2018 has been a roller coaster ride for the Real Estate market. We kicked off 2018 the same way 2017 went all year in an extreme Sellers’ market, with multiple Buyers fighting tooth and nail to win a small amount of homes. Around April of 2018, the market screeched to a halt; homes sat for a month to 2 months or more and it shifted to a more balanced market. Buyers were in a "wait and see" mode, and the Buyers that were ready to buy held strong to their positions looking for a deal. Sellers willing to come down on pricing and were patient sold their homes, but the ones that were holding onto peak pricing did not sell, sat on the market, cancelled their listed or rented out their homes. Buyers got more particular so homes that were re-modeled were highly coveted, as opposed to homes that were not. We saw an average price drop of anywhere from 10% to even 20% in some areas.
Silicon Valley Real Estate Snapshot – Santa Clara County
Exhibit 1 – Santa Clara County Real Estate Snapshot October to January 2019
Just 2 weeks into 2019, inventory levels are low due to the holiday season. At the moment, the homes that are out on the market are selling quickly - some with multiple offers. The trends of homes in good/move-in condition are selling better than homes in original condition, and some homes are receiving multiple offers, are back for now. If you are a Seller, you may want to strike while the iron is warm. As a Buyer, you will need to adjust from last year's slower market until inventory levels catch up to demand, and possibly get slightly more aggressive in the short run if needed. There is still residual inventory from the winter months and you maybe able to get a deal on those properties. Continued instability in our government, international trade war talks and a continually volatile stock market have brought uncertainty to our Real Estate Market in 2019. All of these will be factors to monitor in the coming year and will directly have an impact on Silicon Valley Real Estate.