Is Now a Good Time to Buy in Santa Clara County?
Thinking about buying a home in Santa Clara County, including Sunnyvale, San Jose, Cupertino, and Los Gatos, but unsure if the timing is right?
The Bay Area real estate market is dynamic, with fluctuations in home prices, mortgage rates, and inventory. Making the right decision requires understanding both local trends and your personal financial situation. This article breaks down the current market and offers actionable guidance for buyers in 2025.
Santa Clara County Market Overview
As of 2025, the median home price in Santa Clara County is approximately $1.62 million, showing modest growth compared to last year. Certain cities, like Cupertino and Los Gatos, maintain high demand due to top-rated schools and established neighborhoods. Meanwhile, San Jose and Sunnyvale provide a range of options, with slightly more variation in price points and housing types.
Inventory: Low, particularly in desirable school districts and tech-commuter-friendly areas. Months of supply are below 2 months in many neighborhoods.
Buyer Demand: High, especially from tech professionals relocating or upgrading.
Mortgage Rates: Rates remain higher than the historically low levels of 2020–2022, impacting monthly affordability.
Implications for Buyers
1. Competitive Market
With limited inventory and strong demand, buyers need to move quickly and be financially prepared. Pre-approval and strategic bidding are crucial.
2. Financial Considerations
Bay Area homes are expensive, and qualifying for a mortgage requires careful planning. Factor in property taxes, insurance, and HOA fees where applicable.
3. Neighborhood Selection
Exploring nearby cities or emerging neighborhoods may uncover more affordable options while still maintaining quality of life and access to amenities.
Strategic Advice for Buyers
Work with a local expert: Micro-markets vary dramatically even within Santa Clara County.
Focus on long-term investment: Consider staying 5+ years to ride out market fluctuations.
Prioritize needs vs. wants: Schools, commute, and amenities often weigh more than aesthetic preferences in long-term satisfaction.
Conclusion
While Santa Clara County remains competitive, buyers who are well-prepared financially, work with a knowledgeable Realtor, and focus on the right neighborhoods can still make smart purchases. Timing matters less than readiness, strategy, and understanding local market trends.
Contact me today for a free consultation to discuss your home-buying strategy in the Bay Area.
