How’s the Saratoga California real estate market?

Annual Saratoga CA Real Estate Update:

Saratoga’s prices slipped a bit in 2011 over 2010.  Here are the basic numbers with the stats for the annual review, including median sales price and average sales price of houses sold (see the Saratoga Real Estate Report for even more data):

Median Sale Price 2011 = $1,480,000   2010 = $1,510,000 (-2.0%)

Average Sale Price 2011 = $1,636,300   2010 = $1,657,140 (-1.3%)

For condominiums and townhouses it was stronger (finally, they’ve taken a beating!):

Median Sale Price 2011 =  $660,000     2010 =  $612,500 (+7.8%)

Average Sale Price  2011 = $684,500    2010 =  $640,895 (+6.8%)

To see much more information please visit the full annual Real Estate Report for Saratoga condos and townhomes

Monthly Real Estate Update for Saratoga:

Sales of single family homes were up but prices were down month over month – but way, way up over December 2010! It’s taking much longer to sell houses compared to a year ago too – but look at the prices from a year ago – the low price went with a very brisk sale time (average 17 days on the market).  That was nuts both for low pricing and for speed!

What about Saratoga condos for sale and sold? There are very, very few of these which sell in any given month, so the numbers can very easily jump around like crazy – and therefore aren’t terribly helpful. 

Days on market are double a year ago and triple even a month ago (this IS helpful), prices are down from last month (but again, that can mean very little since a Saratoga Oaks townhouse with a view will sell for much more than a small condo with a less desirable location).

To really understand the condo and townhouse market it’s better to see actual sales and compare them quarter by quarter, using similar units.  If you are interested in buying or selling a condo or townhouse in Saratoga, don’t go it alone or rely on online stats – give me a call and we will crunch the numbers specifically for your home and pinpoint the pricing.

Median List Prices of Saratoga Homes for Sale

First, a graph displaying the overview of the median list prices for condominiums and single family homes in Saratoga – all price quartiles combined:

In general, the seller’s market is showing itself for houses in the fact that list prices are rising.  Not so with condo and townhouse pricing. That’s a much cooler market.

Next, the median list prices for single family homes with a breakdown by price quartile. (Please note that the info would be even more precise if broken down by school district, but this particular program doesn’t yet filter by schools.)

In most price points, the list prices are now rising slightly, but most of all in entry level homes. In the last few months we’ve seen the high end home sales start to pick up in Saratoga, with a good run up in late 2010 before sliding earlier.  Starting to improve now, though.

And now, list price of condos by price quartiles.

Interestingly, the condo market is not enjoying at all the decent seller’s market seen among houses in this city.  Every price point appears to be suffering, but the high end most of all.

Inventory of both houses & condos in Saratoga

It’s seasonally typical to have more inventory in summer than other times of the year. Going back a few more years (see below), please note where the peaks are found – always sometime in summer. (Single family homes only.)

It’s less clear, but still visible, with condominiums and townhouses in Saratoga:

Average Days on Market for Saratoga Homes for Sale

Houses by quartile is not much different – DOM was rising across all price points and has been since August until spring, when the bottom and two quartiles (blue and green) reversed the trend. These are the “hotter”or improving segments of the market right now.

It is strangely disjointed in the Saratoga Condo market, though. I can’t explain why this had been so “all over the board” based on just this data. But since August, all four groups appear to be following the same general trend.

My suspicion is that the homes with the better schools are faring the best, but that’s just a hunch based on how well homes usually sell – it’s not provable with this info at hand.

If you’re interested in buying or selling a Saratoga home, please contact me. I’ll be happy to meet with you for a no obligation initial consultation.

Saratoga Real Estate Listings – Saratoga Homes for Sale – Condos, Townhouses & Houses for Sale in Saratoga

If you’d like to browse Saratoga homes for sale, I invite you to have a look here! Below please find all properties currently listed as available on our local MLS.  Please be advised that there are a number of different property types and school districts listed here.  For more precise information on houses, condos or town houses on the market, please contact me via email or complete a form at SiliconValleyHomeHunt.com or on my popehandy.com website.  Either way it will come to me and I will personally set up your search for a Saratoga property. (If you are moving to the South Bay area from far away, please also see my Silicon Valley relocation website for helpful tips.)

Showing properties 1 - 5 of 62. See more city of Saratoga real estate.
(all data current as of 2/8/2012)

1. $1,299,800 : 19400 De Havilland Dr, Saratoga
   
   4 beds, 2 full baths

   Home size: 2,302 sq ft

   Lot size: 11,875 sq ft
   
2. $2,399,998 : 21142 Sarahills Dr, Saratoga
   
   3 beds, 2 full, 1 part baths

   Home size: 2,817 sq ft

   Lot size: 1.13 ac
   
3. $798,000 : 14403 Oka Ln, Saratoga
   
   3 beds, 1 full bath

   Home size: 1,273 sq ft

   Lot size: 11,000 sq ft
   
4. $1,298,000 : 14230 Paul Av, Saratoga
   
   4 beds, 2 full, 1 part baths

   Home size: 2,176 sq ft

   Lot size: 7,500 sq ft
   
5. $574,950 : 19714 Vineyard Ln, Saratoga
   
   2 beds, 2 full, 1 part baths

   Home size: 1,511 sq ft

   Lot size: 2,000 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Cinnabar winery sign (Big Basin Way, Saratoga)

In many communities such as Saratoga, Los Gatos, Los Altos, Willow Glen, Campbell and Palo Alto, there is a high premium placed on homes which are close to the downtown area.  Many real estate agents advertise these as “walk to town” but the idea is simple: it’s nearby, you can stroll, skate, ride or bike, wheel yourself and forget the car.

Downtown Saratoga, also called Saratoga Village, welcomes residents and visitors to a charming, scenic area with fabulous shops, spas, wine tasting venues, restaurants and more.  This part of the city boasts top scoring schools as well as lovely older and historic buildings and a gorgeous park alongside Saratoga Creek. Whether you spend an afternoon or a lifetime in Saratoga, this part of town will call you back again and again!

What do you need to know about buying a house, townhouse or condo in downtown Saratoga?

There are a few points which you are well served to know when purchasing residential real estate in this upscale community. We’ll touch on a few of them here: historic homes, traffic & noise, natural hazards, parking, and special issues with condos, townhouses and PUDs (planned unit developments).

