Did you try to buy a home in Silicon Valley in April 2014? How many offers did you write without success? Well, the numbers are in and they don’t look pretty which might explain the reason why you were not able to purchase a home in Silicon Valley last month.
Records were broken in most Silicon Valley counties with the median home prices reaching:
- Alameda: $615,000 – highest since August 2007
- Contra Costa: $475,000 highest since November 2007
- Santa Clara : $810,000 new high ever
- San Mateo: $883,050 down from $860,000 in March
Alameda County is only 8.1 percent below its all-time peak, while Contra Costa County is 27.4 percent below and San Mateo County is 8 percent below.
Fueling the rise in home prices was the hyper demand with too many buyers chasing too few homes. In fact, Silicon Valley has seen bidding contests with houses fetching thousands of dollars over asking prices. The frenzy is discouraging some would-be buyers. Our own cash buyers lost on a Los Gatos fixer upper which went for $140,000 over asking price and closed in 3 days.
With this much frenzy on the few homes that are on the market, some buyers are dropping out and opting to wait this out. Ironically, the rise in home sale prices are also bringing some new sellers back to the market after they see their neighbors home selling with massive gains.
Are these prices tempting you at all? Will you be interested in selling your home?