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.

How’s the Almaden Valley real estate market?   Prices appear to  have been rising, but slipped some this last month. There’s not much inventory in this part of the valley so it remains a seller’s market, incredibly. A  fairly nice 4 bed, 2 bath house in most parts of the San Jose 95120 zip code will still cost about a million dollars (more if it’s in the best areas with best schools and best condition).  A smaller 3-4 bedroom townhouse with good schools will be about half that much unless it’s really young and highly upgraded.

Average Days on Market  & Sale to List Price Ratio for Almaden Valley (San Jose, CA 95120) houses in 2011:

Number of Homes For Sale vs Sold for Almaden Houses on the Market

Date is between Jan 2011 and Dec 2011

Property Sub Class is ‘Single Family Residential’

Area AreaIdName is ’13 Almaden Valley’

Results calculated from approximately 570 listings

Listings by Price Range

Date is between Feb 2011 and Jan 2012

Property Sub Class is ‘Single Family Residential’

Area AreaIdName is ’13 Almaden Valley’

Results calculated from approximately 470 listings

Sales by price range

Date is between Jan 2011 and Dec 2011

Property Sub Class is ‘Single Family Residential’

Area AreaIdName is ’13 Almaden Valley’

Results calculated from approximately 320 listings

For more info please see my Almaden Valley real estate report.

Houses, sales, pendings, prices in San Jose 95120 for November 2011 – note that they are down month over month and year over year BUT if you go back to October, they were way, way up (double digit). It’s helpful to have the “big picture” and not focus on just a small amount of data. Reviewing several months in a row we see some ups, some down – mostly down (in single or double digits) but when up, it was way up (20-40%). No easy answers here.

Trends At a Glance	Nov 2011	Previous Month	Year-over Year
Median Price	$935,000	$1,075,000 (-13.0%)	$950,000 (-1.6%)
Average Price	$1,007,750	$1,144,880 (-12.0%)	$1,123,800 (-10.3%)
No. of Sales	19	27 (-29.6%)	21 (-9.5%)
Pending Properties	31	35 (-11.4%)	45 (-31.1%)
Active	55	68 (-19.1%)	93 (-40.9%)
Sale vs. List Price	98.8%	97.0% (+1.9%)	97.5% (+1.3%)
Days on Market	47	52 (-8.7%)	40 (+18.2%)

Numbers for October – notice the big jump from September in pricing!

Trends At a Glance	Oct 2011	Previous Month	Year-over Year
Median Price	$1,075,000	$822,000 (+30.8%)	$885,000 (+21.5%)
Average Price	$1,144,880	$815,646 (+40.4%)	$910,012 (+25.8%)
No. of Sales	27	24 (+12.5%)	22 (+22.7%)
Pending Properties	35	42 (-16.7%)	41 (-14.6%)
Active	68	67 (+1.5%)	111 (-38.7%)
Sale vs. List Price	97.0%	95.6% (+1.4%)	97.4% (-0.5%)
Days on Market	52	46 (+13.6%)	36 (+42.2%)

The list price to sales price ratio moved up but days on market and number of pendings were off from the month prior – though not year over year. Compared to a year ago, prices are up and all is rosier except the days on market. Buyers may be having trouble adjusting to the rising prices in Almaden.

Trends At a Glance	Sep 2011	Previous Month	Year-over Year
Median Price	$822,000	$835,000 (-1.6%)	$931,000 (-11.7%)
Average Price	$815,646	$868,909 (-6.1%)	$967,599 (-15.7%)
No. of Sales	24	39 (-38.5%)	27 (-11.1%)
Pending Properties	42	37 (+13.5%)	34 (+23.5%)
Active	67	83 (-19.3%)	124 (-46.0%)
Sale vs. List Price	95.6%	97.1% (-1.6%)	98.3% (-2.8%)
Days on Market	46	62 (-26.4%)	37 (+24.1%)

And August:

