Santa Clara County Real Estate: A Seller’s Market in 2024

As we move through 2024, Santa Clara County’s real estate market continues to favor sellers, presenting both opportunities and challenges for buyers and homeowners alike. Let’s dive into the latest market trends and what they mean for those looking to buy or sell in this dynamic region.

Strong Seller’s Market Conditions

According to the latest data from HarvinderRealty.com, Santa Clara County remains firmly in seller’s market territory as of August 2024. This means there are more buyers actively searching for homes than there are properties available, giving sellers a distinct advantage in negotiations.

Key Market Indicators

To understand the current state of the market, let’s examine some crucial metrics:

1. Months of Inventory: At just 1.17 months, the supply of homes is extremely low. This figure represents how long it would take to sell all currently listed properties if no new listings came on the market. A balanced market typically has 4-6 months of inventory, so our current level indicates a significant shortage of homes for sale.
2. List to Sold Price Ratio: Homes are selling for an average of 104.9% of their list price. This means buyers are often engaging in bidding wars, pushing final sale prices above asking. For sellers, this is excellent news, as it suggests they’re likely to receive multiple offers and potentially sell above their initial expectations.
3. Median Days in RPR (Realtor Property Resource): Properties are moving quickly, with a median of just 10 days on the market before going into contract. This rapid pace underscores the competitive nature of our local market.
4. Median Sold Price: At $1,840,500, the median home price in Santa Clara County remains high, reflecting the area’s desirability and strong job market. However, it’s worth noting this figure has decreased slightly (1.05%) from the previous month.

What This Means for Buyers and Sellers

For Sellers:

• Now is an excellent time to list your property, with strong odds of a quick sale at or above your asking price.
• Consider pricing strategies carefully; while the market is hot, overpricing can still lead to longer days on market.
• Prepare for multiple offers and potentially complex negotiations.

For Buyers:

• Be prepared to act quickly when you find a home you love.
• Have your finances in order, including a strong pre-approval letter from a lender.
• Consider looking at properties slightly below your maximum budget to allow room for competitive bidding.
• Don’t get discouraged – persistence is key in this market.

Market Trends to Watch

While the overall market strongly favors sellers, there are some subtle shifts to keep an eye on:

1. Slight Cooling: The 11.36% decrease in months of inventory month-over-month suggests more homes are coming on the market relative to demand. This could indicate the beginning of a very gradual shift towards more balanced conditions.
2. Price Stabilization: The small decrease in median sold price might signal that the rapid price appreciation we’ve seen in recent years is starting to level off.
3. Increased Time on Market: The 11.11% increase in median days to sell could mean buyers are becoming slightly more selective or that some properties are being priced too aggressively.

Conclusion

Santa Clara County’s real estate market remains robust and competitive as we move through 2024. For those considering entering the market, whether as a buyer or seller, it’s crucial to work with an experienced local real estate professional who can help navigate these dynamic conditions.

Stay informed, be prepared, and remember that in real estate, timing and strategy are everything. Whether you’re looking to buy your dream home or maximize the value of your property in this seller’s market, understanding these trends is your first step toward success in Santa Clara County’s real estate landscape.