Median List price for San Jose 95129

Average Days on Market for 95129

Inventory of houses for sale in San Jose 95129

How’s the Cupertino real estate market right now? Let’s start with the most basic window into conditions: supply and demand. (This graph and more info comes from my Cupertino Real Estate Report. Please click on the link for much more data and information – with statistics and trends dating back many years. Also you will find reports which are monthly, quarterly and annually generated. Finally, there’s a “property analysis” tab which enables you to check sales – and see images – around any Cupertino address. Please allow the analysis tab to do its slow load – it’s worth it – enjoy!)

Cupertino Real Estate Supply and Demand

Cupertino Real Estate Market Barometer of Supply and Demand

The realty market barometer is going through the roof!  This implies that it’s very easy for Cupertino home sellers to get their properties into contract and to the closing table, that it is a hot seller’s market in Cupertino.  Please note the darkest line reflects housing inventory – and it’s been plummeting for months.  (Look at each year for October through December and you will note that the pattern is seasonal – but the actual number of homes available does vary considerably.)  Now please note the pale gray line, which indicates the number of homes selling and closing escrow.  The bigger the gap between these lines, the more choices buyers have, and the narrower the gap, the fewer.  Right now, for the first time covered by the chart above, these lines have met, meaning that homes are selling at the same rate that they are coming on the market.  When supply matches or outpaces demand, prices nearly always rise.

But what about home prices in Cupertino?

Here’s a look at the numbers, in brief, as reported with closed sales in December 2011.  Surprisingly, although the market appears to be very hot, prices don’t seem to reflect that – perhaps “yet”.  The median sales price of houses in Cupertino are off significantly from both the month prior and the year prior, and the average sales price is down a little. The number of sales is off a little and the list price to sales price is off some too (both year over year and month over month). Meanwhile, the days on market are growing pretty steadily.

What’s happening? Why this contradiction between the market barometer and pricing?   First, the days on market reflect the inventory which recently sold, not the inventory which is available today.  This tells us that many homes that have been on the market awhile are now being purchased. (Probably others went off the market for the holidays, which is typical for the season.)

With interest rates for conforming loans dipping below 4% (I believe this is an all time historic low), many buyers are deciding it’s time to get off the fence and purchase a house at last.  But there really isn’t much inventory – it’s about 34% lower than the month before and almost 38% lower than the year before!

I think that we will see prices beginning to move upwards with January’s closings.  The market this month in the west valley areas is much, much more active than a year ago.  This is anecdotal but I have been speaking with a lot of Realtors about how busy they are and everyone seems to be on overload with new buyers trying to get a home before prices or interest rates go up.  I expect to see the prices of houses being sold in Los Gatos, Saratoga, Cupertino – at least in the more affordable price points of these areas – to tick upwards this month.  We’ll know in early February if I’m correct!

Now let’s turn to another tool to see how the Cupertino market is faring for listed properties.  For this I will use graphs from Altos Research, to which I also have a subscription. These are LIVE CHARTS and will automatically update themselves weekly – so even if the article is older, this info is now!

Cupertino Median List Prices Compared to Neighboring Saratoga, Sunnyvale and Los Altos

We know that the median sales price in Cupertino has slipped. But what of the list price, and how does it compare to other areas nearby?

Los Altos is faring the best of these 4 areas. Saratoga was dippping but now rising again. Sunnyvale has been somewhat flat recently. But Cupertino’s prices are continuing to fall. Perhaps these low prices are the drivers for the crazy hot market activity.

Cupertino median list price of houses by price quartile

Focusing just on Cupertino, let’s see how the information looks if we break it down into the pricing tier. Often the entry level houses are a very different “market” than the luxury homes segment.

The last few months have had noticeable declines for the lowest three segments, but there’s been an uptick (until recently) for the most expensive properties in this city.

What if we look back more than a year? Combining the quartiles, the trends look pretty stark:

Here’s the same data just for the top quartile, the most expensive properties in Cupertino:

For the 2nd top tier (upper middle):

3rd level or lower middle:

And most affordable Cupertino houses or lowest quartile:

Cupertino Days on Market by Price Quartile: What’s Selling Fastest

Not surprisingly, the luxury market has had a harder time selling than entry level houses in Cupertino. This is true for most of the West Valley areas of Santa Clara County. Here’s a look at the days on market (DOM) for Cupertino by price point over the last year.

Remember, all real estate is local. For information on your exact area or price point, please contact me. I work with my clients to pinpoint the pricing.

What drives the Cupertino real estate market?

The residential real estate market in Cupertino, California, is driven in large part by the extremely high quality of its local public schools.  Many in Silicon Valley would state that for San Jose area home buyers, Cupertino offers the best “bang for the buck” when one lines up the cost of purchasing a home to the schools’ API scores. (Conversely, some residents are concerned that the very top schools – including but not limited to Cupertino – are so focused on academics that there may be too much pressure on kids and may lack balance for them.)

Other drivers are, of course, the local economy (such as the initial public offerings happening with some of the Silicon Valley tech giants), the availability of more affordable financing, and how the realty market in general is performing for any particular price point or particular school area. (Even within Cupertino, some schools are much more in demand than others.)  Comments in this article refer generally to this city of about 50,000 residents – real estate is local, though, so for precise information in any given area or tier of the market, please contact me!

Houses for sale in Cupertino California

Please browse houses for sale in Cupertino, listed from the lowest prices up to the highest.

Showing properties 1 - 5 of 17. See more city of Cupertino real estate.
(all data current as of 2/11/2012)

1. $649,900 : 10160 Calvert Dr, Cupertino
   
   3 beds, 2 full baths

   Home size: 1,562 sq ft

   Lot size: 5,643 sq ft
   
2. $748,800 : 18920 Tilson Av, Cupertino
   
   3 beds, 1 full bath

   Home size: 1,039 sq ft

   Lot size: 5,400 sq ft
   
3. $749,000 : 10335 Moretti Dr, Cupertino
   
   4 beds, 3 full baths

   Home size: 1,267 sq ft

   Lot size: 4,947 sq ft
   
4. $839,000 : 10240 Yoshino Pl, Cupertino
   
   3 beds, 2 full baths

   Home size: 1,688 sq ft

   Lot size: 3,168 sq ft
   
5. $879,000 : 10285 Moretti Dr, Cupertino
   
   4 beds, 3 full baths

   Home size: 1,787 sq ft

   Lot size: 6,000 sq ft
   

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.

In the image to the left, I’ve put into bold the cities where the median sales price of houses which sold and closed escrow in 2011 were ahead of 2010′s pricing.

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.

Coming in at last place: the Santa Cruz Mountains or Los Gatos Mountains area (zip code 95033), where the median list price of houses sold slipped 17% from the year before.  This beautifully scenic region covers a lot of territory and several quite different neighborhoods, some more convenient and others more remote.  It often takes much longer to sell a home in the mountains than on the valley floor but it can be a great “bang for your buck” for great schools, clean area, less crowding, etc.  The remoteness of some homes, the increased rain and other challenges generally make this part of the valley a more challenging real estate market most of the time, and in a down market that’s even more true.

