Willow Glen is perhaps the most charming residential area of the city of San Jose with its old style architecture, tree lined streets and quaint downtown area on Lincoln Avenue and nearby. For folks working in downtown San Jose, the Willow Glen area (roughly the same as 95125 zip code, though a bit of 95124 is included also) is extremely convenient.
The real estate market in Willow Glen is declining slightly from the peaks earlier this year, but values are up year over year, just like the most of the valley. My sense is that this is a seasonal fluctuation combined with “buyer fatigue”. Last year, the housing market did not follow the regular pattern – but this year, perhaps we are settling back into exactly that.
Click for the complete Willow Glen real estate report with all of the numbers, stats and trends from the closed sales of houses for last month. Further down in this article you’ll find the Altos Research charts as well.
Willow Glen Market Trends
|Trends At a Glance||Jul 2018||Previous Month||Year-over-Year|
|Median Price||$1,462,500 (-0.1%)||$1,464,500||$1,309,380 (+11.7%)|
|Average Price||$1,515,270 (-3.2%)||$1,565,640||$1,391,670 (+8.9%)|
|No. of Sales||46 (-14.8%)||54||50 (-8.0%)|
|Pending||46 (0.0%)||46||46 (0.0%)|
|Active||70 (+22.8%)||57||39 (+79.5%)|
|Sale vs. List Price||103.5% (-1.4%)||105.0%||102.8% (+0.7%)|
|Days on Market||15 (+6.9%)||14||20 (-22.3%)|
|Days of Inventory||46 (+49.1%)||31||23 (+95.1%)|
and from last month:
|Trends At a Glance||Jun 2018||Previous Month||Year-over-Year|
|Median Price||$1,464,500 (-8.9%)||$1,607,500||$1,300,000 (+12.7%)|
|Average Price||$1,565,640 (-10.5%)||$1,749,340||$1,359,430 (+15.2%)|
|No. of Sales||54 (-18.2%)||66||85 (-36.5%)|
|Pending||46 (-16.4%)||55||50 (-8.0%)|
|Active||57 (+7.5%)||53||37 (+54.1%)|
|Sale vs. List Price||105.0% (-4.7%)||110.2%||105.1% (-0.1%)|
|Days on Market||14 (+14.7%)||13||16 (-7.9%)|
|Days of Inventory||31 (+27.1%)||24||13 (+142.5%)|
And next, of Willow Glen condos:
The Santa Clara County real estate market is cooling off, which is very often the case in summers here. It varies from place to place within the region, and one pricing tier to the next, but I am definitely seeing and hearing about fewer offers, more lowball offers, contingencies creeping back into sales, etc. In red hot properties with great schools, you might get a half dozen offers…and three of them may be “bad” offers from home buyers who are pessimistic on the market. They do not get the sale, of course, but it is interesting to hear about an increase in those kinds of bids.
My RE REport just came out, and here are some images and data from that for Santa Clara County. First, the market barometer. Here, you can see that sellers had stronger power in March than they do now – by quite a lot! (Click on the image to go to the report and see a clearer version of it.)
Next, the average and median sale prices and the number of units (again, click on the image to go to the report). This graphic does not look as bad or as much of a change as the one before, though you can see that since May prices have gone down a little, and sales are now tipping downward and are fewer than sales for this time last year.
Next, the sale price to list price ratio is a bit more startling. Sales are still averaging about 1-05% of list price – so that is hard for sellers to complain about – however, it is unmistakable that the climate for home selling in Silicon Valley is undergoing a change and this is literally past its peak. Buyers and sellers alike need to wonder whether it will calm down or continue at the current rate of decline. Is it a buying opportunity, or the beginning of a correction?
The numbers themselves point to a turnaround in the market. I’ll jot the median sale price for the county here – it’s a large enough pool of sales to be pretty reliable as a gauge of the real estate market in the San Jose area:
July 2018 $1,350,000
June 2018 $1,402,000
May 2018 $1,416,000
April 2018 $1,420,000
March 2018 $1,450,000 – PEAK
February 2018 $1,380,000
January 2018 $1,163,000
Between March and July, the median sale price dropped $100,000, or 6.89%. As you can see, it had also jumped considerably between January and March, and even at today’s lower median sales price, it’s still higher than January. It will be interesting to see where it ends up in January of 2019.
