Every day, I seem to get an email or have a conversation on what “the market” is doing. Trouble is, we like easy answers and that doesn’t work here. We don’t have ONE Silicon Valley real estate market. We have a whole bunch – or maybe myriad – of smaller markets.
The market for historic homes in Willow Glen is very different from the market for condos at Santana Row. The market for luxury properties in Almaden is extremely different from that of starter houses in Cupertino or Palo Alto. The condo market in Saratoga with Saratoga schools is not the same as the townhouse market in Cambrian with Union Schools.
You get the idea.
And yet, there are anecdotal stories of things calming down.
Last week I closed a buyer sale in Evergreen where there were 14 offers. That seems to be increasingly unusual. Word among real estate agents seems to be that while traffic is decent at open houses, it’s not what it was in early spring. Hint: this may be seasonally normal! June is almost always slower than the Feb – April window!
I’m hearing agents talk about great listings that get one or two offers rather than many multiples.
I’m hearing that in some segments of the market, one home in four now needs a price reduction.
All of that said, to know what’s happening, it is absolutely imperative to drill down to YOUR market, whatever it may be. It could be Los Gatos betwen $1.5 and $2 million. It could be entry level Saratoga with Saratoga schools. It could be Almaden with whichever high school (Leland, Pioneer, Leigh, Los Gatos). Or some other configuration. What is certainly true is that the relevant market for you, whether buying or selling, is the hyper local market.
Hyper local is usually more than just a zip code, as within the zip code there are different pricing tiers and frequently different school districts or other highly important factors. To drill down to the relevant comparables, please work with a local real estate professional who knows how to crunch the numbers. “Easy answers” may make good sound bites, but they don’t make a good basis for an informed real estate perspective for buying or selling. It’s way too important to get this wrong.