First, this downtown Saratoga Village zone is historic; while not every property is deemed historic, many are and that means that there will be restrictions on remodeling and expansion of single family homes or houses. For instance, original glass in windows may need to remain if you’ve got a Victorian house dating from the 1890s, and expansions may need to be off the back of the home so that the facade keeps its initial look and feel (just examples).  This can be frustrating if you buy a luxury home that “needs work” and you are surprised later. If the house was built before 1950 or so, double check the rules!

Second, traffic and noise can be an issue and vary from day to day as well as from one time of day to another; there are a variety of traffic related concerns.  Big Basin Way is an alternate route to Highway 17 for access to Skyline Boulevard and the coast.  Cars and motorcycles may be thick on Saratoga Avenue, Saratoga-Sunnyvale Road and Saratoga-Los Gatos Road when the weather is good.  Motorcycles can be especially loud when large groups go on a road trip together!  Of course there will be extra cars when a concert is featured at The Mountain Winery (off Big Basin Way) or Montalvo (off Saratoga-Los Gatos Road).  If you have a serene view property it might surprise you how much motorcycle noise can carry – so be sure to visit the property on a warm weekend afternoon or two to check it out.

Additionally, because Big Basin is an alternate route to Highway 17, it can also get a lot of traffic if there’s a problem on 17 in winter due to weather such as with downed trees, mudslides, car accidents with severe backups, etc. So when weather is good and when weather is bad, Big Basin and nearby roads can get very congested and move slowly.

Commuters who live in the mountains as well as others choke Saratoga Avenue at rush hour.  This is slowed further by having to pass two schools (Sacred Heart and St. Andrews) before getting to Highway 85.  Saratoga Avenue has just one lane in each direction through the historic zone, but after the freeway it’s much better.  (Saratoga-Sunnyvale isn’t bad as there are 2 lanes but remember to slow down at Saratoga High – the road is wide so the temptation is to go too fast.)

Natural hazards:  Depending on the location of the home in relation to the village, you could be in a wildland fire zone, in an unstable soils zone, a seismic zone or other “natural hazard” areas.  Also, if you are closer in to the hills or near a creek (and there are 2 in downtown Saratoga), there will of course be an increased contact with wild life, such as deer – but potentially also mountain lions, bobcats, racoons, possum, skunks, etc.  Most people love seeing the deer but others find it upsetting that their beloved garden is viewed as a buffet!

Finally, as with many downtown areas, parking can be a little tricky at times.  Valet parking can be a big help but no matter what, do pay attention to how long you’re in a spot and what the limit is – it can be expensive if you forget!

Are there special issues with Condos, Townhomes or PUDs in downtown Saratoga, CA?

In some cases, yes, PUDs, condominiums and townhouse communities may have special issues due to any of the items listed above.  In 2010 I had a great listing at Saratoga Oaks, a lovely and luxurious townhouse resort community.  Because of their proximity to the hills, the home owner’s association had earthquake insurance and that was quite costly.  The HOA dues covered not just the multiple pools, tennis courts, pool house, roads etc. but also fairly expensive blanket and earthquake  insurance as well. (That listing of mine on Placida Court is sold and closed but you can check the photos out here to get an idea of the area.)

A problem throughout Silicon Valley is condo, PUD and townhouse home owners defaulting on their monthly dues (and any special assessments).  Whenever you purchase one of these types of homes it is very important to know how financially sound the community is.  If there are many defaults, it is possible that the reserve account will run too low, resulting in either deferred maintenance, raised dues or special assessments  for those who are paying.  (With a short sale, some of the owed monies may be forgiven, and with a foreclosure there may be no recouping of debts owed at all.)

There are very few distressed sales in Saratoga, relative to the rest of Silicon Valley, so this risk should be lower in downtown Saratoga or anywhere in that city, but do check the situation out so that yo aren’t later handed a big bill to pay!  Here are a couple of related articles that you might find helpful:

Why are those Silicon Valley HOA dues so high?

Does your HOA have enough in reserves?

Want to learn more about living in this piece of paradise?  Browse listings below – no need to register, just have a look!  And if you want to buy or sell real estate in Saratoga, please contact me.  I grew up there (graduate of Saratoga HS), I sell there, and I’m happy to assist you in making it your home!

Find a home for sale in Saratoga, CA (all of Saratoga, not just downtown):

Saratoga California condominiums or condos for sale

Showing properties 1 - 1 of 1. See more city of Saratoga real estate.
(all data current as of 2/8/2012)

1. $439,999 : 20800 4th St #10, Saratoga
   
   2 beds, 1 full bath

   Home size: 876 sq ft

   Lot size: 871 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Saratoga California townhouses or townhomes for sale

Showing properties 1 - 4 of 4. See more city of Saratoga real estate.
(all data current as of 2/8/2012)

1. $574,950 : 19714 Vineyard Ln, Saratoga
   
   2 beds, 2 full, 1 part baths

   Home size: 1,511 sq ft

   Lot size: 2,000 sq ft
   
2. $525,000 : 19415 Vineyard Ln, Saratoga
   
   3 beds, 2 full, 1 part baths

   Home size: 1,612 sq ft

   Lot size: 968 sq ft
   
3. $799,500 : 12630 Biarritz Ln, Saratoga
   
   3 beds, 3 full baths

   Home size: 1,991 sq ft

   Lot size: 3,192 sq ft
   
4. $948,000 : 14679 Springer Av, Saratoga
   
   2 beds, 2 full, 1 part baths

   Home size: 2,163 sq ft

   Lot size: 1,377 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Saratoga CA houses for sale – single family homes for sale in Saratoga California

Showing properties 1 - 5 of 57. See more city of Saratoga real estate.
(all data current as of 2/8/2012)

1. $798,000 : 14403 Oka Ln, Saratoga
   
   3 beds, 1 full bath

   Home size: 1,273 sq ft

   Lot size: 11,000 sq ft
   
2. $825,000 : 18253 Swarthmore Dr, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,400 sq ft

   Lot size: 8,260 sq ft
   
3. $850,000 : 14656 6th St, Saratoga
   
   1 bed, 1 full bath

   Home size: 592 sq ft

   Lot size: 4,500 sq ft
   
4. $869,950 : 19061 Dagmar Dr, Saratoga
   
   3 beds, 1 full bath

   Home size: 918 sq ft

   Lot size: 8,424 sq ft
   
5. $897,000 : 13278 Mcculloch Av, Saratoga
   
   4 beds, 2 full baths

   Home size: 1,724 sq ft

   Lot size: 9,920 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Today we’re looking at the real estate market for houses in some of the “west valley” communities along the base of the Santa Cruz Mountains – areas where schools are good, crime is low, residents enjoy scenic views of the hills (or of the valley from the hills, depending on the location) and overall, a highly educated population not too far from Highway 85.

