The Cambrian Park Real Estate Market Update

Cambrian Park Real Estate Market graphicThe Cambrian Park real estate market remains a strong seller’s market.

For those new to the area, Cambrian is most of the 95124 zip code (south of Foxworthy) and most of 95118 (west of Almaden Expressway). It borders Los Gatos, Campbell, Willow Glen, and Blossom Valley.

The Cambrian Park Real Estate Market

The chart below is from the RE Report.

 

Trends At a GlanceApr 2024Previous MonthYear-over-Year
Median Price$1,905,000 (+6.4%)$1,790,000$1,605,610 (+18.6%)
Average Price$1,965,730 (+4.6%)$1,878,510$1,710,090 (+14.9%)
No. of Sales49 (+22.5%)4050 (-2.0%)
Pending44 (-2.2%)4537 (+18.9%)
Active32 (+220.0%)1026 (+23.1%)
Sale vs. List Price113.8% (+0.3%)113.4%107.9% (+5.4%)
Days on Market(+5.7%)8(-8.5%)
Days of Inventory19 (+152.5%)815 (+25.6%)

 

The Cambrian market continues heating up. Check out the average sale price by month, including the partial month of May (so far).

 

Cambrian average sale price for single family homes (houses and duet homes)

 

If this continues in May, it will be one of the highest priced months ever (second only to April 2022). Cambrian has a lot of enduring value that makes home buyers decide that it’s worth fighting to get a foothold there.

 

(more…)

Willow Glen real estate market in San Jose

Willow Glen real estate market is a strong seller's market. This Willow Glen sign is from the downtown business district.The Willow Glen real estate market in San Jose remains a strong seller’s market.

  • Average and median home prices are up monthly and yearly.
  • Homes are selling in 11 days on average – super hot.
  • The sale to list price rose again to 108% in April (up from106.7% in March)

The best priced homes with no location or condition issues continue to sell quickly and with multiple offers and overbids.

Willow Glen Real Estate Market Trends: Single Family Homes

Willow Glen home prices area up monthly, but the average sale price slipped annually. The sale to list price ratio is rising, though, and the market is hot for homes priced aggressively, with good locations, and good (remodeled) condition.

Click for the complete Willow Glen real estate report:

Trends At a GlanceApr 2024Previous MonthYear-over-Year
Median Price$2,195,000 (+9.2%)$2,010,000$1,975,000 (+11.1%)
Average Price$2,287,280 (+2.8%)$2,223,900$2,192,020 (+4.3%)
No. of Sales36 (-2.7%)3731 (+16.1%)
Pending35 (+9.4%)3238 (-7.9%)
Active40 (+53.8%)2648 (-16.7%)
Sale vs. List Price108.0% (+1.3%)106.7%103.3% (+4.6%)
Days on Market11 (-38.7%)1814 (-22.6%)
Days of Inventory32 (+52.8%)2145 (-28.2%)

and a month earlier:

 

Trends At a GlanceMar 2024Previous MonthYear-over-Year
Median Price$2,010,000 (+9.5%)$1,835,000$1,875,000 (+7.2%)
Average Price$2,223,900 (+14.7%)$1,938,830$1,985,010 (+12.0%)
No. of Sales37 (+48.0%)2535 (+5.7%)
Pending32 (+6.7%)3027 (+18.5%)
Active26 (-3.7%)2745 (-42.2%)
Sale vs. List Price106.7% (+2.4%)104.2%104.5% (+2.1%)
Days on Market18 (-16.6%)2216 (+11.7%)
Days of Inventory21 (-30.3%)3039 (-45.3%)

 

 

Below please find a market profile and then a couple of charts for the Willow Glen real estate market for houses and duet homes (attached single family homes – not duplexes), care of Altos Research, to which I have a subscription. Altos uses list prices, not sold prices. The data is automatically updated each week, so please bookmark this post and come back often!


