Condos & Townhomes
Condos & Townhomes in Silicon Valley
How’s the Saratoga California real estate market?
This is a fairly comprehensive article on the Saratoga real estate market that will include the live statistics from Altos Research for listed properties (not closed) in Saratoga CA 95070, the closed sale data from the RE Report for last month in Saratoga 95070, and the numbers I crunched for Saratoga – overall and by price point and high school district, since Saratoga has 3 different high school districts, each with an impact on home values.
First, let’s consider the months of inventory by price point and high school district that I crunched using MLSListings.com, our local multiple listing service provider.
The months of inventory is a reference to how fast homes would be absorbed into the market if sales continued at the same pace and no new inventory came onto the market. It’s often referred to as “the absorption rate” – and that can be months of inventory, weeks of inventory, or days of inventory. A “balanced” market is somewhere around 4-5 months for us, though the National Association of Realtors says that 6 months is balanced nationwide. Anything under 3 is a good seller’s market, and under 1 is like saying that homes are “flying off the market.”
(For comparison, please also see a similar article on the Live in Los Gatos blog for the town of Los Gatos – real estate market by price point and high school district.)
For most of the valley, inventory is up, prices are down, days on market are up, and sale price to list price ratio is up. It’s still a seller’s market, but it’s softening. If it continues in this direction, it will become a buyer’s market – but is not there yet.
Here’s the chart for Saratoga – all price points, all school districts. Please notice that the months of inventory is about DOUBLE from four months ago. Translation: it’s twice as hard to sell now as it was in mid-April. At the same time, 3.15 months of inventory is still very decent! Also, though home prices can be quite high, the bulk of properties are under $3 million. It’s challenging to sell homes higher than that amount, overall.
And from 4 months ago:
By comparing across school districts you can also see how different each area’s individual market can be. Saratoga with Saratoga schools is a little slower of a market. Why? Most likely because it’s a bit pricier than other areas. This area is about 50% slower than it was a few months ago. The overall MOI makes it seem like Saratoga with Saratoga Schools is a bit sluggish. That’s not really the case in most price points, but at $4 million and up, it is a buyer’s market.
How is the Campbell real estate market? Campbell is in a fairly strong seller’s market, but like the rest of the county, is in a period of cooling off in terms of pricing, numbers of offers, and sale price to list price ratio.
If you’re selling, perhaps a few months ago, you’d have gotten 6 or 8 offers on your well prepared, beautifully staged, and aggressively priced home for sale. Now, maybe it is 3 or 4 offers instead. The offers are often coming in with no contingencies, but there just aren’t as many. The massive overbids are becoming a little less massive.
Part of this seems to be seasonal fluctuation. In my 25 years of selling homes in the Santa Clara Valley, I have seen that in MOST years, late spring and early summer sees a flattening of the market, sometimes even a slight decline in pricing, after the peak months of January through April. Last year, that didn’t happen.
The other part may be “buyer fatigue”. Buyers have had enough with the spiraling-out-of-control prices and terms so strongly in the sellers’ favor. They are voting with their feet.
Further down in this article, we’ll utilize the graphs from Altos Research, which uses list prices, and check out the trends in pricing by quartile in this zip code (meaning 4 groups based on the pricing tier from least to most expensive). Campbell condominiums and townhomes will be considered as well. And finally, a list of homes for sale in Campbell will be found at the bottom of the post.
