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Updating the Campbell Real Estate Market

Tudor style house on graphic that says - How's the Campbell real estate market?How is the Campbell real estate market? Campbell is in a strong seller’s market that’s been blazing hot all year – but there’s a hint of cooling starting to appear in our charts. This article, updated monthly, offers data and analysis on the residential real estate market within this popular Silicon Valley community. Here are a few details from the latest update on Campbell’s single family housing market:

  • The average sales to list price ratio for homes sold last month dipped to a red hot 112.8% of asking (according to the MLS, the highest was 136% and the lowest was 96% – the top of which was lower than the prior month’s extremes)
  • Prices haven’t changed much month-over-month and are up significantly year-over-year
  • Turnover was quick with the average sale in just 12 days on market, cooler than the winter and spring market.
  • Data shows that May saw dramatic growth in active inventory, a rise in closed sales, and a dip in sales pending.

The market is cooling down in late spring.

The Campbell, CA Real Estate Market

It’s hard to predict what’s coming next, especially since Silicon Valley real estate is connected to the global economy and many buyers rely on stocks to finance their purchase. On top of that, we’re emerging from an already atypical couple of years!

The market has not followed typical seasonal trends since before spring 2020, although we’re starting to see a bit more balance start to return in late spring of 2022. The charts below certainly show the impact of the pandemic on the real estate market, but we won’t see the full picture until it’s behind us. Read more about how the Coronavirus impacted real estate sales on my blog post about the topic.

If you’re selling a well prepared, beautifully staged, and aggressively priced house, you’ll likely see multiple offers on your home for sale. If it’s in an especially sought-after area and has good bones and a nice finish, the number of offers can skyrocket and create a bidding war! Competition is high enough that it’s pushing many buyers to make offers without any contingencies and above list price. For hot homes, desparate and worn out buyers sometimes spike prices well above list price and comparable market values just to get their foot in the door! However we’re also starting to see more worn out buyers begin to back out and properties recieving fewer offers, or more contingent offers being accepted.

The market remained red hot all winter long. Inventory has begun to pick back up, but remains limited and is still a little below average compared to previous years although it’s starting to catch up with demand. The market is overdue for a correction and it feels like there may be a change in the wind, although it’s not clear if we’re seeing a hiccough or the peak of a hill. It will likely take a while for the market to balance out, so sellers this could be a great time to list!

Here’s a quick view of the Campbell real estate market stats from Altos Research, using list prices (not sales price) which updates automatically about once per week:

Campbell Altos Real-Time Market Profile

The Altos chart is showing Campbell, CA single family homes in a strong seller’s market with a recent dip in market action, more moderate growth in inventory, and 21 median days on market. Homes are red hot in Campbell!

And now –  here are some quick stats, pulled from the MLS (Multiple Listing Service) through the RE Report:

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Saratoga CA Real Estate Market Update

Orchard and Hills in Saratoga, California - photo for article on the Saratoga CA real estate market

Orchard and Hills in Saratoga, California

The Saratoga CA real estate market today is strongly in the seller’s favor with huge price increases from a year ago. There are a few hints of calming, but barely any, in Saratoga right now.

Some quick stats from the RE Report:

  • The sales to list price ratio is 112.2% (-2.6% from last month’s 115.2%, which was down 2.3% from the month before that). It is still up 2.2% compared to the same month last year, though. 
  • Available inventory 32 (+39.1% compared to the month before). Last year it was 29 (+10.3% year over year)
  • The median sale price was $4,150,000 (+1.2% over last month’s $4,100,000) , which is a healthy increase from a year before ( May 2021 it was $3,861,000 – up +7.5%)
  • The average sale price was  $4,126,260 (-2.2% from the month before. In May 2021 it was $3,912,190 – up +5.5%)
  • Overall, appreciation is slowing and most indicators are pointing to a market which is calming down, but still a seller’s market

How’s the Saratoga real estate market?

Saratoga has a diverse real estate market due to a wide range of home prices, square footage, lot sizes, school districts, and more. The luxury tier, generally $4 million and up (but in Saratoga, that’s really still just a house in an expensive zip code) normally moves slower than other price points. Saratoga’s entry level housing is usually the strongest. If the numbers swing wildly at any given month, it could be that more or fewer homes in a particular school district and pricing tier.

First, a quick glance at the Altos Research market profile for a quick summary of the market conditions. Altos uses LIST prices, not sold prices, for this chart and the others, below.

