The Santa Clara County real estate market is cooling off, which is very often the case in summers here. It varies from place to place within the region, and one pricing tier to the next, but I am definitely seeing and hearing about fewer offers, more lowball offers, contingencies creeping back into sales, etc. In red hot properties with great schools, you might get a half dozen offers…and three of them may be “bad” offers from home buyers who are pessimistic on the market. They do not get the sale, of course, but it is interesting to hear about an increase in those kinds of bids.

My RE REport just came out, and here are some images and data from that for Santa Clara County. First, the market barometer. Here, you can see that sellers had stronger power in March than they do now – by quite a lot! (Click on the image to go to the report and see a clearer version of it.)

Graphic image - Santa Clara County market barometer.


Next, the average and median sale prices and the number of units (again, click on the image to go to the report). This graphic does not look as bad or as much of a change as the one before, though you can see that since May prices have gone down a little, and sales are now tipping downward and are fewer than sales for this time last year.

Graph of Santa Clara County home prices and sales

Next, the sale price to list price ratio is a bit more startling. Sales are still averaging about 1-05% of list price – so that is hard for sellers to complain about – however, it is unmistakable that the climate for home selling in Silicon Valley is undergoing a change and this is literally past its peak. Buyers and sellers alike need to wonder whether it will calm down or continue at the current rate of decline. Is it a buying opportunity, or the beginning of a correction?

Graphic of the Santa Clara County sale price to list price ratio

The numbers themselves point to a turnaround in the market. I’ll jot the median sale price for the county here – it’s a large enough pool of sales to be pretty reliable as a gauge of the real estate market in the San Jose area:

July 2018 $1,350,000
June 2018 $1,402,000
May 2018  $1,416,000
April 2018  $1,420,000
March 2018 $1,450,000 – PEAK
February 2018 $1,380,000
January 2018 $1,163,000

Between March and July, the median sale price dropped $100,000, or 6.89%. As you can see, it had also jumped considerably between January and March, and even at today’s lower median sales price, it’s still higher than January. It will be interesting to see where it ends up in January of 2019.

A quick look at the numbers for this month’s Santa Clara County RE Report:

Trends at a Glance

Trends At a Glance Jul 2018 Previous Month Year-over-Year
Median Price $1,350,000 (-3.7%) $1,402,000 $1,175,000 (+14.9%)
Average Price $1,624,690 (-5.1%) $1,712,500 $1,409,380 (+15.3%)
No. of Sales 847 (-13.3%) 977 1,015 (-16.6%)
Pending 924 (-0.6%) 930 931 (-0.8%)
Active 1,151 (+8.0%) 1,066 816 (+41.1%)
Sale vs. List Price 105.6% (-2.0%) 107.8% 105.5% (+0.1%)
Days on Market 19 (+13.7%) 17 20 (-6.7%)
Days of Inventory 41 (+28.8%) 32 24 (+69.0%)


It’s now August 10th and it’s too early to know for sure what the August numbers are doing, but normally August is a quiet month with sale prices a little off. So we’ll see.

The next part of this article is from July 31st:

Like most of my readers, I like data. Today, then, I went to MLSListings and I pulled up the numbers for the county. The month of July is closing out today, so it is possible that some of the numbers may jiggle a little if sales aren’t reported right away – but this should be pretty close.

When we are analyzing the Silicon Valley real estate market, there are a few (maybe many) data points to consider:

  • how fast are homes selling?
  • what is the ratio between available homes and homes sold?
  • how many properties are .on the market?
  • what are the months of inventory?
  • is the sale price still strong?
  • how many offers are there? (agents must report for this to be available, most do not)
  • what’s traffic like? (not tracked by the MLS)

And you could pick a number of other points as well, such as the number of expired listings (in every market, a certain percentage of homes never sell). We could divvy it up by price point, and school district, as I have done elsewhere. Today, though, I want to look at the major trends on the county level.  Here are my select stats, data care of the MLS earlier today. I think you will find that this is NOT what a market crash looks like – but please read on and see the date for yourself.

Average Days to Sell

The average days to sell is not an alarming figure. Check out the July 2018 number of 19 days to Julys going back to 2013. Most were longer. Now consider how any July looks compared to any March or April. Typically, it’s longer. We often speak of the “spring home buying season” because that is often the best time to sell.  Summer is not bad, but the peak ordinarily happens earlier in the year.

Average Days to Sell 2013 to present

Median Days to Sell

The median days to sell means that half the homes sold faster than this number, and half sold longer. While most homes do sell quite quickly, there are some that linger on the market forever…and then expire, or get a price reduction or improvements before selling. (Right now, there are 16 homes that have been on the market for more than 300 days in Santa Clara County.) The ones with huge “days on market” make this number larger than the average days on market.  The pattern, though, is the same as with the average days on market: most years, July is slower to sell than earlier in the year.

Median days to sell

Inventory & Sales

What is the ratio between homes on the market and homes that are sold and closed each month? In the image below, active listings are red and closed listings are green. When the sales outpace the listings, it is a very strong seller’s market, and that is exactly what we saw in March and April. What is more normal is for listings to be larger than sales, because not every home sells, no matter how hot the market.

For this info, I only went back to January 2017.

