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By some measurements, Santa Clara County in California is one of the most competitive real estate markets in the U.S. for home buyers.
Some buyers (including many who relocate from overseas) submit offers sight-unseen, just to get ahead of other home buyers. Hot properties often go under contract within days of hitting the Santa Clara County housing market and frequently sell for more than the original list price.
And when it comes to prices, most people outside of California would be shocked to learn that the median home price in Santa Clara County is nearly $2 million.
This article explains some of the factors that make the Santa Clara County housing market one of the most competitive in the country. We’ve also collected several helpful Santa Clara County home buying tips to help you succeed.
Santa Clara County is located in the southern San Francisco Bay Area region of California. It’s the sixth-most populous county in California and a major economic and technological hub. (Santa Clara County and “Silicon Valley” are basically synonymous.)
As of the last census, the county had a population of more than 1.9 million residents. It’s known for its ethnic and cultural diversity, with significant Asian and Hispanic communities calling the area home.
The Santa Clara County and Silicon Valley housing market can be summed up in two sentences:
There are a lot of high-salary tech workers seeking homes in the area, but not nearly enough homes available to meet that demand. This imbalance fuels fierce competition among buyers, resulting in some of the highest home prices of any U.S. county.
There’s not just one factor driving competition among home buyers in Santa Clara County. As usual, it’s a perfect storm of Santa Clara County housing trends and conditions.
For one thing, Silicon Valley is home to a lot of major tech companies and startups. This attracts highly trained professionals from all over the world, and these folks have a lot of purchasing power.
According to the U.S. Census Bureau, the median income for Santa Clara is currently above $150,000. So there are plenty of people with the funds needed to make a home purchase. This creates strong demand for housing, driving up Silicon Valley home prices and competition.
On the supply side, the entire Silicon Valley region faces building constraints due to geographical limitations and restrictive zoning laws. This limited supply cannot keep pace with the growing demand, further fueling competition.
Add in some strong demand from foreign buyers (particularly from China and India) and you have all the ingredients for a highly competitive Santa Clara County property market. And that’s Santa Clara in a nutshell.
Given all of these statistics and trends, you might think it’s nearly impossible to find and purchase a home in Santa Clara County.
But that’s obviously not the case.
According to the Santa Clara County Association of Realtors, there were nearly 1,500 home sales during the first quarter of 2024, with another 674 sales in the condo / townhome category. So clearly some buyers are having success.
The Santa Clara County housing market is certainly was of the hottest in California, and in the country. Given this, it’s important for home buyer hopefuls to ensure their finances are in order and to team up with experienced industry professionals to facilitate a successful transaction.
If you’re considering buying a home in Silicon Valley, we’re here to help. Reach out to Sammamish Mortgage to get pre-approved for a mortgage and get real-time rate quotes to get on the road to homeownership today!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.