Of the four municipalities, three are really very similar to each other in several regards.  Cupertino has the largest population – about 58,000 people – but Los Altos, Los Gatos and Saratoga are all similarly sized, somewhere between 27,000 and 30,000 residents.  The latter three also enjoy a traditional “downtown” area which is popular with pedestrians, bicyclists and motorists alike. (Monte Sereno has 4,000 residents, which is so small that the statistics are very easily thrown from month to month, so it is omitted in this quick study.)  Of the four, Cupertino, then, is the least similar due to size and lack of a central downtown area.

We’ll take a quick look at these areas now in terms of the real estate market trends and statistics for each area, considering just “class 1″ (houses and duet homes).  The charts used below are from Altos Research, to which I have a subscription, and they will be automatically updated each week.

(1) Median List Price (per Altos Research):

Los Altos and Saratoga are neck and neck for most expensive areas in which to purchase a house. Over the last year, though, Los Altos has seen a rise in the median list price. There has been a corresponding rise in demand with the success of several local companies in the region (Apple, Google, Microsoft, LinkedIn, Facebook), some of which have gone public and others of which are on the verge of doing so. Los Altos is more convenient to most of these.

Los Gatos, which is a little more affordable than Saratoga and Los Altos, has seen a very noticeable increase in pricing also, while Cupertino’s prices have declined a little.

(1A) Median list price of the bottom quartile of all four:

(1B) And, very interestingly, same data but for the top quartile – the luxury market:

Here we see Los Altos clearly overtaking Saratoga! And also that Cupertino’s pricing is significantly lower than Los Gatos in this tier, and also that it has lost a lot of ground in the second half of 2011. 

(2) Inventory:

The inventory patterns are pretty consistent over the last year across all four cities and the town of LG.

(3) Average days on market:

It is really interesting to see the days on market by city or area. Los Gatos (the furthest from the high tech giants mentioned above) has had the hardest time with home sales, and Cupertino the easiest. Cupertino is not the closest to all of these firms (though its home to Apple, of course), but it is the a very good value for people who are buying homes based on school performance tests. As others have said, if you’re buying for high API scores, Cupertino offers the most “bang for the buck”.

(4) Median MAI – Market Action Index:

What’s hot?  Everything is under 30, which is the cutoff between buyers’ and sellers’ market – all of these are buyers’ markets when the areas are taken as a whole:

But tease it out by price quartile, and we can see that Cupertino was a seller’s market for the most affortable houses for awhile last summer, but it has crashed back into the buyers’ market range again:

And among the most expenses homes or luxury estates, Cupertino has the “best market” but not by a huge margin:

Right now, Los Gatos has the most inventory and is the deepest buyers’ market – making it an excellent time to purchase a home there!  Of course it always depends on the micro market – the exact neighborhood, condition of the home etc. but overall it’s a very favorable time to purchase a house in all four of these areas, but Los Gatos in particular.  Cupertino is a little more affordable and remains a great bargain in the west valley areas of Santa Clara County.  High end housing or luxury homes are the softest market of all – a tough time to sell but a great time to buy.

Interested in buying or selling a home in Silicon Valley’s west side or nearby? Please call or email me and we can discuss your plans & goals – no obligation.  mary (at) popehandy (dot) com or 408 204-7673

What should you look for when buying a luxury home in Silicon Valley? Whether it’s a move-up purchase or a first home, there are a few tips which will be helpful for you to know going into it that will make the whole home buying experience smoother and easier.  We’ll hit on 3 areas: first geography & construction, second hyper local factors that impact market value, and finally qualities or features of the property or house itself.

It’s hard to assign an exact price tag on what constitutes an estate or luxury property, but in and near Silicon Valley, in most regions it’s the $2,000,000 and up price point (it will be less in Morgan Hill, Coyote and Gilroy – and likely more in Hillsborough).

1. Geography and Bay Area Construction: it’s different here!

The first and most important thing to understand is that real estate and housing construction vary from one region of the country (or the world) to the next.  This is true for all types of homes, actually, but perhaps more obvious in the priciest homes. Luxury real estate in Silicon Valley is a little different from similarly expensive homes in other parts of the country due to our climate, soil conditions, and natural hazards, such as earthquakes. What seems mandatory for a high end home (and might be ideal to have elsewhere) could be a problem here, so it’s helpful to literally understand the lay of the land before you get too far along the home buying path. A couple of quick examples:

• A fabulous home in Boston or anywhere in New England may be built of brick.
• Here, a brick house is seldom seen because of earthquakes – we need our houses to move and bricks are not usually too good at that!

I mention these two upfront because well intentioned friends and relatives may want to stress the importance of this or that in a property – and it may simply not apply here. (Please see article: Qualify The Advice You’ll Accept When Buying or Selling a Home in Silicon Valley)  If you are non-native to the San Francisco Bay Area, you may have assumptions about construction or architecture that may not work here. Please just be aware of that possibility.

2. Understand the importance of hyper local factors on the market value of a property

Schools can be a main driver for home values in the luxury market as all other segments.  Home buyers may not know that the town or city boundaries are usually irrelevant to school district boundaries. Here are a few examples:

• In Saratoga  there are 3 high school districts and 4 elementary school districts.  Before buying anywhere in Saratoga, then, you’ll want to know which district is which and where you’re buying.  If you want to utilize private schools, you may be delighted to find that you can buy more house for your money in one area of this lovely city than another.  Or you may want one school area over another for any number of reasons.
• In Los Gatos there are 2 high school districts and 3 elementary school districts.
• In the Almaden Valley area of San Jose, there are 3 high school districts and 3 elementary school districts

Often the lesser public school districts will have a lower lid on pricing than the very top districts or schools, so it’s important, when analyzing the pricing of an estate home, to factor in the weight of the school.

