How is the Monte Sereno real estate market? Because the city is small, with just about 3,500 residents, there usually are few homes listed for sale or selling, and with small numbers we can get seeming volatility. This article is updated monthly with new data and analysis, so scroll down to read the latest and check back regularly. Here are a few details from the latest market update:
- All sales data for the month of October is based on 4 closings – and one of those was a luxury property selling over $10M. That can skew the data pretty quickly!
- This city is currently in a strong seller’s market with low inventory – just 9 available homes at the end of October.
- Closed sales held stable month-over-month, but pending sales have fallen significantly.
- The sale to list price ratio dropped sharply from last month and well below last year.
- The October 2022 market is showing clear signs of cooling overall, but there are clear micro-markets at work here with varying levels of heat.
There are ALMOST no condominiums or townhomes in Monte Sereno. As of October 2022, the MLS showed just 6 sales in these two categories in total – and that’s going back to 1998! 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 (an online pdf): http://www.montesereno.org/DocumentCenter/Home/View/674
Below is a quick market profile for Monte Sereno. This is updated automatically weekly, so please check back often.
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. But what does it cost to buy that “average home”? 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 full 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.
Cost to Buy 4 Bed 2 Bath Home in Popular Silicon Valley Communities
The first number is the number of sales during that time (more sales = more reliable averages). This one is not in the older charts, but with inventory as low as it has been lately this makes a huge difference. The second number is the average sales price per square foot, the third number is the average sales price, and the last number is the average days on market:
And now a look back to late winter, early spring of 2017…
What’s changed? A lot! The order has shifted some, showing where demand has increased or decreased. Most noticeably, the prices are mostly up significantly, which is most noticeable in the price per square foot. Cambrian has traveled a good deal up the ladder. Palo Alto and Los Altos were displaced by the sole Saratoga sale, and Blossom Valley of San Jose remains in it’s regular position at the bottom.
The home prices tend to run with school rankings. Previously this was by 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, however that system is no longer used. So how to people judge? Most buyers use sites like GreatSchools.org when looking for a home with good schools which ranks schools on a scale of 1-10 in a few categories. (more…)
Mid-century modern homes, including those designed by Joseph Eichler, dot the Silicon Valley & South Bay Area real estate landscape. There are probably more than 5,000 Eichlers in Santa Clara County altogether, plus all the other homes of that genre with the similar modern style, which was influenced by the ranch and prarie styles as well as the dramatic work by Frank Lloyd Wright (open beam ceilings, nearly flat roofs, lots of exposed wood & glass windows stretching from the floor to the ceiling). Eichlers, especially, put a premium on privacy from the street but open to the outdoors otherwise.
Not every community in Santa Clara County has Eichler homes, but most have the mid-century modern style homes & neighborhoods. These homes vary from tiny, modest cottages of 1100 square feet to large & elegant houses of nearly 3,000 square feet, featuring big, central atriums or courtyards. (There are also some co-ops in the valley too.) The quality varies, as the homes were constructed by several different builders with different home buying budgets in mind. Real estate prices range from “entry level” to very expensive, depending on the location (city and schools), size of the home & lot, and condition of the property. Most of them are now about 50 years old, though some are a little younger.
Some of the West Side Silicon Valley Communities which feature Eichler and Mid-Century Modern Homes
In Los Gatos there are no Eichlers but there are a small handful of single family homes which are mid-century modern on Eastridge Drive (just off Blossom Hill Road and Hillbrook). There are a couple more at the end of Magnuson Terrace (off Magnuson Loop and Los Gatos Blvd). Additionally, there are some smaller mid-50s homes on El Gato (and adjacent portions of Escobar) off of Los Gatos-Almaden Road. Unfortunately, not all of these homes are “well kept”, though many are.
Monte Sereno is home to 16 Eichler houses on Via Sereno beginning at the intersection of Winchester Blvd with Via Sereno. These houses were built in the late 60s to early 70s.
High Voltage Power Lines from around the West Valley.
“Location, Location, Location!” The most important element when buying or selling a home is the one thing you can’t change – it’s location. Because of that, you’ll need to know some location-specific things, naturally occurring and man-made. Like high voltage power lines.
What about this location?
If you own or are thinking of buying a home in Silicon Valley, here are a few location-specific things you want to know upfront so that you can make informed decisions:
- where are the earthquake fault lines?
- where are the geologic hazard zones, such as liquefaction areas?
- where are the flood plains?
- where are man-made things that will negatively or positively impact a home’s value? Things such as
- train lines
- electrical transmission
- school district boundaries
- zip code boundaries
- proximity to entertainment venues
When looking at maps, sometimes these items show up and sometimes they don’t. Realtors and other real estate professionals in the San Jose area often use a Barclay’s Locaide and various online resources to locate the natural hazard areas. There are other tools to help locate school districts and zoning restrictions.
Google maps can help uncover some other areas, like distance to shops and freeways, but sometimes it raises more questions than it answers. For instance, a years ago a Realtor who didn’t know the Belwood of Los Gatos area too well phoned me to ask what a large object showing up on satellite view in the hills of Belgatos Park was. It is just a covered reservoir, but since it was not identified on the map it concerned some buyers. Local knowledge is still extremely helpful.
Mapping the Grid: High Voltage Power Lines
Sitting at the base of El Sereno, part of the Santa Cruz Mountains, Monte Sereno is an upscale residential community snuggled between Los Gatos and Saratoga, California. The population is very tiny with about 4000 folks living in Monte Sereno any given time. It is composed of about one and a half square miles. This small city shares many services with the town of Los Gatos (such as schools and police). There are no businesses in Monte Sereno, only homes, the city’s offices, and the post office.
Real estate prices are high in this low-crime city, and while there are some modest homes, there are also some palatial estates featuring extreme amenities.
The geography is mostly flat to gentle hills, with much of it wooded. Redwood trees, oak trees, madrone and many others cluster together in the nooks and crannies of Monte Sereno. There are open places too, of course, with grassy fields. Along Daves Avenue, there are several streets that tie in together with a common horse stable, and it has meandering equestrian trails. Most of those homes are on half acre, level lots, with generous ranch style homes that back to the trails. This is a great neighborhood for horse lovers!
If you have a chance to visit Austin Way behind La Hacienda Restaurant and Inn, you’ll be delighted to find an old brick road, part of the heritage of Monte Sereno. And on the other side of Highway 9 along Austin Way, you’ll see a historic building recounting the city’s agricultural past in Austin Corners.
John Steinbeck once called this area home – but later decided the rural hamlet was too crowded, so moved into the Santa Cruz Mountains to regain his serenity! It is said that he wrote Of Mice and Men while living here.
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.
Today we’ll check in with the Los Gatos real estate market, the Monte Sereno real estate market and the Los Gatos Mountains real estate market using Altos Research graphs with a view to the Median List Price of houses for sale. These charts are updated weekly.
An overview of the Real Estate Market in the Los Gatos area by viewing the Median List Price of houses for sale
In the graph below, please find the median list price for four areas: Monte Sereno, Los Gatos 95033 (the mountains), Los Gatos 95032 and Los Gatos 95030 (“in town”).
Monte Sereno is the most expensive of these four areas and it’s having some trouble overall. How’s it faring by price quartile? Let’s view that next, then the mountains and “in town” areas of Los Gatos.
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. (more…)
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.