Palo Alto, Mountain View and Los Altos each have regions which can be tracked in addition to the cities as a whole. If you’d like to see these numbers, please visit http://popehandy.rereport.com and then click on Yearly, then select the city, then the neighborhood and you can see how Baron Park or other areas are faring in particular (also for their monthly or quartly reports).

Areas within San Jose, like PA, MV and LA, can be tracked. Since I am very active in several of them (Almaden Valley, Cambrian Park, Willow Glen, Blossom Valley and others on the west side), I want to share those next.

The median sales price of houses which sold & closed in 2011 in the City of San Jose was down 5.9%, lower than the county as a whole.  Most of San Jose was worse off than the prior year – all except Alviso!

Alviso, which was a separate town until not so long ago, sold with a double digit increase in the median sales price – a whopping 10.6% higher than in 2010.  Affordability and investor activity are most likely the cause – more demand and less inventory than the year before. (I suspect either fewer distressed properties or that they were gobbled up quickly. Knowing would require more research.)

Downtown or central San Jose took a beating with the median sales price down 9.6%.  Why did it fall from grace?  Not everything in this area is affordable – consider that it includes Naglee Park, The Rosegarden, and a few other tony areas. I suspect it’s the number of foreclosures (REOs) and short sales but I don’t have that information at hand.  It would require a much closer look that our brief survey here to uncover what’s happening.  (We know that there are many unsold, new condos in downtown San Jose but those should not be impacting the sales of single family homes.)

In future articles or posts I hope to look at a few of these areas more carefully to see what is causing the great diversity between the areas showing improvement over 2010 such as Alviso, Palo Alto, Gilroy, Los Altos Hills, Los Gatos and Mountain View versus those which are really hurting: downtown San Jose, the Los Gatos Mountains, Evergreen, Morgan Hill, Milpitas.  Very likely it’s a combination of the distressed market activity in some areas, school scores, the pricing tier (i.e., homes between 1 and 2 million near Palo Alto) and more factors.  With real estate, it’s always local – and that’s just the starting point.

In the middle of the last century, the Santa Clara Valley was bursting with vineyards, fruit and nut orchards, and groves of citrus trees. The mild climate and all of these beautiful blossoms mile after mile warranted the nickname, “The Valley of Hearts Delight“. Most of it was, of course, unpaved.  Following the end of World War II, the agricultural land began giving way to housing and industry, later more housing and high tech in particular, and Silicon Valley was born. And, to quote a song, “they paved paradise”.

Water can be somewhat scarce here at times – the sub tropical climate means mild temps and just enough rain, about 20″ per year for most of the San Jose area, but more as you get closer to the Monterey Bay and Pacific Ocean.  When we do get rain, where does it go? In the days of big agriculture, most of it found its way back into the drinking water: it was absorbed by the soil, and then it filtered down into the underground streams.  Wells tapped into this water source and the water was used for drinking, cooking, bathing, watering the crops and more.  Now, though, much of the valley is paved.  Water runs to gutters, and they lead directly to the bay, skipping the aquifers and also skipping the filtering process that the soil provides.  As you might imagine, this can screw things up a bit.

One solution is to create more places for the runoff water to get back into the soil and meander back to the aquifer.  The City of Cupertino has vegetated swales for just that purpose behind the library and city buildings, and a large sign explains why the landscaping looks the way it does (a dirt strip with a sunken section in the middle, but landscaped).  This is not uncommon in many parts of the US – I have seen it all over the east coast and the southern states – but a little less common here.  A great idea, I hope it catches and becomes more typical. Kudos to Cupertino for working to improve the local ecosystem and water quality! We need to do more for water reclamation. If it gets all the way to the bay, it cannot be drunk any more, but from the aquifer it can. So many reasons why we should be diverting water away from pavement and gutters and onto soil!

After taking note of this a week or two ago, I did some searching online and found a 2006 article by the Cupertino Courier (now owned by the San Jose Mercury News) about this same effort. It’s a well written piece and if you want to learn more, read on over at the archive:
http://mytown.mercurynews.com/archives/cupertinocourier/20060201/cu-news1.shtml

AreaVibes.com ranks cities all over the United States and recently came out with the top 100 for California.  Many of our Silicon Valley cities and towns made the grade!

• Los Altos Hills # 3
• Monte Sereno #  6
• Los Altos # 8
• Saratoga #  9
• Palo Alto #  10
• Foster City # 11
• Cupertino # 26
• Mountain View # 27
• Belmont # 29
• San Carlos # 35
• Menlo Park # 38
• Woodside # 46
• Portola Valley # 50
• Atherton # 64
• Los Gatos # 67
• Sunnyvale # 82
• Scotts Valley # 89
• Daly City # 96

They called the Loyola area of Los Altos a city and it was on this list too (# 39 ) but it is only a district, not a city or town. Surprising, then, that they didn’t include Almaden Valley (part of San Jose) or other nice districts as well.

To see the entire list, please visit their website:
http://www.areavibes.com/best-places/california/

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

Multiple offers have returned to many segments of the Silicon Valley real estate market.  We are hearing about them in Palo Alto, Cupertino, Mountain View – areas where newly minted IPO money is having an impact – but also in more modest, middle class areas such as San Jose’s Cambrian neighborhood. The trend appears to be spreading.

What Silicon Valley home sellers need to know and do to attract multiple offers

If you’re a Silicon Valley home seller, what do you need to know to try to get multiples on your home?  What should you beware of?  In short, here’s what needs to happen if you want to attract multiple offers on your home for sale:

1. The home must be turnkey, either fully remodeled or close to it – it must look like there’s nothing or very little for a buyer to do.  In addition to being turnkey, it must be squeaky clean and well staged! It needs to be comfortable – not too hot, not too cold. You want buyers and their agent to linger longer.
   
2. The price must be at or even under market value.  That is, you must be willing to price it aggressively.  Think it’s worth $1,050,000?  You might list it at $999,999 to get in under a major price threshold and to be the very best, most attractive property for the money. Yes, it might be under priced.  Over priced listings get either one offer at best or, more likely, none at all.
3. The property must be highly accessible. If it is hard to see, you probably won’t get multiple offers (and may get none at all).  (Please see articles on accessibility and on open houses.)
4. Finally, the property must be well marketed.  This includes a wide range of factors ranging from photographs, text, fliers, signs, and even the commission rate offered to the buyer’s side.

What Silicon Valley home buyers need to know and do to compete with multiple offers

If you’re a Silicon Valley home buyer, how do you win out in multiples without giving away all of your rights or overpaying for your house/home?

Over the last few years, I’ve written a number of articles about multiple offers and tips for buyers when competing (concepts to beware of, issues around contingencies, financing and more).  This is a bit like a multi-chapter ebook on how to work with multiple offers.  I hope it’s helpful!

