The South Bay; Dual Market Conditions

NewsThe real estate market in the South Bay continues to be unusual. If you live in the Northwest corner of Santa Clara County, homes are selling as fast or faster than ever before. But if you live in East San Jose, Gilroy, or Morgan Hill, the market is quite soft.

From the San Jose Mercury News: “It’s quite a dichotomy,” said Mark Burns, an agent with Coldwell Banker who also heads the Silicon Valley Association of Realtors. He’s listing a two-acre property in Gilroy where interest has been “very slow,” he said; on the other hand, in the past two months he has guided five buyers through multiple-offer situations in Campbell, Cambrian, Almaden Valley and Blossom Valley. “We’ve paid a little bit more” than list price to get some of those homes, he said. “It hasn’t been outrageous.”

A large driver for the continued boom market in some areas is the quality of the school system – Cupertino and Palo Alto homes are definitely showing positive appreciation and moving quickly.

Although some realtors believe this dichotomy based on geography is highly unusual, others believe that areas with good school districts have always outstripped sales over other areas.

It will be most interesting to watch the market in coming months to see whether the overall market will unify, or if this trend will continue.