Rising Price Reductions, Winning the Beauty Contest, and Luxury Homes in our Market

Our summer days and market slowdown are slipping away. We’re excited to step into the new season with you all soon!

As the autumn season approaches, we are seeing an increase in buyer interest, a decline in competition, price reductions (on properties priced too high, not updated, etc.), an increase in inventory and days on market, and the continuation of [some] homes selling over the asking price. Selling a home over list price is a function of pricing. If you price your home below where it should sell, you may see multiple offers. This tactic can be risky in today’s market given all of the parameters we have going on at that same time. Mortgage rates have also since fallen below 5%, which may influence buyer interest and demand in the coming months. Pricing correctly out of the gate and winning the beauty contest makes Sellers win in today’s market!

With price reductions on the rise coupled with increasing inventory levels, now may be the perfect time for our Buyers to look into homes! Silicon Valley has on several occasions been ranked one of the top luxury real estate markets. Silicon Valley has several selling points for luxury real estate, from breath-taking views to landscapes of nature. This month, we at Silicon Valley and Beyond have curated a guide to Silicon Valley luxury real estate and several places you can buy luxury homes. Check out the full blog at SVAB365.

As always, if you have any questions about this month’s market conditions, or buying or selling a home, please don’t hesitate to reach out to us. Our team at Silicon Valley and Beyond often helps our clients plan 2+ years out. Please do not ever think that contacting us is too early in the process. We handle everything—including planning moves!

We are updating our Vendor Directory that we’ve published in the past. Please let us know if you have 1, 2, or more small businesses with whom you love working. Just reply back to this newsletter and we will be happy to add your recommendation! Once we’re done with our newest edition, we will be sending out the new and improved Vendor Directory this fall.

Let us know if you’d like to chat about what we are seeing in the current marketplace. Book a 15-minute call with Dawn here.

Here’s to creating a better future,

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

Brian Brunetti
Realtor – Senior Sales Associate

Charles “Chuck” Holcomb
Realtor – Sales Associate

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.

Lot 1 of La Terra of Los Gatos
16100 Greenridge Terrace, Los Gatos
Multiple potential building pads
Approximately 7.76 acres
Offered at $3,950,000
650-701-7822 – Dawn
408-367-0322 – Chuck
831-239-9890 – Brian

3160 Vistamont Drive, San Jose
650-701-7822 – Dawn or
831-239-9890 – Brian

3765 Farm Hill Blvd., Redwood City
Large, remodeled Farm Hill Estates home offering 4 bedrooms, 3 1/2 bathrooms, swimming pool and a private entrance to Stulsaft Park
Offered at $3,800,000
650-701-7822 – Dawn or
408-367-0322 – Chuck

951 Blair Court, Palo Alto
Rare, large Eichler home with flexible floor plan in Triple El. Live in one portion of this large home and rent out the other—2 kitchens, 3 entrances, 2 mailing addresses
Offered at $4,000,000
650-701-7822 – Dawn or
831-239-9890 – Brian

2960 Sanor Place #104, Santa Clara
831-239-9890 – Brian

La Terra Development
0 Santella Drive, Los Gatos
(above The Highlands off of
Santella Court)
Modern, Luxury Development
8 multi-acreage lots with infrastructure and sweeping views of Silicon Valley! Entire 36+ acre development
Offered at $21M including completed roads, curbs and gutters and utilities
Please reach out to us for more information and pricing at VIP@SiliconValleyandBeyond.com
650-701-7822 – Dawn
408-367-0322 – Chuck
831-239-9890 – Brian

60 acres in the Soquel Mountains
0 Old San Jose Road, Soquel
10 minutes from town
3 building pads on sight
Offered at $1,245,000
831-239-9890 – Brian

12120 Viewoak Drive, Saratoga
760 University Avenue, Palo Alto
4575 Sidlaw Court, San Jose

2621 Willowbrook Lane #108, Aptos

Market Conditions in Silicon Valley and Beyond

Despite markets continuing to slow and cool, buying and selling continue. In July, over 5200 home sales were reported to MLS from Napa County to Monterey, with many homes selling for over the asking price. 58% of sales closed over the final list price in San Mateo; 51% in Santa Clara; and 55% in Santa Cruz.

As of August, mortgage rates have fallen below 5%. Buyer interest also has seemingly begun to increase with the decline in competition, price reductions, and increase in inventory. In all three counties that we serve, price reductions on active listings have soared; up by 138% in San Mateo, 194% in Santa Clara, and 133% in Santa Cruz. With recent price reductions, there is no better time for those who are looking into moving or buying a home. In Bay Area, the luxury home market can get you 5+ bedrooms, 4+ bathrooms, and 4,000+ square footage home. In San Mateo, this equates to the median square footage of 5,310 and a median sales price of $7,045,000. In Santa Clara, the median square footage of 4,899, and a median sales price of $5,005,000. Similarly, in Santa Cruz, the median square footage of 4,780, and the median sales price of $3,150,000.

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

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