Geography can be surprisingly important.  Sometimes being on one side or the other of a major road or landmark can swing value 3% – even if it’s the same city, same zip code, same schools!  I see this in Los Gatos along both Blossom Hill Road and again at Los Gatos-Almaden Road: people prefer to be closer to the foothills and prices jump noticeably just for being on one side of these roads than the other.

Walkability is key for many Silicon Valley home buyers, though perhaps less so for some luxury buyers since the larger parcels that often come with them preclude much walkability.  Not always, though – in Palo Alto, Los Altos, Saratoga, Los Gatos and other Bay Area spots like Burlingame or San Mateo, some of the premier homes are not on acre lots but are “in town”.

3. What to look for in the estate property or high end home itself

At this point it’s a little trickier as each home buyer may have different priorities, likes/dislikes and tastes – so these are general guidelines only.

1.  Buy with selling in mind – you may have this property for 2 years, for 20 or more, but if you purchase an expensive home that is just too bizarre for the general consumption, you may be stuck with it when you are ready to sell it.
2. Location, location, location is so overstated that it’s nearly effete, but it bears repeating anyway.  Do you want to buy a $3 million house in a $1 million neighborhood? No, you probably don’t because it will really kill your resale value later.   So too if you buy raw land or a “dozer” – don’t overbuild for the neighborhood.  Try to be mid-range but don’t find yourself in the top 25% for home values in your area.  (NB: in some areas, like Menlo Park, neighborhoods are fairly irregular or non-conforming and you find little houses that need work next to McMansions.  It may not be possible to find conforming neighborhoods.  If you love the area anyway – go for it – but realize the risks.)
3. Quality construction and laoyout or floorplan matter.  Many home buyers care about Feng Shui and the orientation of the home and its elements.  But beyond that there are certain things that most buyers want or don’t want, and if your property violates these “rules” it can be harder to sell later.  Here are a few:
• It’s considered poor to be able to see a toilet from the front door
• The layout is less desirable  to have to go through a room to get to another room or to part of the house (such as going through the family room to get to the bedrooms)
• It is better to have a formal entry than to come straight into a living room, especially in a high end home
• The master bedroom should have its own private en-suite bath (this might seem obvious but you’d be surprised how many expensive houses have 2 bathrooms but neither dedicated to the master bedroom)
• Best to have the master bedroom face the back  yard and not the street
• Better to have more land in back than in the front yard
• If you like to entertain, look for a large kitchen that includes 2 dishwashers, at least 2 regular ovens plus a microwave, a vegetable sink as well as the regular ones, and if possible, also a “butler’s pantry” between the kitchen and formal dining room.
• If the house has 2 stories, look for at least one bedroom and full bathroom on the first floor (and possibly a half bath as well so the guest bath is private)
• The nicest luxury homes may have 2 laundry areas: one on the first floor and one on the main floor, if it’s a 2 story home.
• Most home buyers looking at properties over $1.5 million want to find the master bathroom equipped with a large soaking tub, separate shower, and dual vanities. Jetted tubs are not as popular as a few years back due to concerns over bacteria lingering in the plumbing, so more often the tubs are “soaking” and not “jacuzzi” types.
• The master suite often includes a small wet bar or coffee bar as well as a fireplace, walk in closet(s) and private deck or balcony.  In recent years these rooms have gotten bigger (and sillier – how much time do people spend there?) – a trend I believe will change over time.
• Luxury homes or estates usually have a minimum of a 3 car garage. (I’ve seen properties with as many as 10.)
• For the ultra luxury estates, usually there are guest or servant quarters (and likewise, in 2 story homes, a back staircase too).
• Pools tend to be found among high end homes, but sometimes also tennis courts, game rooms, indoor bowling alleys or other sports outlets (indoor golf driving or rifle shooting ranges too).
• Other rooms: libraries, offices, media rooms, hobby rooms may be included. Sometimes the home office or library may have a full bath nearby – a hint that it can double as a guest room.
• Green building: a growing trend is toward making high end homes eco-friendly or green.  This may include the types of materials used in construction (a percentage recycled or of easily renewable sources), heating & cooling systems that can close off or turn on various parts of the house so it doesn’t all need to be heated or cooled, high levels of insulation to make the home “tight” and not have energy losses. Possibly solar panels to warm the water in the home or pool.
• Years ago there was a lot of focus on wiring for computers in estate properties.  This is still the case but with the advent of wireless for everything, it’s not so critical. However, wiring for TV or movie viewing as well as musical entertainment throughout the home is very common with luxury properties – many owners want to be able to begin watching in one room and seamlessly move to another if so desired.
• In the luxury market it is very common to find security systems which include cameras at various locations.  In the ultra high end houses, there may be “safe rooms” too.

At the end of the day, much of what is included should reflect your values and the way you want to live.  Some luxury homes will have a private bath for every bedroom – but I’ve had clients say “why do I want that? I don’t want to spoil my kids or have more bathrooms to be cleaned”. How do you want to live?

There’s a balancing act between buying the home you want to enjoy and either overspending on a house or area or making a poor choice on an expensive ticket item that could be a great asset instead. It will help a lot to get good, local guidance from a trusted resource who’s got your back.  Looking for that helpful real estate adviser? Give me a call or email me and we can chat at my office, yours, a coffee shop, park, or anywhere convenient.

As an aside…this is the 500th article on this site, the Valley Of Hearts Delight blog or www.SanJoseRealEstateLosGatosHomes.com. ….  Thank you for reading!

 For more reading:

Cracked Foundations, Adobe Clay Soils and Water in Silicon Valley

What To Consider When Buying a Hillside Home in Silicon Valley

Where are Santa Clara County’s Earthquake Faults and Flood Plains?

The Silicon Valley Luxury Home Market (view a list of homes for sale, read more on criteria for location, amenities etc.)

Particularly with so many home owners “underwater” and struggling to pay their bills – mortgage, property tax, HOA dues etc. – a big concern for those in common interest developments such as townhouse and condominium communities is whether or not the reserve account is well enough funded. Too often, they aren’t.

