The Silicon Valley real estate market is experiencing a very slight cooling. For Realtors and other real estate agents, it’s pretty palpable that in general, or overall, it’s not as crazy as it was in the spring of 2015.
Don’t be fooled, it’s not a buyer’s market! This is very much a seller’s market…but instead of getting 10 offers, a lot of homes are getting maybe 3-4. In some cases, home buyers are able to purchase with a contingency here or there (which was fairly rare 10 or 11 months ago).
For sales that closed in January 2016, notice the range of “hotness” below. The county had a sale price to list price ratio of 102.6%. But of course the whole valley didn’t peform at 102.6%! The high end area of Los Altos Hills sold at 93.3% while Sunnyvale was at 108%!
What’s really crucial is drilling down to YOUR market, whether you own and are selling or whether you are trying to buy. “The market” depends on which chunk you’re in – and that’s a combination of location (general or precise), price point, school disstrict, and many other things. Sometimes I see that a particular subdivision simply out performs everything else within a mile. You don’t want to rely on oversimplifications like weighing only price point and zip code, or price point and school district, since things like the age of the home or the tract can hugely influence the market value and level of interest.
In Almaden Valley, the residents of some homes go to Leland High, others to Pioneer (both San Jose Unified School District). Some properties are in the attendance area of the Campbell Union High School District and may go to Leigh or Branham. Still others belong to the Los Gatos-Saratoga Joint Union High School District, and the students there go to Los Gatos High. You better believe that the difference in these schools is a major driver of value.
The real question, then, is whether your market is hot!
Call or email me to sit down and go over your particular market!
Related reading: Is it the top of the real estate market in Silicon Valley?