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.)
Winter 2020-2021: Three Silicon Valley Counties
Santa Clara County Real Estate Market Report for December 2020
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 December the median sale price is over 13% higher in 2020 than in 2019! Since the month before, but the median sales price and list price remained close to stable with both up by around 10-12% compared to 2019. Homes took about a half-week longer to sell, in December compared to November, but compared to 2019 they’re flying off the shelves! Of course, it hasn’t been even growth. While 2019 had fairly typical seasonal patterns, 2020 experienced major changes putting pressure on the market stifling spring activity and creating a sustained high demand with severely low inventory. We’re currently at a time where seasonal cooling creates a softer market, but activity is stronger than usual driving both prices and the sales to list price ratio above the averages of 2019 without significant cooling compared to summer or autumn.
And the condominium and townhouse report for Santa Clara County:
This year shows about a 8% rise in sales price for condos and townhomes since last year, and about a 2% dip in median sales price and a relatively stable median list price from last month.
Today we’ll take a look at the housing market from a very high overview position, that is, by metro area within California. How’s the San Francisco Bay Area, which includes Silicon Valley, faring in comparison to the rest of the state? And how is the real estate market within the 9 Bay Area Counties? Have a look at the statistics to get a sense of the market at a glance. (Note: SFH stands for Single Family Homes.)
Silicon Valley is found primarily in Santa Clara County, but also substantially in San Mateo County. There are some pockets, very small, also in Alameda County and Santa Cruz County. Santa Cruz County is not considered part of the SF Bay Area, but part of the Monterey Bay Area and the Central Coast (the SF Bay area is considered Northern California.)
Statistics for Bay Area Real Estate Market care of the California Association of Realtors
Silicon Valley is a large area, with much of it in Santa Clara County (where San Jose is the largest city with almost one million residents) and most of the rest is in San Mateo County along the San Francisco Peninsula. So what does it cost to buy a house in these areas? Today I spent some time on MLSListings.com, our local multiple listing service, and pulled the data, which I hope that newcomers will find very helpful.
Below is a chart of single family homes purchased between October 1 2013 and the end of January 2014 by price point.
Santa Clara County sales of single family homes:
As you can see, only a tiny fraction of homes sell for less than $400,000. Most people pay between quite a lot more, with many sales happening in the $600,000 to $1,000,000 range (and it’s more in the areas with best schools and short commutes, generally, so many are much higher, too). The average Santa Clara County home sales price was $1,002,119 and the average price per square foot was $526.
How about San Mateo County prices? As you may know, The Peninsula is pricier than it’s warmer neighbor to the south. But how much more will it cost you?
Santa Clara County sales of single family homes:
The average sales price was in San Mateo County for the last three months was $1,254,114 and average price per square foot was $625 (all sizes of houses and lots throughout SMC). This is about 20% than Santa Clara County.
There is most always a big shock when folks relocate to Silicon Valley and start to learn how far their money goes – or doesn’t go – here. This has been the case for a very long time, since long before I got into the business 20 years ago. Prior to to looking online, you may hear that it’s bad, but you don’t really know what people are talking about until you get into a car with a Realtor and go see what $500,000 or a million or more will buy you here.
And now, too add to the already high home prices, the real estate market is overheated due to a severe inventory shortage of homes for sale in the San Jose and “South Bay” areas, too. Most properties are selling over list price – and that was high to start with, particularly for out of state or global buyers.
In most parts of the U.S., a half a million dollars will buy you a great home. Here, not so much. A million dollars will buy you a nice home in a decent area, but it won’t be fancy, and you’re unlikely to have a large lot unless your commute is huge and you’re on the outskirts of the valley. It’s more than a million to have a really nicely remodeled home with great schools; that price point seems to start at about 1.2 million in most parts of the valley. Have a look at the median and average sales prices for houses in Santa Clara County – this will give you a sense of how the market has been behaving, but also of the cost to purchase homes generally.
Santa Clara County (Silicon Valley – San Jose area) Prices and Sales Feb 2013