Silicon Valley Housing Market Update: May 2024 - New Highs and Emerging Trends

Welcome to our latest update on the Silicon Valley real estate market, with this month's focus on Santa Clara County.  May 2024 was another remarkable month, setting new records and revealing intriguing trends. Whether you're a potential buyer, seller, or simply an enthusiast, here's everything you need to know about the current housing market and trends (the table below represents single family homes).

Home Prices Reach New Heights

For the second consecutive month, home prices in Santa Clara County have set new records. The median sales price for single-family homes skyrocketed to $2,100,000, marking a 19.1% increase compared to last year. Not to be outdone, the average sales price also hit a new high, reaching $2,438,990—up 15.4% year-over-year.

These impressive figures highlight the growing demand and limited supply in our vibrant region, making it an exciting time for homeowners considering selling.

Strong Sales and Slight Adjustments in Ratios

In May, the sales of single-family homes surged by 13.5% year-over-year, with 851 homes sold. Although this is below the monthly average of 987 homes since 2000, it signifies a robust market recovery.

Interestingly, the sales price to list price ratio dipped slightly from 110.7% to 109.2%. This slight adjustment suggests that while buyers are still willing to pay a premium, there's a minor shift towards more balanced negotiations.

Inventory Trends: A Glimmer of Relief for Buyers

For the first time in fourteen months, the inventory of single-family homes increased, up 19.1% compared to last year. As of June 5th, there were 743 homes for sale, though still significantly below the long-term average of 2,703 homes since 2000.

The current days of inventory remained steady at 26 days, well below the historical average of 89 days since 2003. This metric indicates that the market is still incredibly competitive, with homes selling quickly.

Condo Market Highlights

Condos are also experiencing a boom. The median sales price for condos reached $1,081,500, a 12.7% increase from last May. The average sales price climbed to $1,144,730, up 10.2% year-over-year.

Condo sales saw a significant rise, up 31.4% with 268 units sold. Despite this increased activity, the sales price to list price ratio slightly decreased from 106.4% to 105.3%.

Condo inventory also saw a notable increase, up 88% compared to last May, with 406 condos for sale as of June 5th. However, this is still below the long-term average of 757 units since 2000. The days of inventory for condos rose slightly from 30 to 33 days, showing a minor easing in the market pressure.

Quick Turnaround Times

One of the standout features of our current market is the speed at which homes are selling. On average, it took just 14 days to sell a single-family home and 15 days for a condo. These rapid turnaround times underscore the high demand and quick decision-making by buyers eager to secure properties in Silicon Valley.

Bottom Line

With the market setting new records and maintaining a competitive edge, now could be an ideal time to consider selling your property. If you're curious about your home's value or are ready to make a move, please reach out to me for a free comparative market analysis. Let's navigate this dynamic market together and maximize your opportunities!

Want more detail?

I hope this blog provides you a helpful overview of the current trends happening in our housing market in Santa Clara County.  If you love this type of data and would enjoy even more detail, I’m always happy to share!

• For a pdf of the full Market Trends Report for May, please click here or go to https://rereport.com/scc/print/JanetSouzaSCC.pdf
• For a pdf of the 2023 Annual Market Trends Report, please click here or go to https://rereport.com/scc/print/JanetSouzaSCCannual.pdf
• To get the full Market Trends Report sent to your email every month, please click here to subscribe (don’t worry, we will NOT spam you!). 

Please don’t hesitate to reach out if you have any further questions or would like to discuss your specific goals and objectives.