 

Real-Time Market Profile Saratoga, CA 95070

Next, let’s turn to the closed sales from last month. This time we’re using data from a subscription service of mine to the RE Report.

Here are the real estate sales statistics for closed sales last month among houses and duet homes (if there are any) in the 95070 zip code. Bottom line is that most livable homes in Saratoga will run between $3 and $5 million if they are mid sized (2000-3000 SF) and in the best schools area (Saratoga or Cupertino). Homes in the Campbell schools area, which have very strong elementary and middle schools, are fewer and generally more affordable, closer to $2 – $3.5 million (and occasionally lower), but depending on size, condition, and location they can be significantly higher.

Trends at a Glance for the Saratoga CA Real Estate Market

Data below is from the ReReport.

Sale prices are still strong, but the rate of appreciation is slowing.

Trends at a Glance

Trends At a Glance May 2022 Previous Month Year-over-Year
Median Price $4,150,000 (+1.2%) $4,100,000 $3,861,000 (+7.5%)
Average Price $4,126,260 (-2.2%) $4,217,770 $3,912,190 (+5.5%)
No. of Sales 22 (-29.0%) 31 31 (-29.0%)
Pending 56 (+21.7%) 46 46 (+21.7%)
Active 32 (+39.1%) 23 29 (+10.3%)
Sale vs. List Price 112.2% (-2.6%) 115.2% 109.7% (+2.2%)
Days on Market (-5.3%) 10 (-0.6%)
Days of Inventory 44 (+102.8%) 22 28 (+55.5%)

 

Altos Research – list prices for Saratoga CA 95070 (more…)

Cambrian Park Condo & Townhouse Real Estate Market Update

Cambrian Park Real Estate Market graphicHow’s Cambrian Park condo & townhouse market? Normally we answer this question in brief with regular monthly updates over on the Cambrian Park Real Estate Market Update. However with fantastic neighborhoods like Montanas de Los Gatos, Cambrian condos are not to be missed! So today we’ll take a closer look at the condominium and townhome market in this popular San Jose district!

Before we dive in, let’s see what’s selling now in the Cambrian Park condo & townhouse  segment of the market.

Just now (as of May 12, 2022), I looked into the MLS to see the condo and townhome sales in Cambrian over the last month.

  • there are 13 units listed for sale as “active” (not pending or under contract)
    • 8 are listed as condos (3 are “agent only” status) – average size is 894 SF and average list price is $673,111 4
    • 5 are listed as townhouses (2 are “agent only” status) – average size is 1574 SF and average list price is $1,168,800
  • 1 home is under contract with one or more contingencies
  • 13 homes are pending with no contingencies (average of 9 days on market, 4 condos, 9 townhomes)
  • 13 condos / townhomes have sold and closed escrow in the last 30 days (9 condos, 4 townhomes)
    • They sold with an average of 6 days on market (condos 5 days, townhomes 8)
    • average sale price to list price ratio was 116% (range 98% – 129%, condominiums averaged 113%, townhouses 122%)

 

Now let’s have a look at some of the numbers from my Real Estate Report:

Real Estate Report: Cambrian Park Condo & Townhouse Market – San Jose

It’s a hot spring market for the Cambrian condo market with prices up double digits over a year ago. This chart represents all of MLS Area 14, which is primarily 95124, a good deal of 95118, and a tiny sliver of Campbell 95008.

Trends At a Glance Apr 2022 Previous Month Year-over-Year
Median Price $730,000 (-2.7%) $750,000 $622,000 (+17.4%)
Average Price $883,084 (+2.3%) $863,467 $691,900 (+27.6%)
No. of Sales 13 (-13.3%) 15 14 (-7.1%)
Pending 13 (+18.2%) 11 15 (-13.3%)
Active (+75.0%) 4 14 (-50.0%)
Sale vs. List Price 112.9% (+1.9%) 110.8% 102.7% (+10.0%)
Days on Market (+6.5%) 6 12 (-43.8%)
Days of Inventory 16 (+95.2%) 8 29 (-46.2%)

 

Altos Research Live Charts

The market profiles are live, updating automatically once every week, with active inventory from MLS listings.

Most of Cambrian Park falls under the 95124 zip code.  Here’s a quick look at the main real estate market data points for Cambrian 95124 this week:

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Does your HOA have enough in reserves?

How is the HOA’s reserve account? Does your HOA have enough in reserves so that you don’t have to worry too much about getting a special assessment?

