Almaden Valley (SJ)
Almaden Valley San Jose
The Almaden Valley real estate market conditions are favorable to sellers right now, though it’s taken some recent hits.
For sellers, there is an active market, though it’s shown signs of cooling. Sales are up, indicating that there’s plenty of demand, though inventory and sales are well below where they normally would be. All in all, the market is still in the seller’s favor, though not where we would have predicted it to be at the start of the year.
Before we begin, it’s important to recognize how much has changed since the beginning of March. Over time we will have a better grasp over the pandemic’s affect on the real estate market. For more on the impact of the pandemic on the market, check out my post titled Coronavirus impact on real estate sales.
During the shutdown so far, the Multiple Listing Service (MLS) stopped the timer on all Days on Market (DOM). Therefore these numbers will be off beginning from March 17th through around May 17th. In the data below, this will affect any numbers related to the days on market, the absorption rate, and the days of inventory prior to June.
Almaden Valley months of inventory
Just now I logged onto the MLS. As of today (July 9th), there are 29 houses or duet homes (not duplexes, but attached single family homes) for sale in San Jose, CA 95120, aka Almaden Valley. Of those, 17 (or about 59%) are offered at under $2 million, which is a good deal less than last month. Dividing the whole up, 3 are listed under $1 million, 14 are between $1-2 million, 10 between $2-3 million, and 2 were offered over $3 million (one of these is over $4 million). In the last 30 days, 34 single family homes have closed in the same area – almost double last month when we checked. When we divide the active listings by the closed sales over 30 days, we get the months of inventory. So for Almaden, 29 divided by 34 = 0.85 months of inventory. That’s a firey hot seller’s market!
Almaden Valley Real Estate Market Conditions: Trends at a Glance
Next, a look at the residential real estate market statistics for Almaden, or San Jose 95120 from the Real Estate Report (a subscription that I have which uses closed / sold data). Inventory is down from last month and significantly below last year, but sales have risen sharply from last month, nearly catching up with 2019. The sales vs list price rose to 101.1% after falling a whopping 5.7% in April. It’s an active seller’s market and warming up.
Please find the current statistics for single family homes (houses & duet homes) from my Almaden Valley real estate report (click on link for more info).
|Trends At a Glance||Jun 2020||Previous Month||Year-over-Year|
|Median Price||$1,685,000 (+5.3%)||$1,600,000||$1,487,500 (+13.3%)|
|Average Price||$1,797,950 (+12.8%)||$1,594,620||$1,583,990 (+13.5%)|
|No. of Sales||32 (+146.2%)||13||34 (-5.9%)|
|Pending||42 (+23.5%)||34||21 (+100.0%)|
|Active||28 (-3.4%)||29||58 (-51.7%)|
|Sale vs. List Price||101.1% (+0.2%)||100.9%||99.5% (+1.7%)|
|Days on Market||23 (+91.2%)||12||20 (+18.1%)|
|Days of Inventory||25 (-62.1%)||67||49 (-48.7%)|
The San Jose real estate market is a strong seller’s market, but it’s experiencing mild unseasonable cooling this spring. We see this in the San Jose housing market data, below, but I’ve also seen it in my real estate practice.
Something to note, however, is that these charts will not reflect the full effect of the pandemic on the market. We have a better view of the impact this month, but it will take a while to see the full picture. For now, you can read about Coronavirus’ impact on real estate sales on my other post.
During the shutdown so far, the Multiple Listing Service (MLS) stopped the timer on all Days on Market (DOM). Therefore these numbers will be off beginning from March 17th through around May 17th. In the data below, this will affect any numbers related to the days on market, the absorption rate, and the days of inventory. June numbers are accurate, but disregard this data for previous months.
First please find the Altos Research Charts, a live feed of data on the housing markets in San Jose. You will then also find the RE Report, charts with statistics comparing sales in the last month and comparing them month-over-month and year-over-year. These are both the usual tools I use to gauge a market. Directly below are links to the market analysis of specific neighborhoods in San Jose. Some of these, where I work the most, are updated monthly, and others are updated every few months.
Altos Charts for the San Jose real estate market as a Whole – automatically updated each week – single family homes
First, the market profile and then the basic charts for single family homes or houses in San Jose. FYI, Altos uses LIST prices. The RE Report further down uses SOLD prices (which is part of the reason why I utilize both).
This real time market San Jose housing market profile (updated July 7th) shows on the graph an increase of inventory and steady decline in market action. San Jose is still in a strong seller’s market according to Altos. The Median List Price (for condos and houses combined) is approximately $1,250,000, remaining stable for three months in a row now.
How can you tell if it’s really a buyer’s market or seller’s market? One important data point is the months or inventory, also known as the absorption rate.
The months of inventory (MOI) tells us how long it would take for the current inventory to be absorbed if sales continue at the same rate and no new inventory were to be added.
What is the months of inventory?
The best explanation given to me for the absorption rate uses the analogy of a bathtub draining. If the tub has water in it, and no new water is added, and the drain is opened (and drains at a constant rate), how long will it take for the water to all be eliminated?
