The Los Gatos real estate market is varied from one price point or school district to the next, but over all, this is a fairly stable period with some slight warming over the last couple of months. Here are the current numbers, per my Los Gatos real estate report (click on the link for full information).
The Los Gatos Mountains are a distinctly different market and as such are covered in a separate market update, updated less frequently than here, but with live Altos charts for that area.
Los Gatos / Monte Sereno housing values and pricing trends (aka “area 16” for our MLS, zip codes 95030 and 95032)
|Trends At a Glance||Apr 2018||Previous Month||Year-over-Year|
|Median Price||$2,425,000 (+4.5%)||$2,320,000||$2,157,500 (+12.4%)|
|Average Price||$2,626,180 (+0.1%)||$2,624,710||$2,295,380 (+14.4%)|
|No. of Sales||30 (-26.8%)||41||25 (+20.0%)|
|Pending||31 (+3.3%)||30||34 (-8.8%)|
|Active||58 (+52.6%)||38||62 (-6.5%)|
|Sale vs. List Price||108.0% (+2.3%)||105.6%||104.4% (+3.5%)|
|Days on Market||20 (-5.0%)||21||39 (-49.9%)|
|Days of Inventory||56 (+101.6%)||28||72 (-22.0%)|
And the chart from last month for reference:
|Trends At a Glance||Mar 2018||Previous Month||Year-over-Year|
|Median Price||$2,320,000 (+11.1%)||$2,087,500||$2,200,000 (+5.5%)|
|Average Price||$2,624,710 (+15.8%)||$2,267,180||$2,319,510 (+13.2%)|
|No. of Sales||41 (+70.8%)||24||35 (+17.1%)|
|Pending||30 (-14.3%)||35||28 (+7.1%)|
|Active||38 (+8.6%)||35||53 (-28.3%)|
|Sale vs. List Price||105.6% (-1.2%)||106.8%||102.4% (+3.1%)|
|Days on Market||21 (-0.3%)||21||31 (-32.1%)|
|Days of Inventory||28 (-29.4%)||39||45 (-38.8%)|
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Luxury home sales are going like crazy in the west valley areas of Santa Clara County. Right now in Almaden Valley, Los Gatos, Monte Sereno and Saratoga, there are 115 houses for sale listed at or more than two million dollars (just checked MLSListings.com), and in the last 30 days 52 have sold and closed escrow in those same areas and price ranges. For the Almaden – Saratoga region generally, then, there are 2.212 months of inventory in the over two million dollar price range (115/52). That makes it a strong seller’s market. Things have certainly stayed lively since last year. (In the same region, there are 39 pending sales.)
Next we’ll look at these four Silicon Valley communities separately to see how the luxury market in each one is faring overall.
Almaden Valley (San Jose, 95120)
Currently in Almaden there are 12 houses for sale which are listed at or over $2,000,000. In the last 30 days, 3 sold in that price range (with 2 sales pending). That makes for 4 “months of inventory,” which can be considered a balanced market in many areas though is leaning towards being a seller’s market. That would mean this luxury market has good turnover but is not as strong a market as elsewhere. It’s a close to balanced market in Almaden Valley among the most expensive real estate offerings for sale. Five to six months is balanced and over six is a buyer’s market. Continue reading
How is the Monte Sereno real estate market? Because the city is small, with just about 4000 residents, there usually are few homes listed for sale or selling, and with small numbers we can get seeming volatility. Last January, for instance, there was only one home listed and none sold!
There are no condominiums or townhomes in Monte Sereno at present. One of the major challenges for this city is to ensure that at least some housing units are deemed “affordable.” You can find the city’s housing plan here (a pdf online):
Recently closed home sales in Monte Sereno
Here are the quick statistics for the closed sales in the last complete month to give a sense of how things are going with the Monte Sereno real estate market. Sales data comes from my Monte Sereno Real Estate Report. Given that the supply of homes to study is tiny, what can we tell from this data?
It’s true that an average Monte Sereno house is about $2.5-3 million, and often higher in the current market – a little steep for most folks! With 7 active, 1 pending, and 1 sales this past month, low data makes it hard to get the most accurate market information. During times like this, it’s more important to look at the trends over multiple months than to base your understanding of the market off a single month, and to compare with similar, nearby markets such as Los Gatos.
