Market Trends – December 2022
The holiday season is here! We wish you the best this season and look forward to another year full of opportunities and new adventures. Thank you for your continued trust and support.
As 2022 comes to an end, market activity continues to cool. Increased price reductions during the winter months may be an excellent time for buyers to aggressively negotiate —and we are master negotiators.
Quick story: I, Dawn, was on a flight yesterday and sat next to a really nice guy who has been with Apple for 10+ years. He asked me what I do, and I told him that our goal is to create the most remarkable real estate experience one person, one family, one home, one neighborhood at a time. He then let the floodgates open with many questions about whether or not he should buy now. I explained that now is a great time to buy as there is way less competition for most homes (depending on what the home offers). Interest rates are temporary, and as soon as they stabilize or decrease, the competition will come back in droves. We have a saying, “Marry the house… date the rate!” Buy the house now when there’s not much competition and have the ability to allow us to negotiate much more on your behalf. Then, when interest rates come down, refinance. And for goodness sake, please do not listen to what the media is saying about real estate right now! 🙂
If you or anyone you know is looking for an amazing oceanfront property in Santa Cruz, please see Brian’s and Dawn’s video on why seawalls are SO important and how rare and valuable they are to find. You may have seen the recent news about West Cliff’s walking path erosion. We have a great listing that is truly not to be missed. The Coastal Commission has had a moratorium on seawalls for quite a long time. Even if you could build one, it would be roughly $2M. Details are below on our great listing, and here’s the direct site http://onerockviewdrive.com.
This season, we’re bringing out the holiday magic. To help set the pace and get you into the holiday spirit, we’ve compiled a list of activities in and around Silicon Valley for the whole family to enjoy. From light festivals to ice skating rinks and Pink Martini, 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’d love to hear from you! 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.
Happy Holidays from all of us to you!
Here’s to creating a better future,
Broker Associate – Team Leader
Dawn is certified from the Program on Negotiation at Harvard Law School
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.
1 Rockview Drive, Santa Cruz
Absolutely stunning Pleasure Point waterfront home with 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
NEW PRICE $5,690,000
831-239-9890 – Brian
650-701-7822 – Dawn
COMING SOON / PRIVATE EXCLUSIVES:
13305 Pierce Road, Saratoga
Rent out the nearly 2900 sf home while you obtain plans/permits to build your dream home on this beautiful approximately 1-acre lot on the flat portion of Pierce Road!
Offered at $2,999,000
650-701-7822 – Dawn
408-367-0322 – Chuck
COMING SOON – DEVELOPMENT OPPORTUNITIES:
La Terra Development
0 Santella Drive, Los Gatos
(Above The Highlands off of
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 and paved main roads are completed
*DRE White Paper in hand ready to develop
Market Conditions in Silicon Valley and Beyond
Market activity shows there is no better time than now for buyers! In all three counties we serve, November 2022 reflects inventory that has more than doubled since the pandemic boom. Year-over-year, the number of listings-accepting-offers and overbidding has declined significantly, whereas, the average days on the market and unsold listings have doubled.
Atypical of the state trend, the percentage of all-cash buyers declined to 20% in 2022 from 22% in 2021 in California. Luxury and higher-price home sales have also declined rapidly in 2022. In Santa Clara, higher-price home sales were down 57%; Santa Cruz shows a decline of over 50%; San Mateo shows a decline of approximately 53%.