The Silicon Valley real estate market remains a strong Sellers’ market.
Single Family Home Sector
The Single Family Home sector continues to be strong with homes selling with multiple offers within the first 2 weeks on the market. However, due to a slight increase in summer inventory, not every property necessarily will sell in this manner. When Buyers have options, a less desirable home (poor condition, not staged, hard to show owner/tenant occupied, etc) may sit on the market longer. These homes will still likely sell within a month regardless, unless the home is overpriced.
The Townhome sector is on the mend in the last quarter. As Single Family Home prices have sky rocketed and Covid restrictions have eased for the meantime, the need for yard space is not as pressing as in 2020. We are seeing a couple to a handful of multiple offers in this sector assuming the property is in move-in condition.
The Condominium sector, which was completely abandoned in 2020, has shown signs of a recovery as well. Workers have been returning to the Bay Area anticipating returning to the office in the September timeframe. We are seeing quality offers within a couple of weeks but be prepared for 30 days on the market for certain properties as this sector is still recovering. The rental market is recovering as well.
For the rest of 2021 there does not seem to be a slowdown in the marketplace, but we will need to be monitored on the Covid/variant front. If the cases remain under control, then all 3 sectors will continue to perform well. If we lockdown and shelter-in-place once again, the Single Family Home sector will spike once again and the Townhome and Condominium sectors will fizzle. At this moment I do not anticipate a slowdown in 2021. This assumes that interest rates, tech employment and the NASDAQ stock market remain consistent.
This is a complex market. As a Seller, even though we are in a Sellers’ market, you will need a team to help you position your property in a manner that maximizes your returns. If you are a Buyer, you will need a team that moves quickly, that knows how to win but within reason to what the market is dictating.
Please reach out to us so that we can analyze your specific real estate scenario.
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We wish you and your families the utmost safety during this continuing trying times.
Alan Wang Realty Group