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2017 Q3 - Real Estate Market Summary

As we all know, real estate in the Silicon Valley is hot!  Pricing and low inventory keep us wanting to stay informed on the value of one of our largest assets.  Below is a summary of Q3 and a forecast of what we are expecting for Q4. 

Following a strong end to the spring homebuying season in Silicon Valley, the summer months brought continued momentum to the housing market, with sales exceeding last year's third quarter. However, while sales of higher-priced homes flourished, lower price points were constrained by rapidly declining inventory, which was almost half of levels recorded during the same period last year.

Amid such supply conditions, buyers faced stiff competition, and a significant number of homes sold for premiums. The share of homes that sold for more than list price has increased over the last year, with a 17 percent gain from the third quarter of 2016.

Relatively more affordable Sunnyvale has become the area's newest hot spot, and the median sales price has increased by about 50 percent from three years ago. In response to its new popularity, Sunnyvale has revitalized its downtown area.

Looking Forward: Buyer enthusiasm suggests continued demand and strong activity in the fourth quarter. However, major sales increases will be hampered by a lack of inventory. Buyer competition may further intensify, especially at the lower end of the market, while the higher end could see slowing activity.

Here is a link to the most current market data per city:  David Weil - Q3 Market Insights 2017 Silicon Valley

Please let me know if you would like to discuss the local dynamics further and how it relates to your property.

Defining Silicon Valley: Our real estate markets in the Silicon Valley region include the cities and towns of Atherton, Los Altos (excluding county area), Los Altos Hills, Menlo Park (excluding east of U.S. 101), Palo Alto, Portola Valley, and Woodside. Sales data in the charts includes all single-family homes in these communities.