Data from Altos Research for Willow Glen Real Estate Market Trends – San Jose 95125

In the latest update, Altos says single family homes are in a strong seller’s market with rising market action, and a decrease in much needed, perpetually low inventory. As of today, 35% have taken price reductions.

(more…)

Cupertino Real Estate Market Trends and Statistics

Cupertino real estate market will be more expensive for view homes in nearly all cases -image taken from Ridge VineyardsHow’s the Cupertino real estate market? The Spring market is underway and the market is hot. The best homes are getting multiple offers and high overbids. Prices are up both monthly and yearly.

Our inventory has been extremely constricted, so it looks like these market conditions will persist for the near future, at the very least.

Cupertino Real Estate market – Closed Sales and Trends at a Glance

Here are the most recent real estate statistics, via our Cupertino Real Estate Report. The market is HOT!

(If you’re viewing the chart below on a mobile device, please swipe horizontally to see all columns.)

 

Trends At a GlanceApr 2024Previous MonthYear-over-Year
Median Price$3,450,000 (-3.8%)$3,588,000$2,800,000 (+23.2%)
Average Price$3,529,810 (-0.7%)$3,553,500$3,113,500 (+13.4%)
No. of Sales33 (+57.1%)2111 (+200.0%)
Pending15 (-48.3%)2917 (-11.8%)
Active17 (+112.5%)814 (+21.4%)
Sale vs. List Price110.8% (+1.2%)109.4%107.7% (+2.9%)
Days on Market10 (+21.5%)812 (-17.8%)
Days of Inventory15 (+30.7%)1137 (-59.5%)

 

Cupertino real estate market via the Altos Research weekly charts (they use LIST prices, not sale prices):

 

(more…)

Almaden Valley Real Estate Market Conditions

Almaden Valley Real Estate Market Conditions San Jose 95120 - photo with Mt Umunhum in backgroundThe Almaden Valley real estate market is experiencing some up and down, but remains clearly in a seller’s market and much stronger than it was one year ago. Inventory remains perpetually low, so the best homes in great locations are selling like hotcakes while buyers are passing over others that may need more work.

Almaden Valley Real Estate Market Conditions: Trends at a Glance

First, a look at the residential real estate market statistics for Almaden, or San Jose 95120 from the Real Estate Report (a subscription that uses closed / sold data).

Please note that there are 28 closed sales and just 26 active – that ratio tells us that the houses in 95120 are in strong demand. The sale to list price ratio is just over 106%, so we know buyers are competing to get these properties, and most are selling with multiple offers.

 

Trends At a GlanceApr 2024Previous MonthYear-over-Year
Median Price$2,327,500 (+5.5%)$2,205,750$2,350,000 (-1.0%)
Average Price$2,383,930 (+0.6%)$2,370,700$2,357,370 (+1.1%)
No. of Sales28 (+27.3%)2227 (+3.7%)
Pending30 (+50.0%)2021 (+42.9%)
Active26 (+52.9%)1723 (+13.0%)
Sale vs. List Price106.2% (+0.3%)105.9%101.4% (+4.8%)
Days on Market10 (-26.7%)1420 (-47.0%)
Days of Inventory27 (+16.2%)2325 (+9.0%)

 

Altos Research charts for Almaden Valley real estate market, single family homes segment (more…)

Mountain View CA real estate market trends and statistics

Mountain View real estate market trends - by Mary Pope-Handy and Clair Handy - blue house with wordsThe Mountain View CA real estate market was a strong market and continued heating up, even breaking some recent records!

Quick summary on the realty market in Mountain View, CA

  • The average sale price for houses rose month over month as well as annually
  • The median sale price is also up monthly and annually
  • Days on market rose a tad from 9 in March to 11 in April.
  • The sales to list price ratio rose even further to 113.6%,  indicating how hard buyers are fighting for the best homes.
  • The condo market is also fairly strong (see more near the bottom of this post)

Mountain View CA real estate market trends at a glance

First let’s have a look at the Real Estate Report for residential sales data. Happily, inventory rose and so did the number of sales (pending sales were flat).