Jacquie Berry, owner of Community Association Data Source, is our local expert in HOA documents and disclosure. Recently she spoke at the Los Gatos-Saratoga Association of Realtors Wednesday breakfast meeting and shared these statistics, which are a bit scary:

There are over 48,000 homeowner associations in California; CIDs make up a quarter of all housing in the state of California; 49 percent of CIDs are self-managed and less than 25 percent are 100 percent funded in their reserves.

To read more about her comments to the realty board, please view the post on the Silicon Valley Association of Realtors blog: REALTORS® told HOA compliance is all about disclosure.

Thinking of buying a condo, townhouse, or property with an HOA? Make sure that you check out the reserve account and the rest of the disclosures to better protect yourself against raises in dues or “special assessments” later. If you are currently a member of an HOA, keep a close eye on the financial health of the group vis-a-vis the reserve account.

If you are shopping for a Silicon Valley condominium, townhouse, loft or other property that’s part of a home owners association or “HOA”, you may find yourself flabbergasted at some of the dues being charged in San Jose, Los Gatos, Saratoga, and all over Santa Clara Valley.  A question I hear all the time is this: “Why are those HOA dues so high?”

HOA dues may cover a number of things, including:

• common areas, such as driveways, parking, pool, fitness center, rec room, elevators, landscaping, etc.
• insurance: regular homeowners or blanket insurance but perhaps also earthquake or flood insurance
• reserve funds for planned improvements (repainting, termite work, reroofing, repaving, pool replastering etc.)
• covering the defaults from units where the owners are in or about to be in foreclosure

What is the range of pricing for HOA dues in Santa Clara County and Silicon Valley?

Depending on the age of the property and the amenities, the dues may run between $150 and $250 on the low end (newer, no amenities) to close to a thousand on the high end (The Villages retirement community has extraordinarily high dues but they may include membership in the golf course too).

“Normal” is anywhere from $350 to $400 per month for a typical condo or townhome community.

Dues over $400 per month will deter investment buyers.  Dues over $500 per month will deter almost everyone!

There are several things to beware of when buying a condo or townhouse.  First, and perhaps most importantly, you’ll want to learn how many of the members are in default, because this may ultimately cost you with special assessments.  A friend of mine, Laurie Manny, was a Realtor in Long Beach and wrote about this very eloquently (she passed away after a brief illness in August 2010, though her blog or website makes it look like she’s still selling real estate in Long Beach). Check out her timely post, which is still correct today: Long Beach Condo Buyers Beware! Long Beach Real Estate Condos and Lofts.

Second, you’ll want to check out the grounds and common area items to see if it looks like the community is being well maintained.  Do the buildings have peeling paint, patches of grass without lawn, and overgrown shrubs? If so, those are “red flags”.

Finally, if you’re serious about purchasing a home in that community, read the minutes, newsletters and the rest of the Home Owner Association paperwork. Yes, it’s tiresome and probably 2-3″ thick but it’s important.  (Imagine buying the home and not reading these but later discovering they don’t allow dogs – and you have a large lab!  Bad all around. )  The HOA docs will give you insight on the budget and whether any special assessments may be needed down the road.

How’s the market for condos and townhouses in Los Gatos and Saratoga?  This morning I ran the numbers for “area 16″ (the Los Gatos and Monte Sereno areas, which includes a tiny bit of San Jose also) and “area 17″ (the Saratoga area, also includes borderline areas of San Jose and Cupertino) in our multiple listing service.

Hottest are the distressed condominium or townhome sales – short sales and bank owned or REO properties in Los Gatos and Saratoga.  Coldest (hardest to sell) are the “regular sales”.  Buyers are going after the bargain pricing that the pre-foreclosure and foreclosure listings offer.  Have a look:

The months of inventory are longest in Saratoga, with 9 months of inventory for town houses and condos.  The ratio of pending sales to active listings is lowest there, too, a mere 11%.

The months of inventory for Los Gatos short sales is a fast paced one month and the pendings outnumber the actives four to one!

Home buyers: if you are attempting to purchase a distressed condo in either of these high-end west valley areas, be prepared to act fast and present a strong offer.  Your odds will be better with a regular sale!

Home sellers: if you are selling a non-distressed condominium or townhouse in Saratoga or Los Gatos, especially if it’s a luxury property, be prepared to make your home the best value to attract a good buyer.  As has been said elsewhere, for this segment of the real estate market “it’s a price war and a beauty contest”.  Everything has to be just right for you to enjoy a successful sale now.

Often I get emails from people asking if I can help them with finding a rental property. For the most part, my practice revolves around listing and selling real estate in San Jose, Los Gatos, and Silicon Valley generally, so my best information is on what’s for sale, not what’s for rent.  Once in awhile I work on rental housing, but not normally, as rental condos or houses through an agent (if they are listed on the MLS) will usually cost you more than homes you find to rent elsewhere.

The best resources I have found for locating rental properties in Santa Clara County are these (I cannot guarantee or warranty your results, but these are starting points for you):

• Craigslist (link is to the South Bay area)
• Bay Rentals (they do charge a small fee)
• ForRent.com (search by city name or zip code)
• Once you’ve located an area you like – drive around
• possible – the mls search – scroll down on left sidebar widget on this blog and pull down the menu under “all property types” and select Rentals OR run similar search by map on my popehandy.com site at this link ~ you must also find “property types” on left side and then locate rentals under that)

The last bullet point might seem silly, but some of the best apartments, townhomes etc. never get listed anywhere other than a sign in the yard.  So if you love Los Gatos, Campbell, Santa Clara or anywhere else, drive it and watch for signs! (Or talk with friends or acquaintances in areas you like – have them keep an eye out for you.)

Perhaps you want to be in a hotel or inn for awhile before deciding where to rent or buy, or while on temporary assignment at a local business or university. You don’t need me to tell you where to stay in a hotel, but if you are moving here with a pet you might want assistance finding a place which will welcome your cat or dog.  Here’s a great resource for finding pet-friendly hotels, motels and inns here: DogFriendly.com’s San Jose (and nearby) City Guide, which includes accomodations, parks, outdoor restaurants etc.

