Silicon Valley Real Estate Market Update - April 2023

New listings increased by 11% while homes sold are down by an astonishing 30%, and the median sales price is down by 22%. Right now there is 2-month's worth of inventory. Palo Alto is the city where sales speed and price dropped the most. The rationale behind it could be that ever since the pandemic people prefer more land, and other cities in the South Bay can offer larger lot sizes along with excellent schools.

In Los Altos, inventory shrank significantly from last year. New home listings are down 22%, and homes sold are down 42%. Average price per square foot is down about 15%. Homes here still sell mostly within a week, which is the same as a year ago. Los Altos is still the most sought-after city for young, wealthy professionals because of the desirable location and lot sizes. 

New listings in Mountain View remain roughly the same as last year (26 vs. 29), but the number of sold homes was almost cut in half (13 vs. 27). This drastic decrease is because of the low inventory in March (only 16 new listings in March). Homes in Mountain View are still selling quickly, usually within 7 days. Prices have remained roughly the same. 

Sunnyvale new listings and homes sold are both down over 20%, but selling speed is the same at about 8 days. Prices are down 15%, at about $1363 per square foot. With the median price of $2.25M and the central location, Sunnyvale is still very desirable for tech workers. 

Inventory in Cupertino is down by about 30%. There are simply not enough homes for the demand. All decent homes that came on the market sold within a week. With top schools, Cupertino is still the most sought-after place to live for families with children, especially for those who cannot afford Los Altos and Saratoga. Prices are down 10% from last year. 

Homes in Saratoga are selling much slower. New listings are about the same as last year, but homes sold are down 27%, and current inventory is 1.7 months instead of 1 month like last year. It takes two weeks to sell now instead of 1 week. Prices are only down 10%. Despite the location being farther away, Saratoga is gaining popularity over Palo Alto, the main reason being the larger lot sizes and less crowding.