Trends At a Glance	Aug 2011	Previous Month	Year-over Year
Median Price	$835,000	$926,000 (-9.8%)	$932,500 (-10.5%)
Average Price	$868,909	$1,038,120 (-16.3%)	$997,688 (-12.9%)
No. of Sales	39	20 (+95.0%)	32 (+21.9%)
Pending Properties	37	53 (-30.2%)	46 (-19.6%)
Active	83	93 (-10.8%)	121 (-31.4%)
Sale vs. List Price	97.1%	97.0% (+0.2%)	99.0% (-1.9%)
Days on Market	62	65 (-5.7%)	36 (+70.9%)

CONDOS

Next the Almaden Valley condo market.  It’s improved over last month!  Some quick stats:
Sales fell 0.0% from the month before, and were up 200.0% year-over-year.  Prices improved in Sep 2011 with the median price climbing 11.6% from the previous month, down 23% compared to last year. The average price rose 22.9%, a yearly loss of 15.7%.  Inventory fell 0.0% from last month, and was down 23.8% year-over-year.

Trends At a Glance	Nov 2011	Previous Month	Year-over Year
Median Price	$577,000	$495,000 (+16.6%)	$620,000 (-6.9%)
Average Price	$577,000	$498,333 (+15.8%)	$620,000 (-6.9%)
No. of Sales	2	3 (-33.3%)	2 (0.0%)
Pending Properties	3	3 (0.0%)	3 (0.0%)
Active	11	11 (0.0%)	16 (-31.3%)
Sale vs. List Price	97.5%	98.4% (-1.0%)	95.6% (+1.9%)
Days on Market	118	93 (+25.9%)	34 (+250.8%)

October:

Trends At a Glance	Oct 2011	Previous Month	Year-over Year
Median Price	$495,000	$512,000 (-3.3%)	$683,000 (-27.5%)
Average Price	$498,333	$560,667 (-11.1%)	$715,250 (-30.3%)
No. of Sales	3	3 (0.0%)	4 (-25.0%)
Pending Properties	3	4 (-25.0%)	2 (+50.0%)
Active	11	12 (-8.3%)	15 (-26.7%)
Sale vs. List Price	98.4%	98.0% (+0.4%)	95.4% (+3.2%)
Days on Market	93	67 (+40.0%)	40 (+134.8%)

September:

Trends At a Glance	Sep 2011	Previous Month	Year-over Year
Median Price	$512,000	$458,900 (+11.6%)	$665,000 (-23.0%)
Average Price	$560,667	$456,300 (+22.9%)	$665,000 (-15.7%)
No. of Sales	3	3 (0.0%)	1 (+200.0%)
Pending Properties	4	5 (-20.0%)	7 (-42.9%)
Active	12	11 (+9.1%)	14 (-14.3%)
Sale vs. List Price	98.0%	97.3% (+0.7%)	95.3% (+2.8%)
Days on Market	67	91 (-27.0%)	25 (+166.7%)

And for August:

Trends At a Glance	Aug 2011	Previous Month	Year-over Year
Median Price	$458,900	$565,000 (-18.8%)	$635,000 (-27.7%)
Average Price	$456,300	$555,200 (-17.8%)	$635,000 (-28.1%)
No. of Sales	3	5 (-40.0%)	2 (+50.0%)
Pending Properties	5	5 (0.0%)	3 (+66.7%)
Active	11	13 (-15.4%)	16 (-31.3%)
Sale vs. List Price	97.3%	98.1% (-0.9%)	98.4% (-1.1%)
Days on Market	91	103 (-11.7%)	7 (+1,121.0%)

Next let’s have a multi year look at the Almaden Valley real estate market.  Below please notice the supply & demand graph going back to late 2007. Although it’s been a “wild ride”, you can see a very clear pattern emerge that around December or January of eacy year, inventory falls (the dark gray line) and relative to the months just before or after, these tend to be “better” for sellers. What’s happening?  The available supply of homes tends to diminish over the holidays.  Prices are perhaps softer than at other times of the year.  Buyers who need to buy, do buy.  The odds of selling are actually higher, in many cases, during this time of year than others!

