Sunnyvale real estate market trends & statistics

The Sunnyvale real estate market, remains an incredibly hot seller’s market.

Sunnyvale real estate market trends and stats at a glance

Here is a quick rundown of the trends at a glance for the Sunnyvale real estate market, with more in the charts below:

  • The average and median sale price of Sunnyvale homes rose double digits annually, but slipped a little monthly
  • Inventory rose from last month by a count of one, but is off 24 %+ compared to a year ago
  • Pending sales are down monthly and annually
  • The sale to list price slipped from 117.5% to 114.4%
  • The very slight cooling may be seasonality at play

PLEASE visit our ReReport page for data here, throughout Santa Clara County, and also for San Mateo and Santa Cruz Counties.

(If you’re viewing this on a mobile phone, swipe horizontally to see the full chart if it goes off the screen.)

Trends at a Glance

Trends At a GlanceMay 2024Previous MonthYear-over-Year
Median Price$2,610,000 (-4.4%)$2,731,470$2,307,500 (+13.1%)
Average Price$2,570,370 (-3.0%)$2,650,120$2,277,430 (+12.9%)
No. of Sales57 (+29.5%)4456 (+1.8%)
Pending41 (-4.7%)4349 (-16.3%)
Active25 (+4.2%)2433 (-24.2%)
Sale vs. List Price114.4% (-2.6%)117.5%107.9% (+6.0%)
Days on Market(-21.4%)1012 (-32.9%)
Days of Inventory13 (-16.8%)1618 (-25.6%)

 

You may also want to see how Sunnyvale stacks up to other communities in Santa Clara County. If so, click to see the PDF Real Estate Report for Santa Clara County, updated monthly.

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Los Gatos Real Estate Market Trends

Los Gatos real estate market graphic with home near downtownAs of today, June 4 2024, the Los Gatos real estate market in 95030 & 95032 is softening, but still a seller’s market. We are seeing inventory rise, but we’re also seeing interest rates rising, and that appears to be putting a damper on sale prices.

Across the county, first time home buyers are the most active and more entry level prices is the strongest segment.

Los Gatos real estate market statistics for the last 30 days (not a calendar month)

Numbers for today (pulled from the MLS), going back 30 days:

  • 61 houses for sale today (June 4, 2024)
    • the average days on market for these homes is 73 days (but 3 have been on for 555-557 days!)
    • the median days on market 22 days
  • 2 are contingent, 26 are sale pending  (no contingencies)
  • 32 have closed in the last 30 days
    • average home size 2,424 SF
    • Lot size data is off – someone entered a number incorrectly, so it’s messed up
    • average days on market = 18 (up from 7 last month)
    • the LONGEST days on market was  83, and of the 32 homes, 21 sold in 10 days or less
    • average sale price  $3,196,188
    • median sale price $3,200,000 (same as last month)
    • average sale to list price ratio 105% ( it was110% 30 days ago, 109% in April, 104% in mid-March and 101% in early-mid January)

Nine of the sold homes were  $4 mil or more. The highest sale price was $5,310,000.

Some of the homes for sale have been on the market a long time, but for houses that do sell, it’s usually in 10 days or less. Some price points do typically take longer, though.

 

 

Further below you’ll find similar charts for houses in the Los Gatos Mountains and also condos and townhomes “in town”.

Los Gatos real estate market statistics: multi year data by month

Here is some Los Gatos real estate market data that I pulled directly from the MLS today.

Inventory of available homes for sale in Los Gatos 95030 and Los Gatos 95032

Inventory is finally into a healthier range (though I recall the days when 80 was typical).

 

Inventory of Los Gatos homes for sale 95030 95032 MLS area 16

 

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How to get a great buyer’s agent – and keep them

You and your great buyer's agent teamwork graphic - puzzle pieces and 2 peopleA great buyer’s agent can be hard to find and keep. Here’s what to do to enlist the help of one and how to make sure you stick together as a team and get you into your new home.

Summary:

Only a fraction of all interested home buyers actually buy in the year they say that they plan to do so.  For various reasons they decide to keep renting, or move away, or give up, or simply don’t write offers that are selected (they may chronically low-ball)

