State of The Silicon Valley Real Estate Market Webinar

Effects of the coronavirus on the Silicon Valley real estate market.

A look at home sales in Menlo Park, Redwood City, San Carlos, Palo Alto, Los Altos, Mountain View and the surrounding areas in Santa Clara and San Mateo Counties.

As one of Silicon Valley's top real estate agent's, Brett Caviness takes us through today's market. Home values in Silicon Valley can seem volatile, but are the really?
 
 
I take a look at the real numbers. In this video, I discuss where we were leading up to Shelter in Place being ordered for the Bay Area Counties. Leading up to Shelter in Place, San Mateo and Santa Clara counties were both showing significant price appreciation compared to 2019. Prices in San Mateo County were up 14%, and Santa Clara County prices were up 6% when looking at average sales prices per square foot of homes sold in March 2020 compared to those sold in March 2019. While 2018 saw prices flatten, and was a rebalancing period, 2020 really started off with a bang where we saw swamped open houses, multiple offers and properties selling significantly over list price at appreciating figures.

Once shelter in place took hold, we initially saw many properties that were in contract, fall out of contract as uncertainty took hold. Though from that point on, we saw consumer confidence rebuilding which continues to today. Since shelter in place took effect, we've seen the number of new listings drop by about 33%, while the number of homes selling drop by about half. The number of new listings has dropped, though the number of homes sold also reduced- though remains quite strong. There have been extensive restrictions placed on which properties can be seen, how they can be seen, how listings can be prepared etc. We've seen the new shelter in place order, will be relaxing some of these restrictions. Business has quickly shifted virtual. Virtual showings, virtual staging, and more. Buyers are beginning to get more accustomed to viewing homes virtually. During the current SIP order, construction was ordered to a stop, though can resume again beginning Monday may 4th. Open houses are a thing of the past, and I expect that to continue for several months as the safety risks and liability of holding public open houses looms.

One of the positive indicators, as pointed out by The Mercury News, Silicon Valley counties may be better positioned than most when it comes to potential for job losses. As we know, most of the buyers in our marketplace were already not service or labor workers who's jobs are more at risk. Our buyers are usually tech workers, executives, employed in health and biotech etc. Opportunities remain for both buyers and sellers. Sellers and buyers alike are encountering less competition, low interest rates, and continued demand with relatively low level of price slippage at this time.

Join Brett on an upcoming webinar or contact him directly. 

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