Here are a few quick stats from Altos Research (which will be automatically updated weekly and to which I have a subscription) – these are based on the list price of townhouses, condominiums and houses for sale in San Jose’s Almaden Valley 95120 area:

90-day stats for Single Family properties in SAN JOSE, CA95120 as of October 7, 2011
Median List Price:	$927,953	Average List Price:	$1,056,795
Total Inventory:	129	Price per Square Foot:	$405
Average Home Size:	2,414	Median Lot Size:	8,580
Average # Beds:	4.04	Average # Baths:	2.72
Homes Absorbed:	11	Newly Listed:	8
Days on Market:	113	Average Age:	36

90-day stats for Condo properties in SAN JOSE, CA95120 as of October 7, 2011
Median List Price:	$606,104	Average List Price:	$637,011
Total Inventory:	17	Price per Square Foot:	$365
Average Home Size:	1,674	Median Lot Size:	n/a
Average # Beds:	2.79	Average # Baths:	2.34
Homes Absorbed:	1	Newly Listed:	1
Days on Market:	178	Average Age:	26

The residential real estate market in San Jose’s Almaden Valley area was a “hot seller’s market” early this year due to more demand than supply but it is cooling slightly now, which will be a great relief to frustrated home buyers, but it has not been giving them the big influx of inventory they’d like to see.

How is the Williams Elementary School area of San Jose’s Almaden Valley 95120 doing in terms of the real estate market? Today we’ll look at the Williams area as compared to Almaden as a whole to see. First, the basic realty trends and stats for this nice section of Silicon Valley side by side for this year only (I pulled and crunched all of this data from MLSListings.com myself tonight, “deemed reliable but not guaranteed”):

1. Comparison of the average price per square foot for all of Almaden (including the Williams area) with just the Williams area of 95120:

While there is some fluctuation from one status to the next, at the end of the day there’s one number that matters the most, and that’s what actually sold and closed.  In the Williams area, homes have sold at an average of $418 per square foot while in Almaden generally (including this area), the price is $399 per square foot – about 5% less. This is tremendously important to understand if you are trying to purchase a home in the Williams area – homes there do, in fact, sell for more than in most parts (perhaps all parts) of the Almaden Valley.

Next, the stats for just the Williams area followed by the stats for all of 95120.

2. Real estate market statistics for Williams area of Almaden year to date by status:

3. Real estate in Almaden (San Jose 95120) as a whole (including Williams neighborhood):

4. Some graphs on the market in these two areas of San Jose 95120:

All Almaden - average sales price per month

And next, just the Williams area within 95120:

Average sales price per month in Williams School area of Almaden

Days to sell (days on market prior to going under contract) in Almaden…

Almaden (all) days to sell over time

Same data but just for the Williams Elementary School neighborhood in San Jose:

Wiiliams area of Almaden: days to sell over time

Supply and demand -  San Jose 95120 homes for sale and homes sold each month:

All Almaden homes for sale vs sold

Next, supply and demand in just the Williams area (most months, the ratios are tighter in Williams):

Williams neighborhood - homes for sale vs sold (supply demand)

New listings – first, all of Almaden (buyers will be interested in seeing the price spread):

Almaden listings by price range each month

Wms area price spread – it’s a smaller neighborhood with fewer inexpensive, and more expensive, properties:

Listings by price range in Williams area of Almaden Valley (San Jose 95120)

Months of inventory for San Jose 95120 (Almaden Valley or Almaden area) – six months is considered “balanced”, less a sellers market and more a buyers market.  It’s been pretty good in this corner of Silicon Valley, as you can see, except for the worst of the market in 2008-09 especially.

Months of inventory for all of San Jose 95120

Next, same info but just in the Williams subset of the Almaden market:

Months of inventory in Williams area

Note that the market in the Williams area has been a little harder hit than Almaden as a whole for the months of inventory. Why is that? My hunch is that it’s a couple of things: first and foremost, these homes are more expensive. The typical 4 bed, 2 bath home is about $1 million in Almaden generally but about $1,150,000 in the areas with the best schools, including Williams and Graystone.  The more expensive homes have been challenged by the financing regulations – these are not FHA homes and require a lot of cash down. Many would be move up buyers are stuck due to lack of equity.  A secondary reason may be the further commute.  Many buyers are more frugal now that gas is hovering near $4 a gallon.  Whatever the cause, these premier homes are not selling as well as many of their owners would like to expect.