So too with Silicon Valley homes for sale. How long would it take for the current supply to be bought up if no new listings came on the market? That’s the question. It can be days of inventory, weeks of inventory, or months of inventory – or any other chunk of time you want to use. My monthly Silicon Valley RE Report uses days of inventory, referenced via DOI in the chart below, where you can see that the average days of inventory for the county is 61, or about 2 months. A quick scan down that column will provide a sense of the market for each city and town.
The faster the absorption rate, the easier it is for sellers to sell and the harder it is for buyers to buy. In the U.S., about 5- 6 months of inventory is a balanced market. Here in Silicon Valley, balanced is probably closer to 4 months of inventory.
Readers of this blog know that I really like the multi year view of data, and I think with the months of inventory that’s also really helpful. Here’s the rate for Santa Clara County, single family homes, from January 2014 to May 2020 (needs a full month to be accurate).
For the month of may, the months of inventory was 2.2, which is significantly more than most of the last six years, and double the height of the market in 2017 and 2018. Translation: buyers, this is the best it’s been for you to buy in years. Yes there may be multiple offers – but if so, it is very likely to be much calmer than this time last year or at any other time for this same season in years.
With our 300 sunny days per year in Silicon Valley (at least most years!), golf is a sport enjoyed year round here in the San Jose area. Living near a golf course, or having a golf course view, is highly desirable as it provides scenic open space as well as convenience for avid golfers.
Silicon Valley Golf Homes, Silicon Valley Golf Properties
There are beautiful courses throughout the South Bay Area and it’s possible to find small condos with views of them at fairly affordable prices (Sunnyvale’s Sunken Gardens area is one of them). Today, though, I want to provide a list of homes for sale near golf courses in the foothill areas of Silicon Valley. Many of these will also be luxury homes. So the MLS list of these houses on the market which you can browse includes these areas:
San Jose areas including Evergreen & Silver Creek, Santa Teresa, Blossom Valley and Almaden; Los Gatos, Monte Sereno, Saratoga, Cupertino, and Los Altos.
There are golf courses to be found in other parts of Santa Clara County too (Mountain View, Sunnyvale, Santa Clara and more) – let me know if you are interested in these parts and I can send you a link for searching them for similar residential real estate.
Here are a available or recently sold homes near to golf clubs:
Have you always dreamed of buying a hillside home, one close to, or in, the western foothills in Santa Clara County, such as Almaden, Los Gatos, Monte Sereno and Saratoga? Some of the prettiest parts of Silicon Valley are snuggled into the base of the Santa Cruz Mountains. With views of downtown San Jose and the southern San Francisco Bay Area on one side, and rolling, grassy and redwood & oak filled hills on the other, its certainly scenic. Additionally, these areas all tend to have lower crime and good schools.
Hillside homes may be subject to insurance difficulties if they are deemed to be in a high fire risk zone, and property owners need to plan for how to escape in case of emergency. Trees may fall and block ingress or egress, so many mountain residents carry chainsaws. There can be wildlife living nearby, munching on carefully installed landscaping, or threatening household pets or small children in some cases (mountain lions – never leave your children unattended in hillside areas!). In terms of the structure of the hillside home, or the home near the base of the foothills, water is perhaps the risk that is least appreciated but impacts many more homes than most people realize.
Hillside home and water challenges
As a savvy foothill-area buyer, you will want to understand some of the unique issues that this geography may present. The most important of these hillside issues may well be that of water control and drainage.
The Santa Clara Valley, and most of the neighboring Silicon Valley areas, is composed of mostly expansive clay soil. This is an extremely strong substance – so much so that settlers used it, mixed only with a little straw and water, to form adobe bricks for building.
The caveat with clay soil is that when it becomes wet, it expands, and when dry, it contracts. (Hence “expansive clay soil”.) The amazing thing is that the clay is more powerful than concrete. And that is the problem for houses and other buildings if the ground is expanding, contracting, or alternating between the two.
What can a homeowner do? Its imperative to try to control the amount of water near (or under) the home as much as possible.
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 County / 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. Because some areas have had a scarcity of inventory, I’ve added an addition to the chart titled NoS for Number of Sales within the given range.
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.
Within this range, Campbell only had one sale over the last 90 days, so data for that segment may or may not be a good average. Both Los Altos and Saratoga had no sales within the last 90 days within these criteria, so their searches have been expanded to 0-180 days (or 6 months / half a year) and 0-120 days (or 4 months / a quarter year) respectively to provide data for comparison for this chart. Now that we have the data, let’s analyze it!
A pretty neighborhood with Almaden Valley’s best schools, Orchard Creek includes 179 comfortably sized single family homes on good sized lots. Many have been updated or remodeled over the years, and some expanded.
The neighborhood has gently winding streets and is generally very well kept up.
Where is Orchard Creek?
The Orchard Creek neighborhood is in San Jose, 95120, in the scenic Almaden Valley. It is located between Calcaterra Creek to the west and Almaden Expressway to the east, a little north of the split between Almaden Expressway and Almaden Road. It sits adjacent to the Glencrest area to the west, Cathedral Oaks Park on the southwest, Almaden Springs to the south, and the expressway to the east.
Streets include Amur Creek, Anjou Crek, Bartlett Creek, Calcaterra, Casaba Creek, Macintosh Creek, and Pippin Creek. For the truly curious, this is tract number 5436.
The public schools include Williams Elementary, Bret Harte Middle, and Leland High.