According to the Silicon Valley Market Report for September 2017, prices continue to rise, inventory decreased dramatically and sales are a mixed bag.Prices continue to rise while inventory sinks even further in the Silicon Valley real estate market. According to my Silicon Valley Market Report for September 2017, inventory levels stayed well below one month. Cupertino and Santa Clara had the lowest levels at a two week supply. Buyers in each of the six Silicon Valley communities in this market report paid well over the list price and much more than they did last year. 

Cupertino Real Estate Market - September 2017

Sales saw a slight uptick from last year. In September 2016, a total of 36 Cupertino homes were sold. In September 2017, that rose to 38. Inventory levels dropped from one month available to 0.4 months (less than two weeks). That's also a 57% decrease from August's 0.7 months available. The lack of inventory continues to drive up sale prices. Cupertino Buyers paid an average of $1,665,266 in September 2016 (3.1% of the list price). In September 2017, they paid $1,848,023 on average (17.5% above the list price). This brought the average price-per-square-foot to $1,047, a 14.8% increase from September 2016's $912 price-per-square-foot.

Los Altos Real Estate Market - September 2017

A total of 46 Los Altos homes sold in September 2016. This dropped by 30.4% in September 2017, which showed a total of 32 Los Altos homes sold. Inventory remained constant at 0.9 months available. Prices skyrocketed last month in Los Altos to an average of $3,073,563 (10.4% above list price). Compared to the previous year where Los Altos Buyers paid an average of $2,104,605 in September 2016 (11.7% under the list price). Ironically the price-per-square-foot has gone down to $1,192 in September compared from $1,240 in September 2016. I expect the drop in Price-per-square-foot will be a one-month event caused by an increase in the number of larger homes selling in one month.

Mountain View Real Estate Market - September 2017

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Mountain View experienced a 13.5% increase in year-over-year sales. Forty-two (42) sold in September 2017 compared to 37 sales in September 2016.  Like Cupertino, though, inventory levels sank. The 1.6 months available in September 2016 fell to just 0.6 month’s inventory in September 2017. Like the other communities, we cover prices continue to go up in Mountain View. Last month Buyers paid and of  $1,604,247 (15.9% above the list price) compared to the previous year at this time when Mountain View Buyers paid an average of $1,437,265 in September 2016 (5.5% above the list price). Likewise, the average price-per-square-foot increased from $936 in September 2016 to $1,064 in September 2017.

San Jose Real Estate Market - September 2017

Like Los Altos, San Jose total sales were down compared to last year. A total of 751 Los Altos homes were sold in September 2016 dipped 2.7% to 731 in September 2017. Inventory here sunk from 1.6 months available in September 2016 to just 0.5 months available in September 2017. Like the other Silicon Valley communities in this market report, prices marched upward. San Jose Buyers paid an average of $824,916 in September 2016 (4.8% under the list price). In September 2017, they paid an average of $960,303 (7.8% under the list price). Not only are they the only community on this Silicon Valley market report that shows an average sale price under $1,000,000, but they also happen to be the only community where Buyers are still paying under the list price. The average price-per-square-foot increased from $544 in September 2016 to $617 in September 2017.

Santa Clara Real Estate Market - September 2017

Santa Clara sales are on the rise. A total of 82 Santa Clara homes were sold in September 2016. This increased 13.4% to 93 in September 2017. Like the rest of the Silicon Valley, inventory remains extremely low. The 1.5 months available in September 2016 dropped to 0.4 months available in September 2017. Prices increased as well. Santa Clara Buyers paid an average of $929,737 in September 2016 (4.5% above the list price). In September 2017, they spent an average of $1,181,485 (16.6% above the list price). The average price-per-square-foot rose from $676 in September 2016 to $819 in September 2017.

Sunnyvale Real Estate Market - September 2017

Year-over-year sales dipped nine percent (9%) in Sunnyvale compared to last year. A total of 78 Sunnyvale homes were sold in September 2016. This was to 71 in September 2017 as the supply of homes for sale dwindles compared 2016. It dropped from 1.2 months available in September 2016 to just 0.5 months available in September 2017. Like the other Silicon Valley communities in this report, prices went up here as well. Sunnyvale Buyers paid an average of $1,249,922 in September 2016 (just 0.8% under the list price). In September 2017, they paid an average of $1,459,952 (12.1% above the list price). The average price-per-square-foot increased from $804 in September 2016 to $1,009 in September 2017.

Silicon Valley Market Report - September 2017 Summary

The demand for Silicon Valley homes remains high as more people continue to move to Santa Clara County. Likewise, it appears we have lost the move-up buyer. Existing homeowners are not looking larger homes or moving from a condo to a single-family home. Homeowners realize they can sell for a premium, but the fear of not being able to buy their next home is stopping them from listing their existing home. As long this concern exists, we will not see an increase in inventory levels.

For Buyers planning to buy a Silicon Valley Home be prepared to face lots of competition and pay well over the list price.  Likewise, more than ever, it's critical to make your offer as strong as possible: get pre-approved before you start your property search and be ready to act fast if you see a home you like. Wait too long, the home of your dreams will be sold in as short as one day!

If you have questions about the content of the Silicon Valley Market Report, please contact the author, your Silicon Valley REALTOR@. To find out what's available on the market right now, visit my Home Buying page for helpful buyer tips.

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