List price to sales price ratio Almaden

And finally the same list to sales price ratio just in Williams:

Sale to List Price Ratio in Williams area of Almaden

I hope you’ve found this information and analysis helpful.  Whether you’re buying or selling, it’s very helpful to know the local market.  These types of posts do take a lot of time to produce, so I don’t do them so extensively so often, but I can do this type of thing for my clients. If you are looking for a Realtor who’s committed to giving you top grade information so that you can be best informed, please call or email me. I’d love to have the chance to chat with you and see if we might be able to work together on your next purchase or sale in Almaden or anywhere in Santa Clara County.

mary (at) popehandy (dot) com

Related reading:

Schools, API Scores & Maps of School Boundaries in San Jose’s Almaden Valley

The RE Report for Almaden Valley (updated monthly, stats also quarterly and annually going back 10+ years)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 For more reading:

Cracked Foundations, Adobe Clay Soils and Water in Silicon Valley

What To Consider When Buying a Hillside Home in Silicon Valley

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

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

How common are “all cash” transactions for Silicon Valley real estate right now?  Throughout Santa Clara County, they were 20% of all sales among houses, duet homes, condominiums and townhouses (class 1 and class 2, does not include mobile homes, 2-4plex or apartment buildings or raw land).

Some areas and some types of sales are more frequently all cash than others.  Here are a few quick stats for the last month (last 30 days from today – numbers from MLSListings, crunched by me – disclaimer on good intentions but no guarantee):

• Santa Clara County: 20% all cash
• San Jose (entire city): 24% all cash
• San Jose short sales: 33% all cash
• San Jose bank owned or REO sales: 37% all cash
• Short sales & REOs were 48% of all sales in San Jose in the last month
• Of SJ homes listed at $300,000 or less: 48% all cash
• Los Gatos & Monte Sereno: zero sales all cash
• Saratoga: 29% all cash
• Almaden Valley area of San Jose: 14% all cash

Some of these sales will have no financing and the new owners will occupy the home.  Particularly in lower priced homes, though, these are investor buyers who will be renting out the property.  This is often the case with the lower price distressed properties in particular.  In higher priced homes, some new owners will put financing on the property after close of escrow.

With the crazy new demands that keep coming at us from banks and new requirements being imposed on appraisers, now more than ever, cash is king.  That doesn’t mean that the cash buyer will get a deep discount, but there will be a slight one in most cases and certainly preferential treatment that will create a great advantage in multiple offer situations.

Learn more about buying and selling Silicon Valley real estate with cash offers:

Cash offers: what do you need to know if buying “all cash”?

Q & A: Making an Offer

What’s My Silicon Valley Home Worth? Estimating the Probable Buyer’s Value  (financing impacts market value)

Malibu Grill in San Jose - menu

Malibu Grill is a Silicon Valley sports bar and hamburger place (and more, of course – baby back ribs, chicken, pizza, pasta) with the dual themes of surfing and all things athletic.  Jim and I occasionally pop over there for lunch or dinner as it’s just a few blocks from our neighborhood, Belwood of Los Gatos and we like the food, service, ambiance and prices.  Today we did again and happened to be there for Monday Madness Hamburgers, which save patrons a couple of bucks. That’s always nice!

A casual but friendly and comfortable restaurant, the Malibu Grill features a broad array of tasty burgers, sandwiches, and other items from the grill. It’s not all fried or carby food, though.  Today I ordered the Malibu Burger (basically a cheeseburger) with a side green salad rather than the fries (for $1 more or I could have had cole slaw, potato salad or fries at no extra cost).

Malibu Grill dining area includes views of sports on TV

Prices are reasonable.  You order at the cash register and pay, and the food is brought to your table. If you are following a game on one of the many televisions, you’ll be happy to not have to get up to retrieve your order.

This eatery has a huge collection of surfing and sports memorabilia and a lot of televisions.  Kids would find plenty to look at here, and with the classic menu items, it shouldn’t be too hard to feed the young set either. It would be a great place to dine after a kids’ or school sporting event as well as ideal to catch the NFL or other game you can’t view at home or online.

