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The Local Lowdown
Quick Take
- Median sale prices in Santa Clara County continue their impressive growth streak
- Inventories remain higher on a year-over-year basis
- Listings are spending more time on the market across the board
Note: You can find the charts/graphs for the Local Lowdown at the end of this section.
*National Association of REALTORS® data is released two months behind, so we estimate the most recent month's data when possible and appropriate.
Santa Clara County median sale prices haven’t decreased in more than 12 months
While median sale prices have remained incredibly resilient throughout Silicon Valley, the single-family home market in Santa Clara County has remained incredibly strong. In fact, we haven’t seen median sale prices for single-family homes in Santa Clara County decrease on a year-over-year basis in more than a year. This steady up and to the right trajectory is astounding, given the inventory headwinds that the real estate market has experienced lately. However, it is worth noting that while Santa Clara County real estate has performed spectacularly, the entire Silicon Valley has more than retained its value throughout the same time period.
Inventories grow as fewer homes sell throughout Silicon Valley
Although median sale prices are holding strong in Silicon Valley, the area is experiencing the same phenomenon that much of the Bay Area is seeing. That phenomenon is the rise in inventories! The Silicon Valley single-family home market had 7.63% more inventory on the market in July on a year-over-year basis. The condo market saw an even steeper 25.86% increase. These increases can largely be attributed to the fact that homes aren’t selling as quickly as they were last year. In July, there were 2.64% fewer single-family homes sold and 21.76% fewer condos sold when compared to last year!
As inventories grow, listings continue to spend more time on the market
As you might already know, an increase in inventories often comes hand-in-hand with an increase in the amount of time it takes a listing to sell. The Silicon Valley market has largely not been an exception to this rule. Single-family homes in San Mateo and Santa Clara Counties are spending more time on the market than they were last year, while the amount of time homes in Santa Cruz County spend on the market has remained unchanged. With that being said, the single-family home market is still hot, with the average home being sold in less than 2.5 weeks throughout the entire Silicon Valley.
The single-family home market in San Mateo and Santa Clara Counties remains profoundly competitive
When determining whether a market is a buyers’ market or a sellers’ market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller’s market, whereas markets with more than three months of MSI are considered buyers’ markets.
San Mateo and Santa Clara County single-family home markets have been incredibly hot for quite some time, and that trend has continued. They remain fiercely competitive markets, with just 1.7 and 1.5 months' worth of supply listed on the market. The single-family home market in Santa Cruz County is more buyer-driven, with 4.3 months' worth of supply on the market. Lastly, the condo market is entirely buyer-driven, with 3.6 months of supply on the market in San Mateo County, 3.4 months of supply on the market in Santa Clara County, and 5.7 months of supply on the market in Santa Cruz County.
