City of Santa Clara real estate market

Santa Clara real estate market - The Santa Clara Women's Club http://www.santaclarawomansclub.org/

The Santa Clara Women’s Club (old adobe house)
http://www.santaclarawomansclub.org/

The real estate market in the city of Santa Clara, like the rest of Silicon Valley, is one which continues to be impacted by low inventory and extremely high demand.

  • The May sale to list price ratio dropped -4.4% since last month, but remains at a jaw dropping 114.3% of asking, well above this time last year!
  • Available inventory rose month-over-month while closed and pending sales slipped. Year-over-year closed sales and active inventory are up while pending sales are relatively stable.
  • Time to sell slowed to an average of just 10 days on market, while the average days of inventory (or market absorption) slowed to 17 days.
  • Prices rose month-over-month, and are up about 28%-29% from last year.

Prices in Santa Clara rose astronomically through 2021 and in the first half of 2022. I grew up in that city and was amazed to see that the average and median sales price was hovering around $2 million during the hottest months of 2023! That dropped off around fall and winter, as anticipated, but by February 2024 the average sales price had already topped that $2 million marker and continues to rise, still well above that in May. While it may decline some later in the season, there is the sense that this may be the new norm.

The Real Estate Market for the City of Santa Clara

Below there are charts for the market activity over the last few months for single family homes in Santa Clara. Market activity has been high for years, and dispite some ups and downs over the last year, it remains high today. Low inventory across the valley means there is still a greater demand to fill than properties available. Further down in the article, we’ll check in on the condo market, too.

First, a market profile, automatically updated weekly, for the city of Santa Clara (these reports are available by zip code, too, and for condos/townhomes as well as single family dwellings). Check out the weekly Altos report HERE and click on subscribe to get weekly updates on all of Santa Clara or any particular zip code. (Scroll to the bottom and check out the profile of houses across 4 pricing quartiles – super interesting.)

 

Santa Clara Real-Time Market Profile

According to Altos, it’s a strong seller’s market with elevated market action rising through spring, finally leveling out around the start of summer.

Data from my Real Estate Report

Next, stats at a glance for the Santa Clara real estate market for single family homes.

Despite rising interest rates and limited options for buyers, the market for single family homes in the city of Santa Clara is going wild!! Homes on average are selling more than 14% over asking in just a week and a half – it’s a red hot seller’s market!

Have a look at the market by the numbers below, or visit my RE Report page for Santa Clara stats here.

Trends at a Glance

Trends At a GlanceMay 2024Previous MonthYear-over-Year
Median Price$2,190,000 (+8.3%)$2,021,500$1,706,000 (+28.4%)
Average Price$2,218,020 (+6.5%)$2,082,080$1,718,320 (+29.1%)
No. of Sales46 (-8.0%)5039 (+17.9%)
Pending32 (-15.8%)3833 (-3.0%)
Active26 (+13.0%)2320 (+30.0%)
Sale vs. List Price114.3% (-4.4%)119.5%108.2% (+5.6%)
Days on Market10 (+24.0%)818 (-42.0%)
Days of Inventory17 (+27.1%)1315 (+10.2%)

 

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Are home prices dropping in San Jose?

Are home prices dropping in San Jose? The Bay Area housing market is cooling all over.

  • Overall, yes, we have home prices dropping in San Jose month over month.
  • As of now, home prices are not down year over year for the city generally.
    • in some areas, price points, or select segments, year over year prices could be up or down as compared to a year ago
    • in part of the market, the year over year number is flickering back and forth (see the $2 million pricing band, below)

Let’s see what the data says. I pulled this from MLS Listings just now for all of the city.

In what price points do we see home prices dropping in San Jose?

If we look at all San Jose single family homes (mostly houses, but a few duet homes), we can see that prices were higher in April 2022 than they are now. In general, values have been falling month over month since April’s peak.

We also note that prices do not only go up, that there are many movements up and down over the course of a few years. The first question we should ask is if this is seasonally normal or not. From the graph below, it appears clear that while home values do rise and fall seasonally, this is a larger drop than is typical, and it’s both faster and steeper. Please also see Seasonal Pricing Patterns on this site.

 

Month over month, home prices are dropping in San Jose, CA for single family homes - chart from 2016 to present

This is a lot of sales over the years – 30,691 in all.

If we view this same info in a data table of average sale prices, we can better compare any particular month to the same month in other years. This eliminates the normal seasonal fluctuation.

The peak pricing was April 2022. The average sale price for July 2022 remains above July 2021 and all previous Julys. In 2018 prices got a bump and went down in 2019, but marched upward again after that.

 

Data table - Average sale price in San Jose - SFH all price points

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Seasonal Pricing Patterns

The Silicon Valley real estate market tends to have seasonal pricing patterns. They are not rigid, and some years the typical or expected patterns don’t really hold. Generally, though, we expect the Spring market to be hot and the winter period to be cool. Is that true? Let’s take a look at the stats that I pulled today from MLS Listings.

Seasonal pricing patterns and today’s market

I spot checked the median sale price as well as the average sale price for houses in Santa Clara County, and they both followed the same seasonal pricing patterns. In the chart below, we have data from January 2013 (when the recovery really began) to November 2021. I’ve named the months with the peak prices and also the biggest dip each year. The pattern is a bit like the stock market – it does not only move up or down, but there are a lot of both with a generally upward trend.

This image is best seen on a tablet or desktop computer. If it is too small, please click on the image to view a larger version of it.

 

Seasonal pricing patters via the average sale price in SCC for SFH

 

 

If you prefer a data table, here’s one with just the peak bolded (please click to view larger image):
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