Updated July 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.
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.
The annual median price declined slightly, by 2.8%, during the first half of 2019. If this continues, then this year will be the first decline in home prices since the financial crisis in 2008-09. Keep in mind that home prices have appreciated by 6% per year over the past 20 years. A nice return on investment, especially with $500,000 of the gain being tax-free.
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. The first half of 2019 suggests a decline of 4% to 7% across the board with Los Gatos being the lone exception (so far this year).
Market demand continues to be at historic highs as evidenced by the average days on market. The first half of 2019 is showing a slight increase in days on market reflecting a slightly decline in market demand from the previous two years.
Final sale vs. list price is a second indicator of market demand. The 2019 YTD average is significantly lower than previous years, reflecting a reduction in the number of offers. 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
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