Housing market remains resilient.

It may not be the sticker shock of last year’s tariff-palooza, but war with Iran is causing economic volatility and uncertainty to surge higher every day. However, the housing market has not seen significant impacts — at least not yet. That could change in a hurry.

As of April 13, the average daily 30-year mortgage rate had risen to 6.41% after briefly dipping below 6% prior to the war. And as anyone with a gas-powered car has experienced, oil prices have soared, causing inflation to jump from 2.4% in February to 3.3% in March.

Prior to the ceasefire, consumer confidence fell to its lowest reading ever going back to 1978. Following the announcement, stock markets have dramatically rebounded.

Will there be a Spring rebound?

Spurred by an AI boom and relatively robust economy, median home prices in Santa Clara County have skyrocketed year over year, at rates vastly outpacing any other Bay Area county. Meanwhile, inventory looks to be on the rise, so we should start to see some movement in the market over the months ahead.

As usual, stay tuned to this space for updates!

We’re not out of the woods yet.

Driven by a local boom in the AI field, Santa Clara County median house and townhouse sales prices spiked 9% over 2023, topping $1.8 million and setting all-time highs. And while the median condo price was basically unchanged, the numbers of new listings and sales rose substantially. Still, sales volume remained well below what we’ve come to expect, and time on the market did not substantially drop.

If you’d like a full report, send us an email and we’ll send one your way!

New insights.

According to a new report from Freddie Mac, 30-year mortgage rates are projected to gradually decline in coming quarters, which could trigger a surge in buyer demand, primarily from first timers. However, a tight inventory will lead to only moderate sales increases, with prices rising 2.1% in 2024.

Meanwhile, boosted by an “AI boom,” median sales prices in the San José metro area are the first to exceed $2 million, and Silicon Valley’s appreciation rate is among the highest in the nation. Overall, 89% of U.S. metro areas saw year-over-year price gains.

Santa Clara County Rising

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!