When you live in or want to buy a  condominium, townhouse, or other common interest development with Home Owner Association (HOA) dues, it’s important to double check the financial health of the community. If the account balances are not sufficiently funded, the risk is higher of negative consequences down the road.

HOA reserve account - does your HOA have enough in reserves Graphic with apartments, clock, money, and text

Operating account and reserve account

HOAs have two types of financial accounts: one is for operating expenses (paying the gardeners, keeping up the complex, ongoing pest control work, etc.) and the other is the reserve account. The reserve account is a long term savings plan for major future repairs, replacement, or necessary upgrades. (more…)

Why Isn’t My Silicon Valley Townhouse Selling?

why is my Silicon Valley townhouse not selling?Why isn’t my Silicon Valley townhouse selling?” wonders the home owner. Even in a seller’s market some properties struggle. Real estate agents know why the home (or townhome, or condo) isn’t getting any offers, or worse yet, any traffic at all. In fact, local Realtors who’ve seen it might wonder if the owner of the property has seen the MLS printout at all!

Why isn’t it selling?

Whether your home has been on the market for a while or you’re just about to list it, here are some of the most common culprits to look out for:

  1. Terrible photos (or not enough of them): in our San Jose area MLS we are allowed 9 photos. How many are in your listing?
  2. More on photos: Would it be so hard to turn the lights on in the home when photographing the property? Real estate looks much better when well lit than when dark. Even beautifully remodeled kitchens can look so-so if the lights are not all on! A bright room will make you money…a dark room will cost you!
  3. Is there a video or virtual tour? **
  4. Is the listing syndicated so that buyers can find it on multiple websites?
  5. How is the pricing? Did you price a 2 bedroom townhouse as if it’s a 3 bedroom? That’s a very common but huge mistake! Compare apples to apples – the buyers are doing that, and when you bought your home, you did too!  Did you price the home using comps from 6 months ago, or comps from 3 miles away, or a different school district? Huge mistake!
  6. What’s your competition? Luxury homes will almost always take longer than a mid-priced home nearby – they’re in entirely different markets with entirely different demands. You’ve got to know what market you’re in and what buyers will be comparing your home against! If you’re a short sale, you need to be competitive against other short sales. Don’t be satisfied that your home is less expensive than a “regular sale”. They are two entirely different things!
  7. MLS description and comments: Don’t waste this valuable space! What kind of comments are in the precious few words allowed to describe your home in the multiple listing service? I have seen inane things use up that space. It is imperative that the descriptions be strong. For example, not “nice kitchen” (that could mean almost anything), but instead “slab granite countertops” – specifics that buyers want to hear about!
  8. Commission rate: if your townhome is a “regular sale” and everything in your area is selling with a buyer’s agent commission rate offered at 2.5% or 3% but you’re offering 2%, guess what happens? Little or no traffic, that’s what! Remember that agents are selling homes as their livelihood, and while many will overlook a low commission, many others will not. (When I list homes I run the CR of similar homes so that my sellers can make an informed decision on this point.)

**This is more important than ever right now with restrictions on showings and open homes during the pandemic. Read more about how covid-19 is impacting the real estate market in Silicon Valley and how to sell a home during the quarantine in my articles on this blog.

There are many reasons why a Silicon Valley townhouse might not sell, but marketing correctly will give you the best odds for success and, in a sellers market as we are in, may bring you a higher sales price. If yours isn’t selling, have a look at the price, the photos, and the description and see if anything is amiss, and check what’s happening with comparable properties in the market. These are the most important areas to consider. Other issues may be at play, but if these are correct your home should sell despite other challenges.
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Understand the Pros and Cons of Homeowners Associations in Silicon Valley

The Pros & Cons of HOA Homeowners AssociationsHomeowners Associations (HOAs) are created to oversee condominium complexes, townhome communities and planned unit developments (PUDs) on behalf of their members. These are non-profit organizations whose purpose is to manage common areas, enforce neighborhood rules and standards, and often, unofficially, to foster community unity too. In most cases, they collect fees from members and have local authority. In other words, if you do not pay your homeowner association dues, or abide by one of its rules*, the HOA can and usually will fine you or even foreclose on you!

There are loads of HOAs in Silicon Valley. As with all organizations, some are better run than others. Its a little different than owning real estate outside of a homeowners association.

What are the pros and cons to Homeowners Associations?

At their best, Silicon Valley HOAs keep the communities they manage beautifully landscaped and maintained, they hire good providers for needed improvements, and minimize risk to all the members. By having reasonable rules and community buy-in, the neighborhood can look inviting and property values can be better maintained.

