Often the Silicon Valley real estate market takes a bit of a nosedive in December and January, only to make a comeback after the SuperBowl. Just now I ran the stats for the city of San Jose, which is big enough, at about 1 million people, to provide a good sense of the market generally.
Below please find a simple chart reflecting houses sold with the days on market and sale price to list price ratio. You can see, clearly, that the SP to LP ratio dips noticeably in December & January, and also that the days on market rise.
Even so, how bad was it? The average DOM was 38 (break-neck speed in any other part of the country) and the average SP to LP ratio fell to “only” 102%.
That was it – that was the “break” that buyers get in winter. Things are reversing course, as often they do in February, March, and April, and multiple offers with big overbids are again the major story in San Jose and throughout the Silicon Valley region. Just this last week I heard of a home in this valley that got 45 offers.
Home buyers, want to purchase this year? Your best bet is to be financially well equiped with 25% down or more if you are buying in any of the hotter areas. This is a nearly impossible market for FHA home buyers or for those with less than 20% down.
Home owners, want to sell this year? You can maximize your return by doing smart fixes and thorough inspections to make buyers feel confident about purchasing your property. That confidence can change the game and bring 10 offers where there might have been 5, and with the larger numbers of bidders usually there come also much larger sale prices.
Call me or email me if you would like to discuss working together and getting your best deal in the current Santa Clara County realty market.
Related reading:
Why do sellers care if the offer has a loan or is all cash?
Home selling? Small fixes that make a big, positive difference.
Shopping for what you can afford: how not to depress yourself while house hunting in Silicon Valley
Homes for sale in San Jose
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$1,968,000-
Lot Size6,935 sqft
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Home Size1,911 sqft
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Beds4 Beds
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Baths3 Baths
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$469,000-
Lot Size
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Home Size947 sqft
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Beds1 Bed
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Baths1 Bath
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(all data current as of
10/1/2023)
Listing information deemed reliable but not guaranteed. Read full disclaimer.