Malibu Grill beverage area

Adults will be pleased to know that Malibu Grill offers a very nice selection wine and beer on tap, including at least a couple of “light beers” too.

No matter where you sit, there will be at least one flat screen television in view.  At our booth, I was facing one but Jim could see three adjacent screens over the bar, all with different sports programs showing. (Since the Patriots were being shown on one of those, I quickly joined him in facing the multiple TVs.)

Malibu Grill in San Jose has plenty of flat screen televisions!

Located along Camden Avenue in San Jose, Malibu Grill is technically in the Cambrian area but on the edge of both Almaden and Los Gatos.  It’s easy to get there – just a few blocks off of Blossom Hill Road, not far from Hwy 85 too.

If you’re looking for a fun, unpretentious restaurant with good food and very fair prices, Malibu Grill is your match.  Read more about them on their website, or just drop by and give it a spin.

Malibu Grill
http://www.malibugrill.com/
5735 Camden Avenue, San Jose, CA

Ever wonder which school a property is assigned to for the students that live here?  The boundaries, especially in larger districts such as San Jose Unified, can be hard to figure out.   In the Almaden Valley area of San Jose, for instance, some parents really want to make sure that their kids attend Leland High School rather than Pioneer (or Leigh or Branham or Los Gatos High – there are so many schools represented in Almaden!), for instance.

Until recently, you had to go to the Santa Clara County Office of Education’s website to see which high school and elementary/middle school district you would be in.  I will post many of those below. From there you had to enter your address to see the specific schools. After that, you had to go to another site entirely to get the API scores.

Now, however, some smart people have done a mashup of addresses, school scores and API scores.  I like this site so well that I’m advertising in a couple of zip codes (that’s my disclaimer).  Check it out:

www.SchoolAndHousing.com

Or you can do it the slower way – visit the school district sites below!

There’s a “school finder” link that you will find very helpful:

San Jose Unified:  http://www.schvision.com/schoolfinder2/SJUSD/

Cupertino Union School District:

www.cupertino.k12.ca.us

Fremont Union High School District (Cupertino and nearby): http:/)/www.schvision.com/schoolfinder2/FUHSD/default.asp

East Side Union High School District: http://www.schvision.com/schoolfinder2/ESUHSD/default.asp

Campbell Union School District: http://www.schvision.com/schoolfinder/CampbellUSD/
Campbell High School boundary map:

http://www.cuhsd.org/downloads/boundary_map.pdf

Berryessa Union School District: http://www.schvision.com/schoolfinder2/BerryessaUnionSD/default.asp?1569Nav=%7C&NodeID=1117

Moreland School District boundaries map:

http://www.moreland.k12.ca.us/p_boundaries.html

To find more, see the Santa Clara County Office of Education’s website:
http://www.sccoe.org/

Lately I’ve been spending a lot of time in San Jose’s Almaden Valley neighborhood.  On one side of Almaden the Santa Teresa Foothills rest and on the other, the coastal range or Santa Cruz Mountains.  This view was taken in a more southern part of the area with a great view of Mt. Umunhum. So pretty!

Almaden Valley in San Jose (95120) - view of Mt. Umunhum and Santa Cruz Mountains

The mercury mines (not one, but a network of them) aren’t far from here in the hills around New Almaden, the Calero Reservoir and Guadalupe Creek (which is about 4.5 miles west of the New Almaden Mine). All very scenic!

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!

The Oaktree Park neighborhood in San Jose is a scenic residential community with wide appeal to home buyers due to good Almaden schools, close proximity to large parks and is one of only a few areas in Almaden Valley which includes a cabaña and swim team.  Additionally, this area is very convenient as it’s  close to schools, shops and commute routes to downtown San Jose and much of Silicon Valley. It is a fairly intimate neighborhood with 156 homes.

Where is the Oaktree Park neighborhood?

The Oaktree Park subdivision is within the boundaries of Meridian Avenue, Redmond Avenue and Mcabbe Road on three sides and the Jeffrey Fontana Park on the north side.