By way of quick summary: you must cover a few areas very, very well:

1. You must be pre-approved by a reputable lender (fully pre-approved)
2. You must have a strong down payment (20% or more)
3. You must be willing to put 3% down for your initial deposit (also called a good faith deposit)
4. You must have a good agent helping you – he or she must do a good job completing the paperwork (it needs to be thorough and without any major mistakes), must communicate well with the listing agent and represent you and himself/herself as a great team with which the listing agent and sellers will want to work
5. You must have an excellent sense of pricing.  Your Realtor should “run the comps” for you, or may even prepare a competitive or comparative market analysis on the home you wish to purchase.  Pay attention to where the value  lies – sometimes that has little to do with the list price!
6. Be prepared to balance out the price and terms offered so that you do not feel like you are giving away all your rights.  Some real estate agents may push consumers to write contracts with no contingencies for home inspection, property condition, appraisal or finance.  I believe that this is a risky and unwarranted practice – but learn about it since your competitors may be doing this.
7. Read all of the articles below – they are here to help you!

Tips for Writing a Competitive Offer  Part One

Writing an Offer in a Multiples Situation? Financing Tips Part 2

Writing Strong Offers: More Financing Tips Part 3

Tips for Home Buyers Competing Against Multiple Offers – More Financing Tips Part 4

Competing Against Multiple Offers: Contingencies and Timeframes Part 5

Real Estate Purchase Offer Terms to Consider When Competing in Multiple Offers  Part 6

Sometimes the List Price Isn’t the Expected Sales Price, So Run Comps!

The Advantages of Presenting and Receiving Offers In Person

Interested in working with an agent who’s highly experienced with multiple offers?  Call or email me today!

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).

Of course, if you go into the hills instead of just being near the base of them, there will be valley views as well.  If you go to the summit area of the Santa Cruz Mountains, you could really luck out and get a 360 degree view of the Monterey Bay on one side and the valley and San Francisco Bay on the other.  (But that would not likely be a short commute to most of Silicon Valley.)

In San Mateo County, there’s Menlo Park, Redwood City, Belmont, Hillsborough…most of these communities are more scenic as you go closer into the hills. Some even offer a view of the San Francisco Bay.

In the east foothills of San Jose, there are many lovely areas too. Among my favorite are the old section of Alum Rock (with beautiful Spanish style houses up near the country club), some of the rural areas of the Berryessa district in San Jose and the southern part of Evergreen (near Silver Creek and the Villages).

Other hills and knolls - the coastal range and east foothills aren’t the only areas with a higher elevation and views.  Think of the Santa Teresa Foothills Blossom Valley, Santa Teresa areas), Communication Hill (Blossom Valley, Willow Glen), or the occasional small little hill such as Lone Hill in the Cambrian district of San Jose.  You don’t have to get very high up to have a great view.  Look at the terrain maps for small elevations and check those areas out!

Waterways - In addition to the mountains, there are many scenic spots in Silicon Valley alongside rivers, creeks and streams.  When I was a newlywed (back in 1985), my husband and I lived alongside Stevens Creek – that is, the waterway, not the major road – in Sunnyvale.  The apartment complex had a number of units overlooking the creek and there were tons of trees providing a great, green view.  You can check out that apartment complex online – it’s called Brookside Oaks.

Back to the bayfront housing:  you can get waterfront homes in Redwood Shores and Foster City, which are on the north end of “Silicon Valley” on the Peninsula.  Many of those areas are on landfill, and although well compacted, that fill is sitting on old bay mud.  Some structures in those areas have had problem with an undue amount of movement.  Others have had salt water get to their foundations, which can cause the re-bar inside to rust (making the foundation far less strong).  Both communities are super clean and attractive (I have sold homes in both).

Not quite Silicon Valley, Santa Cruz does offer many really lovely places in which to live too – great views from many spots.  Adjacent to Neary’s Lagoon there are apartments, townhouses (some of which are for rent) and low income housing too.  It’s a very scenic part of Santa Cruz and just about a mile from the beach on foot.  A few high rise buildings, such as the condo complex on Broadway, feature views of the Santa Cruz Beach Boardwalk and the Monterey Bay.

Flatlands – not to worry if you strike out with the hills and waterways.  There are still many lovely areas in Silicon Valley that are not included in those areas.  One is the beautiful San Jose neighborhood known as The Rosegarden. It is centrally located, with a great wide open space at the park, and loads of lovely older homes with tons of character.

If you enjoy classic architecture, you might check out a few areas closer to downtown San Jose: Naglee Park, Vendome area and Japantown.

Outside of San Jose, there are scenic urban living or downtown areas in the Willow Glen part of San Jose, downtown Campbell, downtown Saratoga, downtown Los Gatos, downtown Mountain View, downtown Menlo Park, downtown San Mateo, downtown Los Altos and of course the great magnet of them all, downtown Palo Alto.

In some of these places, the downtown area is also right up against the hills – and that is truly beautiful!  (Think Los Gatos, Saratoga, Los Altos, Menlo Park.)  One nice townhome community in Saratoga has both green views within the complex, is right next to the coastal foothills and is just steps away from downtown Saratoga.  The area has top rated schools too.  If interested, check out Saratoga Oaks.) And don’t miss either Japantown or Santana Row for urban living!

Silicon Valley has a number of neighborhoods with great ambiance despite the absence of either hills or a quaint downtown.  Santa Clara’s “old quad” neighborhood (located near Santa Clara University) is just such a spot.

And, of course, there are spots in Santa Clara County with stunning golf courses, parks or heavily wooded or open areas that may not belong to the public but which create lovely vistas nonetheless.  A few orchards still dot Sunnyvale, San Jose, Saratoga and other parts of the valley. (New townhouses on Bersano Lane in Los Gatos are on a hill overlooking Lake Vasona. Beautiful views!)

For scenic senior housing, a retirement home or residential care facility for the elderly (which can mean independent living, assisted living, nursing or other), quite a few spots enjoy scenic views also:  Belmont Village in San Jose looks out over Santana Row on one side and the Winchester House on another; the Atrium in San Jose’s Blossom Valley has views of Mt. Umunhum; Saratoga Retirement Community enjoys a lovely campus but also is in among gently rolling hills and has a view of the Santa Cruz Mountains; the Villages in San Jose’s eastside community of Evergreen sits among lovely rolling hills and a golf course in the middle.

Many people relocating to the San Francisco Peninsula or the South Bay come from areas where homes cost half as much and seem to be twice as big, where there may not be so much congestion and where there is more open space.  We do have places like that, but it’s important to let whoever’s helping you know that this is important.    Whether you’re here to rent an apartment or purchase a townhouse or condo, it can be in a scenic place.  You just need to find them!

With our 300 sunny days per year in Silicon Valley (at least most years!), golf is a sport enjoyed year round here in the San Jose area.  Living near a golf course, or having a golf course view, is highly desirable as it provides scenic open space as well as convenience for avid golfers.