 

Trends At a GlanceApr 2024Previous MonthYear-over-Year
Median Price$2,750,000 (+9.1%)$2,521,000$2,708,000 (+1.6%)
Average Price$2,838,300 (+5.5%)$2,691,250$2,661,440 (+6.6%)
No. of Sales27 (+125.0%)12(+200.0%)
Pending27 (0.0%)2719 (+42.1%)
Active25 (+25.0%)2016 (+56.3%)
Sale vs. List Price113.6% (+2.0%)111.3%103.9% (+9.3%)
Days on Market11 (+21.1%)9(+14.9%)
Days of Inventory27 (-46.3%)5052 (-47.9%)

 

Throughout much of the valley, we are finding that some homes sell very quickly and with strong overbids, and others languish on the market (most often that happens if they are overpriced, but it could be other issues, too).

Mountain View CA real estate market trends and data by neighborhood or district

(more…)

The real estate market in San Jose’s Blossom Valley area

Pan of Santa Teresa and Blossom Valley

Pan of Santa Teresa and Blossom Valley

The Blossom Valley real estate market heated up through the first quarter of 2024 and are even hotter in spring. It continues to be a strong seller’s market! Homes in good shape which are priced appropriately regularly sell quickly and well above list price, despite new hurdles for buyers to overcome over the last two years. While trends can vary based on price point, schools, zip codes, etc., the entire area is still in high demand.

Here are some bullet points from the latest statistics:

  • Closed sales are well above this time last year, as is pending, while active inventory is just a hair more
  • The average sale to list price ratio also grew month-over-mont and soared above last year!
  • Days on market sped to a red hot turnover with an 8 day average with a slightly slower market absorption (days of inventory) at just 13 days

Often we see month-over-month softening into the end of the year with lower inventory and demand over the busy holiday season, followed by an increase in activity (and rising prices) as the market moves towards spring. That said, the market remained strong through winter and began experiencing rapidly increasing activity earlier than usual. March and April are often the peak months for pricing, and it’s definitely a hot market in Blossom Valley!

About Blossom Valley

The Blossom Valley area of San Jose is on the south end of the city and covers the 95123 and 95136 zip codes. For our MLS, it’s “area 12.” A more affordable section of Silicon Valley, it has much to offer in addition to more reasonable housing prices. Many areas enjoy views of the Santa Teresa Foothills or the Communications Hill knolls or even the coastal foothills in the distance and Mt Umunhum. One corner of it sits alongside beautiful Almaden Lake, too. Another corner is located at the crossroads of Highways 85 and 87, making it an easy commute destination for those working in downtown San Jose. And there’s an abundance of shopping and dining opportunities.

Now for some market data.

Live Altos Reports

We’ll start with the Altos Reports, which gague the market based on active listings, not sales, and is updated about once per week.

95123 real estate market trends, automatically updated weekly:

Blossom Valley Real-Time Market Profile by Altos Research

(more…)

Why are lease options to buy so unpopular?

Kitchen scene with the words Lease options to buy - the good, bad, ugly - why are they unpopularSometimes I’ll get an inquiry from someone interested in lease options to buy property in the San Jose area.  It’s been a while, but I remember that phone call pretty vividly.  “I’m tired of wasting money on the rent”, she explained.  Hoping to locate one, she was phoning the agents of San Jose houses for sale – maybe one of them would do a lease option?  Not likely.

Why are lease options hard to find in Silicon Valley?

It is a challenge to find a lease option in the greater San Jose area for a number of reasons, most of them related to the extra risks involved as opposed to simply renting or selling the real estate outright.

1 – Cash needed at close of escrow: An overwhelming majority of the home sellers here want their cash at close of escrow, so the buyers can be all cash or part cash and part loan (20% down, for instance).  Most real estate sellers want to take the cash from the property being sold and do something with it immediately – and the majority of the time that means putting it into another home in which to live.

