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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Check the months of inventory to see if it’s a good time to sell your home!

Months of Inventory explained with an hourglassIs it a good time to sell a home in Silicon Valley? One of the best ways to get a pulse on the real estate market with an eye to selling or buying is with the months of inventory (MOI), also known as the absorption rate. This is the months of supply of housing for sale.

The months of inventory tells us how fast the current inventory of properties will be sold off if sales were to continue at the same rate with no new inventory were to come on the market.

The easiest analogy is with a bathtub full of water. If we added no more water to the tub, and the drain were opened, how much time would it take for the water to be depleted if it continued to empty at the same rate? That’s the question being answered with the absorption rate of inventory.

Or, simpler still, if you have an hourglass that you turn over, how long does it take for the sand to empty from the top (since you cannot add more sand to that end)?

How to calculate the months of inventory or MOI

The way to calculate the months of inventory is simple:  find the current available inventory of homes for sale (not under contract or sale pending), then find the number of homes with that exact criteria which have closed escrow in the last 30 days.  Divide the first by the second and you get the months of inventory. Or, I can just use the stats program on the MLS to generate that number, as I did today.

Earlier I pulled this data from MLSListings.com, our local MLS association (of which I am a member) and I ran the numbers for single family homes (houses and duet homes) in Cupertino, Los Altos, Los Gatos, Monte Sereno, Mountain View, Palo Alto, San Jose (all areas combined), Santa Clara, Saratoga, Sunnyvale. Separately, I also ran this same query for the City of San Jose by district.

The months of inventory by city or town in Santa Clara County

A balanced market for our area is 2-3 months of inventory (for most of the US it’s 4-6 months). Two months or less is a seller’s market, and one month or less is a very hot seller’s market.

Here’s a look at the months of inventory by city or town in SCC in April 2023 for single family homes.  As you can see, the vast majority of the county is a strong seller’s market, with the only exception being Los Altos Hills.

 

Santa Clara County months of inventory by city in Santa Clara County - single family homes for April 2023

 

Which are the hottest markets?  They’re the ones with the smallest months of inventory -Sunnyvale, Santa Clara, Cupertino, Milpitas and many more are well under the 2 month market. A few are a tad higher and in the “balanced market” area, and only one is in a deep buyer’s market.

The months of inventory by area within the City of San Jose

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Finding Mid-Century Modern and Eichler Homes in Silicon Valley’s West Side

Mid-century modern homes, including those designed by Joseph Eichler, dot the Silicon Valley & South Bay Area real estate landscape.  There are probably more than 5,000 Eichlers in Santa Clara County altogether, plus all the other homes of that genre with the similar modern style, which was influenced by the ranch and prarie styles as well as the dramatic work by Frank Lloyd Wright (open beam ceilings, nearly flat roofs, lots of exposed wood & glass windows stretching from the floor to the ceiling).  Eichlers, especially, put a premium on privacy from the street but open to the outdoors otherwise.

Not every community in Santa Clara County has Eichler homes, but most have the mid-century modern style homes & neighborhoods. These homes vary from tiny, modest cottages of 1100 square feet to large & elegant  houses of nearly 3,000 square feet, featuring big, central atriums or courtyards.  (There are also some co-ops in the valley too.)  The quality varies, as the homes were constructed by several different builders with different home buying budgets in mind.  Real estate prices range from “entry level” to very expensive, depending on the location (city and schools), size of the home & lot, and condition of the property. Most of them are now about 50 years old, though some are a little younger.

Some of the West Side Silicon Valley Communities which feature Eichler and Mid-Century Modern Homes

In Los Gatos there are no Eichlers but there are a small handful of single family homes which are mid-century modern on Eastridge Drive (just off Blossom Hill Road and Hillbrook). There are a couple more at the end of Magnuson Terrace (off Magnuson Loop and Los Gatos Blvd).  Additionally, there are some smaller mid-50s homes on El Gato (and adjacent portions of Escobar) off of Los Gatos-Almaden Road. Unfortunately, not all of these homes are “well kept”, though many are.

An Eichler home in Saratoga - beautiful mid-century modern houseMonte Sereno is home to 16 Eichler houses on Via Sereno beginning at the intersection of Winchester Blvd with Via Sereno.  These houses were built in the late 60s to early 70s.
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Over improving a house for the neighborhood

Beware over improving a house or yard for the neighborhoodOver improving a house for the neighborhood is not a terribly uncommon happening. If you’re going to live somewhere for 30 years, you may not be worried about return on investment or overspending for the neighborhood so much as enjoyment of your property.