At their worst, HOAs can be unresponsive to members needs, erratic, arbitrary and irresponsible. They may, by poor planning, cause huge assessments to be necessary or raise HOA dues so that they are very high – to the point where they make homes hard to sell. Not only are those an unhappy occasion, they can also make it hard to sell a home with a special assessment looming. Fortunately, this is seldom the case in most areas – but if the HOA has a high number of defaults due to owner bankruptcy or inability to keep up with mortgage, property insurance etc. it can cost all of the members eventually.

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Beautiful Newark Condo for Sale 39887 Cedar Blvd #250

This week I put a new listing on the market, a beautiful Newark condo for sale at 39887 Cedar Blvd #250. It’s nicely updated and remodeled throughout and enjoys a quiet location at the back of this resort-like condominium complex.

 

39887 Cedar Blvd # 250, Newark - Living Room

39887 Cedar Blvd # 250, Newark – Living Room

 

Offered at $539,888 with low HOA dues of just $376 per month

Spacious and updated 2 bedroom, 2 bath condo, with warm and tasteful décor in luxurious, resort like community. Fantastic location within Murieta, at back of complex, away from road noise. The unit is close to the elevator but has no adjoining walls, so is very quiet.

Quick facts:

  • 2 bedrooms
  • 2 bathrooms
  • 1071 SF
  • Built in 1986
  • Remodeled kitchen
  • Updated baths
  • Recessed lights in living room and master bedroom
  • Colonial style crown molding and baseboard throughout
  • Private deck
  • Freshly painted
  • 2 Assigned parking spaces, one of them covered
  • Great commute location, also very close to shops and eateries
  • HOA is Murieta, a gated community with secure elevator buildings and includes 2 pools, 2 spas, 2 club houses, plus a gym and onsite property management

 

Remodeled kitchen with slab granite counters and brand new oven, microwave, and dishwasher. Fridge included!

Remodeled kitchen with slab granite counters and brand new oven, microwave, and dishwasher. Fridge included!

 

Please visit the virtual tour to get all of the details, including upcoming open houses and lots more photos!  
https://www.tourfactory.com/2639120

 

More details:

  • Kitchen remodeled with slab granite counters, brand newWhirlpool stainless steel oven, microwave, and dishwasher. Built in trash compactor. Stainless steel refrigerator included, too. Tile floor.
  • Bathrooms updated and also feature granite counters, tile floors, and lights over vanities.
  • Open floor plan – kitchen has opening to both dining and living
  •       Spacious master bedroom suite featuring double sinks and abundant closet space.
  • Wonderful deck off of living room for relaxing outdoors
  • Many upgrades: recessed lighting in living room and master bedroom, classic Colonial baseboard and crown molding, interior raised panel doors.
  • Newer washer and dryer included.
  • Freshly painted interior.
  • Excellent parking: 1 covered space near building door, 1 assigned parking space behind the unit.
  • Wonderful HOA: gated community with low dues covers garbage, water, and many amenities: secure elevator buildings, 2 pools and spas, gym, cabana / community rooms, lawn area,
  • Onsite HOA office staffed during weekdays.
  • Fantastic location with shopping and restaurants nearby and easy access to major commute routes.
  • Newark Unified Schools: James L. Bunker Elementary, Newark Middle, Newark Memorial High

 

Master Bath

Master Bath

 

Please visit the virtual tour to get all of the details, including upcoming open houses and lots more photos!  
https://www.tourfactory.com/2639120

 

 

 

How Important are Parking Spaces and Garages in Silicon Valley?

Cambrian Park Home, built by LeepMost homes in Silicon Valley come with some type of parking space for cars beyond street parking.  Home buyers want to know that there will be a place for their vehicles (and often their “stuff” too).   Garages and parking are sometimes under-appreciated aspects of evaluating real estate, and sometimes there are parking surprises after the close of escrow, so it will be the focus of today’s topic.

Parking and resale value

Because a real estate purchase is a big ticket item, it is always important to consider the ability to sell it later.  (Always buy with selling in mind!)  Will the property you have or are considering buying be hard to sell  in the future if it is not a red-hot sellers market?  Parking can greatly impact “resale value and overall desirability to a large portion of consumers, who may look at that space as protection for a beloved vehicle, a safety feature, a future hobby room, or many other possibilities.

If you are evaluating a Common Interest Development (CID) condominium, townhouse, or planned unit development home with private roads and parking, there will be some special concerns that may be a little different than if you were purchasing a single family home. We’ll consider both.