Right now, it seems to be the case that it’s harder to rent a home than to buy one – at least that is the word on the street.  (And it seems that like with the purchase market, the closer you get to Palo Alto, the tougher it is.)  Tougher still if you have pets or smoke.  If you have pets or smoke and find a rental, the cost per month will be higher.

Update:  SALE PENDING!

You’re invited to see this stunning young urban living condominium in Campbell close to everything featuring two bedrooms plus loft, 2 bathrooms and approximately 1610 square feet. All of this can be found in an elegant resort-like setting! New listing, open this weekend from 2-4 (Aug 13-14) so please stop by!

Urban Living in Campbell

This sleek condo, the Sapphire Penthouse floorplan (see below), is located just steps from the light rail and Los Gatos Creek Trail, shopping at Whole Foods and many other shops across Bascom, the Pruneyard a block or so away and downtown Campbell just around the corner!  A myriad of restaurants lie within a tenth of a mile.  One of my sellers told me that she had only put 1500 miles on her car in the year living there.  Imagine simply not needing your auto much at all!!  (The building does include two spots in the underground garage for your vehicle, should you still want one while living there!)

Resort Living, Contemporary Setting

Built by Pinn Brothers with great attention to detail, the Onyx offers tremendous features both in the condo itself and in the many fabulous shared areas.

Interior features include:

• open floor plan with high ceilings and dark floors
• elegant kitchen with mostly Bosch appliances (fridge is Fisher & Paykel), tremendous counter space with slab quartz countertops, recessed lights and contemporary dark cabinetry
• an abundance of natural light, loads of windows and recessed lighting
• spacious bedrooms (the master is really large!) and bathrooms
• Master bath features two sinks, large soaking tub and separate stall shower
• comfortable balcony

Community features include:

• large and gracious lobby with fireplace to welcome your visitors
• entertainment room with pool table, card or poker table, counches and flat screen tv
• private unit to rent for your special occasions (just off the lobby)
• exercise room
• storage unit for bikes, luggage – all kinds of things!
• underground parking for 2 vehicles (plus a bike rack)
• beautiful, sunny, tile courtyard with inviting fountain
• elevators

This beautiful home is offered at $529,950 (the best price per square foot at the Onyx today!).  We hope to see you this weekend! Co-listed with Kirsten Reilly.

Please note: the best place to park is in the Onyx retail spaces.  Come early and enjoy a meal at Chipotle or any of the find eateries in walking distance! This is Silicon Valley living at its best!

The Campbell, CA, real estate market for condos and townhouses has been a little up & down, but for houses it’s a stronger market.  That does not mean that prices in Campbell are where the owners or sellers would like them to be – just that residential real estate which is appropriately priced is selling pretty well.

Here’s a visual of market conditions (not prices) generally, through June 2011:

What about prices and home values?  Are they holding up?

Campbell houses for sale:  prices appear to be slipping slightly.  Some volatility is to be expected this year and next, so it’s possible to see some up and down (but probably not super dramatic unless you just barely have equity and it’s the difference between being able to sell without bringing money to the closing table or not).  Here are the figures for June – see the whole report on my R E Report site for Campbell CA houses:

The market for houses is good, but pricing is soft, as you can see in the numbers above.

What about for condos?

Condominiums and townhouses in Campbell – see the full real estate report online (updated each month around the 5th – 8th).  Isn’t it interesting that although it’s a cool or cold buyer’s market, prices there are actually inching up pretty noticeably.  That is very good news to condo and townhome owners who want to be doing a “move up”.

Next we’ll take a brief overview of the “big picture” in Campbell’s housing market by looking at statistics related to currently listed homes for both houses and condos or townhomes there. (Charts and data by Altos Research, to which I have a subscription and permission to use here.)

Median Price of condominiums and single family homes:

It’s interesting to see that there’s a rise in the median list price of houses for sale in Campbell whereas a leveling off with the condos and townhouses.

Inventory of houses and condos and townhouses in Campbell – both classes of housing are seeing a rise in inventory, but it’s more dramatic among houses:

Days on the market for homes for sale in Campbell – the two “markets” are now dialectical!

These numbers – for both houses and condos – can only give you a broad picture of what’s going on.  If there are no homes for sale in your townhome community and it’s in a great area, and you price it well etc., you should find it relatively easy to sell.  But if there is too much supply (too many similar homes on the market), it will be far more challenging to sell.

The residential real estate market, like everything else, is all about supply and demand.  For information on your specific neighborhood, please call me or email me today.

For more reading on Campbell CA real estate:

Affordable, Inexpensive Real Estate and Houses for Sale in Campbell, CA

Campbell, California: Once the Heart of the Fruit Canning Industry

Find Campbell, CA Houses for Sale:

Showing properties 1 - 5 of 27. See more city of Campbell real estate.
(all data current as of 2/8/2012)

1. $1,299,000 : 1284 Walnut Dr, Campbell
   
   6 beds, 3 full, 1 part baths

   Home size: 3,606 sq ft

   Lot size: 13,068 sq ft
   
2. $865,900 : 1232 Theresa Av, Campbell
   
   3 beds, 3 full baths

   Home size: 1,970 sq ft

   Lot size: 7,980 sq ft
   
3. $525,000 : 303 Virginia Av, Campbell
   
   3 beds, 1 full, 1 part baths

   Home size: 1,125 sq ft

   Lot size: 6,000 sq ft
   
4. $639,000 : 1555 Westmont Av, Campbell
   
   3 beds, 2 full baths

   Home size: 1,204 sq ft

   Lot size: 6,000 sq ft
   
5. $569,999 : 560 Kenneth Av, Campbell
   
   3 beds, 2 full baths

   Home size: 1,431 sq ft

   Lot size: 6,098 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Browse Campbell, CA Condos Listed for Sale on the MLS:

Showing properties 1 - 5 of 8. See more city of Campbell real estate.
(all data current as of 2/8/2012)

