My Silicon Valley Market Report for January 2018 shows that prices are up in every community except Los Altos. But even there, the prices were less than 1% below January 2017's average. Cupertino homeowners seemed eager to put their homes on the market. They were the only Silicon Valley community in this report to show an increase in new listings. While inventory increased in Cupertino and Los Altos, levels all throughout the Silicon Valley real estate market remain extremely low.

Silicon Valley Market Report - January 2018

Cupertino Real Estate Market - January 2018

Cupertino home sales fell dramatically from last year. In January 2017, a total of 20 Cupertino homes were sold. In January 2018, that total dropped to just 11 (a 45% decrease). Inventory, on the other hand, jumped over 30% going from 1.3 months available in January 2017 to 1.7 months available in January 2018. That's more than three times the amount we had in December 2017 (0.5 months available). Cupertino buyers paid $2,327,023 on average for a home in January 2018 (31.3% over the list price). Back in January 2017, they spent an average of $1,854,949 (7% over the list price). That's a 25.4% hike in 12 months. As you can imagine, the price-per-square-foot (PPSF) rose as well. Cupertino reported $943 PPSF in January 2017. By January 2018, that rose to $1,124 PPSF, 19.2% higher.

Los Altos Real Estate Market - January 2018

Like Cupertino, Los Altos home sales dropped as well. In January 2017, a total of 17 Los Altos homes were sold. In January 2018, only nine were reportedly sold. That marked a 47.1% decline compared to 2016. Also like Cupertino, Los Altos' inventory increased as well. Back in January 2017, they showed just 1.3 months available. However, in January 2018, that rose 23.1% to 1.6 months available. It's also more than five times the amount of inventory shown in December 2017 (0.3 months available). Los Altos remains the priciest Silicon Valley market covered in this report. Los Altos buyers paid an average of $3,232,222 in January 2018 (0.6% under the list price). Back in January 2017, they paid an average of $3,254,235 (6.3% above the list price). That's an ever-so-slight 0.7% shrinkage in 12 months. On the other hand, the price-per-square-foot experienced a dramatic jump. Los Altos reported $1,162 PPSF in January 2017. By January 2018, that escalated to $1,506 PPSF, 29.6% higher.

Mountain View Real Estate Market - January 2018

Continuing a Silicon Valley real estate market theme, Mountain View's year-over-year home sales were also lower. In January 2017, a total of 21 Mountain View homes were sold. In January 2018, that figure dropped 23.8% to 16. Unlike the Cupertino and Los Altos markets, however, Mountain View's inventory fell. In January 2017, they showed 1.1 months of inventory available. In January 2018, that had fallen by 27.3% to 0.8 months available. However, that is four times the amount of inventory shown in December 2017 (0.2 months available). Prices surged from $1,324,063 in January 2017 (10.7% below the list price) to $1,739,488 in January 2018 (20.6% above the list price). That means Mountain View buyers paid 31.4% more in January 2018 than they did the prior January. The price-per-square-foot increased 20.2%, going from $909 PPSF in January 2017 to $1,093 PPSF in January 2018.

San Jose Real Estate Market - January 2018

While Los Altos may be the priciest area in this Silicon Valley market report, San Jose continues to be the most active. Even so, sales declined 16.6% from 435 in January 2017 to 363 in January 2018. Inventory decreased as well. In January 2017, they showed 1.5 months available. In January 2018, that fell 53.3% to 0.7 months available. Like every other market in this report, San Jose's prices rose as well. In January 2017, San Jose buyers paid an average of $840,859 (7.6% below the list price. In January 2018, they increased to $1,033,476 (1.8% below the list price). The price-per-square-foot experienced an increase, too. In January 2017, San Jose reported a $540 PPSF. By January 2018, that rose 27.8% to $690 PPSF.

Santa Clara Real Estate Market - January 2018

Unlike the rest of the Silicon Valley communities in this report, Santa Clara's year-over-year sales experienced an uptick. In January 2017, they sold a total of 27 homes. In January 2018, that figure surged 63% to a total of 44. Unfortunately, inventory plunged 58.8%. In January 2017, they reported 1.7 months available. In January 2018, that number fell to 0.7 months available. Prices exploded. Santa Clara buyers paid an average of $1,270,557 in January 2018 (13.8% over the list price). Back in January 2017, they paid an average of $835,370 (14% below the list price). Their price-per-square-foot also saw a dramatic upswing. In January 2017, Santa Clara reported a $677 PPSF. This surged 36.8% in January 2018 to $926 PPSF.

Sunnyvale Real Estate Market - January 2018

Like Santa Clara, Sunnyvale's total sales increased from last year. In January 2017, a total of 40 Sunnyvale homes were sold. In January 2018, that increased 10% to 44. Like every other community in this Silicon Valley market report, inventory levels dropped here as well. They fell from 1.1 months available in January 2017 to just 0.6 months available in January 2018, a decrease of 55%. Sunnyvale prices saw the largest increase out of all the Silicon Valley communities in this report. In January 2017, Sunnyvale buyers paid an average of $1,169,597 (1.1% below the list price). In January 2018, this jumped 48.8% to $1,740,606 (22% above the list price). The price-per-square-foot hit its highest ever, going from $810 in January 2017 to $1,141 in January 2018. That marked a whopping 40.9% jump in just 12 months.

Silicon Valley Market Report - January 2018 Summary

Buyers struggle to find available Silicon Valley homes due to these low inventory levels. Interest rates are expected to hit 5% later this year. Some industry experts predict that we could see them go even higher than that by the end of 2018. Until more construction is complete or more sellers put their homes on the market, Silicon Valley buyers will continue to pay more for a home...that is, when they can actually find a property to purchase. Contact your Silicon Valley REALTOR@ to find out what's available. And feel free to visit our Home Buying Page or helpful tips about the entire home buying process.

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