Below are the charts from the last two months.
|Trends At a Glance||Mar 2018||Previous Month||Year-over-Year|
|Median Price||$5,800,000 (+79.8%)||$3,225,000||$2,415,000 (+140.2%)|
|Average Price||$5,800,000 (+57.3%)||$3,686,880||$2,491,250 (+132.8%)|
|No. of Sales||1 (-75.0%)||4||4 (-75.0%)|
|Pending||1 (N/A)||0||2 (-50.0%)|
|Active||7 (+40.0%)||5||9 (-22.2%)|
|Sale vs. List Price||96.7% (+0.3%)||96.4%||96.2% (+0.5%)|
|Days on Market||72 (+678.4%)||9||45 (+61.8%)|
|Days of Inventory||210 (+522.2%)||34||68 (+211.1%)|
And a look at the data from the previous month for the Monte Sereno real estate market:
|Trends At a Glance||Feb 2018||Previous Month||Year-over-Year|
|Median Price||$3,225,000 (N/A)||$0||$2,557,500 (+26.1%)|
|Average Price||$3,686,880 (N/A)||$0||$2,557,500 (+44.2%)|
|No. of Sales||4 (N/A)||0||2 (+100.0%)|
|Pending||0 (-100.0%)||2||2 (-100.0%)|
|Active||5 (+400.0%)||1||11 (-54.5%)|
|Sale vs. List Price||96.4% (N/A)||0.0%||98.2% (-1.8%)|
|Days on Market||9 (N/A)||0||35 (-73.6%)|
|Days of Inventory||34 (N/A)||0||149 (-77.3%)|
Because so few houses sell per month, pricing appears to jump around when that’s not actually the case. I suggest that readers also check the real estate market for Los Gatos to see a larger amount of data. The Monte Sereno home prices tend to be a little higher but generally follow the Los Gatos trends, so it’s worth while to view this info also to get a more balanced sense of how things are for real estate in Monte Sereno. Also, for those considering buying or selling, it’s important to look at the actual listings for each and every sale with similar features, size, amenities to get a sense of your home’s particular subset of the market.
Continue reading to view live Altos Research charts for the real estate market in Monte Sereno, including by pricing quartile. Continue reading
What makes an expensive house in the San Jose area more than just a pricey bit of real estate, but instead a Silicon Valley 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 $1,200,000 may fetch a 4000 square foot home, new construction, in an upscale gated community with country club amenities such as a golf course, tennis courts, and more. Here, that same $1,200,000 will procure an entry to mid-level single family home in many parts of Santa Clara County. It won’t necessarily be a Silicon Valley luxury home.
Luxury connotes a combination of qualities, features, and amenities. And it includes pricing (relative to the nearby market), condition, land, design.
Pricing Luxury Homes in Silicon Valley: What Do They Cost?
Expensive Silicon Valley homes are not necessarily luxury homes. Depending on the city or town, the price tag could be higher or lower. For instance, a fabulous house on a large lot in Gilroy’s Eagle Ridge might sell for 1/3 as much as the identical type of home, land and neighborhood found in Saratoga, Monte Sereno, or Los Gatos, or Los Altos, if a similar home happened to be available. Generally, though, luxury homes could cost as little as $1,000,000 or so in some parts of Silicon Valley or in neighboring counties, but in most parts of Silicon Valley, a true estate type property will be valued at $2,000,000 or $3,000,000 or more. In some areas, such as Palo Alto, that $2 million doesn’t go too far and the home you can purchase at that price tag may need major updating – or it could be “land value”. For our purposes today, we’ll use $2 million as the bottom number for estate properties, but it may or may not be the case in some areas.
One question I get a lot is this: what does it cost to buy a 4 bedroom, 2 bath house of about 2000 square feet?
So to answer this question, let’s see what houses like this are selling for (4 bed, 2 bath, appx 2000 SF or 185 square meters) and see how the cost looks in one Santa Clara Count y / Silicon Valley area versus another.