Number of homes for sale vs sold

And here’s the same info, but I exported it to excel to make it easier to read the numbers – please note the disclaimer that the data for July may not be complete, as some agents will report closed sales a little later:

Ratio of homes for sale vs sold

In 2017, the Silicon Valley real estate market never calmed down much, but was in hyper-drive even through the holidays.  This makes our current leveling off feel quite severe –  the contrast is unmistakable. No doubt about it, the market IS cooling down. Inventory is rising and homes are not being absorbed quite as fast. (This last chart is the one I’m most concerned is off as not every agent reports sales in a timely manner.)

Absorption Rate or Months of Inventory

The absorption rate tells us how long it would take to sell off the current supply of inventory if no new homes came onto the market. It’s another way of looking at the ratio of sales to listings. Right now, we are at about one and a half months of inventory for single family homes in Santa Clara County. Not bad – compared to most of the last 5 years, it’s pretty aggressive for this time of year.

Months of Inventory 2013 to present

Price per square foot

A visual can really convey what we experience very well – mostly an upward trajectory, but downs as well as ups along the way. We’d all love to “time the market”, both for real estate and for stocks, but usually we aren’t able to sell at the very peak and buy at the lowest trough. Also, this makes the point that how far back you look is really relevant! If we only looked back as far as March (which is the peak), we’d be convinced this is a catastrophic free fall. Taken in a larger context, though, we can see that there really are ups and downs.

Price per square foot - all SCC homes

Here’s what the numbers look like – this feels a lot more sanitized than the image above!

Price per square foot - all scc homes - data

Year over year, it is a steady march upward. (I appreciate that the graph shows the variations more clearly.)

If we drill it down to JUST houses with 1500 to 2500 SF, the numbers look like this:

Price per SF for SFH 1500-2500 SF

Even at this level, we see very steady, sure appreciation.

Despite the “dips” that we see quite clearly in the graph, above.

When we feel or experience a dip, does that mean we are in a correction? Or is it part of the process – a little up, some down?

The dips are an opportunity for those who are not afraid of them.

Some people will see every dip as the end of all, the beginning of a correction, and be afraid to buy. Only when the market surges ahead again do they see that they had an opportunity.

YES, the market will correct at some point. Maybe it’s not – but I am not seeing it. I’m seeing the dip that is part of a periodic trend.

Come September, will prices rise or fall? Stay tuned!


  1. 3 beds, 1 bath
    Home size: 946 sq ft
    Lot size: 6,899 sqft
  2. 6 beds, 4 baths
    Home size: 3,442 sq ft
    Lot size: 8,999 sqft
  3. $4,999,888 : 9655 New AVE, GILROY
    2 beds, 3 baths
    Home size: 2,850 sq ft
    Lot size: 79.00 ac
  4. 2 beds, 1 bath
    Home size: 832 sq ft
    Lot size: 4,051 sqft
  5. 3 beds, 2 baths
    Home size: 1,015 sq ft
    Lot size: 5,218 sqft
  6. 3 beds, 3 baths
    Home size: 1,682 sq ft
    Lot size: 8,346 sqft
  7. 4 beds, 2 baths
    Home size: 1,422 sq ft
    Lot size: 5,026 sqft
  8. 4 beds, 5 baths
    Home size: 4,700 sq ft
    Lot size: 1.97 ac
  9. 3 beds, 2 baths
    Home size: 1,219 sq ft
    Lot size: 6,050 sqft
  10. 3 beds, 2 baths
    Home size: 1,068 sq ft
    Lot size: 6,499 sqft

See all Real estate matching your search.
(all data current as of 11/19/2018)

Listing information deemed reliable but not guaranteed. Read full disclaimer.


Mary Pope-Handy
Sereno Group Real Estate
214 Los Gatos-Saratoga Rd
Los Gatos, CA 95030
408 204-7673
Mary (at)
License# 01153805

Selling homes in
Silicon Valley:
Santa Clara County,
San Mateo County, and
Santa Cruz County.
Special focus on:
San Jose, Los Gatos,
Saratoga, Campbell,
Almaden Valley,
Cambrian Park.
Let’s Connect
Find Mary on FacebookFollow Mary on Twitter
RSS FeedFollow Mary on YouTube

Please see more icons
at the bottom of the page.

The real estate search
Use the widget below to browse properties which are for sale, under contract (pending) or sold. Want to view only homes which are available now? Use the "find a home" link on the menu above (next to the "home" button).
Mary’s other sites & blogs
Valley Of Hearts Delight
Santa Clara County Real Estate,
with an interest in history
Silicon Valley relocation info
Silicon Valley real estate,
focus on home selling

Silicon Valley Real Estate Report
Silicon Valley real estate
market trends & statistics
Mary’s Blog Awards
Top 25 real estate blogs of 2018 by RentPrep2018's list of top 25 real estate blogs to follow

Top 25 real estate blogs 2016
2016: Personal Income's list of top 25 real estate blogs.

Best Realtor blog award
2016: Coastal Group OC's list of best Realtor blogs

The 2009 Sellsius list of top 12 women real estate bloggers
2009: Sellsius list of top
12 women real estate bloggers

Mary Pope-Handy's Live in Los Gatos blog won the 2007 Project Blogger contest, sponsored by Inman News and Active Rain

2007: Mary Pope-Handy and Frances Flynn Thorsen win the Project Blogger Contest for Mary's Live in Los Gatos blog. The contest was sponsored by
Active Rain and Inman News.

Non blog award

Best real estate agent in Silicon Valley from the San Jose Mercury News poll of readers in 2011
"Best real estate agent
in Silicon Valley"

2011 readers' poll,
San Jose Mercury News