The Silicon Valley real estate market is slowing

The Silicon Valley Real Estate Market is SofteningThe real estate market in Silicon Valley remains overheated, but it’s cooling a notch now that we are in summer. This is good news to market-weary home buyers, and scary to home sellers.  What to do?

First, it’s important to remember that we don’t have just one market in Santa Clara County, San Jose or even Los Gatos.  We have a patchwork quilt of markets that are moved by price point, home condition, school districts and school scores, and many more things.  An entry level house is always going to be a different market than a luxury estate – but all the shades of gray in between are equally distinct, too.

Once you can look at your particular segment of the market and identify it as such, you can then run the numbers. But beware, it’s too easy to miss a step here.  If you’ve got a house worth $1.5 million in Almaden valley with Pioneer high school, please don’t compare it to a $1.5 million home in Almaden Valley with Leland High School.  The price point and zip code may be the same, but after that you are in a different land.  So drill down to your home (or your desired home’s market).

Next, realize that while there is a softening or cooling of the market, this isn’t a 180 reversal.  Sellers, if you thought you’d get 5-8 offers, you may find that your house gets 2 or 3 or 4.  That’s still good!   Buyers, things are better, but don’t get too cocky – you are still unlikely to be the only bidder, so go in with your strongest package and your best foot forward. And always analyze the market before you bid.  Some homes are priced unrealistically high, some unrealistically low, and some on target.

Contingent offers are back!  I have done a few sales subject to the sale of another home this year.  As long as the home that needs to be sold is priced well and marketed well, this can work.  Sellers still want top dollar, so if that means waiting an extra 2-3 weeks for your home to sell, they’ll do it.  I’ve seen contingent offers beat out regular offers because the whole package was just stronger.

Lastly, what I’m seeing is seasonally normal.  This is not a market crash, only a slight softening.

Some sellers will think that they should wait until next spring to sell.

Some buyers will think that if they wait a year, prices will be far lower.

But for many, trying to “time the market” with real estate is as hard, or maybe harder, than trying to time the stock market. I tell my clients who are looking to buy to keep looking and if the right home comes along, go for it.  If a seller needs or wants to sell, do it now.  We don’t know when we’ll have the next earthquake, next terrorist attack, next economic crisis.   None of us has a crystal ball, and we cannot ever guarantee that tomorrow will be better than today. I’ve been selling homes long enough to know better than to tell people to wait if they are ready now.  There are always things out of our control, just around the corner, that we don’t know about.

Please call or email me if you’d like to chat about selling or buying a home in Santa Clara County.

Happy Independence Day, America! Silicon Valley & Santa Clara County July 4 Events

FireworksSilicon Valley & Santa Clara County Events With Fireworks:

9:30pm Firework show at Gilroy High School
http://gilroywelcomecenter.org/events/index.php?id=3863

Morgan Hill

Morgan Hill Freedom Fest and Fireworks on the Green
http://mhfreedomfest.com/site/parade/

Friday July 3rd begins the event with a 6-7pm patriotic sing-along at the Morgan Hill Downtown Amphitheatre and a 7-10pm Family Street Dance in downtown between 3rd and Monterey.  There is a Walk/Run the morning of, beginning at P.A. Walsh School, then entertainment begins at 9am. A Car Cruise is held at 9:30am before the parade at 10am, and a Car Show follows the parade.
Pre-firework entertainment begins at 5pm, and the show starts after dark.

San Jose

Rotary Fireworks returns to San Jose
http://www.rotaryfireworks.org/

Events and viewing will be held at the Discovery Park in Downtown San Jose. The show begins roughly around 9:30pm. The use of public transit is highly recommended.  There are a limited number of premier viewing events taking place around this event. Please check the website for more information on these.

San Jose Giants Fireworks Show
On the 4th and 5th (tickets still available for the 5th) with a game followed by fireworks.
http://www.sanjose.com/san-jose-giants-fireworks-show-e1625352

Santa Clara

The City of Santa Clara 4th of July All-City Picnic & Firework Extravaganza
http://santaclaraca.gov/Modules/ShowDocument.aspx?documentid=14262

Food booths, public swimming, carnival games, live entertainment. The complete schedule is attached.

