Is Silicon Valley a Seller’s Market. ABSOLUTELY! Is Silicon Valley a Buyer’s market. YOU BETCHA! Whoa Jorge, what’s with the double talk. You sound like our presidential candidates. The correct answer is “it’s depends” You see there are many factors that determine what a seller’s market is, despite what you may have heard at a party or a neighborhood BBQ. So for today’s example we will use Almaden Valley. You can also check Almaden stats at www.AlmadenRealEstate.info.
In 2016 thus far, the “average” house is selling for $1,457,258 (I don’t use median as median is pretty meaningless in real estate). This is up $55,322 from 2015. Currently there are 59 active listings. Let’s break thus down to three sections. There have been 233 of which 140 (60%) were under the average. Of the 140 sold listings, the average days on the market was 23 days. Not bad.
The next group will be from $1,457,258 to $2M. There are 75 properties in this group (32%) with a average days on the market of 31. Still not bad.
The last group is the focus of today’s posting. The last 7%. In the case of Almaden (each area will be different), $2M Plus. In 2016 there have been 18 sales over $2M which includes two sales over $3M. In 2015 there were 29 sales over $2M which included two sales over $3M. Currently there are 15 listings in Almaden over $2M. There average days on the market is 129 and growing daily. Six of those listing are over $3M. As stated above, in 2015 there were 2 sales over $3M, we have already sold two $3M properties in 2016 and there are still six unsold listings.
So as you can see, you need to break areas down into price ranges before you throw out terms like Buyer’s or Seller’s markets. Under the average Almaden Valley has a solid Seller’s Market in place. Over the average but under $2M, still a good seller’s market but a bit softer. Over $2M, pretty much a solid buyer’s market.
This is for Almaden Valley and each area is going to be very different. In Los Gatos or Saratoga for example, $2M to $3M may be a Seller’s Market as an example. East Side San Jose the Buyer’s market could start at $800K.
The take away is a property is only worth what a qualified and willing buyer is willing to pay for it and what a leader will loan on it. Doesn’t matter what you think your property is worth or what “you want” or “what you need” or neighbors house sold for two years ago. It’s about what someone is will to pay and what the appraisal come in at. So price it right the first time!!!