The census bureau (and perhaps also the city of San Jose) has attributed names to some parts of Almaden and this neighborhood falls into the Crossgates section.  I do not believe that most residents refer to this area that way, though.  Perhaps more likely they’d call it part of the greater Fontana Park neighborhood.

Oaktree Park Neighborhood in San Jose (Almaden Valley area of SJ) - click on image above to go to live Google Map

What schools serve the Oaktree Park neighborhood in San Jose?

The public schools for Oaktree Park are within the San Jose Unified School District:

Los Alamitos Elementary School (API 916 in 2010)
Castillero Middle School (API 806 in 2010)
Pioneer High School (API 823 in 2010)

Los Alamitos Elementary and Holy Spirit Elementary (Catholic) are both just a couple of blocks from Oaktree Park.  Additonally there are 2 preschools really close too:  Precious Preschool and Shepherd of the Valley Lutheran Preschool.

For more information and links for schools, school districts, API scores and maps of boundaries lines for schools in the Almaden area of San Jose, please also read:

Schools, API Scores & Maps of School Boundaries in San Jose’s Almaden Valley

What are homes like in Oaktree Park?

Homes in Oaktree Park are single family dwellings – all detached houses (no townhouses or condominiums).  These are primarily ranch style or two story ranch style houses, built in the early 1970s  on lots of about 8000 to 9000 square feet, though a few are more than that.  Interior size runs between about 1600 square feet to about 3000 square feet (if added on). Prices may be in the mid 600s for a smaller home, needing work and a less desirable location (such as on a busy road or immediately adjacent to the high voltage power lines that run through the park) to perhaps a little over a million dollars for a beautifully updated or rebuilt larger home in an ideal location within the neighborhood.

Oaktree Park Neighborhood fun: the cabaña, clubhouse, swim team and parks

The cabaña and community grounds are located on Crestoak Court (where a large oak tree did once stand).  The swim team, the Sharks, serve children up to age 18.

The HOA has a “welcome new neighbors” page with some great information on nearby amenities.

There’s a huge amount of open space and parkland adjacent to Oaktree Park, with both trails for walking, biking or rollerblading as well as expanses of lawn and natural open spaces which invite deer and other indigenous wildlife.  Nearby parks include the Jeffrey Fontana Park, the Guadalupe Oak Grove Park  just beyond that and the TJ Martin Park a little to the west of these two.  These three parks are connected and provide a fabulous network of trails.

Turnover is pretty low in this neighborhood as residents appreciate the access to the community pool, the parks, schools, shops and commute venues.  In many ways, this tidy little neighborhood offers the very best of Almaden: community, multiple reasons to be outdoors and a pretty location with lovely views.

Located close to the Guadalupe Creek and the foothills of the coastal mountain range, the Montevideo neighborhood enjoys tree lined streets and scenic green views of the hills.  Houses and yards are nicely kept. It is fairly convenient for commuting as it’s not too deeply into the San Jose area of Almaden Valley.  About 500 residents call this beautiful neighborhood home.

The Montevideo Neighborhood in the Almaden Valley area of San Jose

Shuffle board area of Montevideo cabana

In addition to the pleasant vistas, the Montevideo home owners and residents enjoy the cabaña, which includes a community pool, clubhouse, recreation grounds (shuffleboard, volleyball court and more), a fun swim team for kids.   There are very few cabañas in the west valley, so this is a big draw.

Adjacent is the very highly regarded Guadaulupe Elementary School, which can boast API scores in the 900s (it was 930 in the 2010 study).

Where is the Montevideo neighborhood located?

The Montevideo neighborhood is situated close to the intersection of Camden Avenue and Coleman Road (not quite to Redmond Avenue) in southwest San Jose (Almaden area, zip code 95120).  The development was built in two phases – the map below shows in a darker green the “Montevideo 2″ area.  The lighter area was the original Montevideo tract.

Map of the Montevideo neighborhood in San Jose's Almaden Valley - click on the image to go to the live map on Google

The Montevideo neighborhood is just across Coleman Road from the also-very-desirable Oak Canyon neighborhood of Almaden.