From Noon to 10pm at Central Park

California’s Great America Firework Show

July 3rd and 4th – Free park admission to past and current military service members

Military Vehicles on display at the entrance, performance by the Santa Clara Vanguard at 4pm, and Patriotic fireworks at 9:50pm

Extra ticket for all-you-can-eat BBQ from 11am-4pm

https://www.cagreatamerica.com/events/things-to-do/special-events/July-4th-Fireworks

Milpitas

Milpitas 4th of July Celebration at the Milpitas Sports Center
http://www.milpitaschamber.com/calendar/06-2015/4th-july-celebration

“Waving the Red, White, and Blue” Pool Party 1pm-4pm $2, space limited

Food trucks, music, and games  “Red, White & Boom” Firework Show 7pm-9pm $3

Mountain View

4th of July Firework Spectacular with the San Francisco Symphony at the Shoreline Amphitheatre

Celebrating with American film music and fireworks, 8pm – check online for ticket availability

http://www.sfsymphony.org/Buy-Tickets/2014-2015/4th-of-July-Fireworks-Spectacular-with-the-San-Fra.aspx

Continue reading

The Luxury Home Real Estate Market in Los Gatos & Monte Sereno

The luxury homes market frequently behaves very differently than the rest of the real estate market as a whole.  If interest rates jump around, the impact is often far less since the home buyers of estate properties may not be nearly as dependent upon financing.  Many of these fine homes & estates are paid for “all cash”.  (In some cases they do this but later arrange financing, perhaps funding a “charitable remainder” trust rather than a more typical institutional loan.)

How’s the real estate market for high end homes in Los Gatos, Monte Sereno and the Los Gatos Mountain communities?  Defining “luxury homes” is a bit tricky because what constitutes luxury can vary from area to area (check out these estate homes for sale in the Buffalo NY area). For now let’s use prices of $2 million or greater as we first look at the Months of Inventory or Absorption Rate – though in fairness, the luxury price point is a little lower in the mountains.  (Six months is considered balanced by the National Association of Realtor, less is a sellers market and more is a buyers market.)  I first did this study in October of 2012 and will provide those numbers as a window back in time for comparison purposes.

Los Gatos area luxury market

Monte Sereno is having no trouble selling luxury homes compared to the rest of the Los Gatos area right now.  The Los Gatos Mountains (Chemeketa Park, Redwood Estates, Aldercroft Heights and other areas) struggles with the over $2 million market.

No matter how you look at it, overall it is a seller’s market in the luxury home strata in Monte Sereno and Los Gatos – but not the Los Gatos Mountains. It is not so crazy as the entry level homes, which have a much faster absorption rate, so buyers, take heart!  Three months of inventory is pretty doable and not so far from a “balanced” market here.

Altos charts on the LG area

Next we’ll change gears and use Altos Research and quartiles to evaluate the most expensive listings.  We will look at the top quartile of list prices, the high end listings in Los Gatos (zip codes 95030 and 95032 in town), in the Los Gatos Mountains (unincorporated, 95033) and Monte Sereno (99.9% of which is in 95030 but a tiny sliver has the 95032 zip code).   The charts I’m using are live and will be continuously updated by Altos Research, to which I have a subscription.

List prices of homes for sale in the topmost price quartile in Los Gatos, Monte Sereno and the Los Gatos Mountains

Real Estate Market Chart by Altos Research www.altosresearch.com Continue reading

Cupertino Real Estate Market Trends and Statistics

How’s the Cupertino real estate market?

The real estate market in Silicon Valley can sometimes be a little quirky, so I like to approach this question from a few angles.  In this article I’ll make use of  my charts from Altos Research, which uses listing data (not solds) and is automatically updated every week and also monthly reports from my REReport subscription.  Also I’ll periodically update it with info from the MLS that I have crunched myself or anecdotal stories from those of us “in the trenches”. The article is a bit long but I think much more comprehensive giving the multiple methods of answering the question of how the Cupertino real estate market is faring.