Silicon Valley Golf Homes, Silicon Valley Golf Properties

There are beautiful courses throughout the South Bay Area and it’s possible to find small condos with views of them at fairly affordable prices (Sunnyvale’s Sunken Gardens area is one of them).  Today, though, I want to provide a list of homes for sale near golf courses in the foothill areas of Silicon Valley.  Many of these will also be luxury homes. So the MLS list of these houses on the market which you can browse includes these areas:

San Jose areas including Evergreen & Silver Creek, Santa Teresa, Blossom Valley and Almaden; Los Gatos, Monte Sereno, Saratoga, Cupertino, and Los Altos.

There are golf courses to be found in other parts of Santa Clara County too (Mountain View, Sunnyvale, Santa Clara and more) – let me know if you are interested in these parts and I can send you a link for searching them for similar residential real estate.

Often I have clients who are interested in purchasing a 4 bedroom, 2 bath home in a good school district in Silicon Valley, particularly in the South Bay and West Valley areas.    Tonight I did a study on the MLS of homes that have sold and closed escrow in the last 3 – 6 months with these characteristics:

• single family home (house)
• 4 bedrooms
• 2 bathrooms
• 1800 to 2200 square feet of living space
• 6000 to 10,000 sf lot

Disclaimers aside, here are the numbers as I shook them out for select West Valley Communities in the San Jose area with good schools (the first number is the average sales price per square foot, the second number is the average sales price):

The home prices tend to run with the school district API scores.  You can check the 2010 API scores in Santa Clara County for both the districts and the individual schools online here.        

As you can see, there’s quite a range of pricing for our model 4 bed, 2 bath home of about 2,000 square feet – it could run as low as about $560,000 on average (Cambrian with San Jose Unified Schools) to a high of about $1,455,500 in Palo Alto.

Please remember that these homes do not represent just the most fixed up homes in the most ideal locations, short sales, regular sales, bank owned homes etc. – it’s all types of houses, all types of sales, so average numbers.  So if you are a buyer who needs a “turnkey” home with everything remodeled or new in the best location, you might want to mentally add at least another 10% to 25% to this cost. (For example, in my experience, a really nicely remodeled home along these lines in Almaden with the best schools will run between $1 mil and $1,200,000 depending; in Los Gatos it’s about 15% – 20% more for a similar home.)

Here are a few areas in Santa Clara County which are well known for good schools:

Palo Alto Unified = 925 (includes elementary, middle and high schools)

Los Altos Elementary = 965 (includes elementary and middle schools only)
Mountain View – Los Altos Union (high schools) = 852

Saratoga Union Elementary = 965
Los Gatos Union = 921
Los Gatos – Saratoga Joint Union (high school district) = 898

Cupertino Union = 951
Fremont Union High School District (high schools serving Cupertino and nearby) = 875 (but 2 high schools are in the 9s)

Union School District (Cambrian & east Los Gatos) = 905
Cambrian School District = 878
Campbell Union High School District = 761 (highest scoring school is Leigh at 817)

San Jose Unified is enormous… In Almaden, Leland has very very high scores, as does Bret Harte Middle School, so those area are preferre (all of the elementary schools in Almaden are quite good).

But wait, there’s more!

These aren’t the only areas with great schools in Silicon Valley, of course.  West San Jose and Santa Clara have areas that share Cupertino Schools, for instance.  Monte Sereno is 99.5% in the Los Gatos School area (but there were no homes matching our outline in the last few months).  The Los Gatos Mountain communities such as Redwood Estates, Holy City, Aldercroft Heights and Chemeketa Park enjoy fabulous schools (Lakeside and Loma Prieta districts).  There are wonderful schools in the Silver Creek area of Evergreen, the Warm Springs and Mission Districts of Fremont, and the city of Pleasanton, to name a few.

People often ask me, “how’s the market?”  The answer is, it depends.  It depends on whether it’s a short sale, REO or regular sale, the schools, view, condition, etc. The Silicon Valley real estate market really isn’t “one market“. It’s a bunch of smaller markets woven together. So the answer depends on what you’re looking at.

Today we’ll focus on the sale type and take a broad view of regular sales vs short sales with Silicon Valley houses/duet homes and condos/townhouses.  The data comes from MLSListings.com, our local multiple listing service, of which I am a member.  I crunched the numbers today. I have made every effort to provide accurate info, but can’t guarantee it.

To arrive at the months of inventory, I get the number of active listings (not pending, but available, or “status 1″ for my local Realtor readers) and the number of closed listings for the same area/home type which have closed in the last month.  Divide the first number by the second and you get months of inventory or MOI.  Below please find the numbers for Santa Clara County as a whole, San Jose as a whole, and various cities or areas of San Jose.

The National Association of Realtors calls 6 months a balanced market. In our area, at 5 months it is really a buyers market, though. The higher the MOI, the “worse” the market is for sellers – things just aren’t selling well. Over a year and it feels impossible.

Generally speaking, it’s a sellers market for most Silicon Valley real estate – the non-distressed homes on the market are selling very decently overall (Los Gatos seems to be the exception).  Also generally speaking, it’s harder to sell a condo or townhouse than it is a single family home (house or duet home).  It’s worse still if it’s a short sale townhome or condominium.  Sunnyvale is the toughest market around for short sale townhouses or condominiums – it is at a whopping 16 months of inventory.  There are a ton of short sales and buyers are simply not buying them.

At the other end of the spectrum is Cupertino, where non distressed homes are a red hot sellers market at just about 1.5 months of inventory.

Broad generalization – Best market:  non-distressed houses.  Worst market: short sale condos & townhouses.  There are some exceptions. It’s not all that easy to sell a house in Los Gatos, and short sales in Cupertino and selling well.  So many nuances even in the broader markets.

How’s the market? It depends!  A Sunnyvale condo short sale seller is in a totally different market than the seller of a non-distressed house in Sunnyvale.  Same city, completely different market.

What makes a Silicon Valley house a luxury home? How is high end real estate different from the rest of the market? When is a property not just a home with land, but an estate? 

In other parts of the U.S., spending $700,000 may fetch a 4000 square foot home, new construction, in an upscale gated community with country club amenities such as a golf course, tennis courts, and more. Here, that same $700,000 will procure an entry to mid-level single family home in many parts of Santa Clara County. 

Luxury connotes a combination of qualities, features, and amenities. And it includes pricing (relative to the nearby market), condition, land, design. 

Pricing Luxury Homes in Silicon Valley: What Do They Cost? 

Expensive Silicon Valley homes are not necessarily luxury homes. Depending on the city or town, the price tag could be higher or lower. For instance, a fabulous house on a large lot in Gilroy’s Eagle Ridge might sell for 1/3 as much as the identical type of home, land and neighborhood found in Saratoga, Monte Sereno, or Los Gatos, or Los Altos, if a similar home happened to be available. Generally, though, luxury homes could cost as little as $1,000,000 or so in some parts of Silicon Valley or in neighboring counties, but in most parts of Silicon Valley, a true estate type property will be valued at $2,000,000 or $3,000,000 or more.  In some areas, such as Palo Alto, that $2 million doesn’t go too far and the home you can purchase at that price tag may need major updating – or it could be “land value”.  For our purposes today, we’ll use $2 million as the bottom number for estate properties, but it may or may not be the case in some areas. 