Today I compared several areas and cities using this criteria: single family homes of 1800 – 2200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 6000 SF to 10,000 SF. Normally I would chart this over the last 2 months, or 60 days, but because of the low inventory causing the sellers market I have expanded the search to the last 3 months, or 90 days, for a better range. As of this writing, Saratoga only had one sale over the last 90 days, so data for that segment may or may not be a good average.
Here’s how it shakes out in the “west valley areas” along the Highway 85 corridor, most of which are known to have good to great public schools. What areas are most affordable? One way of analyzing this is the “price per square foot” figure. Whenever I update the chart, I re-arrange the order of the cities from high to low based on the price per square foot, although there’s usually minimal movement.
To compare, here are the numbers from the this past January 26, 2017. There were fewer sales, so the search range was bumped up to 120 days instead of 90 days (and Los Altos was so low, it was individually searched at 180 days). You might notice price per square foot appears lower across the board in January compared to July. This is most likely because the market has heated up over spring and summer, which you can also see in the DOM.
Below are my results from the same search back in September 18, 2015. By comparison, you can tell that Santa Clara’s average Price has increased, pushing it above Almaden and Campbell.
How competitive is the market? Have a look at the DOM or “Days on Market” figure. All of these days on market are short, but they range from low to heart-skippingly fast.
In most cases, the priciest and most desirable places have either the best schools or shortest commute location or both (Palo Alto and Cupertino have both). Had I ranked these for school scores, you’d find that Cambrian is fairly high up and a good “bang for the buck” location – though not a super short commute for folks who work in Mountain View (though not so bad for people working in Cupertino). Almaden, too, offers a good value for the quality of the schools, homes, and neighborhoods, though the commute is longer. None of these is especially close to North San Jose (where a major employer is Cisco).
It should also be noted that in some of the smaller communities with less on the market these numbers may not be as stable as others with more data – for instance, Los Altos only had four homes sold, the second lowest, matching this criteria within the 90 days of collected data, and therefore may not be as accurate as others, such as the Blossom Valley area of San Jose with the most data at 38 homes sold. For these smaller communities with less data, it is beneficial to look at them more closely – Saratoga, for instance, has 3 different high school districts which have an impact the real estate prices. This chart is really just a snapshot to give a general sense of the relative affordability of these markets to one another. Continue reading
Often I have clients who are interested in purchasing a 4 bedroom, 2 bath home in a good school district in Silicon Valley, particularly in the South Bay and West Valley areas. Tonight I did a study on the MLS of homes that have sold and closed escrow in the last 4 months with these characteristics:
- single family home (house)
- 4 bedrooms
- 2 bathrooms
- 1800 to 2200 square feet of living space
- 6000 to 10,000 sf lot
Disclaimers aside, here are the numbers for select West Valley Communities in the West/South Bay area with good schools. The first number is the average sales price per square foot, the second number is the average sales price:
And a look at the chart from all back in 2015…
And all the way back in 2011. What’s changed? A lot! The order has shifted some, showing where demand has increased or decreased. Most noticeably, the prices are significantly lower in 2011 than they are now. The 2015 chart shows prices somewhere in-between the 2011 and 2017 levels. Palo Alto and Los Altos remain consistently in the top two positions.
The home prices tend to run with the school district API scores. You can check the 2013, three year average, API scores in Santa Clara County for both the districts and the individual schools online here. Continue reading
I am a full-time, second generation, award-winning & enthusiastic Los Gatos real estate agent, serving this town and the county too – a Silicon Valley Realtor. Real estate was my second career after I’d worked happily in the area of religious education (in Catholic high schools) & ministry for several years. Economics necessitated an employment change, and real estate was a natural fit as it really is a “helping profession” and I’d grown up with it. I like to joke that my first words were “raised foundation”.
An area native, I was raised in Santa Clara and Saratoga, graduating from Saratoga High in 1977. As an adult I lived in several parts of the valley, including 10 years in Cambrian Park, and since 1999, in Los Gatos. Over the years I’ve also spent extensive time in Campbell, Almaden, and many parts of the West Valley.
I hold a Bachelor of Arts from Gonzaga University in Spokane (a Catholic university run by Jesuits – in Religious Studies, 1981) and thanks to my parents’ generosity, was able to enjoy a fabulous Junior year abroad at Gonzaga-in-Florence, Italy (1979-1980), which cemented my love of travel and all things Italian. (With some refreshing, I can still manage a simple conversation in Italian – which is fun!) After some teaching, I earned a Master of Arts (in Systematic Theology, 1986) from The Graduate Theological Union/Jesuit School of Theology at Berkeley.
