Below please find real estate market reports for three Silicon Valley counties where I’m most active: Santa Clara County, San Mateo County, and Santa Cruz County. First we’ll provide the data for single family homes, then condos and townhomes, for each region. (“Silicon Valley” is 95% within Santa Clara and San Mateo Counties, plus a little of Santa Cruz County and a small part of Alameda County. Alameda County uses a different MLS system, and I don’t usually sell there, so am not covering it in my reports.)
Early Summer 2021: Three Silicon Valley Counties
Santa Clara County Real Estate Market Report for June 2021
First, Santa Clara County – home to San Jose, Cupertino, Sunnyvale, Mountain View, Palo Alto, Los Altos, Santa Clara, Campbell, Los Gatos, Saratoga, Monte Sereno, Milpitas, Morgan Hill, and a number of other cities and towns. This area has generally come up in price about 10% since last year, though in March the median sale price is over 14% higher, and in June that jumped to 27% higher in 2021 than in 2020! Homes sold more than a month faster this June compared to last year. Of course, it hasn’t been even growth.
While the 2019-2020 winter was particularly hot, it experienced a massive swing at the start of the California pandemic falling to it’s lowest point in Santa Clara County around May and June. This put pressure on the market by stifling spring activity and, over the course of the year, created a backlog of demand with severely low available inventory. Pent up activity is driving up prices and the sales to list price ratio, among other things. Santa Clara County is keeping up the momentum from a raging hot spring market into early summer.
And the condominium and townhouse report for Santa Clara County:
This June shows about a 14%-15% rise in median sales price for condos and townhomes since last year, a clear rise in sales to list price ratio, and increased, but still low, active inventory compared to last month.
Sometimes people relocating to Silicon Valley tell me that they’d like to move to a waterfront home with a view of the Pacific Ocean. Most of Silicon Valley is inland, though, separated from the ocean by the coastal mountains.
For those truly set on having a view of the Pacific, home can be found in the Santa Cruz area with lovely ocean and Monterey Bay views. The compromise will likely be a long, winding commute over Highway 17’s mountain pass. Or similarly, ocean lovers may settle close to Half Moon Bay or Pescadero, but will have to slog over the coastal hills on Hwy 35 each day to get to the Peninsula. (Some lucky souls may find employment in Scotts Valley or along the coast, but most of the jobs are not in these places.) If a faraway ocean view will work, making the Santa Cruz Mountains home may be the ideal fit.
If you want to live along the waterfront within Silicon Valley, there really are not a lot of neighborhoods from which to choose. Most of the water views involve the San Francisco Bay. There are a few rivers, creeks, ponds and lakes to be found as well, but enjoying lovely water views up close is not the easiest criteria to fill. Along the bay, though, it often comes down to Foster City and Redwood Shores, which we’ll discuss next. (more…)
It can be challenging for people moving to Silicon Valley to get a sense of pricing for home buying. So to compare “apples to apples,” let’s take a hypothetical case of a 4 bedroom, 2 bath home of approximately 2,000 SF house (appx 185 square meters) and see how the cost looks in one area versus another.
Today I compared several cities and areas using the formula: single family homes of 1,800 – 2,200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 5,000 SF – 10,000 SF that have sold within the last 60 days. The prices listed are the average from sales in this criteria, so areas with a higher volume of sales will have more stable averages than those with less sales to analyze. DOM means “Days on Market”, the number of days a home was listed as available before pending.
Please note that this is a rough sketch of home prices based on averages taken across large, diverse residential communities. There are many factors that will affect market value beyond these boundaries.
Now, on to the charts.
The Cost To Buy A 4 Bedroom 2 Bath Home In…
I have arranged this chart in descending order by Sales Price. This is usually how I organize the data, and you can see certain markets shifting position, moving up or down the order depending on what’s hot. Occasionally one of these markets will have no sales within the timeframe, so those will be left in place from where they were when we last checked, but will show “n/a” in place of any pricing or statistics. Once you’ve reviewed the most recent data, scroll down farther to compare today’s market against past years!
Please use the list below as a way to get your bearings on nearby areas in the South Bay (southern part of the San Francisco Bay Area). This is not an exhaustive list – it’s just most of the areas closest to Highway 85 or the West Valley Freeway. You can study various cities, downs, and districts within the region at my stats site, popehandy.rereport.com. (Free and you do not have to register unless you want email updates.)
Want to do a deep dive on any of these areas? Please visit my Valley of Heart’s Delight Blog to learn about them.
There have been a number of changes to the order since the last time we checked in December 2020. Campbell, Sunnyvale, and Mountain View have all moved down the list. Their prices are higher than last time we checked, they just haven’t gone up this spring as much as some of the other markets. Saratoga has climbed much higher on the chart, but with so few sales it’s normal to see broad fluctuations in the charts for this community.
