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Saratoga Housing Market Review: A Look Back at 2024 and What’s Ahead for 2025
Nestled in the heart of Silicon Valley, Saratoga boasts tree-lined streets, expansive lots, and a tranquil suburban lifestyle that attracts high-end buyers year after year. The 2024 housing market in Saratoga upheld its reputation for luxury and exclusivity while navigating broader economic trends. Let’s explore how the market performed this year and what buyers and sellers can anticipate in 2025.
2024 Market Performance
The Saratoga housing market remained one of the most desirable in the Bay Area, with strong demand pushing prices higher, albeit at a slower pace compared to recent years. Here’s a snapshot of the key metrics:
- Median home price: $3.5 million (up 5% from 2023)
- Average days on themarket: 25 days
- Inventory levels: Tight, with less than three months of supply throughout the year
- Price per square foot: $1,400 on average
Key Trends in 2024
- Luxury Properties in High Demand: Saratoga’s luxury homes, particularly those with expansive lots and modern amenities, continued to draw affluent buyers. Properties near top schools and downtown Saratoga saw the most competitive bidding wars.
- Remote Work Influence: The prevalence of hybrid work models kept demand high for spacious properties with home offices and outdoor living spaces.
- Stabilizing Mortgage Rates: While interest rates were higher at the beginning of the year, a gradual stabilization by mid-year restored buyer confidence, particularly in the high-end market.
- Limited New Construction: Strict zoning laws and limited land availability curtailed new housing developments, keeping inventory levels low.
Challenges
- Affordability: With median prices exceeding $3.5 million, the market remained out of reach for many middle-income buyers.
- Economic Concerns: Periodic economic uncertainty caused some buyers to adopt a wait-and-see approach, slowing activity in certain months.
- Competition for Quality Listings: Well-maintained homes in prime locations often received multiple offers, driving prices above asking.
Outlook for 2025
As we look ahead to 2025, here’s what buyers and sellers can expect:
For Buyers:
- Opportunities to Negotiate: While inventory will likely remain tight, slower price growth could give buyers more room to negotiate, particularly for properties that need updates.
- Focus on Value: Buyers should prioritize homes with strong long-term value, such as those near top-rated schools, downtown Saratoga, or properties with potential for renovations.
For Sellers:
- A Prime Market for Luxury Listings: Sellers of high-end homes can expect continued demand, especially if their properties feature modern amenities, energy-efficient upgrades, and large outdoor spaces.
- Strategic Pricing is Key: Pricing homes competitively will be crucial, as buyers will likely be more cautious amid economic uncertainties.
Predictions for 2025
- Steady Price Growth: Experts predict a 3-5% increase in median home prices for Saratoga, reflecting sustained demand but at a more moderate pace.
- Increased Buyer Confidence: If interest rates remain stable or decline slightly, buyer activity is expected to increase.
- Focus on Renovations: Homes with updated kitchens, bathrooms, and eco-friendly features will continue to command top dollar.
Considering a move to Saratoga? Whether you’re looking to buy your dream home or sell your property for top dollar, our expertise can guide you through the process. Contact me today for a personalized market consultation!
2024 Cupertino Housing Market Review: A Year in Reflection
As 2024 comes to a close, it’s the perfect time to reflect on how the Cupertino housing market has performed this year. Known for its proximity to Silicon Valley tech giants and its top-rated schools, Cupertino remains a highly desirable area for homeowners and investors alike. Let’s dive into the key trends, highlights, and challenges that shaped the market this year.
Market Overview
The Cupertino housing market remained robust throughout 2024, maintaining its reputation as a competitive and high-demand area. Median home prices continued to rise, albeit at a slightly slower pace compared to the post-pandemic surge of the past few years. According to recent data:
- Median home price: $2.8 million (up 6% from 2023)
- Average days on the market: 18 days
- Inventory levels: Remained tight, with an average of less than two months of supply.
Key Trends in 2024
- Tech Industry Influence: Like much of the Bay Area, Cupertino’s housing market is closely tied to the tech industry’s health. As companies like Meta, Apple, Nvidia, and AI startups continue to expand, demand for housing from tech professionals remained strong.
- Shift Towards Sustainable Living: Buyers showed an increased interest in energy-efficient homes. Properties with solar panels, EV charging stations, and smart home features commanded higher prices.
- Tight Inventory: Limited housing supply continued to challenge buyers, leading to multiple-offer scenarios and homes selling above asking prices.
- High Mortgage Rates: Rising interest rates in the first half of the year initially slowed market activity. However, buyer confidence rebounded as rates stabilized in the latter half of 2024.
Challenges
- Affordability: High home prices made it increasingly difficult for first-time buyers to enter the market.
- Zoning Restrictions: Limited new construction due to strict zoning laws further constrained housing supply.
- Economic Uncertainty: Concerns about a potential economic slowdown occasionally impacted buyer and seller confidence.
Opportunities for Buyers and Sellers
For buyers, patience and flexibility were key. While competition remained stiff, those who acted decisively and were open to considering older or smaller homes found opportunities to secure properties below market value.
For sellers, 2024 was a favorable year. Homes in good condition and located near top schools or with modern upgrades sold quickly and often above the asking price. Pricing homes strategically and investing in minor renovations to enhance curb appeal yielded significant returns.
Looking Ahead to 2025
As we move into 2025, I expect steady price growth to continue, albeit at a more moderate rate. Cupertino will likely remain a sought-after market, with potential new housing initiatives and ongoing tech sector strength.
