State of Silicon Valley Real Estate

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Silicon Valley – We need more homes to sell, our Cupertino manager laments. At least half of the sales are multiple offers. Similarly in Los Gatos, inventory is down and sale prices are up. Most over bidding is happening under $2.5 million. Over that number, buyers are still negotiating. The message is clear – things are heating up in the high end and it is a good time for buyers to get in while they can still negotiate.  As usual, good properties in good neighborhoods that are priced right receive the most attention. Prices are going up, according to our San Jose Almaden manager.  Since January, prices have increased 10% in some cases, our local manager said.  He didn’t think the market would come back with this much vengeance but it surprisingly has.  A year ago, a home in Saratoga appraised for $1.14 million was polished up and put it on the market in March 2012 for $1.25 million and it sold for $1.32 million. Supply and demand and consumer confidence along with the slight rise in interest rates are the reason. Declining inventory and low interest rates continue to fuel this market, our San Jose Main manager notes. The last time inventory was this low in Santa Clara County was back in 2005. Open houses in all price ranges are extremely active with as many as 50 groups through many properties. The story is echoed by the Willow Glen manager – multiple offers, low inventory, and many buyers. The Saratoga market is still crazy, according to our local manager. Virtually all sales involve multiple offers. Most properties listed below $2.5 million are experiencing multiple offers. This segment of the market is extremely strong. 

Regards,

Nino

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