A Realtor’s Guide to the Cupertino Housing Market

With the pandemic taking hold the last year and a half, the real estate market faced fluctuations in profit and loss. Though the pandemic and lockdown was hard on the U.S. market as a whole, areas of Cupertino managed to brave through the storm without undergoing any major losses. Sunnyvale, Fremont, Santa Clara, and other nearby areas saw an increase in home sales. But, it’s crucial to note that other elements should be taken into consideration. So, here is our realtor’s guide to the housing market in Cupertino and other cities in Santa Clara County.

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.

Housing Market Pricing in Cupertino

With low mortgage interest rates, high demand, and a very low supply of houses, this is definitely a seller’s market right now. Buyers have major competition in finding a home that suits their budget and needs best. Another potential problem is that since the inventory is low, houses are quickly being sold regardless of high prices.

In April 2021, the prices for homes in Cupertino and surrounding areas went up by a staggering 9.5% as compared to the previous year. While that’s the case with houses in Cupertino, areas including Sunnyvale and Santa Clara reported an increase of around ten percent in January of 2021.

Cupertino House Prices

Though prices have increased, you may be wondering how much. In Santa Clara County, more specifically in Cupertino, the current median sale price for houses is somewhere around $2.88 million. According to this median sale price, it’s estimated that the median sale price per square feet is around $1,191. While this might seem like a big increase, it’s crucial to note that this was still less than the post-pandemic sale price.

While the value can be adjusted during different seasons of the year, high pricing has made it more difficult for buyers to purchase a house for themselves within a limited budget. The seller’s market has proved to be trouble for potential buyers as they compete to purchase good property.

Therefore, while the pandemic has been damaging to various industries, the seller’s market in Cupertino and surrounding areas is profiting due to the increase in the value of homes.

Cupertino Housing Market Trends

As of April 2021, it was estimated that the median sale prices for the houses sold in Cupertino have gone up by 16.28%, in just the previous 12 weeks. Homes are slowly and gradually rising, giving hope to potential buyers. However, given the slow rise in available houses, the supply-demand curve will be slightly balanced.

Reports from 31/05/2021 indicate that there have been 131 new homes listed and 75 homes sold. The number of homes available for sale in Cupertino has risen by 92.31%, which is a great increase for the supply that was lacking.

The availability of houses in real estate marketing in these areas has also changed. In the previous 12 weeks, houses were on the market for 26 days instead of 23, yielding a 13.04% increase.

Sellers in Cupertino and surrounding areas were impacted by the increased prices. Thankfully though, the number of available homes is increasing once again. It’s advised for both buyers and sellers not to make impulsive decisions while progressing with dealings.