Which schools serve the Montevideo community?

The Montevideo area is part of the Union School District and the Campbell Union High School District.  (School API scores below can be found on the County List of Schools API Scores for 2009 – 2010 here.)  It should be noted that Union Schools have been “trending upward” for the last few years and that trend is not anticipated to change.

Elementary:  Guadalupe Elementary School – API 930

Middle:  Castillero Middle School – API 806

High School:  this is an “open area” and students here may attend either Leigh High School  – API 817 – or Branham High School – API 781 – (you can choose).

What are homes like in Montevideo? What do they cost?

Smaller Montevideo ranch style house

The Montevideo neighborhood was built by Schulte-Blackwell in the mid to late 1960s on land which used to be vineyards for the wine making endeavors of the Jesuit Novitiate in Los Gatos (the Society of Jesus, a Catholic religious order of priests and brothers).  The terrain is flat in most areas and gently rolling hilly areas in others.  Some of them have mountain or valley views.

The community is comprised of detached, single family homes, primarily ranch style or two story houses, with a few split level homes, featuring attached 2 car garages.   The smallest dwellings are around 1400 to 1600 square feet and the largest ones usually no more than 2600 or 2800 SF (unless they were added onto).  Most are situated on lots of about 8000 square feet, but some are a hair under 7000 on the small side or closer to 10,000 (with a few exceptions that are bigger) on the large side.

Purchasing real estate in Montevideo is usually a “move up” buy as prices run from the mid $700s (if small, distressed, or needing a lot of work) to the $800,000s on the low end up to the low $1 million price range on the high end, depending on many variables (size of home and yard, view, proximity to busier roads or the school, etc.).  Most of these are owner occupied and the neighborhood does display the pride of ownership which is apparent in many better neighborhoods.  (To read up on how to sell one property and buy another, please read my article on that topic on my popehandy.com website.)

The Montevideo Improvement Association has a blog where you can read more about the community, view the original brochures when the subdivision was created and the first homes sold,  find out about pool hours and renting the cabaña, and learn how to access the association documents if purchasing a home there. There aren’t a lot of updates on the blog but still the site has a wealth of general information.

What’s for sale in and near Montevideo now?

Below please find a map with properties for sale, listed on our local MLS, in Montevideo as well as some of the nearby areas such as Oak Canyon, Almaden Meadows and the TJ Martin Park area.  If you are interested in buying or selling a home in the Montevideo neighborhood or anywhere in or near Almaden, please contact me today!

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

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

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

The geography of the valley:

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

Advantages and Disadvantages:

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

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

Schools in Almaden

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

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

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

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

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

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

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

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

First, just over the last year…

Next, going back several years….

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

Inventory

Average price per square foot

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

View Almaden Valley Estates & Luxury Homes for Sale

Prices from $1,500,000 and up.

Showing properties 1 - 5 of 12. See more 95120 zip code real estate.
(all data current as of 2/10/2012)

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

   Home size: 5,000 sq ft

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

   Home size: 6,000 sq ft

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

   Home size: 6,251 sq ft

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

   Home size: 3,471 sq ft

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

   Home size: 1,800 sq ft

   Lot size: 1.92 ac
   

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

Yesterday I was showing homes in Almaden (San Jose 95120) to one of my buyers for that area.  A house in the Shadowbrook neighborhood had a really spectacular view of the hills from the upstairs bedrooms – could not resist snapping the picture to share.

If you are not familiar with this part of Silicon Valley, that’s Mt. Umunhum with the squarish building on top.

A few months back, I took an image of these same hills from the campus of Valley Christian High School.  You can see it in this post on this same blogsite:
View from Valley Christian High School: Santa Teresa Foothills & Coastal Range On that one you can spot Mt. Umunhum as the area with the flat top along the crest of the hills.

Want to learn more about this upscale, scenic part of San Jose (in Santa Clara County)? Read an intro post: What Are the Advantages of Buying a Home in Almaden Valley?

More posts on Almaden Valley, the Almaden real estate market etc. here.