What we see across the entire chart is sky high spring pricing and extremely low days on market – under 2 weeks in all but two areas! Looking more closely, the Cambrian (San Jose) market had one highly unusual sale where the MLS listing shows a whopping 496 days on market. Discounting that sale, the average becomes a lighting fast 10 DOM! So while there are still the occasional slow sales the majority are selling at breakneck speeds! As for pricing, communities are showing increases from roughly 3% all the way up to 31%! Averaging it out, the West Valley average home is selling 16%-18% above where they were early last winter.
In most cases, the most expensive and desirable places have either the best schools or shortest commute location or both. Had I ranked these for school scores, you’d find that Cambrian would be fairly high up as it is a good “bang for the buck” location – though not a super short commute for folks who work in Mountain View (though not so bad for people working in Cupertino). None of these is especially close to North San Jose (Cisco).
Also, it should be noted that one of the main drivers of home values is school districts. In the San Jose / Silicon Valley area, the school district boundaries do NOT follow the city or town boundaries. Los Gatos, for example, has 3 different elementary school districts, with varying scores which impact home values. So too with Saratoga and many other areas, San Jose especially! All this to say that the figures above are only ROUGH GUIDES. When you break it down to micro-markets, the picture changes more. But as a starter guide, I think you’ll find the above info helpful to give you a general idea of how far your money can go in home buying for areas in Santa Clara County from Palo Alto to Blossom Valley.
Palo Alto is a gorgeous, exciting area with all kinds of wonderful features – beautiful neighborhoods, lower crime, great schools, short commute. It is usually the most expensive area on this list. But unless you found a successful startup company or inherit a couple of million bucks, it can be hard to buy a single family home there. Many people would like to live in the shadow of Stanford University, but the budget just won’t allow it.
Now let’s have a look at that December 2020 chart I’ve been referencing. Los Altos had no sales during this time, although overall it was an active market in the West Valley.
Historical Comparisons of Home Prices in the Same (or Similar) Areas
We’ll start off with something fairly recent, a report from October 29th, 2019.
October 29th, 2019:
Data Gathered February 23, 2021
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 San Jose 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?
Today on the Valley of Heart’s Delight Blog, I looked at the real estate markets for Los Gatos, Saratoga, Cupertino, and Los Altos.
All four of these areas are known for good public schools, proximity to the coastal range, and a nice way of life. All but Cupertino have a quaint downtown area, and those three communities each have about 31,000 residents, while Cupertino is more than double that. For folks relocating to the San Jose area for work, most likely, all four will be considered if schools are a priority.
To see how these 4 highly regarded communities compare in terms of market conditions and what you can buy for your money, please visit:
Market comparison: Los Gatos, Saratoga, Cupertino and Los Altos on the Valley of Heart’s Delight Blog.
Silicon Valley neighborhoods
Los Gatos neighborhood videos
How to find the median rental price by zip code
People coming from out of the area to relocate to Silicon Valley might not know what to expect from the weather in the San Jose, Santa Clara County, or Silicon Valley Area. Does this part of California ever rain? How hot is the summer? What is the climate like?
In a nutshell, this is a “sub-tropical” area, or a place that enjoys a mild “Mediterranean climate” that is most heavily influenced by the close proximity of the shoreline and the Pacific Ocean. Temps are mild, we get little rainfall compared to many parts of the country.
More specifically, we usually get about 10-20 inches of rainfall a year (less on the east and more on the west) and enjoy as many as 300 sunny days a year. Winters seldom see many hard freezes (but they can happen).
A typical summer day has highs in the mid to upper eighties but very low humidity – so it feels much cooler. Heat waves and heat inversions can run the temps up to the low to mid 100s in the hottest parts of the valley. Luckily it doesn’t happen much, or stay for long! Once in awhile, a rare storm in summer will bring high humidity and thundershowers, but for the most part, summers are dry. The hottest month is typically August.
The coldest month, usually, is December. A January day will often have a high in the 60s or 50s, depending. A cold day here is when it does not get into the 50s (not too common). By February, though, the worst is usually over and it’s even possible to have freak warm days that hit 80 degrees!
Our weather varies from year to year. Some years we get drought conditions and may require water rationing . Other years we get lots of wet weather from the Pacific – temps are warmer but there’s much too much rain: those are the El Niño years. Most often, though, winters aren’t that bad – evenings can be nippy as temps drop into the 20s on the worst nights in December or January. It will make the news that people should cover their citrus trees so they aren’t damaged by the freezing temps. (more…)