Median List price for 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.) (more…)

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

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.  (more…)

The Silicon Valley real estate market is a mixed bag and home buyers and sellers here may read the headlines and wonder why things seem so different in the news than in their own personal reality!

Here are a few quick facts and observations about the San Jose and Santa Clara County real estate market for houses, condos and townhouses:

• It is a seller’s market for both houses and condominiums in Santa Clara County (homes are selling well and very close to list price on average)
• The average and median sales price for houses & duet homes is down month over month and year over year (properties that are selling are those which are priced lower)
• For condos and townhomes, prices are up month over month (but down year over year).  The condo market here has taken a huge beating in recent years.
• The market is not equally hot everywhere!  It’s red hot in Palo Alto, Los Altos, Cupertino, and areas nearby (Santa Clara, Sunnyvale, Mountain View).  It is also hot where there are low priced foreclosure houses which can be bought at bargain rates.  The move-up market has been tough entry level houses in the best school areas are very sought after right now.  (The market is decidedly cooler in Los Gatos and Almaden Valley.)
• Homes that are selling best are completely remodeled and have no “issues” (such as high voltage lines, poor floorplan, proximity to something undesirable etc.) and priced aggressively  OR are distressed sales with great pricing

In the best areas, or those with the hottest markets, we are seeing some multiple offers with overbidding.  At the same time, we are finding homes that look great but languish on the market due to some issue or another or pricing that’s not as competitive as it needs to be for today’s market (or both). (more…)

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? (more…)

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). (more…)