How’s the Silicon Valley real estate market?
What’s going on with the Silicon Valley real estate market? Is it as crazy as ever with multiple offers, overbids, and few or no contingencies? Today we’ll consider the regional view, aka The Big Picture, to provide a sense of what is going on. For info on smaller areas or districts, please head over to my main blog, the Valley Of Heart’s Delight Blog – SanJoseRealEstateLosGatosHomes.com. There cities, towns, and districts are looked at in depth.
Seasonal Patterns in Silicon Valley
The quietest time (number of sales, traffic, etc.) and lowest prices in the real estate market tend to fall in January, or sometimes in December. Yesterday I pulled some stats for Santa Clara County and it looks like the first half of January is showing higher sales prices than what we saw in December. If this continues, it bodes well for a strong January. One month does not make a trend, of course – we’ll have to watch and see what happens between now and March 1st. I am suspecting a return to a quick paced first half of the year (beginning around or before the middle of February) and a slower second half of the year, and mild appreciation in 2019.
To provide regional Silicon Valley market conditions, today I’ll post info on the three counties (San Mateo, Santa Clara, and Santa Cruz).
In terms of expense, San Mateo is the most costly of these 3, and overall it becomes less expensive in Santa Clara County, then less expensive still in Santa Cruz County. Alameda County has a little of Silicon Valley, but that area is in a different MLS system so is not part of this analysis.
Next, a look at sale prices an market conditions for single family homes and condominiums / townhomes by county.
What does it cost to buy a house or condo in Silicon Valley?
In Santa Clara County (home to Palo Alto, Cupertino, Sunnyvale, Mountain View, San Jose, and my own Los Gatos), the average sale price is $1,437,000 and the median sale price $1,163,000 – quite a bit lower than last spring.
Santa Clara County
Please click to enlarge:
For condominiums and townhouses, of course, it is a bit better.
In San Mateo County (home to Redwood Shores, Foster City, Menlo Park, San Mateo), the average sale price is about $1.7 million for houses recently sold. The median is a little lower at $1.478 million.
San Mateo County
And the San Mateo County Condo / Townhouse real estate statistics:
In Santa Cruz County (Santa Cruz, Scotts Valley, Aptos, Capitola, Soquel), it’s more affordable. The average sale price of houses recently has been about $1.1 mil, and the median sale price has been right about $909,000.
Santa Cruz County
And the Santa Cruz County resale condominium and townhouse market:
Naturally, it’s easier to buy near Santa Cruz than in San Jose, but the demand tends to remain stronger in the areas with the jobs as opposed to the coastal communities, so appreciation is usually stronger in the areas where it’s hardest to purchase. That seems to be true in a very similar way in San Mateo County, too – yes, it’s less costly to buy in Half Moon Bay, and in an up market it’s great, but in a down market it will not fare as well as Belmont, San Mateo etc.
Within all of these market areas, there are hotter and cooler locations, school districts, price points, etc. Often there are work arounds to maximize the sale or purchase of a property. For instance, some homes have a pool that eats up the whole yard. That might make a home difficult to sell, so perhaps you can buy it without competing against so many offers – and then remove the pool later. Often the “fixes” are not as costly as you may think.
Want to buy or sell in Silicon Valley? Please reach out to me. I’d love to chat with you about it and see if we might work together.