Sometimes big things happen quietly. For several years now the story of Silicon Valley Real Estate has been all about the listings. The dearth of available homes frustrated home buyers so much that many have dropped out of the market altogether, avoiding the painful experience of making multiple offers only to be outbid.
So imagine my surprise to find out this week that the number of new single-family listings in February in Santa Clara County doubled since December. Doubled! Anecdotally March is doing even better, and this is translating to homes being on the market longer and fewer bidding wars.
The number of active listings on the market has jumped from 1200 in December to 1800 in February, matching last year’s peak number of active listings from July, typically the peak of the home-selling season.
Charts are courtesy of MLSListings.com.
What’s happening? We can only speculate at this point, but it appears we may have crested that price level where current owners are finally thinking it’s time to sell. This should open up more move-up opportunities, and in turn open up new lower-market listings too.
We’ll follow this trend carefully over the next few months, and we want to dig deep into it.
For instance, how will this affect home prices this year in Silicon Valley? Will sellers still receive multiple offers? Will pricing begin to moderate? How should this change the pricing strategy when listing your home for sale?
How will this affect home buyers in Silicon Valley? Will you be able to shop more carefully? How should this change your strategy when making offers?
If you are selling in order to buy (whether moving up or right-sizing) does this mean you can sell with a little more confidence that you can actually find something to buy?
Is now the right time to do something? How will this affect Silicon Valley Real Estate?
We’re having a public discussion of this trend tomorrow in our seminar about right-sizing your home. The seminar will be held on Saturday March 21st, at the Silicon Valley Business Center in San Jose from 9:00 to 12:00. Please join us if you can. You can RSVP by email, phone (I always love hearing from you) or here.