Land Value is a Significant Part of What Makes an Expensive House an “Estate” 

In Santa Clara County, which constitutes the lions share of Silicon Valley, the land is the thing that holds value, not the structure (in most cases, unless the home being discussed was designed by a world-famous architect, which is the situation in a few instances – Julia Morgan designed a home in Los Gatos at Fairview Plaza, for example). 

How much land is enough land? It depends on the location, but in many cases, an acre parcel is the minimum needed for a property to be considered as luxury real estate. It may be possible, though, for smaller parcels to qualify. For instance, some homes in Saratoga’s pricey and highly prized Montalvo area (the platinum triangle) may be on lots smaller than an acre, but by virtue of their superior location may be luxury homes even so. 

Location Within Silicon Valley Matters Tremendously 

As mentioned above, Montalvo is one of Saratoga’s finest areas, and homes there are often viewed as luxury homes or estates simply because of their prime location. Conversely, a home in the same city of Saratoga that backs up directly to Highway 85 is highly unlikely to ever be considered a luxury home, no matter how big the house is, no matter how new, no matter how beautifully updated or remodeled. The immediate area, and not just the zip code, will have the greatest impact on how the home or land is perceived by buyers. 

What do buyers want in luxury locations? 

• quiet, uncrowded areas
• views are appreciated (of the hills, the valley etc.)
• golf course views or neighborhoods
• good to great school districts usually weigh heavily (for resale)
• conforming areas where all the homes and parcels are large and valuable
• gated communities may be seen as a plus
• no issues: no high voltage power lines, no train tracks nearby, no freeway walls, and preferably, no busy streets (in some places along The Peninsula, though, grand old estates on large parcels do front busy roads)
• some high end buyers will factor in feng shui considerations too, so will not want to drive past a graveyard or have a view of a church when buying a multi million dollar property.
• some buyers may have specific wants or needs, such as equestrian properties with several acres and a stable to house several horses, access to trails, etc.

Where are Silicon Valley’s luxury home neighborhoods? 

San Jose has several luxury markets, including the lovely old Alum Rock area (near the golf course), the Rosegarden, young Silver Creek and Almaden Valley (all of these are in San Jose). Many of the other high-end areas sit along the foothills on the west side: Los Gatos, Monte Sereno, Saratoga, Cupertino, Los Altos, Los Altos Hills, and Palo Alto. Additionally, there are estates to be found in South County too – Morgan Hill and Gilroy (and Coyote Valley) offer some stunning properties for the discerning buyer too. Further north on the Peninsula there are beautiful estates to be found in Woodside, Portola Valley and Hillsborough.  In southern Alameda County, parts of Fremont’s Mission District have stunning high end properties too. 

When High End Homes are Custom Built, It Adds to Value 

Most of the San Jose area is tract housing. Thats not a plus. Saratoga and Monte Sereno are filled with very high end tract housing built by George Day, Gfreenbriar and J. Lohr, and being tract doesnt necessarily mean they aren’t also worthy of the title ˜estate or ˜luxury homes. Almaden has a large number of Shapell homes – very high-end tract houses too. But buyers do care about pedigree, and when they find the custom-built home, or the one-of-a-kind house, they value it. Unique and classy is good. 

What if you own one of the many, many tract homes in high end areas? For instance, George Day built a huge number of homes off Fruitvale Avenue in Saratoga in the 1970s. Those houses are, for the most part, larger than 3000 square feet and sitting on beautiful one-acre lots close to West Valley College and the old Odd Fellows Home (now Saratoga Retirement Community). The houses were well built. They enjoy being in the Saratoga School District. But they are definitely tract homes. 

Want them to be luxury homes? Customize them. Those houses were built with U-shaped kitchens, shag carpeting, rock fireplaces, white tile countertops with black or brown grouting, single pane windows and (most of the time) wood beamed ceilings. Most of these kitchens were large and could accomodate an island. When you remodel, go to the studs and add an island. Add crown molding and baseboard. Install hardwood floors. (Bamboo floors were the rage for awhile, but they are a soft wood, not hard, and are easily damaged.) Put in some beautiful Anderson or other high-grade windows and French doors. The neighborhoods are multi-million dollar areas, so spending a couple of hundred thousand to customize the home is money that’s usually well-spent. 

Don’t Over Improve Your Silicon Valley Estate Property 

Luxury home buyers may appreciate upscale things like a home theater, a huge, generously appointed kitchen, a butler’s pantry with its own diswasher, and areas that support their hobbies like wine tasting rooms and cellers, sports courts, and the like, but you can go too far and make the property hard to sell later, or at least not recoup what you spent while over-improving. Remember, not everyone can afford, or even wants, a $50 million property. 

Not sure how much is too much? Here are some examples: 

Good: spacious rooms, even in powder rooms.
Too much: putting diamonds into the bathroom fixtures (which I’ve seen in one home which screamed “conspicuous consumption” in Monte Sereno). 

Good: pools, jacuzzis, saunas, sports courts.
Too much: indoor shooting range 

Good: large garage, room for 4+ cars plus storage space.
Too much: 8+ car garages, or garages with expensive flooring. Even the wealthy have oil leaks! 

Good: one or two in-law or au-pair units.
Too much: more than 2 extra units and it looks like a compound. Don’t do it. 

Good: tasteful landscaping & hardscaping. Please consult professionals for design ideas and balance..
Too much: skip an abundance of statuary in the front yard. Whether it”s garden elves, fake deer, or Greek nudes, resist the temptation to have more than a couple of these ornamental elements in your yard. 

Things To Make Sure You Have in a Silicon Valley Luxury Home 

What do buyers want or need if they are spending lots and lots of money on a home? Here are a few items that are pretty much must-haves: 

• a good sized pool and jacuzzi or hot tub
• a beautiful backyard for entertaining, preferably with a “summer kitchen”
• the kitchen should have at least 2 regular ovens, plus microwave, regular sink plus vegetable sink (both with disposals), and 2 dishwashers (either both in the kitchen or one in the kitchen and one at either a wet bar or butler pantry location) – high end appliances a must
• a living room with high ceilings, lots of windows and an impressive fireplace
• a large, formal dining room
• a good-sized formal entry hall
• family room, preferably open to or at least near the kitchen, with surround sound and large screen t.v.
• minimum 3 bathrooms, preferably more
• three or more car garage
• home updated within the last 5 years (kitchen, baths) is appreciated; more than 10 or 15 years is considered in need of remodeling
• nice crown molding and baseboard is often important, though it depends on the style of architecture (it would not fit in so well with mid-century modern, for instance)
• air conditioning, heating by zones
• good insulation and “green construction” is a plus

There are many other things that luxury home buyers want or appreciate, from wine cellars and tasting rooms and vineyards to views, tennis courts, acreage, guest cottage, and more. There’s no absolute formula but quality in every detail is normally highly valued. 

