January Santa Clara Home Sales Recap
The Santa Clara housing market in January experienced 12 single-family homes that closed escrow, which is 13 less than closed escrow in the previous month of December. For more perspective, last year there were 19 homes sold in January.
The average price of a home sold in January was $1.73M which is about $227K lower than the previous month’s figure of $1.95M. The median price home sold was $1.69M, about $128K lower than the median price in December.
The average cost per square foot saw a increase from $1133 per Sq. Ft. to $1270 per Sq. Ft.
Of all the 12 homes sold in January, 12 homes sold over the list price. On average homes that sold did so at 10.38% over asking compared to 6.02% over asking in the previous month.
We started the month of January with 18 active single-family home listings and finished with 22 active single-family homes for sale in all of Santa Clara.
There were 20 single-family homes that accepted contracts in the month of January and 25 new single-family home listings that were listed in January.
For a list of sold homes in January click here or scroll down to the bottom of the page.
Current Market Conditions
The local Santa Clara real estate market is hot. With low levels of inventory, buyers are very active as they worry about rising home values.
Prompting aggressive bidding and rising home prices.
Home Inventory is Low
It’s January and that means low inventory. As we start the year, generally we have the lowest level of homes for sale following the holiday season.
Since the December market was active, especially after the FED announced it may begin to cut rates sometime in 2024, that sent rates lower and pushed buyers off the fence.
Altos Research Market Data For Santa Clara
Market Action Index
Lower inventory generally means a tighter market where homes are selling quickly and prices are increasing, and that is the case with our current market.
One easy way to track the market is with the Altos Research – Market Action Index (MAI). The MAI is a proprietary metric that measures inventory and sales activity. The MAI was trending upward indicating that the market is getting stronger for sellers.
MAI has been trending upward in the last few weeks indicating the market is strengthening for sellers. Currently, the MAI is around 70 indicating a strong SELLER’S MARKET but not as high as we have seen in other strong seller’s markets.
Santa Clara Market Reports
The Altos Research Market Action Index for single-family homes in Santa Clara has decreased to 67 from 70 where it was last month. For more detailed reports on Santa Clara and Santa Clara Zip codes, you can access the reports here.
Santa Clara Report
95051 Report
95050 Report
95054 Report
Home Values on the Rise
With current low inventory levels, home values have been rising. The number of buyers looking right now are out numbering available homes, especially desirable homes and homes in sought-after neighborhoods.
Also adding fuel to the market are interest rates. Interest rates have settled from their highs, and seem to be trending downward.
Other Factors Influencing the Market:
Mortgage rates have settled down to around 6.75% nationally for a 30-year fixed. At one point in October of 2023 rates rose above 8%.
As the economy weakens expect rates to drop further.
Markets Year to Date
The stock market has climbed to highs for the year after several months of an up and down market. Best performing stocks continue to be tech stocks, specifically firms with a focus on AI with Santa Clara’s Nvidia leading the way.
Home buyers in our local market rely on tech stocks values for their down payment and for their loan qualifications. The impact on stock values affects home buyer affordability and purchasing power.
Since the beginning of 2024 the stock market has sputtered.
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What to Expect Moving Forward
Buyers, homes are selling fast and inventory is limited.
If you follow real estate you will know the Winter market is where the market will tighten and prices could start to shoot up.
When considering the factors of rates dropping, stock values increasing, and low inventory things seem to be shaping up for a hot sellers market.
The weakening of the economy may concern some. How you feel about the current state of the economy may depend on what you are reading or how the stock market is performing.
Many feel the economy is moving, and that the FED scenario for a soft landing is looking very likely. I don’t share this belief, but it’s very difficult to explain the current economic situation…even more so in Silicon Valley which tends to have its own economic cycles separate from the US and the global economy.
My advice to buyers is to continue to shop, but be cautious. I expect the market to heat up in the next few months but with rates still relatively high affordability is still a concern for many. Also, the stock market is treading in new highs, which will likely experience resistance moving forward.
Sellers, you can’t ask for a better time to get your home on the market.
Inventory is low, stock values are high, and interest rates although high, have dropped a bit providing some relief.
I really don’t think the conditions for selling are going to get any better later in 2024, but prices may increase more in the coming months.
A lot is going on right now in the economy. Some foreign economies are in deep recession, China is doing poorly, and overall you can expect the downturn to start hitting the US economy.
There could be a situation where we do start to see weakness in the system and the market slows. So there is some risk here.
My advice to sellers is if you want to make a move especially if you are thinking of making a move to a market where there is more new construction and supply of homes like Nevada, Idaho, and Texas then this market may be a great opportunity.