  • Some home buyers are very serious but also very time consuming, and if it takes them a long time to buy, it can be draining for their real estate agent, and if prices are rising, it can shrink the odds of success.
  • Many Realtors prefer to work with sellers when the market is hot – which it nearly always is in Silicon Valley, since most homes do sell (while far fewer buyers buy).
  • Buyers who want to enlist a strong Realtor will need to be serious about home buying, able and ready (have the money and a pre-approval in place), and loyal as the starting point.  Your real estate licensee may ask you to sign a buyer representation agreement, just as home sellers sign a listing contract. This will be required by law by mid-July 2024.
  • To be taken seriously, when you first contact your agent, DO:
    • share your full name
    • share your real contact info (including an email address that you actually check)
    • specifically what you are targeting
    • how you got their name
    • your timing and anything else important
  • Understand that we agents get many scammers approaching us. Do your best to look authentic. Scammers say “I want to buy a house in your area. Contact me on WhatsApp”.  If you sound like a scammer, your initial approach may backfire so badly that your message gets you blocked in the future. (I get several scammers texting me each week.)
  • If for any reason you haven’t done all of the above upfront, please correct it if needed over time. For instance, if you provided a “junk” email account and never check it, your agent may find your perfect home but not be able to inform you of it if you never look at those emails.
  • To keep your great buyer’s agent on your team, it’s imperative that you allow that Realtor to guide you, whether it’s getting preapproved with a strong lender, deciding on priorities (must have versus nice-to-have list), or moving quickly to view houses, or taking the paperwork seriously – or any other major step. You need to be as motivated as your agent!
    And communicate openly if there’s an issue. I’ve had clients tell me that the pre-approval needs to wait until they’ve been at their new job until a certain date. Whatever it is, ignoring requests given to help you without explaining the backstory won’t be good for your teamwork and could get you fired as a client. (Yes, Realtors sometimes fire their clients.)

    • If you fail to do these things, your agent may not feel like your odds of buying a house are good, or that the stress associated with doing so will be higher than necessary if you stall on taking the proper steps.
    • Put another way, if you hire an agent because of her or his knowledge and track record, but then don’t heed that agent’s professional advice, the relationship may not do well over the long run.  Think of it like a sack race: both people have to be going in the same direction, carefully working together, or it’s not possible to move well (if at all).

Below, we will go over in more detail how to get and keep a great buyer’s agent in a seller’s market or in any market, for that matter.

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Multiple offers are common right now in Silicon Valley

Multiple offers are common - sellers and listing agent discussing the open house and biddingMultiple offers are common right now in the Silicon Valley real estate market. With them typically come overbids and sky high sales prices. Clair and I have shown several homes that our buyers did not bid on but which got many offer contracts and which sold for 15 – 20% over list price just over the last 30 days or so.

The hottest part of the market seems to be properties under $2 or $3 million, depending on the area.

When there are tons of buyers lining up to purchase a home, the sellers have usually put a substantial amount of time, energy, and money into making their property look fantastic, and they also take a risk in pricing it low to attract a large number of home buyers.

Multiple offers are common when property sells fast – but it doesn’t always!

When there aren’t multiple offers, it could be location issues, condition of the property (or neighborhood), overpricing (the most common culprit), difficulty in viewing the home, or other missteps on the selling side.  Buyers today want a turnkey home in a superior location that’s in great shape – not remodeled 20 years ago or more – and they will pay a premium price for it.

When homes have been on the market for 3 weeks or more, this may be a great opportunity for buyers to be the lone bidder on it. Does it have the right things wrong? Can what is off be fixed? Is it only overpriced? I would suggest buyers focusing on all of the inventory and not just the hot new inventory.

Why is it that multiple offers are common now?

There are a couple of reasons why homes that are in great shape, priced low, and given good exposure to the market are selling so strongly now.

  • First, there is a dire shortage of inventory, or lack of supply.  This is a chronic problem, but it’s acutely so now due to the higher interest rates and home owners not wanting to sell. It’s unlikely for this to change anytime soon, unfortunately.
  • Second, because Silicon Valley residential real estate has a long track record with good appreciation, those who can buy want to do so. Many are empowered by the rising stock market. If they are here for the long haul, buying makes more sense than renting.
    • Many are purchasing with more than 20% down, and they will watch for an opportunity to refinance.
    • Others are buying all cash. Those buyers may be anywhere from 15% to 35 % of the successful home buyers.

The inventory crisis will likely improve a little as the year goes on because inventory normally rises with the peak being somewhere in the summer most years.  No guarantee – sometimes it doesn’t behave “as usual”.

How can you tell if a home is going to get multiple offers or what the selling price will be?

These are really two different, but related, questions.
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Why does it matter if the bedroom windows are small or high?

Younger home with large bedroom window, low to the ground

Younger home with large bedroom window, low to the ground

If you are buying or selling an older ranch style house or historic home in Silicon Valley, there’s a good chance that original bedroom windows may be smaller or higher than your home inspector might like.  What is the big deal with the height or size of the windows?  The inspection report may mention ingress and egress.

