If you’re just moving into the area you may be wondering about the different housing markets for the greater Silicon Valley area. The counties are a perfect place to start!
Here are the real estate market reports for three major Silicon Valley counties (and where I’m most active in my work): Santa Clara County, San Mateo County, and Santa Cruz County. Generally, “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.
Each section below includes first the data for single family homes and then condos and townhomes for each region.
If you’re ready to dive a little deeper, I also provide regular monthly market updates on some of the popular communities within Santa Clara County over at my Valley of Heart’s Delight blog. Scroll the most recent ones here.
Spring 2022: Three Silicon Valley Counties
Santa Clara County Real Estate Market Report for April 2022
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.
The market is cooling with fewer offers, which is not something we have good data on, but prices are rising just the same.
Here’s a look at the AVERAGE sale price for houses (single family homes) since 2016. Imagine that the “average” home has gained $1 million in value in just 6 years.
While the winter was hot, spring of 2020 experienced a massive slowdown in market activity at the start of the 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 next two years, created a backlog of demand with severely low available inventory. This has driven prices sky high and bolstered a heightened averae sales to list price ratio, yet inventory continues to fall as demand snowballs out of control!
Despite improving conditions in the pandemic and the Ukraine war’s impact on stocks and inflation, Santa Clara County is keeping up the momentum into a raging hot spring market!
And the condominium and townhouse report for Santa Clara County
While a little less white hot than the single family home market, the condo and townhouse market is also experiencing a brisk seller’s market for most homes.
Keep reading for updates on the San Mateo and Santa Cruz county markets.
Fire season is a concept we are familiar with in the West Coast, but it may be foreign to those moving here or living far away.
Not long ago I was on the phone with a cousin from the East Coast. That area had recently been hit by Tropical Storm Ida and over here we were being smothered by the smoke from the Northern California fires (Caldor, Dixie, Tamarack and some others). Aghast at enormity of it all, my cousin asked the poignant question, “has there always been a fire season, or is that a recent thing?”
Briefly, yes, California has always had a fire season.
One major reason people (myself included) love California is for its mostly dry Mediterranean, subtropical climate. However, that ideal dry hot summer climate is also a perfect tinderbox. Without summer rain, the grasses and annuals die off and many native perennials go dormant. Dry hot winds, frequent from around August through October, dry out the landscape even more. By this time, an open hillside is A-grade kindling – one little spark and it’s a recipe for disaster.
Even in wet seasons with no drought, the summer will always be hot and dry with a high risk of ignition. So while fire season is nothing new, it’s longer and much worse than it used to be.
Fire and California Homes
For California homeowners and buyers, the increasing fire danger is strongly felt. Most buyers tell me they do not want to be in high fire risk zones, but might not always know what to avoid. State and local governments have put more preventative regulations in place to keep homes safe from wildfire, both on builders and homeowners.
If you are relocating to Silicon Valley, you may be wondering what the risks of wildfire are like for this area. There are plenty of resources available online, and I always recommend clients to look at the hazard maps such as those listed in my article Tools You Can Use When Relocating to the San Jose Area. While the mountain and foothill communities may be at risk of wildfire, even the lowlands are experiencing another concern that comes with harsher fire seasons: smoke and air quality.
In my other blogs I have more articles dedicated to the topic, so I won’t go into detail here. I encourage you to view some of my articles about Fire at the Live In Los Gatos Blog or over at the Valley of Heart’s Delight blog under the Natural Hazards and Safety categories if you’re interested in learning more.
Some of the oldest trees living in California have the scars of past fires, sometimes multiple. Native plants have evolved and adapted to fire and can thrive in its shadow. And for as long as people have lived here, they have contended with seasonal fire danger.
Fire season 2021 has come to an end with the arrival of rain – a double bounty since we are in the middle of a severe drought. When the rains come, the problems aren’t over, though. In burned out areas, the next challenge will be mudslides and further damage to the fire zones. This is an old problem also, I remember hearing about the mudslides following the fires as a kid growing up in the 60s and 70s.
“Fire hardening” is an important concept for those of us who live in or near large open spaces with hills especially. I suspect it will grow into a cottage industry with new experts appearing to advise or possibly install features which will make our homes and landscaping more resistant to advancing flames.
With soaring housing prices in Silicon Valley, newcomers and folks potentially relocating here may wonder what can you buy for $1 million or less in Silicon Valley? This article will provide a snapshot in time and provide a sense of whether your million dollar budget can get you into a house, a townhouse, or a condo – or perhaps “none of the above” – on the valley floor.
(Homes in the Los Gatos or Santa Cruz Mountains are generally more affordable, but will of course be farther out and are generally considered a specialty market. Not included will be mobile homes, as the space rents are often close to or more than $1,000 per month. Also not included are duplexes, which you’d be hard pressed to find many of under that $1 million mark.)
If you absolutely must buy a house, and the budget must be under $1 million…
If you absolutely must have a house or single family home, as opposed to a condominium or townhouse, there are a number of areas for you to consider in Santa Clara County, including
- Morgan Hill
- Certain districts in San Jose
- Alum Rock
- South San Jose
- Downtown and Central San Jose
- Santa Teresa
- and Alviso (including County pockets)
- the Los Gatos 95033 (mountains) area – which is vast and contains many small communities
The Los Gatos mountains area varies in price from one community to the next and right now that is a hopping market, I’m told. You can find information, including a list of mountain neighborhoods, on the page linked as well as the occasional market update. If you’re interested in buying or selling a mountain home here in the Bay Area, please reach out! I do some work in the mountains, and if it’s not a match I am happy to connect nice folks with trusted Realtors that are mountain market specialists.
To determine where someone could get into a house for under $1,000,000, I pulled the sales from the last 90 days (as of August 31, 2021) and looked at how many of the sales of houses for any given area were under that budget amount. In many places, there were zero – even if I looked back a full year! The areas below are listed in order of the average sale price for these “in budget” properties, though you might prefer to rank them by the average square footage or some other criteria.
(Trouble reading the image above? Click to view the full-sized photo.)
This doesn’t mean you can’t find something under $1mil elsewhere. San Jose’s Almaden Valley, Willow Glen, and Cambrian areas each had one sale under the million-dollar mark during the same time period, but these sales are significantly less common. When you see ratios of something like 3% or less of the houses sold are under that price point, it’s important to understand that those homes may be major fixer uppers, tear downs, or have a location issue or some other big challenge. But – perhaps you are handy, do not mind the property condition, location, extremely small size, or whatever the presenting issue may be.
Areas in Santa Clara County where a house is possible but unlikely, but a townhouse or condominium may work:
What does it cost to buy a single family home in the city of San Jose? There are many districts in this spread out city 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?
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: