How is the Almaden Valley Real Estate Market doing?
It’s the end of September now, and normally we see a little rally in the market after Labor Day. Let’s see how this September is stacking up in Almaden Valley. Below, please find charts using current list prices courtesy of Altos Research (to which I subscribe).
The Median List price for the Almaden Valley district of San Jose (zip code 95120) has been declining overall. Does this mean that homes are declining in value? Or does it mean that less expensive homes are being offered for sale? Information from sold data indicates that by and large, homes are holding their value in Almaden right now. The declines in asking prices may indicate that sellers simply want prices to be rising more than they actually are, rather than the idea that values are falling.
This first chart indicates how both homes and condominiums or townhouses are faring in terms of median list prices in Almaden. Interestingly, the condo market had a steeply rising list price this last spring, while the single family home market did a milder version of the same a couple of months later. What sellers want for their homes is not matching up to what they are getting.
Next, let’s have a look at the percent of homes that have had price reductions in this part of San Jose. A steep increase in the number of condos needing reductions in price are seen in the timeframe following that rise noted above. This would seem to indicate that condo sellers were more optimistic when putting their homes on the market, but found out over the next couple of months that these asking prices were not realistic. The number of properties getting price decreases among single family homes were a bit later, just like the rising list prices were later, in Almaden. Right now, though, the percentage of sellers decreasing their list prices are about the same for both types of housing – appx 52%. So approximately half the homes currently on the market in Almaden have had at least one price reduction.
If homes are listed too high and must take price reductions, then most likely they are on the market a longer time prior to selling too. The next chart addresses the average days on market for the 95120 zip code area of San Jose. For both condominums and single family homes, it appears that the longest days on market were in spring of this year – the peak being in March for houses and April for condos. The single family home market is worsening now, though, and has been rising since mid-summer. The townhouse and condo market, though, is still on a downward trend. In reality, though, the actual statistics for time on the market are probably worse as some agents will change the MLS number when a steep price change happens.
Finally, a look at the inventory (amount of homes for sale) in Almaden Valley’s houses and condos. Not surprisingly, the inventory has risen dramatically among single family residences over the last year, but now it’s decreasing somewhat. (This is not surprising because the days on market had been rising and so is the percentage of homes getting price decreases within this type of housing). The condo market, though, is faring better now, with inventory rising only gradually.
For Almaden Valley home sellers, the market is not as bad as it has been in recent months, but it is important to price your home realistically and have it well marketed in order to sell. For Silicon Valley home buyers wanting to be in an upscale area with good schools, now is a good time to go shopping in Almaden. It is important to realize that homes are not selling for bargain basement prices in Almaden Valley, unlike in other parts of Santa Clara County, but prices are on the soft side. Motivated sellers may list their home aggressively so don’t assume that every house will sell under list price! Do your homework when buying and you’ll be able to maximize the current market potential.