On this site and others of ours, we bring up health and safety topics from time to time. For example, we shared info on unsafe electrical panels here. In the case of fire or other emergency, children and adults may need to get out and rescue personnel may need to get in. If bedroom windows are poorly configurated, the room could end up being a death trap.

For fire safety, it’s important that:

  • bedroom windows be an escape route for persons in the home (egress) – for this, they must be low enough to the ground and big enough so that children and adults can both get out in case of an emergency
  • emergency responders such as fire fighters, with their large backpacks on their backs, can get in through the same openings (ingress)

When windows are too high, kids, and perhaps adults, cannot get out through them.  And no matter how low or high, if the windows are too small, emergency personnel cannot enter through them.

Bedroom windows and safety: how big and how low do the windows need to be?

There are varied requirements, and exceptions, depending on whether the home is new construction or a remodel. Additionally, there are different rules for basements and 2nd story bedroom windows. Cities and towns each have their own codes, too.  Your best bet is to check with your particular town or city to see what you must do if remodeling or replacing your windows.

In Los Gatos, ground floor windows must be

  • no more than 44″ off the ground
  • at least 20″ wide
  • at least 24″ tall
  • There are additional requirements, though – please see the link at the bottom of this article to view the details.

San Jose’s requirements are similar.

City of San Jose: Window Replacement Requirements

All sleeping rooms and basements – Must meet these specifications:
– Minimum 5.7 square feet opening*
– Minimum height of 24 inches
– Minimum width of 20 inches
– Maximum height to bottom of clear opening of 44 inches
* In order to meet the required 5.7 square-foot opening, either the width or height or both must
exceed the minimum dimensions shown. If bottom of clear opening is le

When remodeling your home and switching from single pane to dual pane windows, many people will be tempted to use the same sized windows with the new replacement set in order to save money, and in many areas, skip the need for permits and finals by not disturbing the stucco.  But rather than target the least expensive way to upgrade your windows, I’d like to suggest making safety a priority.  Upgrade not just your home’s energy efficiency, but its safety too.

 

Ranch style house with original casement windows

Ranch style house with original casement windows – impossible for ingress by emergency personnel.

 

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Surrey Farms neighborhood in Los Gatos

Surrey Farm Neighborhood Los Gatos CA (Silicon Valley)A Los Gatos neighborhood which is “close to town” but feels further out is the highly sought after Surrey Farms area, located off Kennedy Road less than a mile from Los Gatos Boulevard, and less than 1.5 miles to all the local public schools:  Van Meter or Blossom Hill Elementary, Fisher Middle, Los Gatos High. Adjacent to Surrey Farms is the independent Hillbrook School.

About Surrey Farms

There are about 70 single family homes or houses in Surrey Farms, most of them on quarter-acre to half-acre lots, but a handful are on over half an acre, and four are over one acre.  The houses were mostly constructed from the mid 1950s into the mid 1960s, though development has continued since with over 30% of homes built between the 1970s and 2010s.  Original construction was all done in the “ranch style” and consisted of about 2,000 to 3,000 SF in most cases.  Today many have been remodeled, enlarged or even fully rebuilt, and the home sizes are bigger, currently with 50% of them over 3,000 SF and more than 15% over 4,000 SF.

More land is slated to be developed soon, with 12 units (2 story homes) proposed for the 12 acre parcel which is currently under contract with some kind of contingency (it is listed at about $16 million). That’s all that I  know as of right now – things could change.

 

Surrey Farms Gate

 

Regarding the name: folks in Los Gatos do call this subdivision “Surrey Farms”, but I did some research on the county records and it appears that the original name was “Surrey Farm” – singular!  My best guess is that it was a farm or horse ranch by that name prior to the housing being built…but that would take a bit more research that I haven’t yet done.

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Cambrian Park: Good Schools, Low Crime, Close to Los Gatos and Campbell

Cambrian Park, or more broadly, Cambrian, is a west San Jose neighborhood or district and is one of the high-value areas in Silicon Valley. The schools are good, the crime is low, and the commute is not too bad.

Cambrian Park Plaza signFor people relocating to Santa Clara County, this is a place to know about since quality education and affordability are often high priorities! Most Silicon Valley home buyers would say that Cambrian Park real estate offers a very good value.

What’s the compromise for the more reasonable prices of homes for sale? Well, Cambrian doesn’t have an interesting, upscale downtown area like Campbell, Los Gatos, Saratoga, or Willow Glen. (It may, when the Cambrian Park Plaza redevelopment takes place.)

But it does have tons of shopping & restaurants and even a Farmer’s Market. It also enjoys a top notch hospital (Good Samaritan) and plenty of parks as well as a fantastic rec center with a large park adjacent to it, the Camden Community Center, which has loads of programs (including an after school program for youth), classes, and a fabulous pool.

