How is the Silicon Valley real estate market? It’s more of the same this month, with worsening, too-low levels of available inventory of homes for sale in Silicon Valley. At this point, the low inventory is a problem for everyone. Home buyers in the county or on the Peninsula have little or nothing to purchase, and sellers feel trapped – they cannot sell their current home as there are bad odds that they would be able to purchase something else if they did sell. Unless they expect to leave the metro area, they are going to hold on tight in most cases.
Have a look at the inventory of houses on the market from 2003 (the earliest year I can pull from the MLS) to today in Santa Clara County – August is in bold to make it easy to find
The Silicon Valley real estate market – a look at inventory of available homes for sale:
The numbers really say it all. Even if you are new to the San Francisco Bay Area, you cannot help but notice the relative scarcity of homes for sale this month as opposed to last month or any other dating back to 2003. Therefore, it’s no surprise that solid homes here that are not in the luxury tier for their area (and are aggressively priced, beautifully staged, professionally photographed, and easy to view) are getting loads of multiple offers, high overbids, and selling with no contingencies for inspection, loan, or appraisal. It’s nearly impossible for anyone trying to purchase with less than 20% down in multiple offer situations. My advice for them is to try to target properties that have been on the market for awhile, as often the only thing “wrong” with them is a too-high price.
A couple of weeks ago, I had a sale in the Cambrian district of San Jose with San Jose Unified schools. That property received 12 offers, 8 of them with no contingencies of any kind, and more than half with more than 20% down (highest two were at 50% and 55% down). Sobering, isn’t it? Great if you are a seller, impossible feeling if you are a buyer.
How about the various parts of the county? The Silicon Valley real estate market varies from one area, price point, and school district to the next. The hottest of the hot markets are in the heart of the tech centers in prices under $2 million.
Mountain View continues to have the highest sale price to list price average, with a staggering 113%, and Sunnyvale is just behind at 111%. Only Los Altos Hills is coming in at under 100% for the sale price to list price ratio (it is a very high end community with 1 acre minimum parcels and often featuring extremely large houses). Saratoga and Los Gatos, also pricier, are on the softer end of the spectrum at less than 103%. That said, homes in the lowest price points in all those areas are still a hot item! Here’s a look at a glance at the Silicon Valley real estate market by area – more details are on the printable PDF newsletter:
Home buyers looking to purchase over $3 million (at least in most areas) will find it a good market for them to purchase. Selling under $2 million – again, in most areas – is fantastic for most properties. Who’s got it made? The move up luxury home buyer!
To get more details on the real estate market in Santa Clara County , San Mateo County, or Santa Cruz County, please visit http://popehandy.