Sunnyvale, CA Home Prices Remain Strong

The question I hear everyday is what’s going to happen with home prices in Santa Clara County?
The buyers I’m speaking with wanted to know when home prices were going to drop in Sunnyvale. My response: “I don’t see home prices significantly dropping in Sunnyvale because the demand for housing in this area is too high.”

Isn’t it odd with so many regions of the U.S. facing a glut of inventory included many communities in the Santa Clara County (San Jose: Alum Rock, Berryessa, North Valley, etc.) that the City of Sunnyvale is the exception, not the rule?

I was curious to find some data to back up my statement, and I found it. See below for the details. Since the year 2000 on a quarter-by-quarter basis, the City of Sunnyvale never saw its inventory rise above 245 single family homes. Even at that time, the Average Days on Market was 23 days, averaging 48 homes sold per month. At the peak of the market, Q2 of 2005, the numbers were: Total Inventory - 113, Average Days on Market – 13, with approximately 100+ homes selling per month. Granted, we could go back further and probably find a time when home values did drop; the period after the 1989 Loma Prieta earthquake, or maybe the late 1960’s when the aerospace industry left the valley. Rather, let’s look at the current facts which could cause home prices to drop:

Lack of Demand – Not likely for three reason’s:
1) Limited land mean’s limited places to build.
2) Local population continues to increase.
3) The local job market and economy continue full steam ahead.

We are seeing limited Access to Credit – Yes, we’re seeing some impact due to tight credit right now but this should change in the next qtr.

Now is the time act if you want to own a home in Sunnyvale, California. I project once we’re in the summer buying season we may be looking at multiple offers all over again.

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085