Blossom Valley (SJ)
Like most of Santa Clara County, the wild appreciation of the last 5 to 6 years in Blossom Valley seems to now be slowing, and maybe flattening. It is possible that we have hit the “peak of the market”, but it’s also possible that this is simply a seasonal pattern. Often in late spring to early summer, we see inventory levels rise while buyers pull back. This can cause home sale prices to quite appreciating, and in some years, prices decline just a little bit. In 2017, it seemed that the normal patterns simply broke, as late in the year – November and December – buying was at a feverish pitch normally reserved for March.
About Blossom Valley
The Blossom Valley area of San Jose is on the south end of the city and covers the 95123 and 95136 zip codes. For our MLS, it’s “area 12.” A more affordable section of Silicon Valley, Blossom Valley has much to offer in addition to more reasonable housing prices. Many areas enjoy views of the Santa Teresa Foothills or the Communications Hill knolls or even the coastal foothills in the distance, as with the photo below. One corner of it sits alongside beautiful Almaden Lake, too. One corner is located at the crossroads of Highways 85 and 87, making it an easy commute destination for those working in downtown San Jose. And there’s an abundance of shopping opportunities.
Much more could be written, but let’s now instead turn to the real estate market there.
First, “live,” automatically updating Altos Charts for San Jose 95123 and 95136 and single family homes (houses and duet homes). These use list prices, not sales prices.
The median list price of both 95123 and 95136, all prices, single family homes (houses and duet homes, if there are any).
Next, the median list price for just the San Jose 95123 area of Blossom Valley, and separated by price quartile:
And next, the median list price of just San Jose 95136 by price quartile:
San Jose is the biggest city in Silicon Valley (and considers itself to be the Capital of Silicon Valley), is the tenth largest city in the United States of America with over 1 million in population, and it has a very large footprint – approximately 180 square miles. Because of the size, it isn’t surprising that many distinct neighborhoods exist within the city. In my blog you can find descriptions and outlines of these districts or neighborhoods. You can also find market analysis dedicated to different regions of San Jose. Because the areas are so different, the market in separate sectors of the city can change dramatically from one area to the next. If you are looking for a home in Silicon Valley, it is best to consider San Jose by its neighborhoods rather than as a whole to understand the market. Nonetheless, looking at the big picture can often give you a general taste for the market. Currently, it’s a steady sellers market.
Below you will find the Altos Research Charts, a live feed of data on the markets in San Jose. You will also find the RE Report, charts with statistics comparing sales in the last month and comparing them month-over-month and year-over-year. These are both the usual tools I use to gauge a market. Directly below are links to the market analysis of specific neighborhoods in San Jose. Some of these, where I work the most, are updated monthly, and others are updated every few months.
Altos Charts for San Jose as a Whole – automatically updated each week – single family homes
First, the basic charts for single family homes or houses. FYI, Altos uses LIST prices. The RE Report further down uses SOLD prices (which is part of the reason why I utilize both).
List prices of single family homes / houses by price quartile:
Average days on market of listed homes (houses) by pricing tier:
Inventory levels for the last 3 years for houses for sale in San Jose:
Altos Research charts for the condomium and townhouse market in San Jose – automatically updated each week
Condominium and townhouse LIST prices by quartile: Continue reading
One question I get a lot is this: what does it cost to buy a 4 bedroom, 2 bath house of about 2000 square feet?
So to answer this question, let’s see what houses like this are selling for (4 bed, 2 bath, appx 2000 SF or 185 square meters) and see how the cost looks in one Santa Clara Count y / Silicon Valley area versus another.
Today I compared several areas and cities using this criteria: single family homes of 1800 – 2200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 6000 SF to 10,000 SF. Normally I would chart this over the last 2 months, or 60 days, but because of the low inventory causing the sellers market I have expanded the search to the last 3 months, or 90 days, for a better range. As of this writing, Saratoga only had one sale over the last 90 days, so data for that segment may or may not be a good average.
Here’s how it shakes out in the “west valley areas” along the Highway 85 corridor, most of which are known to have good to great public schools. What areas are most affordable? One way of analyzing this is the “price per square foot” figure. Whenever I update the chart, I re-arrange the order of the cities from high to low based on the price per square foot, although there’s usually minimal movement.
