Spring Momentum Is Building in Silicon Valley

 

If the market has felt quiet lately, you are not imagining it. January activity slowed more than usual this year, but the reason was not what most people think.

A significant winter storm across the country delayed showings, inspections, and closings. That disruption created what economists call noise in the data. It made the market look weaker than it actually is.

Now that weather impacts are fading, we are starting to see a clearer picture. And the underlying trend is more stable than the headlines suggest.

 

Inventory Is Growing and That Matters

Spring always brings more listings, and this year is no different. In fact, active inventory is higher than in the past few years and getting closer to pre-pandemic levels.

That is important for both sides of the market.

For buyers, it means more options and less pressure to rush decisions.

For sellers, it means more competition. Pricing and presentation matter again.

 

Homes Still Sell Faster in Spring

Even with more inventory, homes typically sell faster this time of year. Buyers are more active, the weather supports easier showings, and homes tend to present better.

In Silicon Valley, this seasonal pattern still holds. Well-prepared homes continue to attract strong interest.

 

The Economy Feels Uncertain but the Data Is More Stable

There is a lot of noise around the economy right now. Headlines often focus on worst-case scenarios.

But the data tells a more measured story:

• Inflation has stabilized over the past two years
• Mortgage rates are lower than they were a year ago
• Unemployment remains relatively steady
• Economists are not broadly forecasting a recession

This does not mean there is zero risk. It means the foundation is more stable than it may feel.

 

Contract Cancellations Are Rising

One of the most important shifts right now is the increase in canceled contracts.

About 13.7 percent of pending sales fell out of contract in January, the highest level for that month since 2017.

This reflects a change in leverage.

Buyers now have more choices and are willing to walk away if a home does not meet expectations.

 

What This Means for Sellers

This is where strategy matters most.

Sellers today should:

• Price based on current competition, not last year’s peak
• Prepare for inspections in advance
• Be open to negotiation when needed

A well-positioned home can still perform very well. But it requires alignment with the current market.

 

What This Means for Buyers

Buyers are in a more balanced position than they have been in years.

You have:

• More inventory to choose from
• More time to evaluate options
• More leverage during negotiations

That said, well-priced homes still move quickly. Preparation remains key.

 

Bottom Line

The Silicon Valley market is not stalled. It is normalizing.

Spring is bringing more activity, more inventory, and more balance. That creates opportunity for both buyers and sellers who understand the shift.