It would appear that the housing crisis may be behind us. Prices and demand are on the rise. Foreclosures and short sales that dominated the market a few years ago have decreased sharply. Only one thing stands in the way of a boom in Silicon Valley home sales: Lack of Inventory. Many experts believe that low Silicon Valley inventory could slow down total home sales in 2017.
Silicon Valley Inventory Levels
Silicon Valley isn't the only place where inventory levels are low. A lack of inventory seems to be the name of the game throughout most U.S. markets. Buyer demand for Silicon Valley homes remains high. Experts predict that this will continue through next winter.
Inventory levels across the U.S. decreased 10.8% by the end of last year, according to the National Association of Realtors. Santa Clara County's inventory levels were down 14% from 2015. Even more startling is the 55% drop in Silicon Valley housing stock seen between November 2016 and December 2016.
Low Silicon Valley inventory levels helped spur increases in the median sale price. Higher prices make it tougher for first-time home buyers. Affordability might be out of reach for them. Millennials are expected to make up the largest portion of home buyers in 2017. Affordability partnered with low inventory could create a further slowdown in total home sales for 2017.
We need more homes on the market in Silicon Valley to meet higher Buyer demand. More homes will also allow existing Silicon Valley Homeowners an opportunity to move-up to a larger home. When demand is high, prices go up. That's great news for Sellers. If you have been contemplating selling your Silicon Valley home, now would be an excellent time. As of this writing, there are 671 Active homes (Single family, Condominium, and Townhouse under $2.0 Million) on the Multiple Listing Service (MLS) for all of Santa Clara County.
Check Your Home's Current Value Here here to take advantage of little competition and high demand now.