*This article was written on September 23, 2021
If you have followed real estate trends in the Silicon Valley region, you know we have been dealing with the effects of low inventory and skyrocketing demand. Here is what we are predicting coming off the hot summer market.
Demand will remain high
Despite increasing housing prices, demand has not slowed, and we do not expect it to any time soon. The sales price to list price ratio for properties in Santa Clara County went from 109.6% to 108.8%. Despite this slight dip, sellers can continue to expect multiple offers on their listings. We also saw homes on the market for an average of 14 days before going under contract. For condos, sales were up 55.6% year-over-year while single-family home sales were up 13.4% year-over-year in August.
Inventory will continue to lag
In August, we saw inventory for single-family homes was down 23.3% compared to last year. This means that for twenty four months now, inventory has been lower than the previous year. New builds are slow to meet demand, and we do not expect a market-changing wave to hit the scene this fall.
Housing prices will remain high
August was the twelfth month in a row that home sales were higher than the year before. With inventory not able to keep with eager buyers, housing prices will stay high. For the twenty-second month in a row now, the median sales price has been higher than the year before. In August, the median sales price of a single family home in San Jose was $1,437,000.
Interest rates will stay low
Despite talk of interest rate increases, most experts agree that rates will remain low. Buyers may feel the pressure of the current market conditions, but it is still a great time to take advantage of these rates and buy. Low rates will keep encouraging buyers and keep demand high.
The bottom line
The real estate market in Silicon Valley will continue to favor sellers. With so many people working from home and generally spending more time at home, the suburbs of Silicon Valley can expect to keep receiving all the attention it has been. Until enough new homes pop up, buyers will keep having to be competitive and put forth their best deal.
Dev Singh: Your Silicon Valley Agent
Whether you are a buyer looking for your chance to throw your hat in the ring, or a seller wanting to take advantage of the current market conditions, I can help. As a seasoned real estate agent and lifelong resident of Silicon Valley, I know what it takes to get the best for each and every one of my clients.
Whether you have been around the block or if this is your first time buying or selling,I will walk alongside you through the process to ensure you get the most competitive deal. My bottom line is straightforward: To put your best interest first and help you achieve your goals.
Contact me today and we can work together to turn your real estate goals into a reality.