Summer Heated Listings and Hot Price Reductions
What we are telling all of our clients considering selling:
“It’s a race (to the finish line) and a beauty contest right now [when trying to sell a home].”
The race is that you don’t want your neighbor selling first and essentially dictating how the market will view the value of your home. The first person out wins in this market!
Summer is in the air! To continually strive to provide for our readers, let’s get into this month’s reporting:
Available Single Family Home Inventory in the MLS as of June 7, 2022
| Highest Price | Lowest Price | |
|---|---|---|
| Aptos (41 Active +28.12%) | $9,900,000 | $699,000 |
| Atherton (28 Active +12%) | $100,000,000 | $7,975,000 |
| Campbell (32 Active +6.67%) | $2,400,000 | $1,680,000 |
| Capitola (6 Active +50%) | $2,988,000 | $549,000 |
| Cupertino (37 Active +27.59%) | $5,700,000 | $724,900 |
| Los Altos (42 Active +110%) | $9,800,000 | $1,888,000 |
| Los Altos Hills (25 Active +66.67%) | $39,998,000 | $3,898,800 |
| Los Gatos (66 Active +88.57%) | $16,499,000 | $2,299,000 |
| Menlo Park (38 Active +8.57%) | $26,499,000 | $1,249,000 |
| Milpitas (34 Active +25.93%) | $12,000,000 | $998,888 |
| Monte Sereno (12 Active +20%) | $15,000,000 | $2,495,000 |
| Mountain View (39 Active +18.18%) | $5,445,000 | $1,349,000 |
| Palo Alto (58 Active +16%) | $53,900,000 | $1,998,000 |
| Redwood City (78 Active +36.84%) | $5,495,000 | $689,500 |
| San Jose (616 Active +24.59%) | $5,885,000 | $700,000 |
| Santa Clara (49 Active +6.52%) | $2,688,888 | $849,950 |
| Santa Cruz (65 Active +27.45%) | $10,000,000 | $599,000 |
| Saratoga (36 Active +12.5%) | $9,388,000 | $2,199,000 |
| Soquel (9 Active -30.77%) | $5,987,500 | $1,088,000 |
| Sunnyvale (61 Active +48.78%) | $4,400,000 | $1,699,000 |
The above numbers also represent properties that are coming soon under the “Members Only” area of the MLS. The public cannot yet see them without Realtor representation.
Only one city, Soquel, had a decrease in month-over-month inventory. Most of the towns/cities we report on each month had an increase of 25%+ or better. As we’ve mentioned before, the market continues to shift across the country—not just in Silicon Valley and our surrounding areas. Those who have been in the Real Estate industry for a long time have never seen a shift like this happen so quickly. Those thinking about making a move should talk with us NOW!
As we approach summer, market activity will gradually begin to slow and cool before a short spike in autumn and a mid-winter slowdown. As of May, sales are declining, and the number of active listings and price reductions are increasing. Interest rates have dropped slightly to 5.09% and are continuing to inch downward. Affordability and purchase demand, however, is continually being affected by the significantly high-interest rates and stock market volatility.
For our Buyer clients on the fence waiting for prices to go down, please see “The Cost of Waiting” by Dave Setti as well as Fortune’s article, “The odds of a home price decline hitting your local housing market” that we shared last month.
Los Altos, the center of Silicon Valley, is the perfect place for those who enjoy taking life at a leisurely pace. Los Altos offers over 16 parks and 7 shopping districts where you can enjoy the temperate weather and participate in outdoor activities. This month, we at Silicon Valley and Beyond have curated a quick guide on just a few of the reasons you and your family would love Los Altos. Check out the full blog at SVAB365. And with a 110% increase in inventory, it may be a good time to think about calling Los Altos, “Home.” Let us know if you’d like to talk about the options!
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!
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
650-701-7822
Dawn@SiliconValleyAndBeyond.
Dawn is certified from the Program on Negotiation at Harvard Law School
Charles “Chuck” Holcomb
Realtor – Sales Associate
408-357-0322
Charles@
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.
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or Dawn at 650-701-7822
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831-239-9890 – Brian
1251 Fernside Street, Redwood City
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650-701-7822 – Dawn
PENDING
1275 Country Club Drive, Ben Lomond
COMING SOON
3160 Vistamont Drive, San Jose
$1,350,00
650-701-7822 – Dawn
760 University Avenue, Palo Alto
$1,549,000
650-701-7822 – Dawn
2960 Sanor Place #104, Santa Clara
$1,900,000
831-239-9890 – Brian
SOLD
2940 Sanor Place #101, Santa Clara
REPRESENTED BUYER CLIENTS:
1003 Laurel Glen Road, Soquel
Market Conditions in Silicon Valley and Beyond
After the spring peak, activity typically slows and cools through the summer. Sales are declining, and the number of active listings and price reductions are increasing. Homes that are selling, are still selling fairly quickly. Homes that aren’t selling won’t affect market statistics until future months. In May, 86% of sales closed for over list price, at an average overbid of 11% in Santa Clara; 75% of sales closed for over list price, at an average overbid of 8% in Santa Cruz; and 84% of county sales closed for over list price, with an average overbid of 11% in San Mateo.
Home price appreciation since the 1990s is at an all-time high in 2022! Sales reported to MLS for the annual median house sales price is $1.89 million in Santa Clara; $1.4 million in Santa Cruz, and $2.2 million in San Mateo. Listings accepting offers (going into contract) have been gradually declining, with Santa Clara and San Mateo seeing atypical declines in the months of April and May. As a result, sales volume may gradually start to decline in the following weeks.
For more details on market conditions in Santa Clara, Santa Cruz, and San Mateo counties, click on the images below.
