Cooling home prices to drive affordability in 2026
Cooling home prices to drive affordability in 2026
Los Gatos Home of the Week
Santa Clara County Price Reductions
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Cooling home prices to drive affordability in 2026
I remember growing up with my 23-year-old kid and sitting there watching The Lion King.
Current Market Overview
Let's discuss the current market trends. The market's cooling. It's December 30th. It's gonna be a little bit of a slow market right now because people are not thinking about buying a house.
The low ballers and the trolls are out there for sure, looking for desperate sellers. Cooling home prices to drive affordability in 2026, as First America, we're going to see an increase in supply.
Meaning there will be more houses on the market in the coming months. If you're buying a house, this is the time to buy it because in the March, April, May timeframe, there will be a plethora of buyers out there. People who know this is the time to sell, to buy if you're selling. Get your house ready to sell right now.
I have this thing highlighted.
Affordability Issues
More than 3,400. Of those five hundred and sixty, counties were considered seriously unaffordable. Where we live is unaffordable. It is, no matter how you look at it, compared to everything.
The cost of living: Gas, healthcare, insurance, and Food. It is crazy expensive to live in those areas. And it's all on the coast. You saw it yesterday. We had a little map that talked about the most unaffordable areas in the US and Marin County, and San Francisco.
Santa Cruz and Monterey were among the most expensive places as far as affordability is concerned. Santa Clara County is still very unaffordable, but people make more money on average than those in Santa Cruz, unless you're willing to commute. If you make money, you can afford to live in the Valley, not in Santa Cruz.
The
Housing Center for the American Enterprise Institute said that home price analysis was released on Monday, year over year. Home appreciation, of 1.6 in November, was one of the lowest rates reported since 2013. Projecting home price appreciation of 1.62 elevated home prices.
But why are we seeing a contraction?
Santa Clara County Price Reductions
Seasonal Market Trends
Well, we're in a seasonal lull. If you're not in Santa Clara County, I can't tell you what your selling season is, but for the most part, the Bay Area is March, April, May, September, and October an okay time, but March, April, and May are when people tend to buy.
That's when the most houses come on the market because their kids go to school or they're getting outta school and they can time it just right. So that when there's Peak performance, the right number of supply and the right number of buyers come out. Last year, we didn't really see that happen because rates were so high.
We're going to see prices come down. Although this article says that there's probably not going to be another nudge downward in the next three to six months, we don't know. Nobody knows. We'll talk about that next time.
Los Gatos Home of the Week
This is the Los Gatos Home of the Week, Sara Vista Court, a four-bedroom, three-and-a-half-bath, 5,000-square-foot home built in 1991 on an acre, and it's right off Shannon Road. To the east of 17 and Santa Cruz, there's just not really a lot to choose from right now. So I chose this one.
This is a nice, big house with a lot of land. Perfect for one of my buyers. I'm gonna send it to him 'cause this is exactly what he is looking for. A nice single-story with multiple storage areas. He has a few cars, and it's on a big hunk of land. Let's take a look inside.
It's got the brick fascia. Is that really four? There are only four pictures. Something's not right there. How many days on market?
Oh, it's not on the market yet, that's why. If you're interested in looking at it, we will come take a look at it. It says it is on the market. That's weird. I'll have to take a look.
Price Reductions and Sales Data
Price reduction. Highest highest-selling home in Santa Clara County was $6.5 million. It sold for a hundred percent of the list price.
It never made it to market again. That house could have sold for another million dollars. You don't know because you didn't put it out to the entire market. We talked about that yesterday with Compass getting sued or Compass suing, whatever Lois sold. The price was 760,000. 81% of the original list price.
The highest list price was sold at 125%. And the lowest list price to sales price ratio with 69%. Still for the highest, most expensive house for sale in Santa Clara County is 25 million, and the lowest for sale is 2,279. That's a one-bedroom, one-bath, 330-square-foot house with a little bit of land. If you're interested in looking, let me know. Happy to help you out. We have 562 active single-family homes for sale in Santa Clara County. It's low, guys. It's low. It's not as low as it was back on January 7th. 504, but that will probably be about the same thing. Next week, the last seven days we had 45 closings.
When you're used to 152 on average, what happened? Well, it's winter. There you go. Thanks for watching. I'm Vito with Abano. We'll see you out there.
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🔴 The Five Biggest Turn-Offs For Homeowners https://youtube.com/shorts/lwknH5DCS5c
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Vito Scarnecchia
Real Estate Broker, Veteran, Dad
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408-705-6817
Vitos@abitano.com
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