Q2 2019 Silicon Valley Real Estate Market Update - A dividing Market

Q2 2019 Silicon Valley Real Estate Market Update - A dividing Market

In the first quarter of this year, the real estate market here in the Bay Area and nationwide were in transition as more buyers chose to remain on the sideline observing the slow bear market. While a lot of general consumers still believe that further downturn has yet to come, the real estate market itself in Q2 has a mixed performance, which is based on the locations and property types. But overall, the market has picked up from the Q1's slow transitioning market, to a certain extend, the stock performance of the newly IPO Bay Area Tech unicorns, the low interest rate and relatelively strong and healthy job market resulted in a overall mixed buyer's sentiment in the real estate market.

Luxury Markets has always been it's own animal. Throughout the Bay Area, multi-million dollar homes have always been more of a buyer's market and its still the case and will likely to continue to be so.

Regular homes in desirable locations, meaning that it belongs to execellent school district, close to big companies, convenient to all major highways and shopping malls, continues to gain great among of attention from buyers. Homes in prime location that's in great condition, beautifully staged and well priced are still receiving multiple offers. However, the bidding war has faded compared to the peak years, which means it takes more skills in marketing and promoting of the homes to get it sold than before, but when done right, it can still sell over the asking price with muliple offers.

Among all the home classes on the market, single Family Homes are still the most popular homes for buyer. Currently, right around $1M in Santa Clara County and $1.5M in San Mateo County are the selling due to affordablility. However, homes that are not showing well, needs work or in less desirable location generally struggles a little longer on the market and quite a lot of them had done price reduction before eventually selling.

Condos and Townhomes are facing more competitions this year due to more new construction homes being on the market. This, along with the existing resale inventory, has created a much larger inventories and choices for potential buyers. Homes that are in great conditions in great location still has considerable advantage.

Future Forecast:

Moving forward, the market will continue to be affected by variables such as presidential election (2020), trade war with China and so on. The IPOs of thie year so far have been mixed with great performance and less than expectation performance, the black out period for most of these IPOs isn't over yet, but some of them will soon to be, this can cause more homebuyers coming onto the market from SF to the peninsula and trickle down to South Bay. Interest rate remains very low and the job market being strong, these are healthy signs of maintaining a stable housing market. With more baby-boomer retiring and new construction homes coming onto the market, the inventory level is expected to be more than few years back. I expect the market to continue to be at a neutral state going into Q3.

For sellers, being patient, taking the time to study the market, coming to terms with the new market condition, doing the neccessary updates of the home in improve it's appeal and having the right marketing strategy will be the key to success.

As for buyers, more options are still going to available, be patient, take the time to study the market and the things that's involved with home buyer process to make sure all the duo diligence are done, the right opportunity is always going to appear.

Enjoy the rest of the summer!

Reach out to me at bojieteam@gmail.com (408)786-7564 for any real estate needs.

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