In Almaden Valley, like in other parts of San Jose and Silicon Valley, some parts of “the market” are hotter than  others.  The real estate sweet spot appears to be homes priced in either the entry level or move-up markets – but things cool considerably as the homes become more elegant, grand and luxurious.  (This appears to be true across all of Santa Clara County: the most affordable homes are still the hottest segment of the realty market.)

Months of Inventory in Almaden Valley

Here’s how the current inventory and sales breaks down, together with the months of inventory, for the Almaden Valley part of San Jose (95120 zip code). Info from MLS Listings deemed accurate but not guaranteed. The “closed” column represents homes closed (houses & duet homes) in the last month.

As you can see, up to about $1,200,000 it’s a very strong seller’s market with less than 2 months of inventory. But beyond that price point, it’s suddenly a completely different market and is instead a very strong buyer’s market.

What about distressed property sales in Almaden?

There are almost no bank owned properties currently for sale or recently closed in Almaden – just 1 in the entry level price band which is currently listed for sale.

There are not many short sales in Almaden: right now just 5 for sale: 3 in the lowest of these five price groups, 1 in the 2nd lowest and one in the highest. Closings among short sales are also few in number: 2 in the lowest price point and one in the second lowest.  The absorption rate or months of inventory among short sales was 1.5 in the lowest price point and 1 month in the second lowest. No closings among higher priced homes that were also short sales in the last month.
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Are real estate prices rising in Silicon Valley? In many places and certainly in the lowest price ranges, housing prices are going up. I see this especially in entry level homes for sale but also in the most affordable homes in expensive areas too.

In Monte Sereno, Los Gatos, and in the Los Gatos mountain communities it’s often a little different than the rest of the valley, so rather than generalize, let’s see for ourselves. Today I’ll use the charts from Altos Research (by permission – I have a subscription) to illustrate the pricing situation in these areas over the last 90 days among single family homes (houses rather than condos or townhouses). This post will include a series of graphs. The first chart does a great job of indicating affordability - that is, which areas/zips are more easy or difficult to afford.

Here are two snapshots of the median list price of Monte Sereno 95030, Los Gatos 95030, Los Gatos 95032, and Los Gatos mountains 95033. First, one with the 3 LG zip codes combined:

Then with them separated out by zip:

The most expensive homes in Monte Sereno appear to be the softest part of the market.

A quick word about how “mild” the changes may seem, whether up or down – this is purely a function of the graph having a very broad price range. If we separate it out to just Monte Sereno or Los Gatos alone, it looks more startling:

If we do JUST Los Gatos 95030:
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If you’re interested in buying (or for that matter, selling) a Los Gatos short sale, please visit my Live in Los Gatos blog, where yesterday I wrote about this subset of the real estate market. Topics covered include:

• the current number of short sale listings on the market in Los Gatos
• the current number of pending solds (of short sales)
• the number of short sales which have closed escrow in the last month
• the “absorption rate” or “months of inventory” in the short sale market in LG
• a study of short sales listed between 1-1-09 and 6-30-09: how many of them actually sold & closed in the last year? how many are on the market still? how many are “off market” and off the radar?
• how long does it take to sell a short sale in Los Gatos?
• how long does it take to close escrow on a LG short sale?

Here’s the article & link:
Los Gatos Short Sales: Snapshot of Today’s Activity

If you’ve been trying to sell your home in Los Gatos, Saratoga, Almaden Valley, Cambrian, or anywhere in the greater San Jose area but haven’t received an offer yet, don’t dispair!

With our mild winters, you really can sell real estate any time of year. 

Not only that, but in December a lot of folks DO pull their property off the market, and the result is a tightening of inventory across Silicon Valley from the months immediately prior. The ratio between listed and sale pending homes improves dramatically. (The “absorption rate” tends to improve with fewer houses, condos and townhouses listed on the MLS.)

But you’re thinking: it’s a hassle. It’s the holidays. Is this any time to sell Silicon Valley real estate?

And you’re right. So do it differently.
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Things have been rough for first time home buyers in Silicon Valley. Lenders have been tightening requirements for months, demanding larger down payments and more perfect credit than at any time in the last 10 years.  This is true all across Santa Clara County, from Evergreen to Saratoga to Cambrian Park and South San Jose. Money is tight.

For those hoping to get into a single family home for under $500,000, which is possible in some parts of San Jose right now, there’s real improvement in affordability over the prices we saw a year ago. But that’s only true if you can buy! Don’t be discouraged – if you want to buy, now’s the time to begin planning.

What do you need to do to be able to take advantage of the soft Silicon Valley real estate prices?

