The Silicon Valley housing market continues its long rebound, with May seeing year-over-year increases in sales and median prices for both homes and condos in Santa Clara County. But you’ll need to act fast to have a chance at one of these properties because they’re spending less and less time on the block!
Inventory remains tight in San Mateo County, with median home prices and average time on the market going stagnant year over year. This could be a sign that the market is finally leveling out. It could also be a sign that summertime is traditionally slow for sales. Condos were only a slightly different story in July, with inventory down, prices up, and properties spending eight more days on the market than one year ago.
The market continues to be very tight in Santa Clara County, with home sales down 14% from last year, and condo sales 20% below June 2022. Meanwhile, properties are spending more time on the market as buyers weigh interest rates and inventory against their desire to find their dream home. As a result, home prices have dipped slightly, and condo prices have seen a small spike while buyers wait out the shifting market.
Over the past 40 years, the Bay Area housing market has seen at least four major booms. Every time, experts said the good times would never end. Every time, they were wrong. Economists call this “irrational exuberance”.
Each of these booms – or upcycles – have been followed by market corrections, sometimes with devastating consequences, such as the Great Recession. Every time, experts predicted an endless downward spiral. Every time, they were wrong.
Like any industry, housing markets run in cycles. But despite all the booms and busts, our local market has always come back stronger than ever.
Whether it’s our status as a financial, innovation, and cultural center, spectacular natural beauty and open space, and diversity, inclusion, and opportunity, Silicon Valley continues to be one of the world’s great metropolitan areas.
According to Compass market analysis, for the first time in a decade, median home prices in San Francisco fell by 1% from a booming 2021 to a cooling 2022 and came to rest at $1.78 million. Oddly enough, single-family homes are doing twice as well as condos, with more than 60% of sales closing over asking price. Recent tech layoffs certainly won’t help the condo market in months ahead. But it’s yet to be seen how big of an impact the “Tech-xit” will have.