1. $325,000 : 67 Dot Av, Campbell
   
   2 beds, 1 full, 1 part baths

   Home size: 1,060 sq ft

   Lot size: 900 sq ft
   
2. $164,000 : 185 Union Av #59, Campbell
   
   1 bed, 1 full bath

   Home size: 704 sq ft

   Lot size: 704 sq ft
   
3. $379,000 : 860 Apricot Av #E, Campbell
   
   2 beds, 2 full baths

   Home size: 1,065 sq ft

   Lot size: 1,306 sq ft
   
4. $270,000 : 2785 S Bascom Av #22, Campbell
   
   3 beds, 2 full, 1 part baths

   Home size: 1,262 sq ft

   Lot size: 740 sq ft
   
5. $508,000 : 912 Campisi Wy #205, Campbell
   
   2 beds, 2 full baths

   Home size: 1,485 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

View townhouses or townhomes  in Campbell, California, listed for sale on the multiple listing service (MLS):

Showing properties 1 - 5 of 13. See more city of Campbell real estate.
(all data current as of 2/8/2012)

1. $359,950 : 108 Bascom Ct, Campbell
   
   2 beds, 2 full, 1 part baths

   Home size: 1,277 sq ft

   Lot size: 1,054 sq ft
   
2. $375,000 : 433 W Rincon Av #J, Campbell
   
   2 beds, 1 full, 1 part baths

   Home size: 1,134 sq ft

   Lot size: 1,306 sq ft
   
3. $399,900 : 101 W Rincon Av, Campbell
   
   2 beds, 1 full, 1 part baths

   Home size: 1,141 sq ft

   Lot size: 1,168 sq ft
   
4. $510,000 : 576 W Hacienda Av, Campbell
   
   3 beds, 2 full, 1 part baths

   Home size: 1,820 sq ft

   Lot size: 2,400 sq ft
   
5. $345,100 : 236 W Rincon Av #C, Campbell
   
   2 beds, 2 full, 1 part baths

   Home size: 1,319 sq ft

   Lot size: 1,306 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Situated on a small knoll in the prestigious Los Altos Country Club neighborhood, the home at 1557 Plateau Drive features many of the most highly regarded elements which make a house a luxury property and a joy to see.

The Los Altos Country Club Neighborhood

Younger, Elegant Mediterranean View Home

The property at 1557 Plateau Avenue is younger, just 18 years old, constructed by a builder who was making it for himself and his family.  As you might imagine, the owner-builder utilized the land to make best use of the view opportunity.  He also created it with many extra features & finishing touches which distinguish a quality, custom home from tract housing.

The floorplan is flexible. There is a 2 car garage at street level, but a third which is accessed from the rear of the property – ideal for RVs, boats, and extra cars or vehicles. The 3rd garage can be used as built, or as a rec room, extra storage, or a number of other options.

Almaden Valley, which primarily consists of the 95120 zip code area of San Jose, is well known for its scenic beauty, great schools and low crime.

For people working in downtown San Jose, it is also fairly convenient – it’s almost a straight shot up either Almaden Expressway or Highway 87 to get into the downtown area, often just a 20 to 30 minute commute.

Within Silicon Valley, Almaden is regarded as a high-end neighborhood and very desirable. In this post we’ll discuss the geography of the valley, the advantages and disadvantages of being in Almaden, the public schools in 95120, the market conditions for the luxury homes there and finally you’ll be able to browse a list of luxury & estate homes for sale in the Amaden area of Silicon Valley.

The geography of the valley:

There are no shortage of hillside homes in this enclave of southwest San Jose. To the west lies the Santa Cruz Mountains, with the nearby peak of Mt. Umunhum looking over the valley. To the east sits the much lower and grassier Santa Teresa Foothills.  The oldest part of Almaden, ironically called New Almaden, is at the bottom of the v-shaped valley.  Continue further through the Cinnabar Hills and drive long enough and you’ll find yourself in Morgan Hill!

Advantages and Disadvantages:

One of the big advantages of purchasing a luxury home in San Jose’s Almaden Valley is that ordinarily you can get a little more “house for the money” then if you were purchasing similar real estate in Los Gatos, Monte Sereno or Saratoga (let alone Palo Alto or Los Altos).   Often, too, the homes are a little younger (though not always). In the southernmost tip, there’s quite a bit of equestrian property, too.  San Jose is a wonderful city for children, and one of the main drivers for people and families moving there is the quality of life for kids.  That makes San Jose real estate prized everywhere, but especially in this southwestern enclave.

One of the potential disadvantages is that like any small valley, it can heat up in summer and traffic can sometimes be a little more tangled. Luckily, though, luxury homes are virtually always air conditioned and there are many alternate routes, so these are not insurmountable issues.

Schools in Almaden

The public school situation needs a little bit of explaining as it tends to confuse most newcomers.  (Please find the 2010 API scores for Santa Clara County here.)

In the 95120 zip code, there are three different school districts at play, and the schools run from good to great:

• most of Almaden belongs to the San Jose Unified School District (which includes both elementary, middle and high schools)
• some of Almaden, though, belongs to the Union School District (elementary and middle schools) and the Campbell Union High School District (Montevideo, Oak Canyon & nearby neighborhoods)
• and a tiny sliver, including just a few streets close to Hicks Road, actually belong to the Los Gatos School District and the Los Gatos-Saratoga Union High School District

Within San Jose Unified, all the local elementary and middle schools are very good.  At the high school level, though, there’s a big difference between the API scores at Pioneer (823 in 2010) versus those at Leland High School (890).  So often, home buyers of high end housing will prefer a more southern location in Almaden to secure places at Leland.

How’s the market for high end homes in San Jose’s Almaden Valley 95120? San Jose Real Estate & The Almaden Market

(Read the state of San Jose real estate in Almaden in ALL price ranges via  my REReport  Almaden stats and market trends.)

Dynamic reports – next we’ll use Altos Research charts to look at the top 50% of homes for sale (the more expensive half) next.  These charts are dynamic so will always be current.

Prices of homes for sale among the top 50% in San Jose 95120 (Almaden Valley):

First, just over the last year…

Next, going back several years….

Average Days on Market of homes for sale (most expensive half):

Inventory

Average price per square foot

Want to learn more? Please also see:
The Silicon Valley Luxury Home Market
The Luxury Real Estate Market in Almaden, Los Gatos, Monte Sereno, and Saratoga
Hacienda Cemetery and Memorial Park in New Almaden
Graystone and Pfeiffer Ranch Areas of Almaden Valley

View Almaden Valley Estates & Luxury Homes for Sale

Prices from $1,500,000 and up.

