Money Magazine’s 25 Top Earning Towns list (of residents with the highest median incomes) included three of our prized Silicon Valley communities: Saratoga (ranked #4), Los Altos (ranked #6) and Los Gatos (ranked #19). That’s quite a show! Of course, it doesn’t necessarily reflect the highest standard of living, as our real estate is quite pricey here, particularly in those three areas. (Monte Sereno isn’t mentioned, possibly because of its smaller size. If Almaden Valley were its own town, it probably would have made the list too.)

What do these three areas have in common, besides attracting high earners?

All have excellent public schools, scenic beauty, and low crime. Each one has a vibrant downtown area and a sense of community identity with festivals and events happening throughout the year. All of them have a history connected to the orchards, vineyards, and agriculture of days past and even today tend to have a lot of trees and open spaces. You can find wineries in or near each of them too, and farmer’s markets are found in each community also. All are nestled into the western foothills of Silicon Valley.

They are all unique, of course, with pros and cons depending on your own focus for commute, amenities, and even weather (Los Altos is closer to the bay and a little cooler than Los Gatos). If you want to go to San Francisco frequently, Los Altos will be more convenient. If you want to go to Santa Cruz and Monterey more often, Los Gatos will be closer.

Earlier today I updated my series on Silicon Valley short sales at my Live in Los Gatos blog, where I’ve been tracking the number of active listings in select parts of Santa Clara County which are offered for sale as short sales. Below please find the areas and dates I’ve charted:

To read the entire post, please continue on to Silicon Valley Short Sale Snapshot.

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 will 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, 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.

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Have you always dreamed of buying a home close to, or in, the western foothills in Santa Clara County, such as Almaden, Los Gatos, Monte Sereno and Saratoga? Some of the prettiest parts of Silicon Valley are snuggled into the base of the Santa Cruz Mountains. With views of downtown San Jose and the southern San Francisco Bay Area on one side, and rolling, grassy and redwood & oak filled hills on the other, its certainly scenic. Additionally, these areas all tend to have very low crime and good schools.

As a saavy foothill-area buyer, you will want to understand some of the unique issues that this geography may present. The most important of these may well be the issue of water control and drainage.

The Santa Clara Valley, and most of the neighboring Silicon Valley areas, is composed of mostly clay soil. This is an extremely strong substance - so much so that settlers used it, mixed only with a little straw and water, to form adobe bricks for building.

The caveat with clay soil is that when it becomes wet, it expands, and when dry, it contracts. In fact, we call this condition ˜expansive. The amazing thing is that the clay is more powerful than concrete. And that is the problem for houses and other buildings if the ground is expanding, contracting, or alternating between the two.

What can a homeowner do? Its imperative to try to control the amount of water near (or under) the home as much as possible.
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Los Altos, CA

Los Altos is a lovely town with everything to offer but affordable housing. It recently made a list of the best places to live in the US (low crime, great schools, quality of life). Theres a vibrant downtown to boot with superior restaurants, shops, and more. Its a great community for pedestrians and cyclists (lots of paths), and is a quick jaunt to both Palo Alto and Mountain View.