Feverish home price growth in Silicon Valley—where the average home has more than doubled in value since 2011—has finally shown signs of breaking.
Santa Clara County, home to tech and new media giants like Intel and Netflix, saw a surge of more than 3,000 homes hit the market in September and October, following years of chronic shortages that have driven prices skyward, according to data Compass culled from Realtor.com and the multiple listing service, and published on Monday.
More:Luxury Should ‘Leave You Breathless’ Says Douglas Elliman President
It’s an unusually high number of new listings for September-October and the most during that time frame in at least four years, according to the market report from Compass.
The boost to inventory is "giving buyers more choices and lessening the competition," wrote Patrick Carlisle, chief market analyst in commentary on Monday.
That’s good news for buyers, who were locked in rampant bidding wars this summer. Santa Clara had one of the highest rates of buyers paying over the asking price in the nation, with the average home selling for an 11% premium, according to Compass.
From Penta:Sotheby’s to Auction Valuables of Barbara and Frank Sinatra
In October, the average home got a very slight discount for the first time since early 2017. And more homes are failing to find a buyer and expiring off the market—a sign that buyers won’t accept the phenomenal asking prices seen in Silicon Valley.
"We will see if there are substantial further increases in November and December of homes that sellers have not been able to sell at the prices they currently consider acceptable," Mr. Carlisle said. "One of the clearest indicators of a shifting market is a growing disconnect between buyer and seller expectations."