To compare, here are the numbers from the this past January 26, 2017. There were fewer sales, so the search range was bumped up to 120 days instead of 90 days (and Los Altos was so low, it was individually searched at 180 days). You might notice price per square foot appears lower across the board in January compared to July. This is most likely because the market has heated up over spring and summer, which you can also see in the DOM.
Below are my results from the same search back in September 18, 2015. By comparison, you can tell that Santa Clara’s average Price has increased, pushing it above Almaden and Campbell.
How competitive is the market? Have a look at the DOM or “Days on Market” figure. All of these days on market are short, but they range from low to heart-skippingly fast.
In most cases, the priciest and most desirable places have either the best schools or shortest commute location or both (Palo Alto and Cupertino have both). Had I ranked these for school scores, you’d find that Cambrian is fairly high up and a good “bang for the buck” location – though not a super short commute for folks who work in Mountain View (though not so bad for people working in Cupertino). Almaden, too, offers a good value for the quality of the schools, homes, and neighborhoods, though the commute is longer. None of these is especially close to North San Jose (where a major employer is Cisco).
It should also be noted that in some of the smaller communities with less on the market these numbers may not be as stable as others with more data – for instance, Los Altos only had four homes sold, the second lowest, matching this criteria within the 90 days of collected data, and therefore may not be as accurate as others, such as the Blossom Valley area of San Jose with the most data at 38 homes sold. For these smaller communities with less data, it is beneficial to look at them more closely – Saratoga, for instance, has 3 different high school districts which have an impact the real estate prices. This chart is really just a snapshot to give a general sense of the relative affordability of these markets to one another. Continue reading
Yesterday on my way home from a final walk through on a property in Blossom Valley, I stopped by some open houses – following signs, just like a lot of consumers do. At one of the homes I spoke with a Realtor who’s starting to see a slowing in the real estate market. That hasn’t been my own experience, so I asked him about his take on things and he mentioned the rising inventory in areas where he’s active in Silicon Valley.
There are many ways to get a pulse on the market, but perhaps one of the easiest ways to check it is to see the sale price to list price ratio and the days on market. MLSListings, my local multiple listing service (of which I am a member), does some wonderful things with interactive graphs and charts, so I made use of that tool to see how San Jose is faring as a whole and also in some of the zip codes where I sometimes sell homes. The charts below are for single family homes (not condos, townhomes, duplexes, etc.) and are by zip code for all price ranges. Remember, stats are easily skewed one way or the other, and we might have seen different results if we teased it out by home size, lot size, school district, price point, presence of an in-ground pool, or any other factors. This is the “big picture”. First, then, San Jose as a whole.
What we see here is that homes are selling faster (shorter and shorter DOM or Days on Market) and a rising sales price to list price ratio. Both of these indicate a strong seller’s market for the city of San Jose as a whole. Next, we’ll list a sampling of zip codes in San Jose, primarily along the west side (where I tend to be more active in my sales) but not exclusively so. I’m putting these in numerical order.
In San Jose’s 95112 zip code, which is Downtown San Jose, it’s a mixed bag. The sale price to list price ratio is rising (seller’s market) but the days on market are also rising (softening market). This area would require more information – it could be that a few homes have been on the market for a very long time and skewing the stats, or homes in certain price points are just not selling. From this vantage, though, it looks like 95112 is mixed.
Next: 95117, 95118, 95120, 95123, 95125, 95126, 15129, 95136, 95148
If you arrived into Silicon Valley via Highway 101, driving south from San Francisco, you might believe that the Santa Clara Valley, the San Jose area and Silicon Valley as a whole has got to seem to be the ugliest place on earth. Although heavily traveled, that is not the “scenic route”.
So, too, if you are looking for a place to live and are groping to find a place that is reasonably priced, fairly safe and not a terrible commute distance. You might not even have “is nice looking” on your wish list. You might not think it’s possible if all you ever see are the ugly concrete tilt-up buildings in north San Jose, Santa Clara, Alviso, or anywhere along the 237 corridor. That area is an architectural wasteland.
Let me assure you: there are a lot of beautiful places in Silicon Valley where you can rent or buy a home. But how do you find them? It helps a lot to have a local give you a few pointers. I’ll give you some tips today on finding a scenic place to live.