Afterwards I returned to teaching religion in Catholic high schools, a very rewarding career, for a few years, until our children came onto the scene. I did a lot of related volunteer work too, with my favorite being as a volunteer chaplain at Good Samaritan Hospital in the early 90’s. Additionally, I worked in the Rainbows Program at our parish, St. Mary of the Immaculate Conception in Los Gatos. Rainbows is a peer-to-peer ministry/support group for kids suffering from any major loss, such as the death of a parent or divorce.
Sereno Group, Los Gatos
Serving Santa Clara County: Los Gatos, Monte Sereno, Saratoga, Campbell, and San Jose (Almaden Valley, Cambrian Park, Willow Glen) and nearby
California Department of Real Estate license # 01153805
Hobbies include enjoying walks in the neighborhood, Belgatos Park, and throughout the San Francisco Bay area – usually with camera in hand and blogging ideas being created! I love to write, hence the huge number of blogs, and wonder if someday I might write a novel. Photography, live music, and travel are all top hobbies too. I often enjoy the Almaden Music in the Park or any of the Los Gatos musical events. In 2016, I was over the moon to hear Andrea Bocelli perform at the SAP center in San Jose.
Whether you call it the San Jose area, Santa Clara County, Silicon Valley, The South Bay, or even the old moniker of “The Valley of Heart’s Delight”, there is a lot to love about living here. I’ve put together a slideshow with a taste of the residential communities in and near San Jose, including Almaden, Willow Glen, Cambrian, Evergreen, Los Gatos, Saratoga, Monte Sereno, Campbell, Cupertino, Santa Clara and more. Sit back and enjoy the photos!
The luxury homes market frequently behaves very differently than the rest of the real estate market as a whole. If interest rates jump around, the impact is often far less since the home buyers of estate properties may not be nearly as dependent upon financing. Many of these fine homes & estates are paid for “all cash”. (In some cases they do this but later arrange financing, perhaps funding a “charitable remainder” trust rather than a more typical institutional loan.)
How’s the real estate market for high end homes in Los Gatos, Monte Sereno and the Los Gatos Mountain communities? Defining “luxury homes” is a bit tricky because what constitutes luxury can vary from area to area (check out these estate homes for sale in the Buffalo NY area). For now let’s use prices of $2 million or greater as we first look at the Months of Inventory or Absorption Rate – though in fairness, the luxury price point is a little lower in the mountains. (Six months is considered balanced by the National Association of Realtor, less is a sellers market and more is a buyers market.) I first did this study in October of 2012 and will provide those numbers as a window back in time for comparison purposes.
Monte Sereno is having no trouble selling luxury homes compared to the rest of the Los Gatos area right now. The Los Gatos Mountains (Chemeketa Park, Redwood Estates, Aldercroft Heights and other areas) struggles with the over $2 million market.
No matter how you look at it, overall it is a seller’s market in the luxury home strata in Monte Sereno and Los Gatos – but not the Los Gatos Mountains. It is not so crazy as the entry level homes, which have a much faster absorption rate, so buyers, take heart! Three months of inventory is pretty doable and not so far from a “balanced” market here.
Altos charts on the LG area
Next we’ll change gears and use Altos Research and quartiles to evaluate the most expensive listings. We will look at the top quartile of list prices, the high end listings in Los Gatos (zip codes 95030 and 95032 in town), in the Los Gatos Mountains (unincorporated, 95033) and Monte Sereno (99.9% of which is in 95030 but a tiny sliver has the 95032 zip code). The charts I’m using are live and will be continuously updated by Altos Research, to which I have a subscription.
List prices of homes for sale in the topmost price quartile in Los Gatos, Monte Sereno and the Los Gatos Mountains
Please continue reading to view the real estate trend charts for the various areas & elementary school districts across Santa Clara County (San Jose, Los Gatos, Cupertino, Milpitas, Campbell, Saratoga, Santa Clara, Sunnyvale, Monte Sereno, Morgan Hill, Los Altos, etc.)