Altogether, there are about 75,000 to 80,000 residents in Cambrian, spread throughout part of two zip codes, part of 95124 and some of 95118.

If there is a “central Cambrian Park”, it would have to be near the original Cambrian Park Shopping Center, which was the first actual mall in San Jose! That area is sometimes known as Cambrian Village.  People sometimes use the three names interchangeably: Cambrian, Cambrian Park, Cambrian Village.

 

Where is Cambrian Park? Map of approximate Cambrian Boundaries:

 


View Cambrian Area of San Jose in a larger map

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The Holidays: Should You Pull Your Home Off The Market?

Should you pull your Silicon Valley home off the market? A different way to do home Sales During the HolidaysAre  you thinking it’s time to pull your home off the market?

  • many sellers in late fall decide to withdraw unsold properties from the active real estate market
  • winter can be a good time to sell as the competition shrinks, and some homes look wonderful in their holiday finery
  • rather than pull your home off the market, you might consider keeping it on, but marketing it differently
  • we’ll suggest some strategies for holiday home marketing below

If you’ve been trying to sell your home in Silicon Valley but haven’t received an offer yet, don’t despair!  With our mild winters, you really can sell real estate any time of year, especially now, when inventory is so low.

When most sellers exit the market after Halloween, we typically see a higher absorption rate as serious buyers will be buying from the available inventory. That means your odds of success are higher!

Should you pull your home off the market? We think not, but don’t keep trying to sell it the same way!
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Why is inventory so low, and when will it get better?

Why is inventory so low? As of today, October 26, 2023, there are 796 single family homes for sale in Santa Clara County (population appx 2 million people). A year ago it was about 1165 and the end of October. Where have all the listings gone? And when will it get better for home buyers? (You can check Santa Clara County inventory and other real estate stats on this blog.)

Why is inventory so low: historical perspective, how low IS it?

Here’s a look at our houses for sale from Jan 1999 to today. Please note that the MLS has a problem with its data sharing feeds, and if I pull this same info in a month, some of the numbers (not just this month) will likely change.

Inventory 1999 - Oct 2023 for single family homes in Santa Clara County

 

Inventory Averages:

  • Inventory Oct 1999 through October 2022 (only Octobers, 24 months) = 2640.  Inventory was bloated during the Great Recession, so that’s not representative of “normal”.
  • If we consider just 2013 – Oct 2022 (10 Octobers), which I think is much more typical, the average inventory is 1403.5
  • The current inventory level is 57% of the last 10 years and 30% of the last 24 years (not including 2023 in the averages).

The lack of inventory is causing a lack of sales, layoffs in various real estate related industries, and pretty much economically challenging for Realtors, lenders, title and escrow people, inspectors, stagers, photographers, and anyone else involved in the buying and selling of homes.

We have a supply and demand imbalance, with demand outpacing supply but available homes for sale low.

Why is inventory so low?  What is causing the shortage?

Next, let’s consider the root causes of the problem, and which ones may not be ongoing.
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Verbal offers to buy real estate are a bad idea

Verbal offers - are they real? Image of a house with those words and a real estate agent on the phone in front3What  are verbal offers to buy a home?

Simply put, these are when a home buyer and his or her or their agent write up a bid on a proper form such as the PRDS or CAR contracts, but orally or otherwise casually tells the seller or the listing agent of a price that the buyer would offer for the property.

  • Communication from a buyer or buyer’s agent that the client would like to purchase the property for a particular amount of money.
  • Sometimes they also include some of the contract terms, such as “all cash offer” or “no contingencies” or “30% down”.
  • Most of the time, the buyer doesn’t want to spend the time to write it up unless there’s a verbal assurance that the seller will accept the offer.
  • With a verbal offer (which could be in person, by phone, by email, by text, etc.), there’s no proof of anything – no proof of funds, proof that the disclosures have been reviewed, and so on.

This is a terrible idea, whether you’re a buyer or seller.  But why?

Verbal offers are not serious offers

First, there are a LOT of terms in the offer besides just the price.  They include things like the loan amount and percentage (80% loan to value ratio or something else), the amount of the initial deposit and when it will go to title, whether the buyer is preapproved or not, the number of days for various contingencies, how long the escrow should be, what personal property should be included, and much more.

Often those terms are extremely important.  Consider just one: all cash versus financed!  Verbal offers are usually only the price being floated by.

Written offers, not verbal offers, come from committed home buyers

If a home buyer is sincere and serious about purchasing property, he or she will get it in writing and be specific about the myriad of terms that are part and parcel of the agreement. A seller cannot fairly even consider a verbal offer because so many of the terms are simply missing in action.
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