And now – here are some quick stats, care of my RE Report for Campbell:
CAMPBELL real estate market trends and statistics
|Trends At a Glance||Jul 2018||Previous Month||Year-over-Year|
|Median Price||$1,450,000 (-6.5%)||$1,550,000||$1,275,000 (+13.7%)|
|Average Price||$1,563,680 (-1.4%)||$1,586,540||$1,357,390 (+15.2%)|
|No. of Sales||29 (0.0%)||29||40 (-27.5%)|
|Pending||23 (-11.5%)||26||33 (-30.3%)|
|Active||33 (+3.1%)||32||14 (+135.7%)|
|Sale vs. List Price||104.4% (-4.0%)||108.7%||106.8% (-2.3%)|
|Days on Market||17 (+30.9%)||13||17 (+3.6%)|
|Days of Inventory||34 (+6.7%)||32||11 (+225.1%)|
And the month before:
|Trends At a Glance||Jun 2018||Previous Month||Year-over-Year|
|Median Price||$1,550,000 (-1.5%)||$1,574,000||$1,339,800 (+15.7%)|
|Average Price||$1,586,540 (-3.2%)||$1,639,770||$1,397,390 (+13.5%)|
|No. of Sales||29 (-19.4%)||36||47 (-38.3%)|
|Pending||26 (-16.1%)||31||38 (-31.6%)|
|Active||32 (+10.3%)||29||19 (+68.4%)|
|Sale vs. List Price||108.7% (-0.9%)||109.7%||107.6% (+1.0%)|
|Days on Market||13 (-5.7%)||14||17 (-21.1%)|
|Days of Inventory||32 (+32.4%)||24||12 (+173.0%)|
What about the Campbell CA condo market?
Home prices, like anything else which is bought and sold, are subject to the pressures of supply and demand. In recent weeks, we have seen an increase in the number of condominiums and townhomes for sale in San Jose, but a slight lessening in buyer interest. More supply with less demand equals lower prices. This will be a bit of a shock to most home sellers, who’d read about the madness of the market in February, March and April. But spring is nearly always stronger than summer – and we are seeing a fairly typical calming down in the Silicon Valley real estate market as we move into that milder summer market.
Since I mostly sell in the “west valley” areas of the Santa Clara Valley, I had a look at a few of them just to see what the trends look like. In this chart, please see the inventory of condominiums and townhomes for sale in 95120 (Almaden Valley), 95123 (Blossom Valley), 95124 (Cambrian) and 95125 (Willow Glen). Almaden seldom has many listings of townhouses or condos at all – over the last year, it looks as though it’s usually close to 5 at any given time. A slight uptick means 6 are available. The trend is much more dramatic in other parts of San Jose.
Home sellers: where the inventory rise is the steepest, you will probably see the most impact on the odds of selling and the price for which you can sell your home. Home buyers: if you see that inventory is largely unchanging, as it is in the tony Almaden Valley, the odds are good that it’s still pretty competitive for home buying and you will likely need to bring your best game forward to secure your future home.
Interested in other areas? I work all of Santa Clara County and would be happy to help you buy or sell your condo, townhouse or single family home here.
$698,000 : 2383 Antelope DR, SAN JOSE3 beds, 2 baths
$898,000 : 308 Jackson ST, SAN JOSE2 beds, 3 baths
$399,888 : 649 Yolo CT, SAN JOSE1 bed, 1 bath
$779,000 : 325 Esfahan CT, SAN JOSE2 beds, 3 baths
$459,950 : 3245 Shadow Park PL, SAN JOSE2 beds, 1 bath
$815,000 : 4784 Archbow CT, SAN JOSE3 beds, 3 baths
$745,000 : 762 Dragonfly CT, SAN JOSE2 beds, 2 baths
$499,000 : 5336 Monterey HWY 23, SAN JOSE2 beds, 2 baths
$888,000 : 435 N 2nd ST 221, SAN JOSE3 beds, 3 baths
$749,999 : 4963 Cherry AVE, SAN JOSE3 beds, 3 baths
See all Real estate in the city of San Jose.
(all data current as of 8/19/2018)
Listing information deemed reliable but not guaranteed. Read full disclaimer.
Saratoga and Los Gatos are neighbors, but their real estate markets are not the same! Today we’ll consider the condo and townhouse market in these two upscale Silicon Valley areas and view some elements “side by side”. See what you think!
