Santa Clara County

The Market Accelerates

Moving into spring, rising buyer demand vs. an inadequate supply of homes for sale is creating a rapidly heating market characterized by increasing buyer competition, faster sales and more overbidding of asking price. The upcoming months are typically the most active of the year and on current trends, conditions are expected to generate upward pressure on home values. Median home sales prices often hit their calendar-year highs in spring, due to the imbalance between supply and demand, as well as a seasonal surge in luxury home sales.

As was the case last year, houses are seeing stronger market conditions than condos and townhouses, and more affluent buyers continue to play an outsized role in demand and home-price appreciation. $5 million+ home sales hit their highest month-of-February count ever.

The wild card in coming months is what sustained effects, if any, the Iran war may have on inflation, interest rates, financial markets and consumer confidence. Barring an extreme decline in economic conditions, we currently consider a substantial negative impact on the county's housing market unlikely.