Please note: In this Silicon Valley Real Estate blog, the Valley of Hearts Delight blog, I have more than a dozen articles or posts related to the Silicon Valley luxury homes real estate market. I invite you to have a look! 

View a Sampling Silicon Valley Luxury & Estate Homes Online Now!  

Showing properties 1 - 5 of 6. See more 95020 zip code real estate.
(all data current as of 2/11/2012)

1. $6,495,000 : 8448 Leavesley Rd, Gilroy
   
   5 beds, 4 full baths

   Home size: 5,500 sq ft

   Lot size: 200.87 ac
   
2. $5,450,000 : 0 Hecker Pass Rd, Gilroy
   
   4 beds, 3 full baths

   Home size: 4,800 sq ft

   Lot size: 82.53 ac
   
3. $3,199,000 : 2544 Butch Dr, Gilroy
   
   6 beds, 9 full, 1 part baths

   Home size: 10,300 sq ft

   Lot size: 10.21 ac
   
4. $2,999,950 : 8990 Marcella Av, Gilroy
   
   4 beds, 3 full, 1 part baths

   Home size: 4,500 sq ft

   Lot size: 15 sq ft
   
5. $2,995,000 : 8448 Leavesley Rd #A, Gilroy
   
   5 beds, 4 full baths

   Home size: 4,800 sq ft

   Lot size: 36.68 ac
   

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

Browse luxury homes for sale in Los Gatos 

Showing properties 1 - 5 of 32. See more city of Los Gatos real estate.
(all data current as of 2/11/2012)

1. $19,995,000 : 16450 Aztec Ridge Dr, Los Gatos
   
   6 beds, 7 full, 2 part baths

   Home size: 11,257 sq ft

   Lot size: 50 sq ft
   
2. $8,995,000 : 18550 Black Rd, Los Gatos
   
   5 beds, 8 full baths

   Home size: 18,000 sq ft

   Lot size: 11.09 ac
   
3. $8,495,000 : Shannon Rd, Los Gatos
   
   6 beds, 7 full, 2 part baths

   Home size: 6,138 sq ft

   Lot size: 31.53 ac
   
4. $7,750,000 : 15215 Shannon Rd, Los Gatos
   
   5 beds, 5 full, 1 part baths

   Home size: 5,419 sq ft

   Lot size: 12 sq ft
   
5. $6,950,000 : 19730 Glen Una Dr, Los Gatos
   
   5 beds, 4 full, 1 part baths

   Home size: 5,461 sq ft

   Lot size: 2.80 ac
   

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

Browse luxury homes for sale in Monte Sereno 

Showing properties 1 - 5 of 5. See more city of Monte Sereno real estate.
(all data current as of 2/11/2012)

1. $5,050,000 : 16036 Greenwood Rd, Monte Sereno
   
   7 beds, 7 full, 1 part baths

   Home size: 7,336 sq ft

   Lot size: 1.17 ac
   
2. $4,575,000 : 18325 Lexington Dr, Monte Sereno
   
   5 beds, 5 full, 1 part baths

   Home size: 4,640 sq ft

   Lot size: 43,560 sq ft
   
3. $3,899,999 : 15981 Grandview Av, Monte Sereno
   
   6 beds, 3 full, 1 part baths

   Home size: 5,300 sq ft

   Lot size: 43,560 sq ft
   
4. $3,298,000 : 18641 Withey Rd, Monte Sereno
   
   5 beds, 3 full, 1 part baths

   Home size: 5,744 sq ft

   Lot size: 1.71 ac
   
5. $2,595,000 : 16131 Viewfield Rd, Monte Sereno
   
   4 beds, 3 full, 2 part baths

   Home size: 4,890 sq ft

   Lot size: 18,837 sq ft
   

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

Browse luxury homes for sale in Saratoga, CA 

Showing properties 1 - 5 of 32. See more city of Saratoga real estate.
(all data current as of 2/11/2012)

1. $17,500,000 : 22030 Mount Eden Rd, Saratoga
   
   6 beds, 6 full, 2 part baths

   Home size: 13,459 sq ft

   Lot size: 14.00 ac
   
2. $9,988,000 : 13388 Surrey Ln, Saratoga
   
   4 beds, 5 full, 1 part baths

   Home size: 8,500 sq ft

   Lot size: 1.05 ac
   
3. $6,900,000 : 19370 Saratoga Los Gatos Rd, Saratoga
   
   6 beds, 5 full, 3 part baths

   Home size: 6,570 sq ft

   Lot size: 4.47 ac
   
4. $6,000,000 : 15480 Peach Hill Rd, Saratoga
   
   3 beds, 3 full baths

   Home size: 2,789 sq ft

   Lot size: 7 sq ft
   
5. $5,500,000 : 19501 Rue De Glen Una, Saratoga
   
   5 beds, 6 full, 1 part baths

   Home size: 5,325 sq ft

   Lot size: 1.06 ac
   

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

Browse luxury homes for sale in the Los Gatos Mountains 

Showing properties 1 - 2 of 2. See more city of Los Gatos Mtns real estate.
(all data current as of 2/11/2012)

1. $3,499,000 : 18807 Bear Creek Rd, Los Gatos Mtns
   
   2 beds, 2 full baths

   Home size: 1,440 sq ft

   Lot size: 2.65 ac
   
2. $3,499,000 : 18805 Bear Creek Rd, Los Gatos Mtns
   
   4 beds, 2 full baths

   Home size: 1,440 sq ft

   Lot size: 2.65 ac
   

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

Browse luxury homes for sale in Cupertino 

Showing properties 1 - 5 of 20. See more city of Cupertino real estate.
(all data current as of 2/11/2012)

1. $2,495,000 : 15601 Montebello Rd, Cupertino
   
   5 beds, 4 full, 2 part baths

   Home size: 3,920 sq ft

   Lot size: 14.38 ac
   
2. $2,248,000 : 11691 Regnart Canyon Dr, Cupertino
   
   4 beds, 4 full baths

   Home size: 3,947 sq ft

   Lot size: 1.71 ac
   
3. $1,699,000 : 10170 Santa Clara Av, Cupertino
   
   5 beds, 3 full, 1 part baths

   Home size: 3,178 sq ft

   Lot size: 8,500 sq ft
   
4. $1,549,000 : 10570 S Foothill Bl, Cupertino
   
   4 beds, 3 full baths

   Home size: 2,953 sq ft

   Lot size: 10,018 sq ft
   
5. $1,518,000 : 10362 Scenic Ci, Cupertino
   
   4 beds, 2 full, 1 part baths

   Home size: 2,622 sq ft

   Lot size: 8,236 sq ft
   

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

Browse luxury homes for sale in Los Altos 

Showing properties 1 - 5 of 38. See more city of Los Altos real estate.
(all data current as of 2/11/2012)

