Many Homes in Sunnyvale Are Selling for More Than the List Price
Sunnyvale has a highly competitive real estate market where buyers often pay more than the seller's asking price.
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At the start of 2025, most homes for sale in Sunnyvale, California ended up selling for more than the list price. This is due to strong demand from buyers, but limited inventory of homes.
Here are 5 key points to know about this trend:
Like most South Bay cities, Sunnyvale has a very competitive housing market.
This market also has a severe shortage of homes for sale in 2025.
In recent months, about 67% of Sunnyvale homes sold above the list price.
Many buyers in Sunnyvale make offers above asking just to be competitive.
Over time, this practice increases home values while reducing affordability.
About 70% of Sunnyvale Homes Sell Above the Asking Price
In early 2025, roughly 67% of homes sold within the city of Sunnyvale ended up selling for more than the original asking price. That's based on data from real estate brokerage Redfin.
And as usual, it all comes down to supply and demand.
Like the rest of the Silicon Valley region, Sunnyvale, California has a highly competitive real estate market where properties often sell for more than the original list price.
This city has a high level of demand from local home buyers, partly fueled by the presence of major tech companies. But there aren't enough homes on the market to meet that demand.
This imbalance creates a high level of competition among buyers, who have to compete fiercely for a limited number of homes. Many of those buyers end up offering more than the list price.
Nationwide, about 30% of homes were selling for more than the asking price in early 2025. Sunnyvale's average was more than double that, indicating a hyper-competitive housing market.
High Demand + Low Supply = Bidding Wars
Tight supply conditions are one of the main reasons why so many homes in Sunnyvale (and the surrounding area) end up selling above the list price.
Here's how this kind of situation unfolds:
Low Inventory: The number of people wanting to buy homes in Sunnyvale greatly exceeds the number of properties available. This sets the stage for a competitive market.
Stiff Competition: With limited options, buyers find themselves competing fiercely for each available property. This heightened competition leads to escalating prices.
Multiple Offers: The combination of high demand and low supply often results in sellers receiving multiple offers. Bidding wars erupt as buyers attempt to outbid each other.
Offers Above Asking: To win a bidding war, some buyers will offer amounts that exceed the original asking price. This practice is common in Sunnyvale and the South Bay.
Waiving Contingencies: To further enhance their offers, some buyers might choose to waive certain contingencies, such as appraisal or inspection contingencies.
Higher Prices: As more and more properties sell above the asking price, the overall median home value in the area increases. This in turn reduces affordability.
This pattern is not unique to the South Bay / Silicon Valley region. Many competitive housing markets across the U.S. experience conditions like these, even outside of California.
It just happens to be more pronounced—and more intense—in cities like Sunnyvale.
Anyone planning to buy a home in Sunnyvale or elsewhere in Santa Clara County during 2025 should be prepared for this kind of dynamic. Do your research and have a plan in place.
Sunnyvale Home Prices Higher Than Pre-Pandemic
In many cities across the U.S., home prices surged from 2020 to 2022 due to a pandemic-fueled increase in home buying activity.
After hitting a peak in 2022, home values in many of those same cities declined and settled somewhere between (A) the all-time high and (B) the pre-pandemic baseline.
Sunnyvale is one of the exceptions to this nationwide pattern.
Sunnyvale home prices went through the first two stages of this pattern (a sharp rise followed by a modest decline), but they rebounded more strongly than in most U.S cities.
As a result, the median home price for this city is currently the highest it has ever been, even higher than before the pandemic.
Here are some key data points provided by Zillow, in January 2025:
Median home price for the city of Sunnyvale: $2,052,379.
Median price for the San Jose-Sunnyvale metro area: $1,587,074.
Sunnyvale home prices rose 8% in 2024, outpacing the national average.
The following graph will help you visualize everything we just covered. It's based on data provided by Zillow at the start of 2025.
Among other things, you can see how home prices in Sunnyvale have mostly been trending upward since mid-2023. That's partly due to people making offers above the asking prices.
A Fast-Paced Housing Market in 2025
By now, it should come as no surprise that the Sunnyvale real estate market moves at a fairly quick pace in terms of home sales.
At the start of 2025, homes listed for sale in the city of Sunnyvale spent a median of 16 days on the market before going under contract. That was well below the national median of 42 days, during that same timeframe.
All of these trends are connected:
High-salary tech companies located in and around Sunnyvale attract workers.
This pumps a steady stream of buyers into the market, increasing competition.
Over time, inventory levels decline, increasing competition even more.
Buyers often make offers for more than list price, to outbid other buyers.
Stiff competition also leads to quick home sales and rising prices over time.
Those who plan to buy a home in Sunnyvale during 2025 should enter the real estate market with the right frame of mind, realizing that sellers have the upper hand.
About Sunnyvale, California
Sunnyvale is a city of around 152,000 people located in Santa Clara County, in the heart of Silicon Valley. It's located about 40 miles south of San Francisco and 10 miles north of San Jose.
Major cities surrounding Sunnyvale include:
Mountain View to the north, home to Google's headquarters
Cupertino to the west, where Apple's headquarters is located
Santa Clara to the east, home to Levi's Stadium and several tech companies
San Jose to the south, the largest city in Silicon Valley and a major tech hub
Sunnyvale's economy is primarily driven by the technology sector. The city also hosts a number of corporate offices, research and development facilities, and startups, contributing to the area's status as a global tech hub.
Aside from technology, industries such as aerospace, defense, and biotechnology also play a role in the local economy.
The city's desirable location, proximity to major tech employers, and high quality of life have made it an attractive place to live, particularly for tech professionals.
Home prices in Sunnyvale have consistently been above the regional and national averages, with single-family homes and townhouses often reaching millions of dollars.
Like other cities in the region, the Sunnyvale real estate market is known for having very low supply levels. This is partly due to zoning restrictions and high demand for both rental and purchase properties.
The cost of living is also among the highest in the country, further contributing to the challenges of securing affordable housing. While the city is making strides to build more homes, it will take time for those efforts to ease the housing shortage in the area.