Effects of Bank Failures, Rebounds in Market Activity & Low Inventory

Happy April – let’s bloom this homebuying season!

As the spring selling season gains traction, market activity rebounds as buyer demand and overbidding percentages continue to climb. Inflation rates have dropped significantly from 6% to 5%, continuing to decline from its peak of 8.9% in June! Mortgage rates have also trended further down after inflation rates declined this past week, however, the number of listings coming on the market continues to be extremely low. Many potential sellers have been holding off from listing their homes but…


The differences between this market and the market we experienced in 2008 are that in 2008 – WE HAD INVENTORY TO SELL. Right now, we are in an extreme shortage of available homes! Most homes priced under $2.5M-$3M in most Silicon Valley cities are selling with multiple offers (much different than what the headlines have reported!). Yes, the interest rates have risen, but so will home prices. Lenders are also offering programs like 3-2-1 buy-downs (less 3% 1st year; less 2% 2nd year; less 1% 3rd year). Let us know if you would like a personal introduction to one of our long-time, preferred lenders.

For more information on the current market, interest rates, and housing affordability, make sure to check out an updated report for Macroeconomic Factors & Indicators Pertinent to the Bay Area and Annual Home Prices in Santa Clara, Santa Cruz, and San Mateo.

This month, we’ve also compiled a list of activities in and around Silicon Valley to help you and your family enjoy the spring in full bloom! From coastal walks at Pillar Point Bluff to noontime concerts and outdoor art exhibits, check out the full blog at SVAB365.

Considering relocating or making a move? Let us know if you want to review your options. We are master negotiators. Please do not ever think that contacting us is too early in the process. We handle everything—including planning moves!

Here’s to creating a better future,

Dawn Thomas
Broker Associate – Team Leader
DRE# 01460529
Dawn is certified from the Program on Negotiation at Harvard Law School

Brian Brunetti
REALTOR® – Senior Sales Associate
DRE# 02028412

Charles “Chuck” Holcomb
REALTOR® – Sales Associate
DRE# 02084164

The Dawn Thomas Team guides nice people through real estate matters in Silicon Valley and beach communities of Santa Cruz County. Our mission is to inspire and create the most remarkable real estate experience — one person, one family, one home, one neighborhood at a time. Contact us today and we can assist you in selling or buying your home.

La Terra Development
Video Tour

0 Santella Drive, Los Gatos
(Above The Highlands off of
Santella Court)
Modern, Luxury Development
7 multi-acreage lots with infrastructure and sweeping views of Silicon Valley! Entire 28+ acre development
Offered at $17,500,000

*Utilities are at each site (PG&E, public water, public sewer)
*Curbs Gutters, paved main roads, + stamped concrete entrance are completed
*Ready to sell NOW!
*DRE White Paper in hand ready to develop

Reach out for more information:
650-215-5991 – Chuck
650-215-5992 – Brian
650-215-5990 – Dawn

We’d love to feature your property here!

13305 Pierce Road, Saratoga
Multiple offers – SOLD way over list price

0 Old San Jose Road, Soquel

5706 Holland Lane, San Jose
Darling 4-bedroom ranch home in the New Holland neighborhood of Cambrian. Light, bright, and great space for the list price!
Offered at $1,399,000
Open Sat/Sun 1-4 pm both days
650-215-5991 – Chuck 
650-215-5990 – Dawn

7232 Glenview Drive, San Jose
Expansive, 180-degree Silicon Valley views can be seen from this gorgeous, large Country View Estates home in Almaden Valley! Fabulous floor plan for families and a wonderful home for entertaining!
650-215-5990 – Dawn
650-215-5992 – Brian

1 Rockview Drive, Santa Cruz
Absolutely stunning Pleasure Point waterfront home with a 7-figure remodel and a seawall (one of less than about a dozen in Santa Cruz County). This home is ON the water—no street or trail in between you and that ocean breeze! Check out the Property Video
650-215-5992 – Brian
650-215-5990 – Dawn

16100 Greenridge Terrace, Los Gatos
Build your dream home!
Approximately 7.76 acres with multiple building pad options!
NEW PRICE $2,975,000
650-215-5991 – Chuck 
650-215-5992 – Brian
650-215-5990 – Dawn

Market Conditions in Silicon Valley and Beyond

As the spring selling season gains traction, market activity rebounds as buyer demand and overbidding percentages continue to climb. Mortgage rates have continued to trend down for the spring homebuying season, however, the number of new listings coming on the market continues to be extremely low. Many potential sellers have been holding off from listing their homes due to the doubling of interest rates since early 2022.

Historically, under 1.5 months of inventory would indicate a low supply of active listings. In all three counties, months’ supply of inventory (MSI) indicates inventory of an average of 2 months or less. Home sales were also down year-over-year in all three counties we serve – with averages of 38% in San Mateo, 37.5% in Santa Clara, and 25% in Santa Cruz.

We need more homes to sell! For those who are considering moving or selling your house, here are the Bay Area Median House values in the three counties we serve. The median sales price for a home with 3 beds and 2 baths is $1,393,000 in Santa Clara, $1,150,000 in Santa Cruz, and $1,550,000 in San Mateo.

For more details on market conditions in Santa ClaraSanta Cruz, and San Mateo counties, click on the images below.

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