Market Trends – February 2023
Here’s to March and spring 2023 coming to full bloom!
Credits to Lindsay Smith and Wendy Starr at BuySellLove.ca for our subject line!
Let’s deconstruct some headlines:
- Housing Market Predictions For 2023: Are Home Prices Finally Becoming Affordable?
- Home Sales Could Plunge in 2023
- A Housing Market Hangover – The New York Times
- Will 2023 Really Be the Worst Year To Buy a House? (This is a juicy, sensational newsflash.)
When people see headlines like this:
- They believe it wholeheartedly and share with everyone in their circle the doom and gloom news as if it were fact.
- They see some truth in it and may not believe the prediction, but feel that it will happen to some extent.
- They see it for what it is – a news outlet shamelessly selling news.
Market activity in open house traffic, number of offers, overbidding, and absorption rates improved in early 2023. Inventory and the number of new listings have substantially decreased while pending sales and buyer demand have spiked! As of February, mortgage rates have climbed back up causing impacts on loan application rates as well as housing affordability. Because there are not enough homes to sell in Silicon Valley or in Santa Cruz County, we are still seeing homes in certain price bands sell with multiple offers. Case in point, our tear-down listing in Saratoga (see below). The data speaks for itself, and the bottom line is that NO ONE CAN PREDICT what the market will do!
In this month’s newsletter, you’ll find the Global Luxury Report for 2023. This monthly report provides an in-depth look into global luxury leading markets and all residential real estate of the wealthy.
Our Rockview luxury oceanfront listing is featured in the CØMPASS Curated Luxury Homes Publication! This home, located in Santa Cruz, recently underwent a seven-figure renovation to now provide a luxurious beach environment with a rare fully protected seawall and sunrise-to-sunset views.
This month, we’ve also compiled a list of activities in and around Silicon Valley to help you celebrate this coming spring! From art galleries to dance sessions and the Spring Festival, check out the full blog at SVAB365.
To learn more about the median home prices for areas in and around Bay Area, be sure to check out our updated Bay Area Home Price Maps as well as the special report on Bay Area Home Prices, Interest Rates, and Housing Affordability.
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
650-215-5990
Dawn@SiliconValleyAndBeyond.
Dawn is certified from the Program on Negotiation at Harvard Law School
Brian Brunetti
REALTOR® – Senior Sales Associate
DRE# 02028412
650-215-5992
Brian@SiliconValleyandBeyond.
Charles “Chuck” Holcomb
REALTOR® – Sales Associate
DRE# 02084164
650-215-5991
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.
CURRENTLY OFFERED:
7232 Glenview Drive, San Jose
Expansive 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!
Open Saturday & Sunday, 1-4 pm
650-215-5990 – Dawn
650-215-5992 – Brian
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 $5,650,000
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
COMING SOON / PRIVATE EXCLUSIVES:
5706 Holland Lane, San Jose
650-215-5991 – Chuck
650-215-5990 – Dawn
RECENTLY ACQUIRED:
13305 Pierce Road, Saratoga
Multiple offers – SOLD way over list price
COMING SOON – DEVELOPMENT OPPORTUNITIES:
La Terra Development
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
BUILD DREAM HOMES!
*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
Reach out for more information:
LG@SiliconValleyandBeyond.com
650-215-5991 – Chuck
650-215-5992 – Brian
650-215-5990 – Dawn
Market Conditions in Silicon Valley and Beyond
Market activity in open house traffic, number of offers, overbidding, and absorption rates improved in early 2023. The next few months, from March through May, are typically the most active listing and sales period of the year. With housing costs declining in all three counties we serve, the absorption rate or buyer demand compared to the inventory of listings, spiked with rebounding buyer demand in February! Santa Clara county saw a sharp rebound at over 45%; Santa Cruz at 32%; and San Mateo at 37%.
Mortgage rates, however, climbed again in February to 6.65%, which impacts loan application rates for buyers. Despite declining prices, higher interest rates and a substantial decrease in new listings coming into the market pose affordability challenges for buyers.
For more details on market conditions in Santa Clara, Santa Cruz, and San Mateo counties, click on the images below.
