The Silicon Valley Market Report for April 2017 showed inventory levels getting even smaller than last year, with Buyers paying over the list price. Don't be surprised to come into a multiple offer situation when you do find your dream Silicon Valley home.The Silicon Valley Market Report for April 2017 shows a continued tightening of inventory levels.  All the communities we cover except Cupertino saw a decrease in homes available for sale compared to this time last year.  We also see a constant trend that buyers are needing to pay well over list price if they have any chance of having the offer accepted.  For a more detailed look at each Silicon Valley real estate market, please read on below.

Cupertino Real Estate Market Report - April 2017

Thirty-one Cupertino homes sold in April 2017, a 26.2% decrease from April 2016.  Inventory levels remained the same at one month available.  The average sale price rose, but only slightly.  In April 2016, the average sale price for a Cupertino home was $1,823,350 (18.6% higher than the average list price).  In April 2017, the average sale price increased to $1,827,996 (2.2% over the average list price).  The average price-per-square-foot rose 8.4% from last year, coming in at $1,056.

Los Altos Real Estate Market Report - April 2017

Total sales of Los Altos homes in April 2017 rose slightly from April 2016's total sales.  While the market saw 33 home sold in April 2016, 35 were sold in April 2017.  Cupertino inventory dropped from 1.2 months available in April 2016 to just 0.5 months available in April 2017.  The average sale price jumped significantly.  Silicon Valley Buyers spent an average of $2,571,288 in April 2016 (24.7% under list price).  However, they paid an average of $3,206,757 in April 2017 (5.8% above list price).  The average price-per-square-foot rose slightly from $1,269 in April 2016 to $1,283 in April 2017.

Mountain View Real Estate Market Report - April 2017

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Fifty-six Mountain View homes sold in April 2017, just one less than the 57 sold in April 2016.  Inventory levels dropped to 0.4 months available, half of the 0.8 months available in April 2016.  Like Cupertino, the average sale price rose slightly.  In April 2016, the average sale price for a Mountain View home was $1,410,029 (15.7% higher than the average list price).  In April 2017, the average sale price increased to $1,460,158 (2.9% higher than the average list price).  The average price-per-square-foot rose 4.4% from last year, coming in at $987.

San Jose Real Estate Market Report - April 2017

The San Jose market saw a dip in total sales from the same time last year.  A total of 718 homes were sold in April 2017, down 13% from the 811 sold in April 2016.  Inventory levels decreased from 1.2 months available in April 2016 to 0.9 months available in April 2017.  The average list price for a San Jose home has jumped from quite a bit here as well.  Buyers spent an average of $891,401 in April 2016 (2.8% under the average list price).  In April 2017, they paid an average of $949,066 (3.8% over the average list price).  The price-per-square-foot rose from $557 in April 2016 to $597 in April 2017, an increase of 7.2%.

Santa Clara Real Estate Market Report - April 2017

Seventy-nine Santa Clara homes sold in April 2017, 16% less than the 94 that sold in April 2016.  Like most of the rest of the Silicon Valley communities in this market report, inventory levels shrunk.  They went from 0.9 months available in April 2016, to 0.7 months available in April 2017.  The average sale price increased from $961,842 in April 2016 (1% under the list price) to $1,029,768 in April 2017 (4.8% over the list price).  The price-per-square-foot went up 11.6%, from $698 in April 2016 to $779 in April 2017.

Sunnyvale Real Estate Market Report - April 2017

Total sales for Sunnyvale dropped 25.2% compared to last year.  While 107 were sold in April 2016, only 80 Sunnyvale homes sold in April 2017.  Inventory levels decreased in this Silicon Valley community as well.  They dropped from 0.7 months available in April 2016 to 0.5 months available in April 2017.  The average sale price increased from $1,230,894 in April 2016 (1.9% over list price) to $1,448,526 in April 2017 (8.1% over list price).  The price-per-square-foot rose from $827 in April 2016 to $929 in April 2017, representing a 12.3% increase.

What Does This Mean for the Silicon Valley Home Buyer?

Already low Silicon Valley housing inventory has been squeezed even tighter.  Don't be surprised if you find yourself in the midst of multiple offers when you find your dream Silicon Valley home.  Buyers are paying well over the list price in every one of the six Silicon Valley Real Estate markets we focus on in this report.  The recently released jobs numbers proved better than expected.  We also see many of our local tech firms continuing to recruit engineers to Silicon Valley.  Financial experts believe we could see another bump in the Federal interest rate in the next 90 days.  If that happens, we might see mortgage interest rates go up as well.  Bottom line, come in with a strong offer with little to no contingencies when you find the Silicon Valley home you want.  Also, make sure you lock in your interest rate as soon as your offer is accepted to avoid a higher mortgage payment.  Visit my Home Buying page for helpful home buying tips and contact me when you are ready to start looking for your next home.

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