I’ve been selling real estate for 18 years, full time, in Silicon Valley. Until recently I had never seen a dampwood termite in this area but a few months ago I caught sight of  a dead one at the Almaden Winery neighborhood (on the Cambrian and Almaden border) when our pest inspector, Miguel Torres from Thrasher Termite, noticed it.  Luckily there were no live dampwoods to be found! I thought it was a weird fluke.

Fast forward a few months, and  again this week I saw first the much smaller,  immature dampwoods (so I didn’t recognize them, but suspected that they were termites of some kind as they were coming out of rotting wood) and a few days later saw the large and now mature dampwood termites swarming in the same location in Belgatos Park, Los Gatos, close to where my family and I live. Initially I thought they were strange moths as there was a lot of flapping motion, but on closer look I could see that they were indeed termites and they were big!!!

We normally don’t see the dampwood type of termite on the Santa Clara Valley floor (usually subterranean and drywood 0nly).  Normally the dampwoods tend to live  in the Santa Cruz Mountain communities (and places where it’s much damper), so I hope that this isn’t a new trend to be concerned about – either way, though, I thought you’d like to see what they look like and to be aware of the fact that it is possible to have them in San Jose or Los Gatos real estate.  I know, I’ve seen them myself!


Related reading:

Would You Recognize Signs of Subterranean Termites If You Saw Them?

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

How Often Should You Get A Termite Inspection?

Not everyone is familiar with the term “patio home” or “zero lot line” house when searching for Silicon Valley real estate.  Recently a listing agent of such a property called me for feedback and when I told her that my clients did not want a zero lot line home, she didn’t know what I was talking about. She had no idea that this term applied to her listing!

So I thought maybe this topic deserved a little more attention.

What does zero lot line mean?

With most houses, the structure is set into the lot or land such that the property boundaries are at least a few feet away on all sides – often 5 or 8 feet.  One common exception is garages in older parts of Willow Glen, Los Gatos, downtown San Jose, etc., where often these buildings were set directly against the property line on one or two sides.

When a house is right up against the property line, directly on the line, that’s referred to as a zero lot line and is usually referred to as a patio home.  To view that wall, you’d literally have to go onto your neighbor’s lot to have a look.  Although this is not terribly uncommon in dense, urban areas, it’s fairly infrequent in Silicon Valley.

Why are homes designed on zero lot line properties?  The main reason is to increase the density while providing more yard to the home owner.  Rather than having two 8′ side yards, perhaps you’ll have one much larger 16′ yard.

Interestingly, these houses do not seem to sell for less with the zero lot line – at least not that I have been able to discern. (That’s counter-intuitive….)

How can you tell if it’s a zero lot line house?

It should be disclosed in the MLS as such, but often isn’t (sometimes the listing agent doesn’t even know), so you’ll have to look carefully at the neighborhood and the property to see.  Here are some clues:

• you’re most likely to find patio homes where the houses sit on very small lots
• most of the time, there are no windows on the side built against the property boundary (though in Silver Creek there are a number of these with glass block windows put into bathrooms – so there is some light, but no opening into the neighbor’s yard)
• try to walk all the way around the property without going into a neighbor’s yard – if you can’t, that’s your red flag
• most of the time, patio homes are part of a home owner’s association and are located on private roads

Where are these patio homes located?

They are really all over Santa Clara County as a good alternative between having super small lots vs a townhouse.  We are seeing more and more of these in younger construction especially.

• in Almaden Valley, the Glencrest development (by Shapell, a great builder, with top rated schools there: Williams, Bret Harte and Leland) – very popular!
• in Silver Creek, there are condos and single family homes, but some of the houses further down into the valley are patio homes
• in Cambrian, along the Almaden border, there are patio homes in 2 of the 3 subdivisions of the Almaden Winery neighborhood (Tresor and Vineland) the Vintage subdivision is not zero lot line) (See one such home I sold on Le Fevre Drive in 2010 by clicking on the link)
• and many other places throughout the San Jose area!

One caution: sometimes there are townhome communities where a unit is sold as if it is a “duet home” or “patio home”.  Be sure to read the preliminary title report carefully to note the type of ownership in the common areas as well as the unit itself. You might be surprised!