Market Watch | No Holiday Slowdown for Most Northern California Communities
In other parts of the country, it may be typical to see a slowdown in real estate exchanging hands leading up to the year-end holidays, but not in Northern California. The region is among the most in-demand and most expensive markets in the nation as recently reported by Forbes magazine, where California – and Northern California in particular – dominates 2017’s list of America’s most expensive ZIP codes. From Atherton, Ross, Los Altos, Palo Alto to Hillsborough and Woodside, the region rules in luxury homes and premium prices. Other counties and cities may see a slight dip during the holidays, but overall demand remains strong. Read more about what’s happening from our Northern California offices.
Silicon Valley – Cupertino saw continued sales with multiple offers and an uncharacteristically active market considering the time of year. The luxury market was also strong with several sales over $6 million.
Gilroy and Morgan Hill inventory remained tight. Because of the unequal supply and demand, prices have increased to record levels. Sellers looking to move quickly should consider listing now as they can also receive top-dollar for their property. Buyers also must be prepared for a multiple-offer scenario. They should be able to make a strong offer above asking with no contingencies to be taken seriously.
Los Altos’ sellers’ market continued throughout the month with many homes selling over asking price. Average days on market year-to-date is 17 for Los Altos, 35 for Los Altos Hills, 14 for Mountain View and 13 for Sunnyvale. In these markets, more homes have sold YTD than all last year.
Sellers must be aware that buyers are knowledgeable. Therefore, asking for a price over-value will likely cause the property to sit on the market. However, with the help of an experienced agent, sellers will be able to get the highest possible price for their home. Preparation is key. Financing should be lined up and buyers are encouraged to be aggressive with their offers. The Los Altos luxury market is steady but flat, as most properties are on the market for 44 days.
Las Gatos experienced a lot of buyer competition with multiple offers on almost every property. Pre-emptive offers are becoming more common as buyers hunt for coming soon and exclusive properties that are not yet listed. This is a great market for sellers wanting to have a quick sale. The luxury market saw prices steadily increasing.
San Jose Almaden had an active month with increasing sales and only 50% of available inventory as compared to 2015 and 2016. Prices are also rising with increased sales. As inventory declines, the area is still in a sellers’ market. Buyers should be ready to offer up to 20% over asking price unless a property has been on the market for over two weeks. Coldwell Banker Residential Brokerage affiliated agents can help both buyers and sellers navigate the market.
San Jose Main had little inventory with only 437 homes for sale in Santa Clara County, as compared to 2600 homes in 2011. This has created motivated buyers and multiple offers on most properties. Regardless, sellers still need to price their homes well and be thorough in preparing their property to go on the market. This includes staging and decluttering as needed. Buyers still have a chance of landing their dream home, but must have realistic expectations and remain persistent.