If you’re considering buying or selling in Cupertino, now is an excellent time to strategize your next move. Working with a knowledgeable real estate professional can help you navigate this dynamic market effectively.
Refrigerant Phase out. Do you need to replace your AC?
If you are thinking about replacing your current air conditioner or planning to install a new one, you may want to be aware of what’s happening in the refrigerant world. The currently used refrigerant, R410-A is being EOL’ed as of January 2025. ACs with the replacement refrigerant called A2L are already on the market. Pay extra attention to refrigerants when air conditioners go on sale as the stores try to get rid of their current inventory of air conditioners with older refrigerants.
Should You Replace Your R410-A Air Conditioner?
Short Answer: Not Necessarily.
While the EPA is phasing out R410-A due to its environmental impact, your current R410-A air conditioner can still be serviced and repaired for many years to come.
Key Points:
- Service and Repairs: There will be ample support for R410-A units, ensuring you can maintain your existing system.
- Refrigerant Costs: While R410-A might be more expensive in the future, it’s still a more cost-effective option than a complete replacement.
- New Installations: If you’re considering a new installation, consider an A2L-based air conditioner. These newer units offer improved energy efficiency and environmental benefits.
If you’re unsure about the best course of action for your specific situation, please don’t hesitate to contact me. I’m happy to provide personalized guidance based on your needs and preferences.
2024 Hot Color Picks for a Seasonal Refresh
Every year, color forecasters and paint companies bring a burst of fun to the industry when they release their color of the year. Another perk is their creative language to describe the colors and the mood they’re trying to evoke.
Companies have started rolling out their 2024 color picks, and sharing the news can be an opportunity to reconnect with clients who may be ready for a fall or early winter refresh of their homes.
There are options for clients willing to embrace trendy, bold colors and hues for those who prefer more subtle changes and a timeless feel.
Evoking Emotion
In picking colors and names, the companies have drawn on consumers’ current mood and desire for tranquility, calm, and a break from the stresses of daily life.
For example, Renew Blue , Valspar’s 2024 pick, is “a nourishing, green-influenced blue that creates a sense of peace wherever you place it.”
“Most of us are seeking an end to feeling overwhelmed – less stress, less information, less technology, fewer choices. Simplicity. Here, we can slow down and create the peaceful place we seek,” notes Valspar when discussing its choice.
Sherwin Williams took a new direction with its Anthology: Volume One, choosing four color groups: blues and greens, reds and purples (colors include Rhapsody Lilac, Fireweed, and Dragon Fruit), deeps and darks (Mossy Gold, Roycroft Bronze Green, and Gale Force are among the colors), and delicate tints.
“In an era where well-being is increasingly important, dark colors can offer solace and soothe anxieties. Since 2020, deep-value tones have become synonymous with sanctuary, nurturing, and artisanal touches,” says Sue Wadden, Sherwin-Williams’ director of color marketing.
Behr’s pick, Cracked Pepper, is described as a versatile soft black that accentuates the spaces you create life moments in, while Dutch Boy’s Ironside is “a deep, comforting green that is a richly dimensional hue that soothes and reassures.” Dutch Boy developed three palette categories—Embrace, Retreat, and Inspire—that pair well with Ironside. They include Strawberry Shake, Whale’s Tail, and Pineapple Flan.
If you know clients are looking for a reset, they might be receptive to chatting with you about color trends. Others could be contemplating a vacation property or new home to find a change of scenery, a retreat, and less stress.
Make Informed Remodeling Decisions, Maximize ROI
Given the changing real estate market, clients may wonder whether or not to renovate and question which projects should take priority. They also may be interested in which upgrades provide the best return on investment (ROI).
A recent Fixr report, Home Remodeling Statistics and Trends of 2023, sheds light on remodeling trends, homeowners’ spending habits, and interior design preferences.
You can share the following data, statistics, and insight with clients to guide them towards the best decisions and incorporate the information in your newsletters and marketing materials.
Here are some Fixr facts:
- Spending on homeowner improvements and repairs grew by 78% from 2014 to 2022, with an increase of $65B between 2021 and 2022 — the highest increase in the past ten years.
- The median annual spending per household on home improvements is $22,000 — 69% higher than the 2019 median spending ($13,000).
- Homeowners invest the most money in HVAC ($56.6 billion) and roofing ($72 billion) projects.
For clients focused on maximizing their return on investment, point them to this chart.
Top 11 projects with the highest ROI in 2023
| Project | ROI 2022 | ROI 2023 | Change from 2022 |
| HVAC Conversion | Electrification | – | 103.50% | – |
| Garage Door Replacement | 93% | 102.70% | 9.70% |
| Manufactured Stone Veneer | 91% | 102.30% | 11.30% |
| Entry Door Replacement | Steel | 64% | 100.90% | 36.90% |
| Siding Replacement | Vinyl | 67% | 94.70% | 27.70% |
| Siding Replacement | Fiber-Cement | 68% | 88.50% | 20.50% |
| Minor Kitchen Remodel | Midrange | 71% | 85.70% | 14.70% |
| Window Replacement | Vinyl | 68% | 68.50% | 0.50% |
| Bath Remodel | Midrange | 59% | 66.70% | 7.80% |
| Window Replacement | Wood | 66% | 61.20% | -4.80% |
| Roofing Replacement | Asphalt Shingles | 60% | 61.10% | 1.50% |
Fixr also offers insight into design features like the popularity of wallpaper, mixing materials and textures, and combining neutrals with vibrant colors.
Additional resources to keep you up to date include:
