Silicon Valley prices for single family homes continued to rise in August, uncharacteristic for late summer, but not unexpected with the COVID pandemic. Both San Mateo and Santa Clara counties saw significant sales price increases – 16% and 17%, respectively, when compared with median prices last August. There’s also considerable competition for these homes, with multiple offers driving the sales price 1-2% over the list price.
The trend we’re also seeing is the change in the functional space of the home – home buyers want more space, both inside and out. They’re leaving the urban, close-together condos, and looking to find a home with a yard and room for a home office, home school and extended family.
This change has brought more buyers to single family homes (hence the increased competition), resulting in a decline in condo and townhome median sales prices since last year. In contrasting year to year changes for August, Santa Clara county saw a decrease of ~2% and San Mateo county saw a decrease of ~9%.
The condo and townhome market offers a great entry point for buyers in the bay area, with the median list price in August of $930K (San Mateo Co) and $825K (Santa Clara Co), where single family home median list prices were $1.8M and $1.4M, respectively. Combine this with interest rates at historic lows, buyers for this price point can now get considerably more home for a similar monthly payment they may have been looking at last year.
If you’re interested in buying a home and would like to understand the strategies we use to successfully “win” homes for clients, please reach out! Or if you are interested in knowing what your home is worth based on these recent sales, click here for an “instant” estimate or contact me if you’d like a more comprehensive market analysis.