First, let’s have a peek at how fast things are selling. Saratoga & Los Gatos both are at under 3 week for the “days to sell over time”. Saratoga tends to sell a little better than Los Gatos for condominiums and townhomes, and that’s the case now as well – at least months months, and recently. (Reasons, not sure – perhaps because the location is a little closer to Cupertino and Sunnyvale and the many high tech jobs there. Or it could be related to the school scores or any number of factors.)
Let’s check some other criteria and see how they stack up there. Let’s look at the new listings as opposed to the solds. How far apart are they? (The closer they are, the “hotter” the market. If the solds are going faster than the new listings are coming on, it’s a red hot seller’s market.) For most of the last year, Saratoga condominiums have been selling and closing faster than new ones have entered the market, or have tied it, except for March and April. In Los Gatos, same pattern recently of new listings outpacing sales, and in January the closed sales outpaced new inventory. But overall, it’s close to a tie or there’s a slight leaning toward new listings rather than sales unless you look back to last fall. So a little bit cooler of a market in Los Gatos by this standard.
A newer “mixed use” neighborhood in San Jose, Santana Row is popular with people of all ages and interests. It is not just a “shopping center”, but is really a community, one which offers a wide variety of dining, shopping and entertainment, suitable for all kinds of budgets too. Best of all, it’s right in the heart of Silicon Valley.
Dining at Santana Row varies from very formal and expensive to casual and snack-like, and the type of food available ranges widely too. A fairly new addition is Pinkberry, which seems to be growing quickly in popularity. There are about thirty cafes, bistros and restaurants and to date I’ve probably visited about one-third of them – all experiences positive.
Entertainment at SR goes beyond window shopping and includes live music and, of course, films at the movie theater. Many chose to simply peoplewatch, take in a good book or catch a game of chess with a friend while enjoying a beverage. A Farmer’s Market features produce, flowers and other goods each week (and there’s a Safeway just a block or two away also) and is a good excuse to browse the offerings. Or maybe splurge a little and enjoy some pampering at a spa or salon: Santana Row’s got that, too.
Condominiums and townhouses in Santa Clara County have enjoyed rapid appreciation and almost perfectly steady improvement in the market in the last 18 months or so. Today we’ll take a snapshot view of it with a few graphs. First, let’s consider the average Days on Market (DOM) and the sale price to list price ratio for condos and townhouses in Santa Clara County.
The chart above shows some calming down in the Santa Clara County condo market. First, it appears that the sale price to list price ratio stopped its wild ascent and has reversed itself some in June 2013. But also, it seems that the days to sell leveled out (and stopped its decline). Just to check on the apparent trend, I went to MLSListings and ran the numbers for the closed sales just yesterday and today (July closings). The average sale price to list price was 106%, a tad lower than what we saw in June.
What about new inventory vs sold homes? In the chart below, we see that the gap between them widened in June: more inventory, fewer sales (of course the June sales were contracts ratified in May, in most cases). This also suggests a loosening in the condo market here. It’s not suddenly a buyer’s market, but perhaps we are seeing the beginning of a trend reversal? Have a look at the chart: Continue reading
Being an FHA home buyer in Silicon Valley is a challenge right now, especially if you want what everyone else wants: a nicely updated and remodeled home in a good area with no “issues”. (Issues meaning things like high voltage lines, busy roads, flood plains, or being too close to stores or spots not everyone wants to be near.)
How many FHA buyers are successful in purchasing a house right now? The percentages are very small. Just now I ran the MLS for sales of single family homes (houses and duet homes) in San Jose over the last 30 days. Here are the figures:
All closed sales = 368
What kind of financing was used for these 386 closed sales?
Conventional financing = 268
All cash purchases = 77
FHA purchases = 10
Conventional 1st & 2nd loans = 6
VA Loan = 1
Owner financing = 0
The odds of success for FHA buyers is less than 3%. Why is it so tough? Condos are even more challenging than houses, so let’s look at those issues first.