• Cash is king, especially now – so save for that down payment
• If necessary, consider buying your first home with your parents’ help. They can put down some of the downpayment and be on title with you and you can pay them back over time. Of course, consult a real estate attorney to set this up!
• Check into the first time homebuyer programs available in your city or town
• Meet with a good lender (who comes to you by referral) to work out a plan to buy, clean up any credit issues, and investigate any other opportunities for assistance (such as programs for teachers, firefighters, police officers, and other city or county employees)

Call or email me if you’d like to talk about the possibilities of buying a home in today’s Silicon Valley real estate market!

I entered real estate full time as a licensed professional and a Realtor (a member of the National Association of Realtors, Calif Assn of Realtors and Silicon Valley Assn of Realtors – these are trade groups with high standards demanded and not all licensees are members) in the first few weeks of 1993.  The market was slow and difficult.  I cut my teeth on a couple of short sales, never knowing I’d need to do a lot more of them in 2008 – 2010 and beyond.

My mother, Pat Pope, was a Realtor since before I was born and she logged 40 years in the business when she died in 1996.  I like to joke that my first words were “raised foundation“.  I learned a lot from her and am grateful that we had a few overlapping years. She was a great coach and mentor! 

In the course of my career I have worked in several offices (for several brokerages) and know a lot of the local Los Gatos – Saratoga – Almaden – San Jose area agents. This is very helpful with networking.  I also racked up a lot of classes, seminars and conferences and truly am an education junkie.  In that vein, I also worked to earn a number of certifications and designations, the most prized of which is the CRS, Certified Residential Specialist (which is held by only about 7% of all Realtors).  I love to write and in 2004 co-authored a book on selling homes in Silicon Valley.

In the last decade my business has grown and I’m now usually in the top 5 – 10% of agents in the county for sales.  I have won many awards for production and also for service.

My real estate sales have centered around the west valley communities of Silicon Valley: Los Gatos, Saratoga, Cambrian Park, Campbell, Almaden Valley, Willow Glen and nearby areas. I have sold all over Santa Clara County (Los Altos, West San Jose, Morgan Hill, Milpitas, Alum Rock, Santa Clara, Sunnyvale, Cupertino, Santa Teresa, Blossom Valley…) and occassionally have sold in neighboring counties too (at my clients’ request).

The price points and home types I work with range from modest 1 bedroom condos listed at under $200,000 to houses or duplexes to multi-million dollar estate properties. I have sold new homes as well as “resale”.  I do not sell the mountains or mobile homes, but will gladly refer them out. I have not sold raw land or commercial but again can help you to locate a great agent if need be. 

Today most of my clients come to me either through my blogs and websites or are repeat or referral based.

For more information:  To read a complete resume and list of my designations, awards, college level real estate courses and more, please visit my profile on my popehandy.com website:  http://www.popehandy.com/profile/index.cfm

And please also read testimonials from my cients here:
http://www.popehandy.com/profile/testimonials.cfm

Several people, companies, and systems assist me in my work with buyers and sellers in Silicon Valley. Most often, my clients will not see or speak with many of them much (if at all), but they are all part of the package, if on the “back end” much of the time.

Within My Brokerage:

At my brokerage, Sereno Group in Los Gatos, my escrow coordinator, Kathy Wimble, makes sure that the paperwork is complete. With a myriad of places to sign and initial and papers not to forget, it’s helpful to have a second set of eyes on the file. Additionally, other agents also review the file on behalf of Sereno management. When there are legal questions, which can come up from time to time, we have a legal counsel available through Ryan Iwanaga, my manager, or Chris Trapani, the CEO of Sereno Group, and we get answers back within a business day, if not a few hours. Finally, there are several agents who assist me in some cases (vacation, sickness, family emergencies). So I’m well supported on the office or firm level. When you hire me, you get a full staff behind me.

Outside Specialists:

(A) INSPECTORS

Whether buying or selling a silicon valley home or investment property, good inspections are critical. I don’t have one list for buyers and another for sellers – no matter which end of the transaction you’re on, you want excellent information. Surprises tend to sour escrows, so part of the plan in helping you avoid trouble is to avoid surprises. Only with excellent information can you make good decisions and have more control of the way your real estate sale progresses.

1. Home or Property Inspectors. It is crucial that your property inspector be exceedingly well trained, experienced, careful, clear, and through. In California, there is no license for home inspectors. However, there are a couple of trade groups which have a very high standard of practice. One is ASHI (American Society of Home Inspectors) and the other is CREIA (California Real Estate Inspection Association).

There are many good home inspectors in the San Jose area, but my #1 choice is Duane Serrano of Tri Star Home Inspections. Duane is an ASHI member with 15 years experience. I have not found him to either miss or over call issues (I have sometimes had inspectors who say a chimney or roof is bad, have the clients hire more experts, only to find out that it was fine – that aggressive over-calling is expensive, time consuming and upsetting). Duane also provides my clients with suggestions as to solutions and how to make the home last longer with proper care. He gets the reports out, with digital photos, on a same-day basis. Duane’s website is http://www.tristarinspections.com/ or he can be reached by phone at 408 266-2706.

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