How do you know if you’re spending too much on your house, condo or townhouse?  How much is too much?

Over improving a house – some basic concepts

There are no hard and fast rules, but overall, it is best to not have the most expensive home on the street or in the area, either from added square footage, extreme remodeling or  using materials that are too expensive for the neighborhood. It is even worse if yours is the most expensive real estate by a wide margin – the wider it is, the worse!

There are two real estate principles which are helpful to know about and understand. The smaller, less improved or generally lower priced homes will pull down the value of a better home (that is the principle of regression).  Conversely, if your house or condo is less expensive than nearby homes, those more prices properties will raise your home’s value (the principle of progression).  In terms of getting the most back on your improvements, then, it’s best to make sure you can catch the tail wind of better properties and get pulled up by them, rather than have your improvements’ value pulled down by lesser properties.

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Comparing cost of housing in West Valley communities from Palo Alto to Los Gatos to Blossom Valley: what will a 4 bedroom home cost?

Sketch of houseIt can be really challenging for people moving to Silicon Valley to get a sense of real estate prices, and perhaps more, comparing cost of from one town or district to another.

One question I get a lot is this: what does it cost to buy a 4 bedroom, 2 bath house of about 2000 square feet?

So to answer this question, let’s see what houses like this are selling for (4 bed, 2 bath, appx 2000 SF or 185 square meters) and see how the cost looks in one Santa Clara County / Silicon Valley area versus another.

Comparing Costs

Today I compared several areas and cities using this criteria: single family homes of 1800 – 2200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 6000 SF to 10,000 SF. Normally I would chart this over the last 2 months, or 60 days, but because of the low inventory causing the sellers market I have expanded the search to the last 3 months, or 90 days, for a better range. Because some areas have had a scarcity of inventory, I’ve added an addition to the chart titled NoS for Number of Sales within the given range.

Here’s how it shakes out in the “west valley areas” along the Highway 85 corridor, most of which are known to have good to great public schools. What areas are most affordable? One way of analyzing this is the “price per square foot” figure. Whenever I update the chart, I re-arrange the order of the cities from high to low based on the price per square foot, although there’s usually minimal movement.

 

Feb 2020 Sales Comparisons

 

Within this range, Campbell only had one sale over the last 90 days, so data for that segment may or may not be a good average. Both Los Altos and Saratoga had no sales within the last 90 days within these criteria, so their searches have been expanded to 0-180 days (or 6 months / half a year) and 0-120 days (or 4 months / a quarter year) respectively to provide data for comparison for this chart. Now that we have the data, let’s analyze it!

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Sellers: should you have an “offer deadline”?

Offer DeadlinesIt’s a seller’s market in Silicon Valley right now.  Many sellers are getting multiple offers and overbids, especially in Cupertino, Sunnyvale, Mountain View, Palo Alto and Menlo Park.  For home owners trying to maximize their sales price, does it make sense to have an “offer deadline”?

Maybe.

If you are pretty confident that you can get multiple offers, the deadline helps in a few ways.

  • it prevents the offer situation from being a mere “foot race” (fastest one wins, rather than highest offer and best terms)
  • it allows everyone enough time to see the house, read the inspections, disclosures etc.
  • it provides enough time for the sellers and agents to plan

As with all strategic plans, this one can backfire too.  If you or your agent publishes an offer deadline and then no bids are forthcoming, it’s more than just a let down.  It’s a market signal that this home is overvalued by its owner and agent.  Then, suddenly, it can appear to be an old or stale listing, even if it’s just been on the market 7 to 10 days.

Many real estate agents take a middle path, saying nothing about offers until agents ask. If they are asked, they will give a date in the future – usually a couple of days after the open house.  But the MLS won’t say it for these agents unless they hear many buyers’ agents asking about offer presentation.  They don’t want to look bad, they don’t want your house to look bad.

We never know until a property goes on the market how it will fare.  It is wise to be cautious about advertising an offer date unless you are very certain that you will be seeing multiples! The market right now is a little funny. Homes priced aggressively are getting multiple offers. Homes priced AT value are not moving quite so fast. And homes price for values in spring of 2018 are not selling well at all.

 

 

 

 

Los Gatos Shakespeare Festival at Oak Meadow Park

Los Gatos Shakespeare FestivalEach year, the Los Gatos Shakespeare Festival returns to Oak Meadow Park in Los Gatos for a fabulous run over about 4 weeks with 3 plays, 2 by The Bard and one by a more contemporary playwright.

