Silicon Valley real estate Market
Frequently, people new to Silicon Valley and the San Jose area arrive from places where their last home was new construction, and they hope to find a brand new home here, too.
Unless you are looking to purchase a condominium or a townhome, though, it can be really challenging to find truly new homes for sale here. (There are tons of fabulous new condos in downtown San Jose, which is enjoying a great redevelopment period.)
For the most part, Silicon Valley had a post World War II housing boom that stretched primarily from the 50s into the 70s. By the 1980s, even, most of the open space was gone. Today we do have a few new patches of new homes “here and there”, but there aren’t many. Unfortunately, too, since most of the best land was built up long ago, some of the newest developments are in less desireable areas such as next to freeways.
For the Silicon Valley new home buyer, I want to suggest a couple of strategies: first, in addition to checking out whatever new homes are currently being built, consider homes that are younger than 20 years of age. Many of them are still in great shape. Some have already been remodeled! Another option is to look for the “fully remodeled” home. With the latter, you must be extra dilligent to make sure that the house has not just been gussied up to be be flipped, but is truly remodeled in areas you cannot see, such as the wiring and the pipes.
Please also read:
Myths and Misconceptions about Buying a New (or Newer) Home
Some younger neighborhoods:
Introducing a Beautiful Willow Glen Neighborhood, “The Willows”
The Almaden Winery Neighborhood of San Jose
If you’ve recently relocated to the San Jose area, you may still be getting your “sea legs” here. Perhaps you’re still learning your way around, or maybe trying to get a feel for our market. And very likely you are wondering, “should I buy a home now…or should I wait?”
There are no easy answers. Sweeping generalizations are often wrong in particular cases. I’ll explain.
Right now, if you want to buy a home in Saratoga, with Saratoga Schools and you require that the home be perfect (doesn’t need remodeling, doesn’t back to a busy road or have something else objectionable), and the price point is between one and two million dollars, you’ll have some competition. You’ll be in multiple offers if the home is priced appropriately.
On the other hand, if you want to buy an entry level condo in east San Jose or Morgan Hill, Gilroy or Santa Teresa, it truly is a buyer’s market. Home sellers aren’t giving away their pride & joy, but the market is definitely in your favor and you may well get a great deal.
Each situation is unique: you might need or highly value a short commute distance, or the very, very best schools, or a turnkey home. Or not. Depending on your circumstance, your budget, and your timeframe (if you buy, can you stay put for 3-5 years minimum?), this could be a great time for you to buy.
Some things to consider now – potential plusses:
Most often, November and December are wonderful months in which to purchase a home in Silicon Valley because sellers who market their home now are usually highly motivated. Inventory is lower, but prices are usually softer. When clients ask me, “when is the best time of the year to buy?” I usually tell them “November and December – but no promises for any given year”. Second best month is frequently August.
A big plus for this time of year involves your financing too. Since loans are really something you “purchase”, and the price is influenced by the ancient laws of supply and demand, getting a loan while everyone else is doing holiday things can be a boon to you. Loan rates frequently go up around Valentine’s Day. (I cannot predict that loan rates will go up or down, but historically the most favorable rates are often found at this time of year.)
Are there drawbacks to buying now? Sure. Inventory is restricted. In some price points and areas, that means that there may be multiple offers – even in this “normal market”. Homes may not show as well in winter as they might in spring, so you may have to use a little imagination if the backyard is not as cheerful as you might like to envision.
Overall, I would say for most buyers, this IS a good time to buy a home in Santa Clara County. But call me or email me and we can chat about your particular situation, which may change everything for you!
If you’d like specific information on the housing markets around the San Jose area, please visit my online Real Estate Report, which breaks down the stats and trends. It’s a tremendous amount of very useful data.
Wishing you and yours a joyful Thanksgiving.