Hills – An easy way to find a scenic location to make your home is to settle near the hills, especially those in the west valley (the Santa Cruz Mountains or the Coastal Range) as they are green year-round. Communities at the base of the west valley foothills include, in Santa Clara County, Palo Alto, Los Altos, Los Altos Hills, Cupertino, Saratoga, Monte Sereno, Los Gatos, and the Almaden Valley area of San Jose. All of these areas are adjacent to the hills or mountains and offer far better than average schools (many of them qualify as great – compare costs between these areas). Continue reading
Today let’s look at the Santa Clara County real estate market, the days on market (DOM) and the sale price to list price ratio for houses and duet homes (single family homes). This will primarily be graphs that I created using MLSListings.com (our local MLS, to which I am a paying member). We’ll consider the county as a whole and various cities or towns within it, plus areas of San Jose, as it has about a million residents.
First: Santa Clara County homes over the last year. Please note the decreasing days on market, the increasing sale price to list price ratio in recent months. This is exactly what an appreciating market looks like!
Next, let’s have a peek at how some of the hottest markets in Silicon Valley look, starting with Sunnyvale. It is odd to see any kind of a blip on the sale price to list price ratio. Are buyers giving some push-back? We keep hearing stories of homes selling 30% or more over list price with gobs of offers. So the SP – LP ratio change is a surprise.
Palo Alto is always the hottest ticket in town. Continue reading
It’s a sizzling hot seller’s market in Silicon Valley, meaning the San Jose area, Santa Clara County and San Mateo County generally have critically low housing inventory and extremly strong buyer demand. But it’s not equally hot in every city, area, school district or price point. Some home buyers may be interested in more than one area. For instance, often I have clients looking at both Almaden and Cupertino, or Cambrian (San Jose) and Campbell, or Los Gatos and Monte Sereno…. So if you are looking for a less crazed area in which to buy, it might be useful to compare the months of inventory* to see where it might be more possible to buy a home, especially if you’ve been beat out on multiple offers a few times.
Today we’ll just consider where these houses are located, but know that it is also possible to run the data by school district, pricing tier, sale type (regular vs short sale vs bank owned) whether or not there’s a pool or garage, etc. I pulled the info from MLSListings.com and then ranked them from hottest to coolest. (Not all areas are represented.)
What can we learn from this information? The first question might be “why are some areas selling so much faster than others?” Although sometimes we can say that only inexpensive, moderate or expensive areas are moving fast, that doesn’t seem to be the case here. Palo Alto is one of the priciest points nearby, and yet it has less than 3 weeks of inventory. At other times we say “it’s all about the schools” but Santa Clara, which aside for a sliver served by Cupertino schools, is the #1 hottest segment of the market – and it is not highly prized for academics. (Same with Blossom Valley.) Cupertino is usually at the top of the pile for desirability, but it’s behind several other communities. What I’m seeing from this one angle is that there aren’t any easy answers, much as I’d like to present some clear cut trend with a big Ah Ha.
Although the underlying “why” may remain a mystery for right now, it’s still helpful for home buyers who are looking for relief. Been beat out 5 or 10 times? Your odds will be improved in the areas listed at the bottom of the sheet: Monte Sereno, Los Gatos, Saratoga, Almaden Valley are all just a bit easier places in which to buy. They are all great communities with strong schools. This kind of info could help you to move from frustrated shopper to happy home owner. Continue reading
A few years ago, I wrote an article on my Live in Los Gatos blog on the question of whether a Silicon Valley home seller should sell the home in its current condition, or improve it with the hopes of selling for more. You can find it here: Should You Repair & Update Your Home to Sell? Or Sell “As Is”?
Today I was doing a comparative (competitive) market analysis for a client in the Blossom Valley area of San Jose and was struck by two tract houses which sold at about the same time, same market conditions, on the same street, with the same floor plan, but for very different prices. We’ll refer to them as Home 1 and Home 2.
Home 1 was nicely remodeled – at least the kitchen and baths were obviously nicely upgraded. The house was furnished when the photos were taken and it looked very inviting. It was listed for about $630,000 and sold for $670,000 in under 2 weeks.
House 2 appeared to be in original condition – in other words, a “fixer” in the eyes of most Silicon Valley home buyers. A vacant home, it was not staged to sell but instead was starkly empty – and frankly, it was not at all inviting. This house was offered at around $550,000 and sold for $490,000 after almost 2 months on the market.
There was more than a 10% difference in the list prices of these two homes. Was that enough? Apparently not. One got bid up 5% more while the other one got bid down more than 10%. The difference in their ultimate sales price is a whopping $180,000, or 37% more for the home in better condition. Did the fixed up home have that much in improvements done to it? That’s unlikely! But buyers worry about having to do remodeling and repairs, and the more buyers worry, the less they pay. It’s a risk-reward ratio. If they risk more by buying a fixer, there needs to be a monetary reward. And they almost always get it.