Yesterday I put a wonderful Cupertino condo on the market. My seller has worked hard so that the buyers won’t have to! The kitchen is newly remodeled and is just about one month old. The home boasts new carpet and wood laminate floors, new blinds, new light fixtures and on and on. Best of all, it enjoys an oversized patio which must be seen to be fully appreciated! Located in the best area of the complex with easy access on foot to a myriad of shops, restaurants and two coffee houses at Foothill Center. Check out all the details and photos below!
22330 Homestead Road, # 121: 2 bed, 2 bath, 1249 SF, offered at $598,000
SOLD!!!!! But to see details on this lovely home, please visit:
$1,388,000 : 20500 Town Center LN 168, CUPERTINO2 beds, 2 baths
$1,198,000 : 10801 Northforde DR, CUPERTINO2 beds, 2 baths
$1,875,000 : 10156 Imperial AVE, CUPERTINO3 beds, 3 baths
$1,888,000 : 10182 Imperial AVE, CUPERTINO4 beds, 4 baths
$1,050,000 : 10473 Mary Avenue, CUPERTINO2 beds, 2 baths
$892,000 : 20045 Northwind SQ, CUPERTINO1 bed, 1 bath
$1,499,000 : 22991 Longdown RD, CUPERTINO3 beds, 2 baths
$996,000 : 20488 Stevens Creek BLVD 1108, CUPERTINO1 bed, 1 bath
$1,498,000 : 20488 Stevens Creek BLVD 1705, CUPERTINO2 beds, 2 baths
$1,198,000 : 20052 Northcrest SQ, CUPERTINO2 beds, 2 baths
See all Real estate in the city of Cupertino.
(all data current as of 8/19/2018)
Listing information deemed reliable but not guaranteed. Read full disclaimer.
Homeowner Associations (HOAs) are created to oversee condominium complexes, townhome communities and planned unit developments on behalf of their members. These are non-profit organizations whose purpose is to manage common areas, enforce neighborhood rules and standards, and often, unofficially, to foster community unity too. In most cases, they collect fees from members and have local authority. In other words, if you do not pay your homeowner association dues, or abide by one of its rules*, the HOA can and usually will fine you or even foreclose on you!
There are loads of HOAs in Silicon Valley. As with all organizations, some are better run than others. Its a little different than owning real estate outside of a homeowners association.
What are the pros and cons?
At their best, Silicon Valley HOAs keep the communities they manage beautifully landscaped and maintained, they hire good providers for needed improvements, and minimize risk to all the members. By having reasonable rules and community buy-in, the neighborhood can look inviting and property values can be better maintained.
At their worst, HOAs can be unresponsive to members needs, erratic, arbitrary and irresponsible. They may, by poor planning, cause huge assessments to be necessary or raise HOA dues so that they are very high – to the point where they make homes hard to sell. Not only are those an unhappy occasion, they can also make it hard to sell a home with a special assessment looming. Fortunately, this is seldom the case in most areas – but if the HOA has a high number of defaults due to owner bankruptcy or inability to keep up with mortgage, property insurance etc. it can cost all of the members eventually.
******** SOLD with 20 offers after 6 days on the market******
So cute, updated, staged – a turnkey Santa Clara condo in a great location near Central Park!
966 Kiely Blvd, # D (cross street Kaiser Drive), Santa Clara
Fabulous kitchen with dishwasher, new refrigerator, new oven!
One bed, one bath, 670 square feet of easy living in an upstairs unit.
Great closet space – big walk in closet in master, hall closet for guests, oversized storage – linen closet PLUS another storage area in the carport.
Living room with wet bar and private balcony – wonderful for relaxing.
Seller has worked hard to make this home absolutely ready. There are even a home & pest inspection. Regular sale too. Hurry, it’s ready to sell!
The Santa Clara Condo Market is red hot – but very few properties are similar to this in being updated, a regular sale (not a short sale, not a bank owned property) and ready to go with inspections & disclosures online. (Click the link to read up on the real estate market for condominiums and townhomes in Santa Clara. Real estate agents can get the link for the disclosures on the MLS.)
Offered at $158,888
HOA dues $340 per month
Woodborough community with pool, spa, playground & more (see photos and all details below)