A quick look at the numbers for this month’s Santa Clara County RE Report:
Trends at a Glance
|Trends At a Glance||Jul 2018||Previous Month||Year-over-Year|
|Median Price||$1,350,000 (-3.7%)||$1,402,000||$1,175,000 (+14.9%)|
|Average Price||$1,624,690 (-5.1%)||$1,712,500||$1,409,380 (+15.3%)|
|No. of Sales||847 (-13.3%)||977||1,015 (-16.6%)|
|Pending||924 (-0.6%)||930||931 (-0.8%)|
|Active||1,151 (+8.0%)||1,066||816 (+41.1%)|
|Sale vs. List Price||105.6% (-2.0%)||107.8%||105.5% (+0.1%)|
|Days on Market||19 (+13.7%)||17||20 (-6.7%)|
|Days of Inventory||41 (+28.8%)||32||24 (+69.0%)|
It’s now August 10th and it’s too early to know for sure what the August numbers are doing, but normally August is a quiet month with sale prices a little off. So we’ll see. Continue reading
The Sunnyvale real estate market has been trending upward for many months. In general, houses in Sunnyvale are selling for about one million eight hundred thousand dollars – if they aren’t too small or in terrible shape (or conversely palatial or newly built or remodeled). Let’s begin with single family homes. The median list price for homes in Sunnyvale CA – all zip codes combined – interestingly, the high end homes are doing the best! (Live charts from Altos Research, which uses LIST prices, not sale prices.)
Sunnyvale real estate market: Altos Research, median list prices by quartile
What about the numbers for the closed sales? Now let’s have a look at the Sunnyvale CA RE Report for last month’s trends and statistics (click on link to get the full Sunnyvale real estate market report):
Sunnyvale Real Estate Market Trends at a Glance
|Trends At a Glance||Jun 2018||Previous Month||Year-over-Year|
|Median Price||$2,010,000 (-0.3%)||$2,016,890||$1,820,000 (+10.4%)|
|Average Price||$1,956,120 (-2.6%)||$2,008,840||$1,794,320 (+9.0%)|
|No. of Sales||54 (-23.9%)||71||62 (-12.9%)|
|Pending||38 (-19.1%)||47||52 (-26.9%)|
|Active||46 (0.0%)||46||17 (+170.6%)|
|Sale vs. List Price||110.0% (-5.3%)||116.1%||113.1% (-2.7%)|
|Days on Market||17 (+78.9%)||10||15 (+19.4%)|
|Days of Inventory||25 (+27.1%)||19||8 (+210.7%)|
And from last month for comparison:
|Trends At a Glance||May 2018||Previous Month||Year-over-Year|
|Median Price||$2,016,890 (-0.2%)||$2,020,000||$1,715,000 (+17.6%)|
|Average Price||$2,008,840 (-0.6%)||$2,020,500||$1,685,060 (+19.2%)|
|No. of Sales||71 (+24.6%)||57||72 (-1.4%)|
|Pending||47 (-19.0%)||58||55 (-14.5%)|
|Active||46 (+43.8%)||32||27 (+70.4%)|
|Sale vs. List Price||116.1% (-3.4%)||120.1%||113.3% (+2.5%)|
|Days on Market||10 (+22.2%)||8||11 (-10.6%)|
|Days of Inventory||19 (+19.4%)||16||11 (+72.8%)|
Yeowch! This market’s beyond hot – it’s scorching! The average sales haven’t cooled much since the last month with the average sales happening at 120.4% of list price. Properties are still flying off the shelves at 10 days on market.
What about the Sunnyvale condo and townhome market?
How’s the Cupertino real estate market?
Much of the Santa Clara County is seeing lower prices than it did back in March or April. There was a slight dip in prices in May, but it bounced right back in June. The median sale price in June for single family homes was the highest year to date in 2018. The average sale price in June was just a tad off of the highest average sale price month of the year, which oddly enough had been in January. (That said, there were only 9 closings in January – not a big pool for statistical purposes. You can see the current sold stats near the bottom of this article under the RE Report subtitle.
About this info:
The real estate market in Silicon Valley can sometimes be a little quirky, so I like to approach this question from a few angles. In this article I’ll make use of my charts from Altos Research, which uses listing data (not solds) and is automatically updated every week and also monthly reports from my RE Report subscription, which uses sold data as well as active listings data. Also I’ll periodically update it with info from the MLS that I have crunched myself or anecdotal stories from those of us “in the trenches.” The article is a bit long but I think much more comprehensive giving the multiple methods of answering the question of how the Cupertino real estate market is faring.
