Silicon Valley home selling has been famous for its high prices and bidding wars over the last few years. However, 2016 saw a clear slowing in the Silicon Valley real estate market. While prices continue to rise, some buyers find themselves priced out of the market. There also continues to be a problem with low inventory, especially at the less expensive end of the market. A typical Silicon Valley home can easily sell for $1 million or more. Buyers who don’t have that in their budgets have to compete for an ever-shrinking number of homes. This has led to some buyer fatigue, with people deciding to stop looking or not engage in bidding wars. Not every price range saw a drop. While homes below $1 million saw a decline in sales, homes priced between $1 and $2 million saw an 8% increase in year-to-date sales. Homes priced above $2 million also saw a decrease. Overall, sales decreased 6%.
Silicon Valley Real Estate Simmers Down in 2016
The slowdown in the Silicon Valley market is not all bad. In fact, most experts have been predicting it. Additionally, it signals a stabilization in the market, which is a positive factor. If the market can even out, it may even entice some buyers back.
Get in touch with our office to discuss how these market changes might affect your plans for buying or selling.