These markets are much slower than our current market, with lots of inventory, and home values have already dropped considerably from their highs. As a buyer, you may be able to make contingent offers on new homes enabling you to sell your home before buying a new home.
There are many reasons why selling and buying in a slow market makes sense. Here is an article I wrote on the advantages of selling in slow markets.
Instead of offering general suggestions here, I would encourage sellers who have questions and concerns about selling in this market to reach out to an agent.
Understanding your specific situation helps in determining how this market will affect you and your options. I offer free consultations to buyers and sellers to discuss their needs, so please reach out, I am always happy to help.
Conclusion:
As always, whether you are buying or selling, understanding the current market will set you up for success. As I mentioned above some homes are doing quite well in this market.
Understand that the housing stock of Santa Clara is very diverse and can vary greatly from one neighborhood to the next.
Developing the right strategy for you, whether you are buying a home or thinking of selling your current home is important to succeeding in this market.
If you have any questions about a home on the market or your home’s value, please feel free to reach out, I am happy to meet and help you understand your options.
Contact Me Today
Have a question? Interested in setting an appointment to talk about your real estate plans? Contact me today.
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Santa Clara January 2024 Home Sales
| Street Address | List Price | Price | DOM | Beds Total | Bths | Sq Ft Total | Age |
| 330 Crestview Drive | $2,388,000 | $2,650,000 | 0 | 4 | 3|1 | 2,330 | 67 |
| 675 Marshall Court | $1,675,000 | $1,980,000 | 11 | 3 | 2|0 | 1,316 | 69 |
| 2902 Millar Avenue | $1,538,000 | $1,880,000 | 6 | 3 | 2|0 | 1,237 | 65 |
| 2391 Nobili Avenue | $1,850,000 | $1,855,000 | 14 | 4 | 2|0 | 1,643 | 64 |
| 2143 Benton Street | $1,799,000 | $1,818,000 | 45 | 4 | 2|0 | 1,493 | 73 |
| 765 Enright Avenue | $1,499,000 | $1,700,000 | 5 | 3 | 1|0 | 1,244 | 73 |
| 3555 Butcher Drive | $1,550,000 | $1,685,000 | 8 | 3 | 2|0 | 1,166 | 69 |
| 2171 Francis Avenue | $1,499,000 | $1,682,800 | 6 | 3 | 2|0 | 1,034 | 65 |
| 2059 Larsen Place | $1,549,999 | $1,579,500 | 3 | 3 | 2|0 | 1,347 | 65 |
| 3545 Butcher Drive | $1,250,000 | $1,475,000 | 9 | 3 | 2|0 | 1,166 | 69 |
| 2430 Robinson Avenue | $1,298,000 | $1,450,000 | 9 | 3 | 2|0 | 1,760 | 71 |
| 4051 Davis St | $898,000 | $950,000 | 26 | 1 | 1|0 | 920 | 76 |
Santa Clara Housing Market Archive
January 2024 home sales CLICK HERE.
December 2023 home sales CLICK HERE.
November 2023 home sales CLICK HERE.
August 2023 home sales CLICK HERE.
July 2023 home sales CLICK HERE.
June 2023 home sales CLICK HERE.
May 2023 home sales CLICK HERE.
April 2023 home sales CLICK HERE.
January 2023 home sales CLICK HERE.
December 2022 home sales CLICK HERE.
November 2022 home sales CLICK HERE.
October 2022 home sales CLICK HERE.
September 2022 home sales CLICK HERE.
August 2022 home sales CLICK HERE.
July 2022 home sales CLICK HERE.
June 2022 home sales CLICK HERE.
April 2022 home sales CLICK HERE.
March 2022 home sales CLICK HERE.
February 2022 home sales CLICK HERE.
December 2021 home sales CLICK HERE.
November 2021 home sales CLICK HERE.
October 2021 home sales CLICK HERE.
September 2021 home sales CLICK HERE.
July 2021 home sales CLICK HERE.
May 2021 home sales CLICK HERE.
April 2021 home sales CLICK HERE.
March 2021 home sales CLICK HERE.
February 2021 home sales CLICK HERE.
January 2021 home sales CLICK HERE.
November 2020 home sales CLICK HERE.
October 2020 home sales CLICK HERE.
September 2020 home sales CLICK HERE.
August 2020 home sales CLICK HERE.
July 2020 home sales CLICK HERE.
June 2020 home sales CLICK HERE.
May 2020 home sales CLICK HERE.
April 2020 home sales CLICK HERE.
March 2020 home sales CLICK HERE.
January 2020 home sales CLICK HERE.
