Market trends & statistics

The Santa Clara County Real Estate Market

The Silicon Valley real estate market is spread out over a few counties, primarily Santa Clara County but also much of San Mateo County and part of Alameda and Santa Cruz Counties.  Santa Clara County is home to about 1.8 million residents, more than half of them in the big city of San Jose.  The high tech companies such as Cisco, Apple, Google and more are spread out around the valley, and each neighborhood has a very different set of housing market conditions.  Even so, we’ll take a broad view of the county today to give some general indicators on what you might expect when moving here.

As a whole, home prices in Santa Clara are rising due to a dire scarcity of listing inventory.  On average, houses sold in December were overbid and the sales price to list price ratio was about 102%.  Here are the numbers at a glance:

Trends At a Glance Dec 2012 Previous Month Year-over Year
Median Price $682,500 $685,000 (-0.4%) $530,000 (+28.8%)
Average Price $908,873 $885,921 (+2.6%) $714,562 (+27.2%)
No. of Sales 899 903 (-0.4%) 903 (-0.4%)
Pending Properties 980 1,500 (-34.7%) 1,396 (-29.8%)
Foreclosures Sold 25 34 (-26.5%) 112 (-77.7%)
Short Sales Sold 154 138 (+11.6%) 229 (-32.8%)
Active Listings 534 782 (-31.7%) 2345 (-77.2%)
Active Foreclosures 22 27 (-18.5%) 173 (-87.3%)
Active Short Sales 39 52 (-25.0%) 980 (-96.0%)
Sales Price vs. List Price 102.6% 102.3% (+0.3%) 98.7% (+3.9%)
Days on Market 36 32 (+11.3%) 63 (-42.8%)

Though there was a slight slippage in values from the prior month’s median sales prices, the average price was up 2.6%.  More dramatically, though, prices were up 27-28% from the year before!  Foreclosures and short sales are way down.  Inventory is critically low, off 77% from a year earlier.

It is a very deep seller’s market in Santa Clara County.  Some areas, such as Cupertino, are very difficult for buyers right now.  Cupertino’s prices are already past the last peak pricing and have only about 2 weeks of inventory.

Trends At a Glance Dec 2012 Previous Month Year-over Year
Median Price $1,343,880 $1,325,000 (+1.4%) $982,500 (+36.8%)
Average Price $1,304,180 $1,373,820 (-5.1%) $1,085,210 (+20.2%)
No. of Sales 26 27 (-3.7%) 24 (+8.3%)
Pending Properties 18 23 (-21.7%) 13 (+38.5%)
Foreclosures Sold 0 0 (N/A) 0 (N/A)
Short Sales Sold 0 0 (N/A) 0 (N/A)
Active Listings 13 26 (-50.0%) 31 (-58.1%)
Active Foreclosures 0 0 (N/A) 0 (N/A)
Active Short Sales 0 0 (N/A) 4 (-100.0%)
Sales Price vs. List Price 102.9% 104.4% (-1.4%) 96.4% (+6.7%)
Days on Market 31 33 (-5.8%) 52 (-40.7%)

To get the full report with much more data and information for all areas within Santa Clara County, please see www.popehandy.rereport.com.

Is This A Good Time to Buy A Home in Silicon Valley?

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.

Mary Pope-Handy
Realtor,
CIPS, CRS, ABR, SRES
Sereno Group
214 Los Gatos-Saratoga Rd.
Los Gatos CA 95030
[Silicon Valley, California, USA]
1-408-204-7673
mary (at) popehandy.com
CA BRE # 01153805

CIPS - Certified International Property Specialist
CRS - Certified Residential Specialist
ABR - Accredited Buyer Representative
SRES - Seniors Real Estate Specialist

Helping nice folks to buy and sell homes in Silicon Valley since 1993. Mary Pope-Handy, Realtor, Silicon Valley
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Trends & Statistics

RE REPORT for Santa Clara, San Mateo, and Santa Cruz Counties:

Click the link below to get real estate data for Santa Clara County, San Mateo County, and Santa Cruz County (together making up about 98% of "Silicon Valley") care of the monthly RE REPORT.

Real Estate Market Statistics and Trends for Santa Clara County


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