Santa Clara County’s Two-Speed Fall Market: Why Some Homes Still Sell in Days While Others Sit

The Santa Clara County real estate market is sending buyers and sellers a surprisingly clear message this fall: not every home is competing in the same market.

Some properties are still attracting immediate attention, multiple offers and prices above asking. Others are sitting longer, reducing their prices or negotiating concessions. The difference often comes down to location, condition, presentation and—most importantly—pricing.

This is what I call a two-speed market.

More homes are competing for buyer attention

Santa Clara County buyers have more choices than they did a year ago. As of September 5, approximately 917 single-family homes were available for sale, representing an increase of about 20.5% year over year.

Days of inventory also increased from 42 to 48 days. Although that remains well below the county’s long-term average, it is enough to change buyer behavior.

When choices were extremely limited, buyers frequently had to act immediately and overlook minor flaws. Today, many buyers can compare several homes, revisit a property and carefully evaluate whether its price is justified.

That does not mean buyers have complete control of the market. It means sellers face more competition—and buyers are less willing to overpay for a home that needs work or appears poorly positioned.

The best homes can still sell very quickly

Even with inventory rising, desirable homes are not necessarily sitting on the market.

Recent countywide data showed homes taking a median of approximately 19 days to go pending. Around 57.6% of July sales closed above their asking prices.

This tells us that buyer demand is still present. It has simply become more selective.

Homes most likely to attract immediate competition typically share several characteristics:

• A desirable location or neighborhood
• An attractive and functional floor plan
• Updated or well-maintained interiors
• Strong curb appeal
• Professional photography and marketing
• A price that reflects current conditions
• Easy availability for private showings and open houses

When buyers see value, they can still move decisively.

Why some listings are sitting

Homes that remain available longer are not necessarily undesirable. In many cases, the problem is a disconnect between the home’s price and the buyer’s perception of its value.

A listing may struggle when:

• The opening price is based on spring results rather than current competition
• The home needs extensive cosmetic or structural work
• Photography does not showcase the property effectively
• The home is difficult to access for showings
• Sellers are competing with newer or better-prepared listings
• The price does not account for location, insurance, HOA or condition concerns

The first several days on the market remain extremely important. A home that launches at an unrealistic price can lose its strongest window of attention.

Once buyers begin wondering why a property has not sold, the listing may require a price adjustment simply to generate the attention it could have received from the beginning.

Prices are softening—but this is not a market collapse

Santa Clara County’s median sale price was approximately $1.5 million over the latest three-month reporting period, down about 2.2% from the same period one year earlier.

That change should be kept in perspective.

Santa Clara County remains one of the country’s most valuable and employment-driven housing markets. Limited land, highly regarded communities and proximity to Silicon Valley employers continue to support long-term demand.

However, buyers are pushing back against aggressive pricing. Instead of every home rising together, individual results are becoming more dependent on the property itself.

This is best described as market normalization and increased price sensitivity—not evidence that every neighborhood or property type is losing value at the same rate.

Almaden Valley is experiencing its own two-speed market

Almaden Valley provides an excellent example of how price softness and strong demand can exist at the same time.

Over the three months ending in August, Almaden Valley’s median sale price was approximately $2.1 million, down about 5.2% year over year. Yet homes sold in an average of 17 days, compared with 21 days during the previous year.

Another local report showed that August Almaden Valley sales averaged approximately 101.1% of asking price.

Those numbers reveal an important distinction: a lower median price does not automatically mean homes are difficult to sell.

Median prices can change because of the mix of properties sold during a particular period. Meanwhile, accurately priced Almaden homes—particularly those offering attractive outdoor space, good schools, privacy and convenient access to shopping and recreation—can still perform exceptionally well.

Mortgage rates are affecting buyer decisions

Financing costs remain one of the biggest forces shaping the fall market.

Nationally, existing-home sales declined 2% in August, reaching their slowest pace in 14 months as mortgage rates moved closer to 7%. Sales in the West held steady, but higher monthly payments continue to limit purchasing power.

For Santa Clara County buyers, even a relatively small change in interest rates can produce a meaningful difference in the monthly payment because loan balances are often substantial.

As a result, buyers may be more likely to:

• Negotiate the purchase price
• Request seller credits
• Consider an interest-rate buydown
• Compare jumbo-loan programs
• Purchase a smaller home or explore a neighboring community
• Walk away from a property that feels overpriced

Buyers still want to purchase homes. They are simply paying closer attention to the complete financial picture.

What this market means for sellers

Sellers can still achieve an excellent result, but preparation and strategy have become more important.

A successful fall listing should begin with an analysis of the most recent comparable sales, current competing inventory and properties that failed to sell. Looking only at the highest spring sale may produce an unrealistic expectation.

Sellers should also prioritize the improvements buyers notice first. Fresh paint, updated lighting, clean landscaping, thoughtful staging and professional photography can have a greater impact than an expensive last-minute remodel.

Most importantly, the opening price should create interest. A well-positioned price can bring more buyers through the door and potentially generate competition. An inflated price may cause buyers to wait for a reduction.

What this market means for buyers

This fall may provide opportunities that were much harder to find during the most competitive periods of the Silicon Valley market.

Buyers may have more time to review disclosures, compare properties and negotiate on homes that have been available for several weeks. They may also encounter sellers who are receptive to credits, repairs or flexible closing terms.

But waiting for every home to become negotiable can be a mistake. A beautifully prepared property in a desirable neighborhood may still attract multiple offers.

The most effective buyer strategy is to evaluate each home individually:

• How does it compare with recent sales?
• How long has it been available?
• Has the price already been reduced?
• Are there competing offers?
• What is the seller’s timeline?
• Does the home justify its price based on condition and location?

In a two-speed market, the correct strategy depends on which type of listing you are pursuing.

The bottom line

Santa Clara County has not suddenly become either a buyer’s market or a seller’s market. It contains elements of both.

Buyers have more choices and greater negotiating power on homes that are overpriced, dated or lingering on the market. Sellers can still receive strong offers when their homes are desirable, properly prepared and accurately priced.

The defining feature of the fall market is selectivity.

For sellers, success begins with understanding exactly where a home fits within today’s competition. For buyers, opportunity comes from recognizing which properties require a decisive offer and which may leave room for negotiation.

Every home—and every neighborhood—deserves its own strategy.