Ths San Jose real estate market conditions vary wildly from one part of this sprawling city to the next. The high-end neighborhoods of Silver Creek, Almaden Valley, as well as parts of the Rosegarden and some hilly locations with views are all very different real estate markets then downtown San Jose, the Santa Teresa area, Burbank, or east San Jose. Even within each district, there are many smaller markets. Today we’ll have a look at the Cambrian Park real estate market.
How’s the real estate market in Cambrian Park?
There are some plusses for Cambrian Park, being up against some well-to-do areas (Los Gatos and Almaden Valley). The area is a middle-class to upper-middle class area and homes are generally well kept and schools range from good to great. All of these help keep values fairly strong in Cambrian.
Even so, prices are down and sales are down, just like the rest of Silicon Valley. However, it’s not as bad here as in many parts of Santa Clara County.
Houses in Cambrian Park have mostly enjoyed a good absorption rate of under 6 months for most of this year. It’s been a little rougher on the Cambrian condo market though. As with the rest of Silicon Valley condos, they just are not selling as well as houses, most likely because single family homes have come down so much in price that they are more affordable.
Overall, it is currently very close to a “balanced market” in Cambrian Park. That means it’s a reasonable time for both buyers and sellers right now.
Next let’s have a look at the data, statistics and trends for the housing market in Cambrian Park. How are realty values holding up?
Cambrian Park Houses – trends, data and statistics
|Trends At a Glance||Sep 2008||Previous Month||Year-over Year|
|Median Price||$600,000||$663,325 (-9.5%)||$737,500 (-18.6%)|
|Average Price||$614,258||$667,377 (-8.0%)||$753,595 (-18.5%)|
|No. of Sales||42||54 (-22.2%)||33 (+27.3%)|
|Active||152||176 (-13.6%)||220 (-30.9%)|
|Sale vs. List Price||98.5%||98.2% (+0.3%)||98.9% (-0.5%)|
|Days on Market||47||45 (+3.6%)||26 (+79.9%)|
Prices are down in the Cambrian district about 18% year over year. This is bad, but for all of the city of San Jose, that number is a bit over 32%! It’s easily a $100,000 savings for buyers getting into the market now and is making Cambrian Park homes far more affordable then in recent history. Interestingly, the days on market are better than a month ago and inventory is better than both last month and last year. Are we near the bottom? That could be the case.
Now let’s have a look at the same information for the Cambrian condo and townhouse market.
Cambrian Park Condominiums and Townhomes – trends, data and statistics
|Trends At a Glance||Sep 2008||Previous Month||Year-over Year|
|Median Price||$342,350||$416,000 (-17.7%)||$400,000 (-14.4%)|
|Average Price||$367,925||$421,500 (-12.7%)||$436,143 (-15.6%)|
|No. of Sales||12||9 (+33.3%)||7 (+71.4%)|
|Active||55||51 (+7.8%)||64 (-14.1%)|
|Sale vs. List Price||96.3%||94.5% (+1.9%)||97.7% (-1.4%)|
|Days on Market||45||46 (-2.9%)||30 (+51.0%)|
Condo prices are down, but sales are up, in Cambrian Park. Days on market are a hair better than last month but still significantly worse than last yaer. Inventory, though, is down 14% from a year ago. So again we have a lot of mixed signals on how this market is faring, except for pricing, which is decidedly down. It seems to have farther to go before it will bottom out. Looking back at the absorption rate graph for Cambrian Park Condos, you’ll see that lately, things have improved quite a bit for condominium sellers here.
Next – buying and selling in San Jose’s Cambrian Park District – what to do, what not to do, now!
General Comments About Buying and Selling Cambrian Park Homes in Today’s Market
Sellers: Cambrian Park remains a desireable place to live, but buyers are nervous about getting into a house generally. Sellers, part of what will make your home more saleable is giving the buyer peace of mind that your home is not just attractive, but sound – in good shape. Buyers do not want to move in and remodel (unless the home is beyond rock bottom pricing). They don’t want to worry that they’ll soon have to replace the pipes, the roof, or do other major repairs. So in addition to making your home spotless and aggressively priced, make sure that your home will pass inspections with flying colors. To make sure, you might consider not only having pre-sale inspections done, but doing any repairs before the home is on the market.
Remember, it is close to a balanced market in Cambrian Park right now. Sellers aren’t giving away homes, and buyers aren’t stealing them (with exceptions in rare cases).
Biggest Cambrian Seller Mistakes in Today’s Market:
“just trying” a high price
marketing the home with old, worn, unattractive carpet, thinking “the buyer will change this anyway”
not putting the home into show-ready condition, believing that the buyer can envision how it WILL look
hiring an agent hastily & signing contracts without understanding them
Buyers: If you have good credit and a good downpayment, you can still get a loan. But don’t wait until you find the right house to choose your lender and loan package. The good homes still go fairly fast, and sellers do expect to see a solid pre-approval letter accompanying any offers.
When looking to buy in Cambrian Park, realize that there are a few things that make this area unique. First, there is not just one school district. Know and understand the situation with the schools in Cambrian because it can impact your resale value. Second, proximity to the hills matters and can also impact values. Part of Cambrian actually has views (near Vista Loop) and feels like Almaden Valley or Los Gatos, but with a lower price tag. The downside? This is an expensive pocket of Cambrian and it can be tougher to sell at times because many agents don’t know it exists. And many consumers won’t want to be at the high end of value for the zip code.
Biggest Cambrian Buyer Mistakes in Today’s Market:
not getting preapproved before shopping for a home
not reading and understanding pre sale inspections and disclosures prior to making an offer
not doing “due dilligence” in checking out issues that pop up as red flags – things like non-permitted work, neighborhood issues, unclear disclosures
hiring an agent hastily and signing contracts without understanding them (same as seller mistake)
What is the Long-Term Prognosis for Cambrian Park Real Estate?
No one has a crystal ball, but there is a direct correlation between the number of short sales and foreclosures in a neighborhood and what will happen to pricing. The wealthiest areas in Silicon Valley tend to have the least number of distressed homes and their values are holding up better than the most entry level parts of San Jose or Santa Clara County. Cambrian is mid to upper range in pricing. It does have some bank owned homes, short sales and foreclosures, but it’s not as bad as some areas.
Right now, 68 houses and condos in Cambrian are identified as short sales or bank owned homes. This is out of 233 properties (houses and condos) currently available. It’s stronger in Almaden, where the ratio is 20 out of 131. In Blossom Valley it is worse: 261 out of 445. In Saratoga, a mere 3 out 155 homes on the market are short sales or bank owned. Morgan Hill and Gilroy have a high proportion of distressed properties too: 323 out of 739.
Relatively speaking, Cambrian is not faring too badly – it is close to balanced right now, and that’s a good thing for consumers.
It’s always about location, so even within Cambrian, you can protect your investment by buying in the best location you can. That means don’t purchase on a busy road. No high voltage power lines. No backing up to freeways or anything undesirable. Avoid flood plains and other natural hazards too. Do buy where schools are good, where neighbors all keep up their homes.
My husband and I lived in Cambrian Park with our two kids for ten years and I have been selling in Cambrian on a very regular basis over my 15 year career. If you are interested finding a Cambrian Park Realtor for buying or selling a home in Cambrian Park or anywhere nearby, please give me a call and we can talk about your specific situation during a confidential, no-obligation, no-cost and no-pressure meeting.