Market Updates

Santa Clara County First Quarter Market Report

May 1, 2019

The shifting market has provided an easier environment for buyers to find a house without the stressful competition of multiple offers and overbidding that we have seen over the past couple of years. Home sales volume dropped in the first quarter of 2019, its sharpest decline since the end of the last housing downturn, over 10 years ago. Slowing sales may indicate a softening of home prices, since the average price per square foot dropped by 6% during the first quarter of 2019. Mortgage rates were on the rise at the end of 2018, reducing the buyer purchasing power of Santa Clara residents, but that has since adjusted itself downward and rates are now at a 12-month low. This window of opportunity for buyers couldn’t come at a better time since personal incomes have been rising at a much slower pace than home prices. Adding to this opportunity for buyers is the fact that, unlike in past years, many sellers agreed to offers below their asking price during this last quarter.

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