Showing properties 1 - 5 of 12. See more 95120 zip code real estate.
(all data current as of 2/8/2012)

1. $2,950,000 : 20315 Mckean Rd, San Jose
   
   6 beds, 3 full, 1 part baths

   Home size: 5,000 sq ft

   Lot size: 2.50 ac
   
2. $2,650,000 : 18680 Vista De Almaden Ct, San Jose
   
   5 beds, 5 full, 1 part baths

   Home size: 6,000 sq ft

   Lot size: 1.59 ac
   
3. $2,549,000 : 7184 Glenview Dr, San Jose
   
   5 beds, 4 full, 1 part baths

   Home size: 6,251 sq ft

   Lot size: 20,473 sq ft
   
4. $2,188,000 : 18590 Almaden Rd, San Jose
   
   4 beds, 3 full baths

   Home size: 3,471 sq ft

   Lot size: 1.32 ac
   
5. $2,100,000 : 6082 Almaden Rd, San Jose
   
   3 beds, 2 full baths

   Home size: 1,800 sq ft

   Lot size: 1.92 ac
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Looking for two Almaden houses for two different buyer families:

I am working with two wonderful cash buyer couples looking for homes to call their own in San Jose’s Almaden Valley district (95120 area). We’ve seen everything listed for sale on the multiple listing service so I’m hoping one of my readers will be able to point us to something not currently online.

Budget is up to appx 1 million in both cases. Both are looking for houses with good floorplans and locations with no big issues (no busy roads, not too close to schools etc.). Decent to large backyard sought – regular lots, no patio homes. Prefer homes that have been maintained but open to distressed properties. Location and layout are more important than the amount of updating & remodeling. Both are exceedingly serious and ready to buy now. Both will be owner occupied properties, not investment homes.

They want similar but not identical homes – 3 to 5 bedrooms (3 + den minimum), 2-3 baths, prefer no pool but will consider one with it….

To read more, please view the entry on my popehandy.com website for details on beds, baths, pool, schools area etc.  Please contact me if you have a home that may be a fit for them!!

Finding a home to rent in Silicon Valley can be an enormous challenge.  Most Realtors don’t do rentals (since very few are offered on our MLS), so consumers looking to find rental housing are often doing it on their own.  This can be especially tough if you are relocating to the San Jose area!

Who you gonna call?

In my experience, the best places to find homes to rent, besides literally driving through neighborhoods, is online with Craigslist or via Bay Rentals.  Bay Rentals does charge a fee but they do great work and you will know you’re not getting scammed.

Below you can browse properties offered for rent in Los Gatos, Monte Sereno and Saratoga.  There aren’t very many of them but it’s a piece of the information puzzle.

Showing properties 1 - 4 of 4. See more city of Los Gatos real estate.
(all data current as of 2/8/2012)

1. $6,000 : Bicknell, Los Gatos
   
   5 beds, 3 full baths

   Home size: 3,166 sq ft
   
2. $6,500 : 16001 Glen Una Dr, Los Gatos
   
   3 beds, 3 full baths

   Home size: 2,800 sq ft

   Lot size: 1 sq ft
   
3. $10,000 : 130 Drysdale Dr, Los Gatos
   
   5 beds, 4 full, 1 part baths

   Home size: 4,483 sq ft

   Lot size: 1.31 ac
   
4. $25,000 : 16450 Aztec Ridge, Los Gatos
   
   6 beds, 7 full, 2 part baths

   Home size: 11,257 sq ft

   Lot size: 50 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Sorry, but we couldn't find any results in the MLS that match the specified search criteria.

Showing properties 1 - 3 of 3. See more city of Saratoga real estate.
(all data current as of 2/8/2012)

1. $4,950 : 13785 Lexington Ct, Saratoga
   
   4 beds, 2 full, 1 part baths

   Home size: 2,220 sq ft

   Lot size: 13,300 sq ft
   
2. $3,895 : 13845 Saratoga Ave, Saratoga
   
   3 beds, 2 full, 1 part baths

   Home size: 2,254 sq ft

   Lot size: 1 sq ft
   
3. $4,950 : 13724 Lexington, Saratoga
   
   4 beds, 2 full, 1 part baths

   Home size: 2,509 sq ft

   Lot size: 10,018 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

First time home buyers may have heard the word “crawl space” but not had a good idea of what it refers to – especially if they have only lived in houses built on a slab foundation. So let’s touch on it today.

When homes are built on a raised foundation, rather than slab foundation, there’s space between the dirt under the house and the house itself – often 3′ (but not always), sometimes more.  Unless the structure is built on a hillside, there won’t be enough height to walk around in that space, hence the need to crawl in the crawl space.

Most of the time, access to this space is indoors and specifically on the floor of a closet, where there appears to be a flat opening of about 3′ by 3′, sometimes smaller.  This can make entry tight.  At other times. the access is via the outside (more likely the case in properties built before 1950 in Silicon Valley than in newer properties.)  Here it’s a lot easier for homeowners, inspectors and repair people to enter – but also easier for animals and pests.  Care must be taken, as with the vent screens, to keep unwanted visitors out!

If your home has a crawl space, you will want to monitor it. Plan either to enter it to check on things periodically or pay an inspector to do so as this is an area which can reveal problems like the presence of termites, water damage to the bathroom floors, damaged heat ducts, and more.  It is also important to periodically check to make sure that there are no intruders (rodents), standing water, or other issues such as cracked foundations.

Which is better – having a crawl space, or having a slab?

Not sure if your San Jose area house is on a slab or raised foundation?  Here are a couple of hints:

• If you have to walk up a step or two to enter the house, that points toward raised
• If the front door is at the same level as the front walkway, that indicates a slab
• Along the outside of the house, do you see vent screens along the bottom of the house?  If so, the foundation is a raised one
• Does the interior of the house have heat registers on the floor? If so, the house enjoys a perimeter or raised foundation.
• Does the inside of the home have hardwood flooring?  If so, it’s probably on a raised foundation as it’s challenging to put hardwood directly onto slab (you’re more likely to find something like Pergo rather than hardwood on a slab)

 

Further reading on foundations & crawl spaces

Cracked Foundations, Adobe Clay Soils and Water in Silicon Valley

What Is Cellulose Debris (in a pest or termite report)?

Wikipedia article explaining what a crawl space is