Silicon Valley Pricing Snapshot

Today we’ll provide a few quick graphics to give you a Silicon Valley pricing snapshot on the counties where we sell homes. These will be ranked by the usual order of housing cost, from highest to lowest. (Sometimes they move “out of order”.)  After that, we’ll provide more resources from our other sites and blogs with a deeper dive on our main Silicon Valley real estate markets. We don’t cover all 9 of the San Francisco Bay Area counties, but here you’ll find 3 of them covered, and it’s a pretty good primer on the Bay Area housing market analysis.

Silicon Valley Pricing Snapshots

San Mateo County

San Mateo County is “The Peninsula”, the county just south of San Francisco and north of Santa Clara County and Santa Cruz County. About a quarter of Silicon Valley is in this area, generally. It’s normally more expensive than Santa Clara County, but once in awhile those two areas flip for pricing order. It’s a hot market in San Mateo County!

 

San Mateo County_MAR2024

 

For three of these counties, we have a newsletter with info by city. The data from Sereno (above) is a little different from the RE Report data for the median sale price. Here’s the San Mateo County real estate newsletter in PDF format (or go to popehandy.rereport.com to see all 3).

 

San Mateo County Market stats by city or town - March 2024

 

Santa Clara County

Santa Clara County, our home base, is the second priciest area in this region and is the heart of Silicon Valley:

 

Santa Clara County_MAR2024

 

Read the PDF for the Santa Clara County newsletter here. And the city by city market stats (much closer aligned for this county between the two data sets):

 

Santa Clara County market stats by city and town 1 - single family homes

 

 

We also do monthly market updates on communities within the Santa Clara County and more on our other blogs. Check out some of those market reports through the link.

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Overbids in homes that sell fast

House at twilight with the words Overbids in homes that sell fastWe are in the middle of the spring market, and overbids in homes that sell fast are often sky high.  Today I just want to mention it since it’s worse than usual, even for Spring. That said, it’s not as bad as in the first half of 2022.

We periodically publish a pricing snapshot, but keep in mind that those are by calendar month, and often the best info is whatever went into escrow yesterday (recently pending sales). That data isn’t published, so it’s a case of learning what can be learned the old fashioned way: networking.

What is going on with overbids in homes that sell fast?

What’s causing these extreme market conditions?

  • Inventory is extremely low.
  • Most of what is for sale is from “have to sell” situations. Many of those properties are not super updated.
  • The recently remodeled, nicely updated segment of the market is probably 20% of what’s available. Buyers are mostly fighting for them.
  • It’s like there are two different markets: the white hot market for recently remodeled homes (that are usually listed low) and the market for homes that are not as updated and not priced too aggressively.

The overbids in homes that sell fast in Silicon Valley have to do with both the home’s condition and the home’s pricing position – think low. The lower the listing price, often the larger the number of competing home buyers and the larger the number of eventual bids. In some cases the offered list price is so low as to be a price mirage. If it looks too good to be true, well, you know.

How bad is it? For single family homes in Santa Clara County that sold / closed in the last week, the average sale to list price ratio was 111%, and the median was 109%.  That figure ranged from a low of 83% to a high of 151%. Often the properties with a very large number of bidders will get the super high offers.

It is deepening. I ran the same data for closed sales 8 – 18 days back and the average sale to list price ratio was 108% and the median was 106%. Month over month it’s been rising.
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San Jose Districts and their Values

San Jose Districts Price Rankings Graphic January 2024 Landscape SMALL

Click to view full size.

What does it cost to buy a single family home in the city of San Jose? There are many San Jose districts and their values vary by about 2-to-1 from the highest to lowest priced areas in this large, sprawling city with about 1,000,000 residents.

In this article we’ll take a look at the main, fairly well defined districts and discuss the cost of purchasing a house in each one. After each small description, there’s a link to a post on my popehandy.com website for that area.

You can also find relevant information on my Valley of Heart’s Delight blog, SanJoseRealEstateLosGatosHomes.com – just click on the “Neighborhoods” link.

Lastly, if you’d like to see a map of where these parts of SJ are located, please click on this link to find this article with a helpful map: San Jose is big and sprawling: where are the districts?

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Finding New Homes for Sale in Silicon Valley

New Homes in Silicon ValleyFrequently, people new to Silicon Valley and the San Jose area arrive expecting to find new homes like the ones they left behind. But in reality that’s just not the norm in this market!

Unless you are looking to purchase a condominium or a townhome, or are looking at areas with very long commutes, it can be challenging to find truly new homes for sale here.

Finding New Homes in Silicon Valley

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, most open space in the Valley was gone.

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Silicon Valley house for under $1 million

The Silicon Valley real estate market is notoriously expensive. It isn’t easy, but you can find a Silicon Valley house for under $1 million – if you are willing to drive a little further to those tech centers.

Today I did a quick search and found that it’s not too hard to find a 3 bedroom, 2 bath house with at least 1200 square feet in the south county and very scenic communities of Gilroy, San Martin, and Morgan Hill. Other possibilities are in the Santa Cruz or Los Gatos Mountains, south San Jose, Evergreen, and parts of east San Jose – among others. Here’s a map showing houses recently sold with the above listed minimum criteria within the last 90 days.

Most likely areas for finding a Silicon Valley house for under $1 million

 

Silicon Valley house for under $1 million - 3 bed 2 bath 1200 SqFt or greater sold for under $1M in 0-90 days

 

The map above shows sales within the greater area many would consider Silicon Valley, but if you’re looking strictly in South Bay, check the map below which shows hits from a similar search in December 2020.

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