Cupertino median list price of houses by price quartile

Often the real estate market in any given city is very different between the most expensive homes and the most affordable ones.   While many Cupertino home buyers are looking for a short commute, great public schools or strong resale value, some seek a luxury property with a view in the Cupertino hills (either off of Montevina Road by Ridge Vineyards or in other lower foothills).
Real Estate Market Chart by Altos Research www.altosresearch.com

The last few months have had some ups and downs in pricing, but most segments of the Cupertino real estate market have seen an uptick since the fall.  The luxury market in Cupertino had a typical spring “peak” and is calming now, like much of the market.  Going strong, though, are the bottom half of the pricing tiers. What if we look back more than a year? Combining the quartiles, it seems that there’s been more up than down, but right now we are in a overall appreciating time.

Real Estate Market Chart by Altos Research www.altosresearch.com

Continue reading

A visit to Ridge Vineyards in Cupertino

For Father’s Day, my husband thought it would be nice to take a leisurely back-roads drive to Ridge Vineyards in Cupertino via Pierce Road in Saratoga and then do a little wine tasting.  It was nice to get away from major roads and freeways, and we very much enjoyed the drive – but much more so the destination!

Every time we visit Ridge, it seems to be just a little bit nicer than when we’d last seen it.  The grounds have gone from rustic to sophisticated and there are many more places to enjoy a little wine and picnic now as compared to ten or twenty years ago. (I think I first joined Jim there more than 30 years ago.)  Here are a few photos of our trek there today.    It’s always a pleasant place to visit, and often the views are spectacular.

For more info about Ridge, tasting, or joining any of their member programs, please visit them online at http://www.ridgewine.com/ or stop by the lovely Montebello Road campus when they’re open.

17100 Monte Bello Road Cupertino, CA 95014

Phone 408.867.3233

Love Cupertino? Check out housing market info here:

Cupertino Real Estate Market Trends and Statistics

Santa Clara Valley Water District – rebates for conservation measures

Waste no waterThe drought is ongoing, and the state and the Santa Clara Valley Water District are both pressing all of us for greater conservation.  Silicon Valley residents will be tempted by local water agencies (and PG & E) offering some pretty tempting rebates, some of which have been recently and temporarily increased, for improvements made to your home and yard which lessen the amount of wasted water. For instance, changing toilets and faucets to “low flow” models will net consumers a little cash back. But it’s much more than that.  How about getting your washing machine’s gray water to a second use in the yard?

Some of these updates may not be optional in the future, so consider getting them while the rebates are still available.

Please click on the link below to view the available programs:

http://www.valleywater.org/programs/rebates.aspx

San Jose Water Company’s rebate page: https://www.sjwater.com/for_your_information/save_water_money/rebates_incentives

Also, view the SCVWD “Fact Sheet” for more info on what’s happening with our water. (This is a pdf on the Town of Los Gatos website).

Sunnyvale real estate market trends & statistics

Sunnyvale has been an extremely hot seller’s market for many months.   In general, houses in Sunnyvale are selling for about a million four hundred thousand dollars – if they aren’t too small or in terrible shape (or conversely palatial or newly built or remodeled).  Let’s begin with single family homes. The median list price for homes in Sunnyvale CA – all zip codes combined – interestingly, the high end homes are doing the best! (Live charts from Altos Research, which uses LIST prices, not sale prices.)

Altos Research, median list prices by quartile

Real Estate Market Chart by Altos Research www.altosresearch.com

What about the numbers for the closed sales?  Now let’s have a look at the Sunnyvale CA RE Report for last month’s trends and statistics (click on link to get the full report):

What about the condo and townhome market?

Continue reading

1 2 3 121

Mary Pope-Handy

Realtor
ABR, CIPS, CRS, SRES
Sereno Group Real Estate
214 Los Gatos-Saratoga Rd
Los Gatos, CA 95030
408 204-7673
Mary (at) PopeHandy.com
License# 01153805


Selling homes in
Silicon Valley:
Santa Clara County,
San Mateo County, and
Santa Cruz County.
:
Special focus on:
San Jose, Los Gatos,
Saratoga, Campbell,
Almaden Valley,
Cambrian Park.

Mary’s Other Sites

ValleyOfHeartsDelight website
Santa Clara County Real Estate,
and a focus on the past (in process)

Move2SiliconValley.com
Silicon Valley relocation info

popehandy.com
Silicon Valley real estate,
focus on home selling

Let’s Connect

Find Mary on FacebookFollow Mary on Twitter
RSS FeedFollow Mary on YouTube

Please see more icons
at the bottom of the page.