Silicon Valley Real Estate Market May 2024
Inventory is healthier this year compared to last year. Even with the higher interest rates, we continue to see multiple biddings due to strong demands. All the anticipation of multiple rate cuts, rates have actually gone up a bit in the last few weeks. It does seem unlikely for rates to have any significant deduction this year.
California's population grew in 2023 after three years of decline. With most companies returning to the office, this has led to people moving closer to work, and those who can't afford to buy the type of homes they are looking for continue to rent. The rental market is strong.
Multi residential property value took a hit during Covid. With the rising rents, property value for Multi's and apartments are expected to come back.
California Association of Realtors created a Purchasing Power Calculator. One can plug in a few parameters, like county of residence, annual household income, down payment %, interest rates, etc, and see the monthly payment and how many homes on the market that may potentially be purchasable. It's a great resource for potential homebuyers.
The latest news with the DoJ lawsuit against Real Estate industry. It looks like the decoupling of commission may be more defined. Sellers may only pay for seller side commission. And buyers will pay for buyer side commission. The permanent decoupling of the commission structure could have significant implications for how real estate transactions are structured. Stay tuned.
If you have any questions or need real estate resources, I am happy to help. Please feel free to contact me. My goal is to bring genuine care, outstanding real estate services, and significant value, in order to positively impact our communities and clients.
Below are inventory vs median sale price since 2021 for Santa Clara and San Mateo counties.
Also stats for the last 13 months in Santa Clara and San Mateo counties.
Stats in other areas are available upon request.
