Updated January 2019
Buying a home in Silicon Valley can be a daunting task. First, buying a home is one of the biggest financial decisions in a lifetime, no matter where you live. Finding a home in Silicon Valley that fits your budget can be gut wrenching.
Keep in mind that the process can be pretty straight-forward. Extensive amount of data is available to help educate yourself on your options. Lenders are readily available to help you to determine a budget that you can afford. Put the two together and the numbers speak for themselves.
The charts below and throughout this website provide you with extensive information on our housing market. Information on 12 distinct cities in Silicon Valley are available under the “Our Homes” tab. Info on schools within those cities is available under the “Our Schools” tab. I am also available to provide a custom overview upon request.
Enough of the preamble, let’s get started.
As is painfully obvious, single family residences in Silicon Valley start at $1.0M. The good news is that there are a lot of homes in the $1.0M to $1.5M price range, predominately in Santa Clara, Campbell, Cambrian and Willow Glen areas of San Jose. There are homes under $1.0M outside of the 12 cities that I include in Silicon Valley: Blossom Hill area in south San Jose and east San Jose. Go to the specific city to see the distribution of prices by size of home (e.g., number of bedrooms and $/SQFT).
Condos and Townhomes start at $500K. The majority of Condos/THs are two-bedroom units with next most popular being three-bedroom units followed by one-bedroom units. Townhomes are typically more expensive as there is usually no one above or below you. End-units are also more expensive as they have fewer shared common walls.
Silicon Valley real estate has proven to be an excellent investment with an average appreciation rate (CAGR) of 6.0% over the past 18 years, which includes a 20% drop during the financial crisis. The past five years has seen an average of 12% per year, . A lot of this appreciation can be tax-free with the $500K exclusion for married couples.
Annual appreciation rates do fluctuate. The Great Recession financial crisis is the only decline with -5.7% in 2008 followed by -15.2% in 2009. The burst of the Internet bubble in 2000 resulted in four flat years. I suspect the dip in 2016 was due to the crash of the Chinese stock market in the summer of 2015. An annual appreciation rate of 8-10% appears to be more the norm.
Appreciation rates also vary by city, however a single year can be misleading. For example, in 2018 Sunnyvale appreciated 9.4% which is slightly lower than the Silicon Valley average of 10%. This is a slow-year after 18% in 2013 and 2014 and 15% in 2015 and 2017. Overall, it appears all 12 cities in Silicon Valley rise with tide over time.
Market demand continues to be at historic highs as evidenced by the average days on market. Homes are selling at around 20 days on market for the past five years. Note this is the average. The details by city show that a majority of the homes sell after one or two weekends on the market.
Final sale vs. list price is a second indicator of market demand. The average across Silicon Valley remains at historic highs near 8% over list. Note that the majority of homes selling after one or two weekends on market are selling higher than this due to multiple offers. The city pages show this in more detail.
The supply of New Listings has been fairly consistent over the past five years. The new construction of single family residences is virtually frozen due to lack of undeveloped land. There is significant new construction of Condos and Townhomes which helps.
This website is dedicated to providing you with insightful and accurate information on the residential real estate market in Silicon Valley. The data is obtained directly from our local multiple listing service (MLS), which is used by virtually all Realtors in the area. Closed Sales information, such as final sales price, is obtained by the MLS from County Records. All most all of the charts and analysis is for single family residences with information for Condos and Townhomes in Mountain View and Sunnyvale also being available. This information is deemed to be accurate, however is not guaranteed.
Complete guide to schools, ratings and attendance boundaries. Most Silicon Valley cities have multiple school districts with individual schools with varying academic performance. Ratings are provided by GreatSchools.net along with the California Academic Performance Index (API).
A great overview of how Silicon Valley communities differ and their various features: restaurants, shopping, transportation and more.
The market data comes from MLSlistings the primary Multiple Listing Service (MLS) serving Santa Clara and San Mateo counties. The information is deemed to be accurate, however is not guaranteed.
This website and market analysis is provided by Bryan and Susan Sweeley, Broker Associates with Alain Pinel Realtors.
Bryan Sweeley, MBA
Alain Pinel Realtors, Broker Associate, BRE# 01877044
Susan Sweeley, MBA
Alain Pinel Realtors, Broker Associate, BRE# 01255460
More information or help…
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