Cupertino median list price of houses by price quartile
Often the real estate market in any given city is very different between the most expensive homes and the most affordable ones. While many Cupertino home buyers are looking for a short commute, great public schools or strong resale value, some seek a luxury property with a view in the Cupertino hills (either off of Montevina Road by Ridge Vineyards or in other lower foothills). The more moderate pricing tiers are faring better in Cupertino and in most of the valley than those in that luxury tier (think over $3 or $4 million for luxury tier in this city).
The last few months have had some ups and downs in pricing, but most segments of the Cupertino real estate market have seen an overall uptick since last year, even after a bit of recent price cooling. The luxury market in Cupertino had a steep rise at the start of the year, but it appears to have peaked. What if we look back more than a year? Combining the quartiles, it seems that there’s been more up than down, though buyers will be happy to see the current trend is pointing down.
How’s the real estate market in Morgan Hill? This article will include data, trends and statistics for both houses and condominiums/townhouses.
For the single family home segment in this “south county” town, prices are up more than 20% year over year and flat month over month. The single family home and condo market are both seller’s markets, but it’s a lot deeper for houses than for condominiums or townhomes.
The cities of Morgan Hill and Gilroy are usually a bit less in demand than parts of Santa Clara County which are either tech magnets or closer to these big businesses. So while most of the Silicon Valley has a sale price to list price ratio of anywhere from 100% to 110%, it’s generally lower here, making the home buying conditions calmer for weary buyers, though still a sellers market. Below is a chart with basic info, but to see more information, you may click on this link to see the Real Estate Report for Morgan Hill.
Trends at a Glance for Single Family Homes in Morgan Hill
|Trends At a Glance||May 2018||Previous Month||Year-over-Year|
|Median Price||$1,100,000 (0.0%)||$1,100,000||$887,500 (+23.9%)|
|Average Price||$1,130,880 (+0.7%)||$1,122,850||$908,325 (+24.5%)|
|No. of Sales||55 (+17.0%)||47||50 (+10.0%)|
|Pending||59 (-3.3%)||61||80 (-26.3%)|
|Active||54 (+17.4%)||46||76 (-28.9%)|
|Sale vs. List Price||104.3% (0.0%)||104.3%||100.4% (+3.8%)|
|Days on Market||31 (-31.0%)||45||15 (+102.9%)|
|Days of Inventory||29 (+3.8%)||28||46 (-35.4%)|
And the numbers from last month:
|Trends At a Glance||Apr 2018||Previous Month||Year-over-Year|
|Median Price||$1,100,000 (+10.0%)||$1,000,000||$760,000 (+44.7%)|
|Average Price||$1,122,850 (-0.4%)||$1,126,810||$838,204 (+34.0%)|
|No. of Sales||47 (+42.4%)||33||24 (+95.8%)|
|Pending||61 (-12.9%)||70||65 (-6.2%)|
|Active||46 (+31.4%)||35||80 (-42.5%)|
|Sale vs. List Price||104.3% (+0.5%)||103.7%||102.4% (+1.8%)|
|Days on Market||45 (+92.4%)||24||27 (+70.0%)|
|Days of Inventory||28 (-10.8%)||32||97 (-70.6%)|
How are the key housing indicators in the Almaden Valley area of San Jose? At the moment it’s said to be a hot “seller’s market” overall. But look closer and you can see that in the Almaden Valley housing market there are clear market micro-climates. Prices are better for sellers, while buyers struggle with higher prices and less homes to choose from. Recently we have seen a slight cooling, too – very welcome for Almaden home buyers.
Almaden Valley Housing Market: Inventory of Houses for Sale
Right now I have a few Almaden Valley home buyers and they have all been disappointed at the lack of inventory. What’s happening?
First, let’s see what “usually” happens in the 95120 zip code in terms of the number of houses for sale. Here’s a look at the last 10 years (all available history), care of Altos Research – you can see that it’s been rising since January 1st, but it’s a proverbial drop in the bucket:
Here you can see that inventory has regular peaks and dips. Inventory tends to rise early each year and peak in mid to late summer. After the peak is a decline through autumn and winter with the lowest point in the coldest part of the year before turning around again before spring.
Now let’s look up close at just the last 3 years. Again, inventory IS rising, so it’s betting a little easier for buyers, but still difficult compared to the last 3 years.
