Walsh says the market started heating up around the third week of January. Homebuyers were out in force at open houses, and homes sold quickly with multiple offers—some selling for over the asking price.

For those thinking about buying a home in Santa Clara, it’s important to consult an experienced realtor who understands the area and is familiar with the real estate climate’s ebb and flow. Vinicius Brasil is just such an agent.

Strong Job Market

Santa Clara real estate has become increasingly popular due to its proximity to major tech hubs and excellent schools. As the hub of Silicon Valley, Santa Clara offers countless opportunities for employment. The city is home to dozens of technology companies, including chip maker Intel and consumer electronics giant Apple Inc. Several universities and colleges are also located in the area, including the private Jesuit Santa Clara University and public community college Mission College.

Despite some recent concerns over the state of the tech industry, the local job market continues to be strong. The unemployment rate remained low in January 2024, and the city saw significant job growth in several sectors, including professional and business services, education, and healthcare.

According to SmartAsset, Santa Clara is one of the best large U.S. cities for jobs, with one of the highest average starting salaries and lowest jobless rates. The company based its ranking on data from the Bureau of Labor Statistics, as well as local data from employers and residents.

In addition to the many employment opportunities available in Santa Clara, the city has a vibrant culture with a variety of restaurants, bars, and other entertainment options. Visitors and residents can visit museums, recreational parks, lifestyle centers, and more. For example, the Santa Clara Triton Museum of Art features both historical and contemporary works from Bay Area artists. Or, take a walk through the untouched Ulistac Natural Park to see native plants and wildlife.

When it comes to commuting, the city is conveniently located near major highways and has excellent public transit options. In fact, the San Jose International Airport is just a short drive from the city. This makes it easy for both residents and visitors to travel to other areas of the country.

Affordable Electricity

With energy costs escalating nationwide, businesses are on the hunt for ways to cut their energy bills. In Silicon Valley, the situation is more pronounced. Here, companies can take advantage of moderate climate conditions that help lower heating and cooling loads, more than 300 days of sunshine a year for reduced artificial lighting, building codes that promote efficiency and progressive utilities with significant assistance programs.

In addition, the city of Santa Clara owns and operates its own electric utility, Silicon Valley Power (SVP), which offers some of the lowest rates in the Bay Area. The company also offers renewable energy source power, rebates and free energy audits.

Additionally, SVP offers Time-of-Use rates that incentivize customers to shift their usage patterns to avoid using electricity during the “peak” hours of 4-9 p.m. during which demand and carbon emissions are highest. The new rate structure pairs clean energy with low costs and gives customers the power to reduce their electricity bills by using less at times when renewables are most plentiful and the price of electricity is highest.

In general, Santa Clara is a Democratic county and has consistently supported Democratic presidential candidates, with the exception of the 1984 win by Michael Dukakis. The county also has a strong history of supporting Democratic politicians at the state and local levels. At the congressional level, Santa Clara is part of California’s 19th Congressional District, represented by Democrat Jimmy Panetta, and the 17th Senate District, representing Democrat John Laird. The city is served by a Mayor and five Councilmembers, all of whom are Democrats. The county also has a number of county-wide elected officials, including the District Attorney and the Sheriff.

Easy Access to Silicon Valley

Santa Clara is a hub of innovation and technological brilliance. The area is home to many renowned companies such as Google, Intel, Apple and more. Its proximity to the rest of the country and the world is one reason why so many companies choose to locate here. It’s also a major factor why so many people seek to move here for work and for the lifestyle that Silicon Valley offers.

As such, the demand for single family homes is high in Santa Clara. The inventory is low, so buyers must act quickly if they want to purchase a home. According to Altos Research, the Market Action Index (MAI) is currently around 76 for Santa Clara, which indicates that it is a Strong Seller’s Market.

In 2024, the median home sale price in Santa Clara was over $2.2 million. The average days on the market was less than 18 and the sale to list price ratio was 99.3%.

While the market is hot, more people are moving out of the area than are moving into it. Joint Venture Silicon Valley recently surveyed residents and found that high housing costs were the top reason for them to leave. On average, each house for sale in the region received nine offers and sold at 10% above asking price.

If you’re thinking about buying a home in Santa Clara, the first thing to do is get pre-approved for a mortgage loan. This will show sellers that you are a serious buyer and give you a clear budget to work with. Prepare to be aggressive in negotiations too, as bidding wars are common. Consider limiting or waiving contingencies, such as financing and inspection, to make your offer more appealing.

Convenient Commuting Options

A cherished locale for sports, shopping, dining, and entertainment, Santa Clara offers something for everyone. Enjoy the roar of the crowd during a 49ers game at Levi’s Stadium, a state-of-the-art sports arena that also features open pedestrian plazas, commercial community space, and a 49ers store. Take a stroll through the nearby Stanford Shopping Center for a day of retail therapy, or watch the MLS San Jose Earthquakes compete in the Avaya Stadium, where they’ve won two MLS Cup titles.

Getting around the city is easy, thanks to a wide range of public transportation options. The Valley Transportation Authority (VTA) offers bus and light rail services throughout the area, while Caltrain commuter rail offers connections to downtown San Jose and Silicon Valley from Gilroy. Plus, VTA offers intercity transit service to major destinations like the airport and downtown San Francisco via BART connections in Milpitas and North San Jose.

Ridesharing services are also available, with Uber and Lyft providing access to local destinations and the Bay Area’s broader transportation network. For an environmentally friendly option, bike paths offer an alternative to driving and allow you to connect with nature along the way.

The city’s central location in Silicon Valley makes it an ideal home base for exploring the rest of the region, too. In just a short drive, you can find yourself at the foot of the iconic Apple Park Visitor Center or browsing boutiques and top-notch restaurants in downtown San Jose. Or, head over to the University of California at San Jose to attend theater and dance performances or see a sporting event where Division 1 teams play in 20 different sports. And, when it comes time to get out of town, San Jose International Airport is less than a 10-minute drive from Related Santa Clara.

Diverse Community

The diverse community in Santa Clara gives residents the opportunity to immerse themselves in different cultures, fostering inclusivity and unity among locals. Various cultural centers host language exchange meetups and workshops that allow individuals from diverse backgrounds to communicate and share traditions. Moreover, religious communities often collaborate to organize interfaith events and discussion sessions that promote mutual respect and understanding.

These initiatives are part of Santa Clara’s commitment to embracing and celebrating its diversity, providing a welcoming environment for homebuyers looking to purchase a home in this dynamic market. With more and more people able to work remotely, the city has become an attractive option for professionals who seek to live in a strong job market and vibrant community.

As a result of these factors, the Santa Clara housing market is continuing to thrive despite recent economic uncertainties. However, buyers should be mindful of rising interest rates, which may impact their affordability.

According to the latest report from the California Association of Realtors, the single-family home market in Santa Clara is heating up, with many areas experiencing bidding wars and high demand. Homebuyers should make sure they have their financing arranged ahead of time and prepare for multiple-offer scenarios by making strong initial offers.

In contrast, the condo and townhome market is cooling slightly, but still a desirable location for investors. However, these numbers can vary greatly from one area to the next and should be taken with a grain of salt.

If you are interested in buying a home in Santa Clara, contact us today. We would be happy to discuss all your options.