This May Be One of the Best Windows to Buy a New Home in the South Bay

If you’ve been watching the South Bay real estate market and wondering, “Is there ever a moment where buyers actually get an advantage?”—this might be one of those rare windows. In Cupertino, Santa Clara, Sunnyvale, and parts of San Jose, I’m seeing something buyers haven’t had much of lately: more brand-new homes to choose from, plus real negotiating power.

Nationally, new construction is offering buyers a combination we don’t see often—choice and incentives. But what matters most is how this plays out here in Santa Clara County, where inventory dynamics are very different from most of the country.

More New Homes Are Available—Especially in Santa Clara County

Across the U.S., builders increased new home supply over the last few years to help offset resale inventory shortages. That trend has shown up locally too, especially in pockets of North San Jose, Santa Clara, and parts of Sunnyvale where new communities and townhome developments are more common.

However, builders are now slowing down on starting new projects. National data shows new construction starts have been gradually declining, and forecasts suggest that trend will continue. Translation: the selection of new homes available today may be as wide as it gets for a while.

Here in the South Bay real estate market, that matters. When options shrink, leverage usually shifts back to sellers quickly. Buyers who value modern layouts, energy efficiency, and move-in-ready homes may want to pay attention to this moment.

Builder Incentives Are Quietly Doing the Heavy Lifting

This is the part most buyers underestimate.

To move existing inventory, many builders are offering incentives at levels we haven’t seen in years. Nationally, about 65% of builders are using some form of incentive, and a record number are also cutting prices.

Locally, I’ve helped buyers secure:

• Price reductions that don’t show up online

• Closing cost credits that significantly reduce cash needed upfront

• Free upgrades that would normally cost tens of thousands

• Mortgage rate buydowns that lower monthly payments (a big deal in the Bay Area)

These incentives can make a brand-new home competitive with—sometimes even more affordable than—resale homes in Santa Clara and Cupertino.

Why Strategy (and Representation) Matters More Than Ever

Here’s where my “doctor for real estate decisions” approach comes in.

Builder contracts are written to protect the builder, not the buyer. Incentives aren’t always advertised clearly, and not every buyer qualifies for the same terms. My role is to diagnose the situation—your timeline, finances, lifestyle goals—and then prescribe the right strategy.

I’ve seen buyers walk into model homes thinking the deal is fixed, when in reality there’s room to negotiate if you know what to ask for and when.

What This Means for South Bay Buyers Right Now

More new construction options plus stronger incentives equals a rare alignment in the Santa Clara homes for sale landscape. As demand picks up later in the year, these incentives often fade quietly—without announcements.

If you’ve been waiting on the sidelines or exploring Sunnyvale home buying tips, this may be the window where patience starts to pay off.

Bottom Line

With more new homes available today and builders motivated to sell, buyers in the South Bay real estate market may be looking at one of the most favorable moments in years to explore new construction.

If you’ve been thinking about getting back into the market, let’s talk through what’s possible right now in Santa Clara County—and whether a new build makes sense for your situation.

No pressure. Just clarity.