As usual, our inventory bottoms out in winter and then rises beginning sometime after the Super Bowl or perhaps a little later. Right now we are still in “rising inventory” mode in Almaden, so the market should be softening a little. Also, we are hearing of “buyer fatigue”, so in many cases there may be fewer offers than earlier in the spring. Continue reading
How’s the Saratoga California real estate market?
This is a fairly comprehensive article on the Saratoga real estate market that will include the live statistics from Altos Research for listed properties (not closed) in Saratoga CA 95070, the closed sale data from the RE Report for last month in Saratoga 95070, and the numbers I crunched for Saratoga – overall and by price point and high school district, since Saratoga has 3 different high school districts, each with an impact on home values.
First, let’s consider the months of inventory by price point and high school district that I crunched using MLSListings.com, our local multiple listing service provider.
The months of inventory is a reference to how fast homes would be absorbed into the market if sales continued at the same pace and no new inventory came onto the market. It’s often referred to as “the absorption rate” – and that can be months of inventory, weeks of inventory, or days of inventory. A “balanced” market is somewhere around 4-5 months for us, though the National Association of Realtors says that 6 months is balanced nationwide. Anything under 3 is a good seller’s market, and under 1 is like saying that homes are “flying off the market.”
(For comparison, please also see a similar article on the Live in Los Gatos blog for the town of Los Gatos – real estate market by price point and high school district.)
Here’s the chart for Saratoga – all price points, all school districts.
And for comparison, here’s the chart from last month:
This month the data is back to what’s been the norm as of late – a strong seller’s market with fairly low inventory. Just under 2 MOI is a hot market, but if you look at where the listings are and compare it to the sales you are able to see there is at least one big exception. We can tell that the highest price point, $5+ million, is a much slower buyer’s market, which is common, and the other price points are frequently even lower than the average. Because the inventory is so small, the data can be easily distorted, so it is helpful to look a little farther back for general trends and pricing. As always, each property is unique, so this chart is just a guide and finding the right price to list or offer requires closer inspection and is best done with the help of a qualified agent.
By comparing across school districts you can also see how different each area’s individual market can be. The overall MOI for different school districts this month ranges from 2.375 to 0.75. Small levels of inventory can create big data swings and make for less accurate charts, nevertheless, we can still spot trends if we know where to look.
Hearing the real estate market “war stories” about dozens of offers on Silicon Valley properties and overbids ranging from 20 – 55% had convinced me that we were in a Silicon Valley real estate market bubble back in early 2013. At least, this is what a bubble looks like, sounds like, feels like, and acts like. At the time I thought, “how much longer could this continue?” Four years and counting – that is the answer.
I tell my family and friends that we are in “crazyland” as buyers purchase homes with no contingencies of any kind, houses sell in 10 days or less (if everything is right, which seems to be the case 75% of the time), and those same properties are selling at well over list price and with much more than 20% down.
The absorption rate, or months of inventory: it is a Silicon Valley real estate market bubble?
What do the numbers say? I just logged into MLSListings.com and see that right now, in all of Santa Clara County there are 817 single family homes (houses + duet or attached single family homes). The pending and contingent homes measure 1074, far more! That ratio alone suggests that the market is in overdrive. In the last 30 days, 950 single family homes have sold & closed escrow. So the months of inventory is 817 divided by 950 = .86 of a month of inventory, so about 3.5 weeks of inventory. (When I originally blogged about the potential bubble, it was 1.8 months of inventory.)
In other words, things are flying off the shelves. And they have been, with only a few minor blips here and there, since early 2012. Does that sound like a Silicon Valley real estate market bubble to you – a crazy strong seller’s market lasting 4.5 years? I could be wrong, but I think of bubbles as being something fairly swift, not a multi year trend.
Homes are selling faster than new ones are coming onto the market!
It’s one thing to say that one city, town, or school district has a very low months of inventory (or high absorption rate). It is another altogether to say an entire county is that low. This is a major trend, not a tiny blip in the statistics.
How soon we forget that after the outrageously deep seller’s market in 2000, we had a steep drop in 2001. Or that all the crazy buying in the San Jose area (and other places) in 2005-06, combined with bad financial regulations, lead to the crash of 2007-2009. But perhaps that enormous “correction”, in which Santa Clara County lost about 50% of its value on average, had more room to recover than we initially realized. Jobs keep flowing in, and housing starts are not keeping up. Supply and demand – the age old equation. That would seem to refute the idea that this is a Silicon Valley real estate market bubble. Perhaps low inventory and strong demand are what we should be expecting going forward. Continue reading
Today is the first of November. For many Santa Clara County home buyers and sellers, it marks the beginning of “the holiday season” and the end of the home buying & selling season. But is that always the case?
