Home prices, like anything else which is bought and sold, are subject to the pressures of supply and demand. In recent weeks, we have seen an increase in the number of condominiums and townhomes for sale in San Jose, but a slight lessening in buyer interest. More supply with less demand equals lower prices. This will be a bit of a shock to most home sellers, who’d read about the madness of the market in February, March and April. But spring is nearly always stronger than summer – and we are seeing a fairly typical calming down in the Silicon Valley real estate market as we move into that milder summer market.
Since I mostly sell in the “west valley” areas of the Santa Clara Valley, I had a look at a few of them just to see what the trends look like. In this chart, please see the inventory of condominiums and townhomes for sale in 95120 (Almaden Valley), 95123 (Blossom Valley), 95124 (Cambrian) and 95125 (Willow Glen). Almaden seldom has many listings of townhouses or condos at all – over the last year, it looks as though it’s usually close to 5 at any given time. A slight uptick means 6 are available. The trend is much more dramatic in other parts of San Jose.
Home sellers: where the inventory rise is the steepest, you will probably see the most impact on the odds of selling and the price for which you can sell your home. Home buyers: if you see that inventory is largely unchanging, as it is in the tony Almaden Valley, the odds are good that it’s still pretty competitive for home buying and you will likely need to bring your best game forward to secure your future home.
Interested in other areas? I work all of Santa Clara County and would be happy to help you buy or sell your condo, townhouse or single family home here.