Santa Clara County, and Silicon Valley specifically, is one of the most competitive housing markets in the country. But not all these markets are the same.
There has been an increasing difference in the demand for Single Family Homes (SFH) and Condos.
In the last 5 years, SFHs have appreciated 22%, while condos have only appreciated 3%. This shift initially began during COVID when people prioritized larger space and yards over limited space and high density living. It was amplified by many HOAs being poorly run and that now face financial issues, trouble getting insurance, and deferred maintenance.
While the bidding wars have continued for single family homes, condos are sitting on the market longer and usually selling below the asking price.
The decision you make on your home purchase obviously comes down to price range. A condo is a great entry-level start to home ownership and may be the only option. But if there are single family homes that fall into your price range, I would prioritize this for a home purchase, based on appreciation.
Will this stagnation continue for the condo market? Much will depend on interest rates, affordability and how well run the HOAs are.
If you would like to discuss the best option for you based on your priorities and financial situation, please reach out!
Michael Majchrowicz, Coldwell Banker Realty
408-886-8037
michael.majchrowicz@cbnorcal.com
www.michaelmrealestate.com
CalRE 01784033