In recent years, Silicon Valley has been one of the strongest markets in terms of price appreciation. However, over the past few months, there has been quite a bit of softness, as certain counties saw their first year-over-year price declines in over a year. However, in August, we saw price appreciation across the board in the single-family home market, with median sale prices increasing by 3.01%, 5.54%, and 6.74% in Santa Clara, Santa Cruz, and San Mateo Counties, respectively. Unfortunately, the same cannot be said for the condo market, though, as we saw year-over-year decreases in median sale price across the board. Median sale prices decreased by 3.64% in Santa Cruz County, 4.02% in San Mateo County, and 5.20% in Santa Clara County, on a year-over-year basis.

Inventories for single-family homes made an unexpected reversal in August

Inventories have been building throughout California, starting in late spring and continuing throughout the early summer, resulting in many areas having considerably more inventory on the market on a year-over-year basis. However, inventories began to normalize in the back half of the summer, with the Silicon Valley single-family home market making a full reversal in August. In fact, Silicon Valley ended August with 4.04% fewer active single-family listings on the market when compared to last year! The condo market has not made this same recovery, but it is on the same trajectory, with 16.77% more inventory on the market than this time last year - a drastic decrease when compared to prior months.

Most single-family home listings spend just two weeks on the market