Perhaps as a busy San Jose area home owner, you don’t have a ton of time or money to put into fixes, especially if it’s a rental or investment property which is now vacant. How can you maximize the return on investment? I hope that it is clear that it’s in your best interest to tweak the condition of appearance of your property to net more. If you’d like some insights on this, please continue reading on this subject at another article on this blog: Preparing Your Silicon Valley Home to Sell and Return on Investment. Or call me for a confidential home selling appointment today!
$1,290,000 : 4710 Crystal ST, CAPITOLA3 beds, 2 baths
$899,000 : 149 Cabrillo ST, CAPITOLA4 beds, 2 baths
$929,000 : 504 B Pine ST, CAPITOLA3 beds, 3 baths
$899,000 : 504 A Pine ST, CAPITOLA3 beds, 3 baths
$655,000 : 3803 Brommer ST, CAPITOLA2 beds, 3 baths
$679,900 : 1505 42nd AVE 12, CAPITOLA2 beds, 3 baths
$2,850,000 : 602 El Salto DR, CAPITOLA3 beds, 3 baths
$1,195,000 : 4820 Opal Cliff DR 102, CAPITOLA1 bed, 1 bath
$1,279,000 : 145 Cortez ST, CAPITOLA3 beds, 2 baths
$5,900,000 : 4950 Cliff DR, CAPITOLA4 beds, 4 baths
See all Real estate in the city of Capitola.
(all data current as of 6/16/2018)
Listing information deemed reliable but not guaranteed. Read full disclaimer.
The annual market report is out at popehandy.REReport.com and we can now learn how 2011 compared to 2010. The median sales price for houses in Santa Clara County was off 5.3% overall. But from one part of the valley to the next it varied wildly with 6 cities or areas finding themselves in positive territory while others were off by double digits.
What is it that makes Gilroy, Los Altos Hills, Los Gatos, Mountain View and Palo Alto “in the black”?
Most of these cities/towns are upscale, west valley communities. But so are Saratoga, Cupertino, and Monte Sereno.
Gilroy was especially hard-hit with the housing downturn so perhaps in that case, it’s just coming back into more of a balance. (Then again, so was Morgan Hill and it’s still off by 12%.)
The LinkedIn IPO and others in the Palo Alto area drove prices up for some parts of the housing market nearby and it’s likely that this explains the positive growth for Palo Alto, Mountain View, and Los Altos Hills. That said, it would seem that Los Altos, and perhaps even Sunnyvale would have seen stronger numbers on the same account. Perhaps school scores are the key driver here.
Los Gatos, Saratoga and Monte Sereno often behave somewhat similarly as they are adjacent to one another and often attract similar home buyers who want good schools, a nice downtown area nearby and scenic beauty with the hills. The annual numbers show Monte Sereno down 6.7%, Saratoga down 2% but Los Gatos up 6.4%. With Monte Sereno, there are very few sales each month and each year (only about 4,000 residents), so there can be a wider swing without it necessarily being accurate. Saratoga and Los Gatos each have about 30,000 people who call these areas home, though, so the data is much more helpful. Saratoga and Los Gatos both have multiple school districts, views, homes with better proximity to “downtown” and more variables – I think we’d have to dig a lot deeper to learn why these two neighboring markets are so diverse. We might also have to look at multiple years of data to see if Saratoga spiked while LG slumped to explain the difference. Continue reading
How’s the Blossom Valley real estate market? How hard is it to sell a house there now? (Check the Almaden Valley real estate market here.)
About half the active listings of single family homes for sale in the Blossom Valley district of San Jose are either short sales or REOs. For all of area 12 (our MLS name for this part of San Jose), as of right now there are 124 houses listed and 61 of them are either short sales or bank owned homes (REOs). (Blossom Valley is 2/3 95123 and 1/3 95136.)
Today we’ll look at the market generally and also see how the high end is faring there – most expensive homes being those listed at or over $550,000.
Months of inventory reflects the ratio between available homes (not under contract) with those which have sold/closed in the last month. That’s the absorption rate, or how fast homes that go on the market are being absorbed by buyers.
How “hot” is the market in Blossom Valley? It depends. Bank owned homes are flying off the market – particularly the most expensive ones. Continue reading