The Silicon Valley Real Estate Market continues to experience low inventory.  In fact, Cupertino had the most inventory with just a 30-day supply.  The other five cities discussed in my Silicon Valley Market Report for May 2017 had much less inventory available, with Mountain View and Sunnyvale at the lowest levels of all.  Los Altos and Santa Clara both experienced a 34.5% increase in total sales.  On the other hand, Cupertino sales suffered a 25.6% drop from the same time last year.  Buyers paid more in every single Silicon Valley community in this report except in Los Altos.  For a more in-depth look, please read on below.

According to the Silicon Valley Market Report - May 2017, inventory levels remain extremely low forcing the average sale price to increase for most Silicon Valley communities.

Cupertino Real Estate Market Report - May 2017

A total of 32 Cupertino homes sold in May 2017, a 25.6% decrease from May 2016.  Inventory levels declined only slightly.  They went from 1.1 months available in May 2016 to one month available in May 2017.  Sale prices continued their march upwards.  In May 2016, Cupertino Buyers paid an average of $1,700,369 (14.4% over the list price).  In May 2017, the average sale price rose to $1,818,629 (9.7% over the list price).  The average price-per-square-foot also took an upturn, from $985 in May 2016 to $1,122 in May 2017 (a 13.9% hike).

Los Altos Real Estate Market Report - May 2017

Year-over-year sales of Los Altos homes continue to rise.  In May 2016, a total of 32 Los Altos home were sold.  A total of 43 were sold in May 2017 (a surge of 34.4%).  However, inventory continues to be an issue.  It shrunk from 1.5 months available in May 2016 to just 0.5 month available in May 2017.  The average sale price saw a reduction from $3,000,629 in May 2016 (2.7% over list price) to $2,843,831 in May 2016 (4% under list price).  The average price-per-square-foot increased 5.6%, from $1,198 in May 2016 to $1,261 in May 2017.

Mountain View Real Estate Market Report - May 2017

Total sales of Mountain View homes remained steady.  A total of 57 homes were sold in May 2017, just one less than the 58 sold in May 2016.  Inventory shrunk even further.  It went from 0.9 months available in May 2016 to just 0.4 months available in May 2017.  However, it remained unchanged from the 0.4 months available in April 2017.  In May 2016, the average sale price was $1,380,738 (4.7% above the list price).  In May 2017, it went up 9.8% to $1,516,195 (3.3% under the list price).  The average price-per-square-foot rose 4.6%, from $971 in May 2016 to $1,016 in May 2017.

San Jose Real Estate Market Report - May 2017

Sales went up in the San Jose real estate market compared to last year.  A total of 817 San Jose homes were sold in May 2017, ten more than the 807 sold in May 2016.  Like most of the rest of the Silicon Valley real estate market, inventory levels decreased dramatically.  In May 2016, there were 1.4 months available.  This dipped to 0.8 months available in May 2017.  Sale prices continued to rise.  Buyers paid an average of $898,947 in May 2016 (0.3% below the list price).  But in May 2017, they spent an average of $956,094 (0.8% above the list price).  The average price-per-square-foot also increased 1.9%, from $575 in May 2016 to $586 in May 2017.

Santa Clara Real Estate Market Report - May 2017

May 2017's Santa Clara home sales experienced a nice 34.5% boost over last year's figures.  A total of 84 Santa Clara homes were sold in May 2016.  One hundred and thirteen were sold in May 2017.  Inventory levels dropped from 1.1 months available in May 2016 to 0.7 months available in May 2017.  The average sale price rose from $1,035,509 in May 2016 (8.6% above list price) to $1,114,215 in May 2017 (9.9% above the list price).  The average price-per-square-foot went up as well, from $710 in May 2016 to $782 in May 2017 (an increase of 10.1%).

Sunnyvale Real Estate Market Report - May 2017

Total sales in Sunnyvale dipped a slight 2.8% from last year.  While 109 were sold in May 2016, 106 Sunnyvale homes sold in May 2017.  Just like most of the other Silicon Valley communities, inventory levels dropped lower here as well.  While there were merely 0.7 months' homes available for sale in May 2016, we saw a further drop in inventory in 2017 to just 0.4 month's supply.  The average sale price increased from $1,277,556 in May 2016 (8.2% above list price) to $1,470,325 in May 2017 (14.1% above list price).  The price-per-square-foot went up 14.3%, from $854 in May 2016 to $976 in May 2017.

How Does the Silicon Valley Market Report - May 2017 Affect Buyers?

Inventory continues to be an issue.  We are sitting well within a "Seller's market" in each of the six Silicon Valley communities discussed in this market report.  When looking for your next Silicon Valley home, don't be surprised if you continue to face multiple offers.  The Federal Reserve meets later this month.  Many financial experts believe they will announce another increase to the Federal interest rate.  Typically, mortgage rates soon follow suit.  Make sure you have all your paperwork in order to come in with your strongest offer.  Keep contingencies to a minimum.  Lock in your mortgage rate as quickly as possible to avoid a higher payment.  For more helpful tips, please feel free to visit my Home Buying page.  Don't hesitate to contact me with any questions and to get started on your search for a new Silicon Valley home.

StynesGroup Real Estate Services, your source for Silicon Valley Real Estate