After the fast pace of spring, summer marks a slower time in the South Bay. Homes take longer to sell and buyer demand softens, creating a more balanced market ripe with opportunity – especially for well-prepared buyers who aren’t sidelined by summer vacations and the hope for lower interest rates.
Slower Pace, Solid Outcomes
While it’s a slower market, it is not a weak one. Due to profoundly low overall inventory, we remain in a seller’s market, and the best homes in the most desirable neighborhoods still move quickly.
What’s more, the recent AI-related market boom has driven unprecedented luxury demand down from San Francisco into our own South Bay communities.
Inventory Down
While inventory is up nationally, active listings in Santa Clara County have decreased by 19% since spring, totaling 1,979 at the beginning of August vs. May’s peak at 2,350. This is 8% higher than a year ago, yet the month’s supply of inventory (1.8 months) is low, keeping pressure on pricing.
In our local communities of Campbell, Willow Glen, and Los Gatos, inventory has trickled down since June. With up to 41% of listings in these neighborhoods experiencing price reductions, informed buyers may have room for significant negotiation.
Days On Market Up; Demand Down
Pending sales in Santa Clara County the past two months have dropped 17%, with homes lingering on the market significantly longer than several months ago. Days on market (DOM) in Los Gatos (95032) rose from 18 days to 39 days, in Campbell from 18 to 49 days, and in Willow Glen from 21 to 28 days.
Current Local Snapshots
Willow Glen (95125):
106 Total Homes For Sale | 76 Single-family | 30 Townhome/Condo; July Median Sales Price: $2,500,000
Campbell (95008):
66 Total Homes For Sale | 29 Single-family | 37 Townhome/Condo; July Median Sales Price: $2,407,500
Los Gatos (95032, 95030):
77 Total Homes For Sale | 59 Single-family | 18 Townhome/Condo; July Median Sales Price: $3,427,500
Prices Stay Strong
County-wide, home prices are up 3% from July to July. In the South Bay, prices are significantly higher than a year ago. For sellers, this means pricing your home with precision, strong preparation, and the right strategy from day one.
What’s Ahead?
Experts expect the AI surge to drive more and more buyers into our South Bay market, as indicated by business media hub Fast Company. My personal thoughts are that we will see renewed activity soon as summer vacations conclude, kids get back to school, and more newly minted earners seek to buy before the holidays.
Have questions about how to make your best move in our dynamic market? Please reach out and let’s discuss the best strategy for selling or buying – or both!
