Santa Clara County’s Low Housing Inventory in 2021
The first and foremost issue faced by these areas is the extremely low number of houses listed on the market for sale in 2021. This is a clear indication of lessening housing inventory in Santa Clara County and has caused trouble for buyers, given the increase in competition.
While the number of homes listed has gone down drastically, demand doesn’t seem to decrease. The demand for houses in areas surrounding Cupertino such as Milpitas, Fremont, Sunnyvale, Saratoga and San Jose has actually increased. With new residents looking for houses during this transitional period of the pandemic, the market has faced quite a dilemma regarding low inventory and high demand.
Boost in Demand for Cupertino’s Housing Market
As mentioned previously, one factor that has contributed to heightened demand is the lesser amount of inventory available. With a lower amount of products available in the market, one can expect competition, and the same is the case with the housing market of Cupertino and surrounding areas.
Moreover, another essential element that has added to the supply is the mortgage interest rates. Low mortgage interest rates are the dream of every potential buyer, and with the houses in Santa Clara and areas around Cupertino, they are getting just that! According to reports by MND elaborated in Forbes, the average for a 15-year fixed-rate mortgage now stands at 2.52%, which is slightly closer to the 52-week low of 2.25%.
It’s pretty evident from the statistics of mortgage interest rates that the competition in the markets of buyers is driven entirely by the low inventory and heightened demand.
So, with this high demand and low inventory, will there be changes and alterations in the value of homes as well? Certainly, there have been some fluctuations.