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How’s The Silicon Valley Real Estate Market?

Mountain View and low lying bay communities of the peninsula - this is one of the hottest parts of the Silicon Valley real estate market

Mountain View and low lying bay communities of the peninsula – this is one of the hottest parts of the Silicon Valley real estate market

How’s the Silicon Valley real estate market? Because the Silicon Valley region is so large – comprising of all of Santa Clara County, much of San Mateo County, and a little of Alameda County and Santa Cruz County – the real estate market is really quite different from one area to the next.

In general, the Silicon Valley real estate market in Santa Clara County is has been heating up for months. Some quick points:

  • Average sale prices are rising, month over month AND year over year, but are still lower than they were at the peak – about 11% lower in January 2024 compared to the peak in April 2022, per my research on MLS listings. See our Santa Clara County real estate market post for the stats – this is refreshed monthly, so is always current.
  • As we begin 2024, we have a dire shortage of inventory, but demand is strong. Multiple offers are common, particularly for homes that sell in the first week or two. We’ve seen several properties get a dozen offers and sell 15-20% over list price.
  • Interest rates have moved up and down and then up again. This is an important factor in buying power. It’s hovering around 7% now.
  • Mike Simonson, CEO of Altos Research, states that lower interest rates will cause inventory to further tighten. This is counter intuitive, but he points to the move up buyers who are able to afford holding onto their first home if their move up purchase has a lower interest rate. With higher rates, if they have to move, they will simply hold onto that first home. You can listen to his frequent national market updates on YouTube here: youtube.com/@AltosResearch
  • Home prices are expected to rise in 2024.

On a county level, San Mateo is usually the hottest with the most expensive real estate that sells in the shortest time with the most overbids.  Santa Cruz County is calmer. Here are some Silicon Valley real estate stats, grouped by county with data on a per city basis.

Santa Clara County, the heart of the Silicon Valley real estate market

Santa Clara county is the heart of Silicon Valley (San Jose claims to be its capital). Prices are UP, number of sales are DOWN, foreclosures and defaults are not very prominent here.

Within Santa Clara County, the areas with the best schools, shortest commutes, or both without being solely “luxury homes” tend to be the most in demand.  These most competitive areas include:

 

Santa Clara County RE market stats by city or town for January 2024

San Mateo County

Some of the most expensive Silicon Valley real estate can be found in San Mateo County, which enjoys a closer proximity to San Francisco, cooler and breezier weather than the South Bay, and also beach access at and near Half Moon Bay.  The prices are steeper, generally, than Santa Clara County.

Right now, there are more foreclosures in San Mateo County than in most of the country. We’re watching that to see what will happen next.

 

San Mateo County real estate stats by city or town for January 2024

Santa Cruz County

Santa Cruz County is a bargain by comparison!  It is far less expensive than Santa Clara County, homes are selling closer to list price and you can breath before signing the contract.  Just don’t take too long – homes there are still not waiting around if they are well priced, staged, and marketed.

Below, please find a link to our Real Estate Report which covers the real estate market all three counties (sorry, Alameda is not part of our MLS system, so it will not be discussed much in this site). You can navigate from one to the next very easily – just select a different county. You can also check the condo and townhouse sites by clicking on CHANGE near the top.

http://popehandy.rereport.com/market_reports

 

Santa Cruz County real estate market stats by city or town for Jan 2024

 

Please contact us for specific information on Silicon Valley real estate – your home or the one you want to buy!  Remember, the realty market is comprised of many, many “micro markets” and your home’s price point, school district, or any number of things could make it a little different – or even a lot different – from the broad numbers shared here.

Not ready to connect in person yet? Clair and I have many articles on the Silicon Valley real estate market, particularly in Santa Clara County. In the case of San Jose, Clair writes about that each month, and we also cover the many of San Jose’s districts. Here are a few links to get you started:

Santa Clara County real estate market (updated monthly)

San Jose real estate market analysis (updated monthly)

And search at that site for market conditions in Almaden, Willow Glen, Evergreen, Cambrian, etc. Nearly every market post is updated on a monthly basis.