In my real estate practice (San Jose, Los Gatos and all over the county), normally I do have sales activity in November and December. Many times, clients want to be in their new home before the December holidays and the new year. Sometimes it’s for tax reasons. Other times it’s a late year relocation. Once in awhile, someone just wants Christmas, Hanukkah or some other major date in the new home.
This morning I logged onto MLS Listings to see the numbers of sales of single family homes in the month of November over the last dozen years or so to see what we could learn about November home sales in Santa Clara County. We don’t have a crystal ball for November 2014, but if annual patterns hold true again, around 800 homes are likely to sell this month. The lowest number in recent history was 510, and that was during the recession. Here, then, are the counts for houses sold in SCC in the last 17 years (as far back as I could go on the MLS):
2013 – 762
2012 – 810
2011 – 834
2009 – 853
2008 – 672
2007 – 510
2006 – 853
2005 – 992
2004 – 1146
2003 – 1136
2002 – 933
2001 – 996
2000 – 926
1999 – 1051
1998 – 1080
People still need to buy houses, for whatever reason it may be. The statistics tell us that they continue to do so here in November. If you are thinking of selling your Silicon Valley home, don’t believe that you must wait until the new year. A good, well priced, well presented, and well marketed home really can sell here at any time of year. Unlike the northeast, we do not have terrible weather that makes showings difficult or unappealing. If you’re interested in a fall or winter home sale, please call or email me. We can discuss it, your home’s pricing and everything else relevant to give you good information on which to base your decision.
Related reading: Holiday Home Selling: Good or Bad Idea?
$899,999 : 895 Coe AVE, SAN JOSE2 beds, 1 bath
$998,000 : 2089 Samaritan DR, SAN JOSE3 beds, 3 baths
$575,000 : 6901 Rodling DR H, SAN JOSE2 beds, 2 baths
$1,288,000 : 1423 Hanchett AVE, SAN JOSE3 beds, 3 baths
$988,000 : 2131 Samaritan DR, SAN JOSE2 beds, 3 baths
$1,198,000 : 5748 Croydon AVE, SAN JOSE3 beds, 2 baths
$740,000 : 4009 San Bernardino WAY, SAN JOSE3 beds, 2 baths
$898,888 : 3816 Chambery CT, SAN JOSE4 beds, 3 baths
$1,350,000 : 970 S Baywood AVE, SAN JOSE3 beds, 2 baths
$798,000 : 14629 Jerilyn DR, SAN JOSE3 beds, 2 baths
See all Real estate in the city of San Jose.
(all data current as of 8/16/2018)
Listing information deemed reliable but not guaranteed. Read full disclaimer.
Gilroy is a scenic area well known for wineries, farmland and fruit stands. More than anything, it’s most iconic produce is garlic, which is celebrated late each July with the annual Garlic Festival, which began yesterday and continues through the weekend. If you’ve never been, I highly recommend it! Go early and bring your appetite! There’s more than just eating to be enjoyed, but eating is surely high up on the list of priorities! Click on the link above to see what’s on the schedule this weekend. (Be sure to wear sunscreen and a hat. It is very hot…so drink a lot of water…)
In the days and weeks leading up to this fun food festival, the scent of garlic fills the early morning air and blows north along the coastal foothills so that those of us in Silicon Valley get a healthy nose full when grabbing our morning paper off the driveway. This has been my experience since I was a small child and I’m happy that all the progress of the last 40 or 50 years hasn’t changed the smell of garlic heralding mid-summer.
Garlic is king in Gilroy, but it’s not all that’s happening there
A nice easy, and fairly fast trip by car will bring you to South County and to Gilroy. It’s a wonderful day trip to explore the backyard of Silicon Valley, or better, take a whole weekend to get to know the area. There’s a nice downtown area where you can do some shopping and dining. Go out a bit and there are a number of fabulous wineries to check out. And lest we forget, Gilroy is a local epicenter of bargain shopping.
At the intersection of highways 101 and 152, the Gilroy Premium Outlet Mall is found. Go with the intention of spending money, because resistance is futile once you park your car. This afternoon I spent a few hours there with my daughter and we found some especially good pricing on clothes – perhaps because of the Garlic Festival and the anticipated crowds.
Many will attest that cars are found for a better price there, too.