Are we headed for a slowdown, or is the market about to explode?
If you’ve been watching the housing market, you’ve probably seen some very mixed signals as we approach the end of the year. On one hand, sales volume is declining. We’re seeing it drop from around 230 to just over 200 sales per week here in Santa Clara County, while there are currently more than 1,784 unsold properties.
But this is not a one-size-fits-all market. It’s actually a tale of two cities right now.
If you own a property at the $5 million price point and above in areas like Los Altos, your market is on fire. There’s still plenty of money circulating, and buyers in that space are showing up in droves. I saw one $5.4 million listing that brought in 65 groups during its very first weekend.
That’s not a soft market.
The Mid-Peninsula is seeing a lot of heat, too. Places like San Carlos, Belmont, and San Mateo are seeing homes in the $2 million to $2.2 million range move quickly. That’s real demand.
But that’s only half the story.
For Buyers, Timing Could Matter
For buyers, especially those looking in the entry to mid-range, this time of year, right before the holidays, might be your golden opportunity.
Why?
First, spring is coming. And when it does, sellers start getting just about any price they want. Historically, spring brings bidding wars, multiple offers, and sometimes homes going $200,000, $300,000, or even $500,000 over asking.
If you’re waiting for a slightly better interest rate in spring, you could end up paying a lot more for the same home.
Second, this is one of the few windows where we’re seeing true negotiation.
We just helped a buyer in San Jose pick up a single-family home below asking, with their contingencies intact, on a property that had been sitting for more than two weeks.
Deals like that just don’t happen in springtime.
Third, yes, we might see a slight rate dip, maybe a quarter point. But here’s what I want you to hear: the real money is made in the price you pay for the home, not the interest rate.
Getting $100,000 off a home’s price is some real savings right there.
And if you’re a savvy buyer, this is your window. So don’t wait.
For Sellers, Pricing Is Critical
Now, let’s flip the script for sellers.
If your home has been sitting, or if you’re thinking about listing soon, here’s what you really need to know.
The strategy right now is not to list at the highest price you want. You list at the price of the last hot comparable sale.
The idea is to generate energy, get attention, and let that demand float the price up.
But what if you have a listing that’s starting to go stale?
Small price drops just are not working right now.
One of our fellow agents had a condo listing at $700,000 that was not moving. They dropped it to $679,000, and still nothing happened. But when they lowered it to $650,000, about an 8% drop, it immediately got an offer over that price.
That’s what moves the needle.
And if you’re holding out for your perfect price, ask yourself: how long are you willing to wait? And what is that wait costing you?
If you bought even just a few years ago, you’ve likely built up a lot of equity in your home. So instead of thinking about what you’re giving up, think about how much you’re already gaining.
That mindset shift can help sellers say yes to strong offers, especially in this market.
Condos Are a Different Story
Now, let’s talk about condos for a second.
That segment is definitely softer right now. We’ve seen condo sales in the county drop from around 70 per week to just 42. Inventory is climbing, too.
So even in a slower segment like this, the right property in the right community, when it’s priced correctly, can still sell fast.
We just saw one in Sunnyvale go pending in under a week.
My name is Kip Barnard, and I’ve been a licensed broker for over 20 years here in Silicon Valley. Besides being a top producer, I’ve sat on the ethics committee here for over 10 years. I’ve also managed and grown an office for the number one brokerage in the country, overseeing billions of dollars in sales.
My goal in making these videos is to share what I’ve learned and help you protect your number one asset.
So, here’s the bottom line.
Buyers, this market is giving you a shot at negotiation. Take it before the competition comes roaring back in the spring.
Sellers, be strategic. Price it right or be ready to adjust boldly. That’s how you win before the spring.
This moment in the market isn’t random. It’s built for people who know how to move with purpose.
And if you need help figuring out your move, you know where to find me.
Thanks for watching, and I’ll see you in the next video.
