There are a number of similarities between the performance of Santa Clara condos and single family homes over the last few years. Fluctuations in real estate inventory between the two classes have had very similar trajectories. Recently the inventory for Condos/Townhomes has started to diverge a bit.
Condo/Townhome inventory in the city of Santa Clara is at a high for the year where single family home inventory is still is in a plateau type pattern. I expect that single family home inventory will eventually climb to a high for year as the season winds down. Generally condo inventory is considerably lower than single family home inventory at any given point in the market. At current levels the two are numbering around the 60’s. An indication that single family home levels are really low, and condo inventory are approaching a normal level.
Its certain that the Santa Clara condo market has slowed down relative to the single family home market. Perhaps due to most condo buyers being first time home buyers that may rely on higher loan to value ratios. So when interest rates increase condo buyer’s purchasing power is more severely affected. Who knows for sure what’s behind the relative slow down. Condo buyers can rest assured that prices in Santa Clara condos are softening up.
For those buyer’s considering a similarly price single family home or a condo in Santa Clara, currently the condo market is going to be much less competitive. Condo sellers, prices are currently holding up but who knows for how long.