General principle:  In all types of housing in the San Jose area, usually the most highly desired type of parking arrangement is an attached garage with direct access into the home and with side by side parking provided (not tandem).  This is not true in all cases but is generally true.  You would not find home buyers interested in historic homes (Victorian, Spanish, Craftsman) wanting a prominent two car garage at the front of the house, commanding the lion’s share of the view from the street. (So don’t expect to see that in Japantown, Naglee Park, or the the Rose Garden areas of San Jose.) But for the typical buyer of the more common ranch style house, the attached garage is expected and appreciated, and if it’s missing it may be a challenge to sell the property later because the property will be appealing to a smaller pool of buyers.

Regarding direct access: garages are not allowed to have a door entering into a bedroom. This is for safety reasons since bedrooms are where residents are most vulnerable, and garages are an area of increased safety risk.
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Why are those Silicon Valley HOA dues so high?

Homeowner Association DuesWhy are some HOA dues so high in certain Silicon Valley townhouse or condo communities?

If you are shopping for a Silicon Valley condominium, townhouse, loft or other property that’s part of a home owners association or “HOA”, you may find yourself flabbergasted at some of the dues being charged in San Jose, Los Gatos, Saratoga, and all over Santa Clara Valley. Today we’ll go over what may be happening in them to cause this problem.

HOA dues may cover a number of things, and if it’s a luxury complex with luxury amenities, those dues will be high:

  • common areas, such as driveways, parking, pool, fitness center, rec room, elevators, landscaping, golf course membership, etc.
  • insurance: regular homeowners or blanket insurance but perhaps also earthquake or flood insurance
  • reserve account funds for planned improvements may have run too low and need bolstering (repainting, termite work, reroofing, repaving, pool plastering etc.)
  • covering the defaults from units where the owners are in or about to be in foreclosure

What is the range of pricing for HOA dues in Santa Clara County and Silicon Valley?

Depending on the age of the property and the amenities, the dues may run between $300 and $350 on the low end (newer, no amenities) to close to a thousand on the high end (The Villages retirement community has extraordinarily high dues but they may include membership in the golf course too). I’ve seen some in Menlo Park closer to $2,000 per month!

“Normal” is anywhere from $400 to $500 per month for a typical condo or townhome community.

Dues over $600 per month will deter investment buyers.  Dues over $700 per month will deter almost everyone! (more…)

What Is the Difference Between CID Ownership in a Condo, Townhouse or PUD?

Could this be a condo?There’s quite a bit of confusion around the real estate topic of “Common Interest Developments” (CIDs): condominiums, townhouses (or townhomes) and planned unit developments (PUD, sometimes called just Planned Development, or PD). Given that we have many of these communities in Silicon Valley, I think it’s important to explain what these are, why the type of ownership matters, and how you can tell the difference.  (The explanation here is not a thorough legal definition but is a general description.)

Part of the confusion stems from the fact that there are two things to consider: the architecture of the buildings and the type of ownership.

  1. What is a townhouse (or townhome)?  A townhouse is a type of building or architectural style, not the type of ownership involved. A townhouse could be a planned unit development (PUD) or it could be a condominium.
  2. What is a condominium or condo?  A condominium is a type of ownership of the real estate. (We tend to think of it as an apartment which one buys, but that’s not correct.)  Condo ownership means that the purchaser has 100% rights to the unit and a percentage of ownership in the common lands (fractional ownership in common areas).  Condos can architecturally be a unit that resembles an apartment, a townhouse, or even a single family home.
  3. What is a PUD?  A planned unit development is architecturally either a townhouse or a house in which 100% of the unit plus the land under it is owned and the ownership of the unit also provides for a membership in the homeowner’s association or HOA.  The HOA in turn owns all the common elements (such as private roads and ammenities such as a pool, tennis court, parking lots, etc.). With a PUD, homeowners have an easement and rights to use the common area through their HOA membership.
  4. What is a CID?  A common interest development, or CID, is a general term meaning the ownership of property in which there are “common areas” such as private roads, a pool, parking, tennis courts, utility rooms etc.

A townhouse that’s a condo can look exactly the same as a townhouse that’s a PUD. This is also true for other types of construction too. In Los Gatos we have some freestanding homes (or properties with the only common wall being at the garage) which are in condo ownership.  Same with the beautiful Villas of Almaden community. Both have “common areas” and mandatory membership in the home owner’s association.

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