Realty One Group
Silicon Valley, CA
The following is a synopsis of the current real estate market up to the end of April, 2019. Since there is no slow down in growth in the area after a brief price correction, the market is still active as ever. This area encompass Santa Clara, Sunnyvale, Cupertino and west San Jose, west of central San Jose, CA.
They consist of single family homes between 1,200 to 2000 sf living space in homes that are relatively closer to most high tech job centers. The congested traffic has discouraged outline neighborhoods as it is getting close to a crawl taking forever getting and coming back from work. These homes are tract and most have been updated with newer kitchen, baths, hardwood flooring. Drought tolerant yard is becoming popular as watering days are regulated and fined.
In the first chart shaded in yellow is the historical average home prices (1,200 to 2,000 sf). It starts at the beginning of home recovery, The short sales, and reo did not affect this area as the major employers like Apple and Google were still adding staff during the Great Recession. They could not even find enough qualified US college grads trained in computer science, technology or engineering in general.
The 2018 price erosion was expected. There was just no way these homes will sell $300K over the past sale with that many crazy offers in one weekend. People flocked from one home making a high offer and tried next one until they are blessed some kind seller will talk to them. Since the end of 2018 there has a recovery in home sales again. Average homes sales were at $1,786K vs $1,415K up +25.9% in a few months. In the next two months we will know how the rest of 2019 and 2020 will look. We have several ipos in the SFBA some are medium cap companies and a few $100K option sales certainly can afford these homes.
Figure 2 above shows how competitive home bidding has been. Rarely in the area one can get home at below asked. It did happen during the Great Recession and during lull months. But they both were short lived. One still needs to pay about 5+% over in these neighborhoods and full price is expected anywhere in San Jose City neighborhoods. During the peak season there are more inventory on the market and one needs to pay +10% than slower month.
Perhaps slower month is a misnomer. The area homes often have an accepted offer within 10 days. 30 days from last fall-winter experienced was an exception. If you see something close to what you like you need to hurry it up often making an offer.
The local economy is very solid and strong. Apple told Wall Street it will be a more service oriented company with slower growth in iPhone sales. Oracle, Paypal and SAP software will eject redundant groups with minor reduction in work force. Most will no problem finding work in other companies desperately needing help.
If you are seeking information or source about properties in SFBA in the following areas:
- Your real estate marketing information.
- A CMA(competitive market analysis) for your residence
- A rental or sale market analysis for an investment property
- 1031 tax deferred exchange on properties.
I've called San Francisco South Bay home for over many years. We love this area and all it has to offer, and I enjoy sharing what I know about homes. I documented in several books about Silicon Valley history.
I have much expertise in real estate and technology...please give me a call.
Silicon Valley Realtor Sam Shueh Website Phone (4-O-8) 425-1601