Bay area real estate price drop resumes.. after a break

Monitoring house prices in south bay - mainly around Cupertino, Sunnyvale, Santa clara area. This market was hot few years back, run down houses selling for close to $2million ! In the last year or so it showed some signs of cooling down. Listing prices were dropped to attract buyers, and some houses selling less than listing prices. There was a breif pause in this cooling down beginning of this year. Now it looks like market slow down as resume after this pause. Here is a sample of some listing and selling prices for this month -

1. 22032 Acacia way Cupertino - dropped listing price by ~60k to $2.64mill on 7/28
2. 1617 Wright ave Sunnyvale  -  dropped listing price by $90k to $2.4mill on 7/26
3. 887 Ferngrove dr Cupertino sold $80k higher than listing at $1.58mill on 7.26
4. 1580 Belleville way Sunnyvale sold $220k lower than asking at $2.05mill on 7/29
5. 903 Brookgrove ln Cupertino dropped listing price by $100k to $1.69mill on 7/18
6. 1473 Lewiston dr Sunnyvale sold $65k higher than asking at $1.86mill on 8/2
7. 20135 Cedar tree lane Cupertino dropped listing price by $400k !! to $1.99mill on 8/15
8. 22032 Acacia way Cupertino dropped listing price by $40k to $2.59mill on 8/16
9. 19964 Wheaton dr Cupertino sold $200k higher than asking at $2.62mill on 8/15


The Lewiston house is interesting, since a similar house - 1469 Lewiston dr Sunnyvale sold for $2.05mill in Aug 2017. Even though this one sold higher than asking, price has dropped by close to 200K over last two years. The market is trying to find a good stable point.

Another one (Cedar tree lane) has dropped listing price by almost $600k since June 2019 !

Looking at the above list, trend is clear. While there are still few houses selling higher than asking, most of them are showing a trend where price is being reduced. Aug to Dec is typically slow in terms of house sales. Short term this trend might continue, that said I think the market has a floor around $1.7million to $2million. Small drop will attract more buyers sitting on the sidelines. Will have to wait and see how this develops.

And just for fun, house in Palo alto dropped listing price by $2.9million !! to $13million - adds - 1025 Lincoln Ave Palo alto.