All shows begin at 8pm so dress warmly as the nights cool down a lot.

For the 2015 season, which begins July 17th and ends August 8th, these shows will be performed:

The Tempest

Pericles

The Adventures of Cyrano!

Get all the details at http://www.fteshakes.org/los-gatos/

Additionally, prior to this presentation, there are shows which are insanely affordable, and slightly earlier, at the Full Circle Farm in Sunnyvale.  This series, with the same shows, runs from May 30 to June 27th with curtain at 7:30pm or 8pm.  Learn more at http://www.fteshakes.org/sunnyvale/

To get all of the specifics and to order your tickets, please visit the Festival Theatre Ensemble online right away:

http://www.fteshakes.org/

 

See you at the theatre!

 

 

 

Santa Clara County Market Update By School District Q1 2014

Today I’m sharing with you Silicon Valley real estate statistics which were presented to me by my company, Sereno Group. These are “by school district” and I think you will find them immensely insightful! First, though, a brief commentary on the overall findings, then statistics for single family homes (mostly houses but a few “duet homes”) in Santa Clara County, and lastly, the same info but for condominiums and townhouses.

 

Sereno Market Report Intro May 10 2014

 

Please find the real estate market statistics by school district in the Santa Clara County area next.  Please note that the San Jose Unified School District is extremely large and varied, and the numbers would be very different if you were narrowing it to Almaden Valley with Leland High School as opposed to some areas which are not performing nearly as well.

 

Market Report By School District Quarter 1 2004 Single Family Homes

 

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San Francisco and San Jose – Sunnyvale – Santa Clara areas named as among the most dynamic in the world

San Francisco and the San Jose – Sunnyvale – Santa Clara metro areas were named named as among the most dynamic in the world in a study from Jones Lang LaSalle, a commercial real estate firm, as reported in MSN real estate news recently.  Silicon Valley is a bit of an amorphous thing, with loose boundaries which seem to be as much a state of mind as a geographical location.  Even so, The Valley has been inching northward through the Peninsula into San Francisco in recent years, so it is no surprise that with our current tech boom, both areas made the list.  I think it would be a mistake to think that the San Francisco Peninsula isn’t included generally since it’s book-ended by these areas.

Where else is named?

  1. San Francisco
  2. London
  3. Dubai
  4. Shanghai
  5. Wuhan (China)
  6. New York
  7. Austin
  8. Hong Kong
  9. San Jose (metro area: includes Santa Clara and Sunnyvale, and presumably nearby)
  10. Singapore

Get the whole story here:

http://realestate.msn.com/blogs/post–the-most-dynamic-cities-of-2014

 

 

 

One of the happiest places in the U.S.: the San Jose, Sunnyvale, Santa Clara metro area – Silicon Valley!

State of American Well Being - San Jose - Sunnyvale - Santa Clara ranks 5th in U.S.MSN real estate tends to feature real estate news in bite-sized slide shares with images (and links for home buyers to search properties listed for sale on Realtor.com). A new study, more complicated and comprehensive than would normally be published for consumers to digest,was summarized there from Gallup and Healthways Well-Being Index, known as The American State of Well Being study, a poll of 178,000 people in 2013 across the country.  The distilled info is broken down by state, metro area or city and also by congressional district.  San Jose – Sunnyvale – Santa Clara (the metro area in Santa Clara County, what we would call Silicon Valley) came in quite strong!   MSN picked it up, condensed the info and provided a list displaying a sample of homes for sale in the  10 happiest cities in the U.S., which you can read online here.

Not surprisingly for residents of The Golden State, California landed three of the ten spots.  Cites or areas named as where people are the happiest ones in the United States are:

  1. Provo, Utah
  2. Boulder, Colorado
  3. Fort Collins, Colorado
  4. Honolulu, Hawaii
  5. San Jose, California
  6. Ann Arbor, Michigan
  7. Naples, Florida
  8. San Luis Obispo, California
  9. San Francisco, California
  10. Lincoln, Nebraska

Silicon Valley, Santa Clara County and the San Jose area still are “The Valley of Heart’s Delight“, at least that’s how it seems when the locals are polled!

Because the San Jose – Sunnyvale – Santa Clara area is a “metro” area, it would seem to include these nearby towns and cities:  Los Altos, Palo Alto, Los Gatos, Monte Sereno, Saratoga, Cupertino, Mountain View, Campbell, Los Altos Hills and other parts of Santa Clara County.  Congrats to the whole South Bay region!

To learn more about this study and its results, please click on the Gallup-Healthways link above.