https://youtu.be/81OKd-lqAS4 (clickable video screenshot here)
Although for several months we've shared anecdotes of a softening Santa Clara housing market, the news is better this round. We've recently observed some early but undeniable signs of a trend back towards a stronger sellers market. A quick update. Not only are buyers coming back into the market, but supply has been rolled over.
Several key metrics closely influence the strength of our housing market here in Santa Clara. So, for instance, the level of supply and the level of what we've seen the NASDAQ and the yield on the 10-year Treasury bond, which is what mortgage rates track, those two things in Santa Clara housing prices are driven foremost, first and foremost, by simply supply and demand, even more than those two.
So, all things being equal, demand is unusually strongest in the spring, typically between February and May. And for supply for the for-sale homes, that usually peaks in July or August is when we see the most homes for sale. But all things were not equal this year in 2025.
The market slowed during this time. That's typically the strongest and with the post liberation day tariffs. Now it's starting to pick up steam with buyers where it's typically slower. So housing supply appears to been rolled over several weeks ago and it's steadily declining. Supply is declining here in Santa Clara ever since.
Right now, we have 23 single family homes. And perhaps it's only because they're only competing over fewer homes. So, it appears that there's more home buyers in the market in our market right now. Every weekend, we're in open houses talking to these buyers.
Our open house traffic is strong. We're seeing multiple offers well over list. We've personally talked to these hundreds and hundreds of buyers coming through and described from the beginning what we're seeing. And we're seeing them actively shopping for homes and they've said they've been coming in the last week or two... brand new entering the market.
So, of course, this is more of a headline driven market and circumstances can change quickly. We're seeing mortgage rates that were near year-to- date lows on June 30th. No doubt that played a role in the quick uptick in buyer demand, but at the same time, as we're writing this and filming this, we've seen rates that have risen every trading day since, just by a little bit and this threat of significant tariffs taking effect.
It doesn't appear to be currently priced into the S&P 500 and the NASDAQ yet, but that is persisting. So, for the moment, we're seeing strong strong buyer demand and a dwindling supply. So, those two things are leading to being reflected in the results. For example, last week we just put on a property, had 13 strong offers, roughly doubled our expectation, and it was a price well above the comparable homes in the neighborhood. Like I said, $300,000 over asking price.
So, when it comes to timing when you should list your home Santa Clara, should you have any questions about what your home should sell for, the timing, what updates are worth it, or how to minimize your capital gains, feel free to call me (408) 857-5153.
Much professional love,
Tim & Ryan
(408) 857-5153
R.O.I. Real Estate