1. $12,995,000 : 25810 Vinedo Ln, Los Altos
   
   6 beds, 9 full, 2 part baths

   Home size: 12,143 sq ft

   Lot size: 4.04 ac
   
2. $12,750,000 : 25893 W Fremont Rd, Los Altos
   
   5 beds, 5 full, 3 part baths

   Home size: 11,425 sq ft

   Lot size: 43,560 sq ft
   
3. $10,900,000 : 24680 Prospect Av, Los Altos
   
   5 beds, 5 full, 2 part baths

   Home size: 10,369 sq ft

   Lot size: 3.75 ac
   
4. $9,888,888 : 12661 Robleda Rd, Los Altos
   
   6 beds, 6 full, 1 part baths

   Home size: 8,610 sq ft

   Lot size: 1.53 ac
   
5. $7,988,000 : 13241 Burke Rd, Los Altos
   
   6 beds, 5 full, 2 part baths

   Home size: 7,625 sq ft

   Lot size: 43,560 sq ft
   

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

Browse luxury homes for sale in Los Altos Hills 

Showing properties 1 - 5 of 6. See more city of Los Altos Hills real estate.
(all data current as of 2/11/2012)

1. $7,188,000 : 26462 Purissima Rd, Los Altos Hills
   
   6 beds, 7 full, 1 part baths

   Home size: 11,000 sq ft

   Lot size: 2.03 ac
   
2. $5,395,000 : 12445 Hilltop Dr, Los Altos Hills
   
   4 beds, 5 full, 1 part baths

   Home size: 5,521 sq ft

   Lot size: 1.13 ac
   
3. $3,600,000 : 13826 Moon Ln, Los Altos Hills
   
   6 beds, 5 full, 1 part baths

   Home size: 5,300 sq ft

   Lot size: 1.51 ac
   
4. $2,700,000 : 28333 Christopher Ln, Los Altos Hills
   
   4 beds, 4 full, 1 part baths

   Home size: 5,229 sq ft

   Lot size: 1.18 ac
   
5. $2,645,000 : 27901 Altamont Ci, Los Altos Hills
   
   5 beds, 4 full, 1 part baths

   Home size: 4,512 sq ft

   Lot size: 28,600 sq ft
   

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

Santa Clara County Condo Market

Real estate statistics and trends at a glance – below please find the data for Sept 2010 and Aug 2010 for all of Santa Clara County. (View the whole report online here – Santa Clara County Condo Market Trends Report. It is updated each month between the 5th and 10th, and this link will always bring you to the most current report.)

Countywide, the condo market has had a rough few years – and this year is no exception.  Prices are starting to nudge up again, but the number of sales remains sluggish.

Median List Prices of Condos in Almaden Valley, Los Gatos, Saratoga and Cupertino

A stranger graph you may never have seen – it is very tangled looking! The slate blue line represents the Saratoga condo market, which I can attest first hand has been suffering.  Of these four market areas, it’s the most expensive.  The green line is Almaden Valley, San Jose, 95120.  It has been slipping in price fairly consistently this year.  Interstingly, though, Los Gatos has had a softer ride and Cupertino’s prices are rising!

The Cupertino real estate median list price for condominiums and townhouses

Next, let’s see Cupertino’s condominium & townhouse market by price quartile – below is the current median list price. Most price points seem to be doing well overall.

Spring was better than the year before for much of Silicon Valley, but only the least and most expensive quartiles enjoyed a noticeable uptick.  Both groups also fell off a bit later – just like the rest of the San Jose area.

The Almaden Valley real estate median list price for condominiums and townhouses

Almaden fell hard this year!  Even so, the “uptick” in spring was evident in the lowest quartile and the third one as well, but then more falling.

The Los Gatos real estate median list price for condominiums and townhouses

Los Gatos has been experiences a smoother fall than some of the nearby areas. It is noteworthy that the more expensive condos (and presumably townhouses) in Los Gatos did much better than the entry level homes did.

The Saratoga real estate median list price for condominiums and townhouses

Saratoga’s condos and townhomes also had better market conditions at the top end of the scale earlier this year, but now three of the four tiers appear to be appreciating while the topmost level has slipped a bit.

Inventory Levels of Condos in Almaden Valley, Los Gatos, Saratoga and Cupertino

Inventory has been growing in all areas but Cupertino, which continues to sell very well despite the “Great Recession”.

Average Days on Market for Condos in Almaden Valley, Los Gatos, Saratoga and Cupertino

The days on market dropped until late summer, when they began climbing again.  This is a little unusual since often people just take the property off the MLS if it goes on too long. Are these numbers from short sales that drag on and on? In some cases, probably that’s an impact but not huge because the numbers of distressed properties is still low in these areas.

Please check back for updates and also visit my Real Estate Report to get info on all of Santa Clara County’s market conditions, including houses, condos and townhomes.

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Older Posts:
June 2010 post
The Condo and Townhouse Market Update in the West Valley for June 2010

March 11, 2009

The real estate market for condominiums and townhomes in the west valley area of Silicon Valley is similar to the rest of Santa Clara County in one main regard: the most expensive homes are having far more trouble selling than entry level homes.

Today we’ll look at the months of inventory for condos and townhomes in four areas of the west valley: Almaden Valley, Cupertino, Los Gatos and Saratoga.  Since this is a fairly small subset of the overall residential real estate market, I’ve also looked at them as a group (upscale areas with good to great schools near the  foothills) and wanted to see the overall trend when the four neighborhoods were viewed together.

As a reminder, under 6 months is a seller’s market, 6 is neutral and 7 or more is a buyer’s market.

Interestingly, the overall trend of these four areas combined shows consistent improvement in the market toward neutral, from 23.5 months in January to 8.6 months in April.  It’s really very dramatic when viewed as a whole!

Cupertino area condos are faring well in the last 30 days with more closed escrows and just 8 months of inventory. Los Gatos is even better now with 6 months of inventory.

The market is much tougher in Saratoga, CA, where almost no condominiums or townhouses are selling.  Those that do go under contract are in the lowest price ranges.  Many properties are “just sitting”.  Buyers are waiting for prices to drop.  Nearly as tough is the condo market in Almaden Valley.

The challenge for luxury condo owners is that buyers now are primarily buying either for shelter or for investment.  Investment buyers seldom purchase a luxury item (it’s safer to buy two small condos than one large one to hedge against vacancy).

For many condo sellers, now may just not be the right time to sell. On the other hand, if you’re moving up, now may be the ideal time since prices in the higher priced homes are fairly soft compared to “normal”.

Cupertino was incorporated as a city only in 1955, long, long after the community had sprung up and had its own, distinct identity within Santa Clara County.

As a small village, Cupertino began at the intersection of Stevens Creek Road and Saratoga-Sunnyvale Road (now DeAnza Blvd) and was originally known simply as “West Side”. Since that name was so generic and would be confused with other places bearing similar names, the post office opted to give it a more distinguishable name in 1898. Because there was a nearby Cupertino winery and Cupertino Creek that name was applied to the post office and nearby stores.

