with 10 and the coolest is on the San Mateo Coast with 126.
For questions, comments on the Silicon Valley real estate market or update in your neighborhood or your target area you are considering, please contact me and I’ll personally respond. Thanks for reading!