Recent months have seen home prices and sales in Silicon Valley declining slowly. But do the numbers mean that the market value of properties in the area are dropping?
The simple answer: No.
In fact, Silicon Valley real estate remains an impressive and healthy market. Despite the apparent cool down, property values in the area remain strong. Compared to other housing markets in the country, Silicon Valley is still hot.
Here are a couple of things you should know to better understand the market shifts in Silicon Valley real estate.
- There is an increase in the housing inventory.
Not everyone in Silicon Valley has caught up with the slowdown in the local real estate. Enticed by the prices fetched by properties in the area, many home buyers in the market decide to list their homes.
This has led to an increase in the housing inventory. And with that, buyers have more options and thus, more room to be selective.
- Some home buyers are getting fatigued.
Home buyers who have been repetitively knocked out of bidding wars are also laying low for the mean time. It could be that they have gotten tired of the constant stress that comes with being outbid.
Those who are still searching the market for their dream home, however, have noticed that prices in Silicon Valley have gone down. Instead of rushing to make an offer, the popular approach this time is to take things slow.
And since sellers are making discounts, buyers are in a better position to pick out their dream home and make sound financial decisions.
- Sellers are being forced to make discounts and other offers.
Due to the slowdown, some sellers in Silicon Valley slash their listing prices. Some even offer to cover closing costs and other fees to woo potential home buyers.
With these price cuts, the median sales prices and average sales prices in Silicon Valley get affected.
These trends seem to show that the Silicon Valley market shifting from a seller’s market into a buyer’s market.
If you are buying a home in Silicon Valley, this can mean great things. More homes in the market mean more options and perhaps even more time to plan.
If you are selling your home in Silicon Valley, the venture might take some time. Offering discounts and other freebies might generate buyer interest, but it won’t guarantee a fast sale.
Property prices might have slightly fallen in Silicon Valley, but the market is still hot and thriving, especially when you compare it to other cities.
For home buyers, now is the perfect time to explore housing options in Silicon Valley. To get started, browse the latest property listings in the community of your choice.
Meanwhile, sellers may have to work harder (or wait longer) to sell their home. That said, there is no need to worry. Competitive pricing and a brilliant marketing strategy can help you sell your property.
David and Sunny can help you navigate this interesting time in Silicon Valley real estate. Contact them today at 650-489-6251 or info(at)davidandsunny(dotted)com.