Historic note: the original full name of this waterway was Arroyo San Giuseppe da Cupertino – named after St. Joseph of Cupertino – by a Spanish padre by the name of Fr. Font who was the cartologist and diarist of De Anza, the explorer.  Cupertino Creek is now known as Stevens Creek, by the way.

Today, the city of Cupertino is very vibrant and offers fabulous restaurants and shops but is best known for high tech (Apple headquarters especially) and above all, its outstanding schools, which often rank at the top of the list. For this reason more than any other, Cupertino houses tend to “hold their value” better than most other areas.

How’s the Cupertino Real Estate Market?

I have written an article, Cupertino Real Estate Market Trends and Statistics, which has dynamic market statistics for Cupertino’s residential realty market (houses & duet homes.) Please have a read!

More links for buying, selling and living in Cupertino California:

Here are some links you might find especially helpful if you move to Cupertino. (Also please visit my relocation website, Move2SiliconValley.com if moving here from out of the area!).

Houses & Homes for Sale in Cupertino

Below please find houses & duet homes listed on our local MLS for sale in Cupertino.

Showing properties 1 - 5 of 17. See more city of Cupertino real estate.
(all data current as of 2/11/2012)

1. $879,000 : 10285 Moretti Dr, Cupertino
   
   4 beds, 3 full baths

   Home size: 1,787 sq ft

   Lot size: 6,000 sq ft
   
2. $1,015,500 : 1203 Belknap Ct, Cupertino
   
   3 beds, 2 full baths

   Home size: 1,598 sq ft

   Lot size: 8,307 sq ft
   
3. $1,699,000 : 10170 Santa Clara Av, Cupertino
   
   5 beds, 3 full, 1 part baths

   Home size: 3,178 sq ft

   Lot size: 8,500 sq ft
   
4. $1,329,000 : 21723 Castleton St, Cupertino
   
   4 beds, 3 full baths

   Home size: 2,119 sq ft

   Lot size: 7,548 sq ft
   
5. $1,088,000 : 988 Cranberry Dr, Cupertino
   
   3 beds, 2 full baths

   Home size: 1,552 sq ft

   Lot size: 7,000 sq ft
   

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

Today we’ll look at the ratio & relationship between real estate listings and sales of houses and duet homes in Silicon Valley over the last eighteen months. The goal is to get a sense of the market trends in terms of the overall absorption of homes for sale.  (We’ll give a glance at condo and townhome sales but the focus is on single family homes.) How hard is it to sell a home?  The answer has to do with supply and demand – the number of listings and the number of sales.

In the graphs below, the reddish brown line represents the number of pending sales.  The blue line indicates the number of listings or homes for sale. Put simply, the closer these two lines are together, the hotter the market – that is, the more of a seller’s market it is.  When they are far apart, it’s more cold, more of a buyer’s market.  If the lines cross, it is a wild frenzy (that does happen in one case, as you will see). Below please find the graph for the homes in Santa Clara County overall (all areas).

Santa Clara County listings to sales Jan 2009 to June 2010

 You can see that these two lines pinch together in about December 2009 to January 2010.  Prices had dropped and investors were swooping in! The  market has cooled since then.

Santa Clara County condo & townhome listings to pending sales Jan 2009 to June 2010

 For condos and townhouses, all of Santa Clara County:Here the two lines  – or the market – were close together for about 3-4 months.  Buyers understood that condominiums in Silicon Valley were bargain priced, and they responded by buying.Now let’s look at various areas around the county.  We’ll take these in Alphabetical order, beginning with Almaden Valley.

Almaden Valley listings to pending sales Jan 2009 to June 2010

 As you can see, the market improved but never got as “hot” as in the county generally.  This is because it’s a more expensive area, and most of what was selling in winter consisted of entry level housing.
  

Cambrian Park listings to pending sales Jan 2009 to June 2010

  Cambrian had a couple of flurries, beginning in the spring of 2009 and again in winter 2009 – 2010.  

Campbell listings to pending sales Jan 2009 to June 2010

  Campbell, which costs about 10-20% more than Cambrian, never got so “hot” by comparison.  

Cupertino listings to pending sales Jan 2009 to June 2010

Cupertino, which is always in demand due to the superior school scores, had a longer than typical run of very close listings to pendings.   

Los Altos listings to pending sales Jan 2009 to June 2010

Like everywhere else, it looks like the fastest absorption of homes for sale was happening last December.   

Los Altos Hills listings to pending sales Jan 2009 to June 2010

   While there was a drop in inventory over the holidays, it was still not a great time for sales for Los Altos Hills last winter.   

Los Gatos listings to pending sales Jan 2009 to June 2010

   The Los Gatos area has fared worse than Los Altos….Sales are now improving, but listings are going on the market at an even faster rate.   

Monte Sereno listings to pending sales Jan 2009 to June 2010

   
Monte Sereno is similar to Los Gatos – listings and sales are both picking up, but new listings are outpacing new sales.

Next, San Jose as a whole – all areas, from Alum Rock and Berryessa to South San Jose, downtown, Willow Glen, etc.   When you view what’s happening in the city of San Jose generally, it is amazing: the numbers of listings did not keep up with the numbers of homes going under contract for 6-7 months.  Talk about a frenzy!   The San Jose real estate market began to cool in spring 2010 and that trend has continued through the summer.  

San Jose (all areas) listings to pending sales Jan 2009 to June 2010

 Saratoga, like other high end markets, is the other extreme. The market improved for sellers during winter (in terms of homes getting sold, but not necessarily for getting the best price), but nothing like what we saw in San Jose.  

Saratoga listings to pending sales Jan 2009 to June 2010

Finally, the Willow Glen market.  The market improved over sinter and wasn’t too bad in Spring, but over summer there has been both a drop in sales and a rise in inventory, making it much tougher on sellers in this part of San Jose.  

Willow Glen listings to pending sales Jan 2009 to June 2010

What can we take away from this?  In most parts of Silicon Valley, in recent months sales have dropped off while the numbers of listings have increased.  This makes it much easier for buyers and much tougher for sellers.   If your home is for sale, it is important to understand that the market is much different now than it was four or six months ago.  Buyers may not tolerate or accept some seller conditions (or pricing) from last winter or spring.  To get your home sold now will require better condition and pricing.  If you rely upon the sold prices, you may be deceived since the market is not the same.  Too much supply and not enough demand will put downward pressure on prices.  

Buyers who are jumping into the market now are bargain hunting.  Buyers, it’s a great time to buy – it may not stay like this for you a lot longer with fantastic prices and interest rates both!

Sellers, if you aren’t prepared to sell at today’s market values, you may want to wait until the market can bear your price. Otherwise the odds are that your home will languish on the market, racking up days on market but not getting sold.  To sell, your home has to be the best value and the most attractive home, priced in the bottom 20-30% of similar homes for sale.

The information here is general and what applies to one neighborhood or area may not apply within certain price points or school districts, for instance. For more information about your home or area, please call or email me.

Numbers from MLSListings.com, graphs created on that site - info deemed reliable but not guaranteed.