Santa Clara Real Estate Market Report - 2017 Year in Review
Inventory levels all over the Silicon Valley real estate market hit their lowest levels ever in 2017. Just like the Mountain View real estate market, Santa Clara's inventory levels showed just 0.1 months of availability by the end of 2017. The average sale price and price-per-square-foot reached their highest levels ever by the end of the year. As we start 2018, we expect to see further price appreciation until either new construction increases or people move out of the area.
Santa Clara Real Estate Market - Total Sales
The Santa Clara real estate market began 2017 with a total of 27 homes sold. Monthly sales rose each month until reaching their peak of 126 in June. They fell to just 87 in July but picked right back up in August with a reported 114. As temperatures cooled off, so did the Santa Clara market. It ended the year with 66 total sales reported in December 2017, 10% more than the 60 reported in December 2016.
Santa Clara Real Estate Market - Inventory
Inventory here, just like the rest of the Silicon Valley market, has been hit hard. The Santa Clara real estate market began 2017 with 1.7 months of available inventory, its peak for the year. In February, it fell to 0.9 months' availability. It never went higher than that for the rest of the year. By December 2017, Santa Clara reported just 0.1 months of inventory available, just like Mountain View.
Santa Clara Real Estate Market Report - Average Sale Price
The average sale price for a Santa Clara home rose by 31.5% in 2017. Santa Clara Buyers paid an average of $835,370 in January 2017 (14% below list price). In March, the average sale price hit $1,087,446. It never fell below $1,000,000 for the rest of the year. By December 2017, the average sale price reported was $1,303,247, the highest average sale price for the year and 8.1% above list price.
Santa Clara Real Estate Market Report - Price-Per-Square-Foot
The price-per-square-foot for Santa Clara homes started 2017 at $677 in January 2017. By July, it was $814. In October, it dipped slightly to $806. Prices rose again in November and ended the year at its peak of $902, a 33% increase in 12 months.
Silicon Valley Market Report - Santa Clara 2017 Year in Review Summary
The most significant concentration of homes sold throughout Santa Clara County during December was in the $800,000 to $1,000,000 range, which made up 17.7% of the total sales for the entire county. The $1,303,247 average Santa Clara reported in December 2017 fell in the range of 10.2% of Santa Clara County totals. Inventory levels for the county as a whole averaged around 0.3 months (or approximately ten days) available. Sunnyvale fell below this average. Active listings available for sale dropped from 1,990 in December 2016 to 977 in December 2017, a 51% decrease.
As prices go up and inventory goes down, Silicon Valley buyers turn to lower priced areas like Morgan Hill and Gilroy. Until more inventory comes on the market, this will continue to be business as usual in the Silicon Valley. Low unemployment and high consumer confidence have financial experts expecting to see Federal interest rates increase three times in 2018.
If you're interested in purchasing a property, please contact your Silicon Valley REALTOR@ to find out what's available in the area you're interested in. Visit our Home Buying page to learn more about the home buying process.