2 – Don’t want to be a landlord: Doing a lease option means that not only will the owners of the property not get their cash right away, but they also have to become landlords in the meantime.  If they pay a professional property manager, that may cost 8% per month in overhead, too, so it cuts into any profit.

3 – Lease options are risky: With lease options, there is far more risk for the seller, of course, but also for the buyer!  (And by extension, real estate licensees who get involved with lease options.)

  • The seller risks a default by the buyer/tenant and then having to go through the trouble of evicting him/her/them.
  • Pricing risks for both seller and buyer:  the purchase price is decided upfront, but the sale isn’t finalized for a year or more.  During that time, the real estate market could appreciate like crazy (leaving the seller to feel that the house is sold for too little, less than market value) or the prices could fall (with the buyer unable to complete the sale since the property wouldn’t appraise – thus losing all of the down payment in the process).  Either way, buyer or seller could feel unhappy and cheated. (more…)

How to get a great buyer’s agent – and keep them

You and your great buyer's agent teamwork graphic - puzzle pieces and 2 peopleA great buyer’s agent can be hard to find and keep. Here’s what to do to enlist the help of one and how to make sure you stick together as a team and get you into your new home.

Summary:

Only a fraction of all interested home buyers actually buy in the year they say that they plan to do so.  For various reasons they decide to keep renting, or move away, or give up, or simply don’t write offers that are selected (they may chronically low-ball)

  • Some home buyers are very serious but also very time consuming, and if it takes them a long time to buy, it can be draining for their real estate agent, and if prices are rising, it can shrink the odds of success.
  • Many Realtors prefer to work with sellers when the market is hot – which it nearly always is in Silicon Valley, since most homes do sell (while far fewer buyers buy).
  • Buyers who want to enlist a strong Realtor will need to be serious about home buying, able and ready (have the money and a pre-approval in place), and loyal as the starting point.  Your real estate licensee may ask you to sign a buyer representation agreement, just as home sellers sign a listing contract. This will be required by law by mid-July 2024.
  • To be taken seriously, when you first contact your agent, DO:
    • share your full name
    • share your real contact info (including an email address that you actually check)
    • specifically what you are targeting
    • how you got their name
    • your timing and anything else important
  • Understand that we agents get many scammers approaching us. Do your best to look authentic. Scammers say “I want to buy a house in your area. Contact me on WhatsApp”.  If you sound like a scammer, your initial approach may backfire so badly that your message gets you blocked in the future. (I get several scammers texting me each week.)
  • If for any reason you haven’t done all of the above upfront, please correct it if needed over time. For instance, if you provided a “junk” email account and never check it, your agent may find your perfect home but not be able to inform you of it if you never look at those emails.
  • To keep your great buyer’s agent on your team, it’s imperative that you allow that Realtor to guide you, whether it’s getting preapproved with a strong lender, deciding on priorities (must have versus nice-to-have list), or moving quickly to view houses, or taking the paperwork seriously – or any other major step. You need to be as motivated as your agent!
    And communicate openly if there’s an issue. I’ve had clients tell me that the pre-approval needs to wait until they’ve been at their new job until a certain date. Whatever it is, ignoring requests given to help you without explaining the backstory won’t be good for your teamwork and could get you fired as a client. (Yes, Realtors sometimes fire their clients.)

    • If you fail to do these things, your agent may not feel like your odds of buying a house are good, or that the stress associated with doing so will be higher than necessary if you stall on taking the proper steps.
    • Put another way, if you hire an agent because of her or his knowledge and track record, but then don’t heed that agent’s professional advice, the relationship may not do well over the long run.  Think of it like a sack race: both people have to be going in the same direction, carefully working together, or it’s not possible to move well (if at all).

Below, we will go over in more detail how to get and keep a great buyer’s agent in a seller’s market or in any market, for that matter.

(more…)

Multiple offers are common right now in Silicon Valley

Multiple offers are common - sellers and listing agent discussing the open house and biddingMultiple offers are common right now in the Silicon Valley real estate market. With them typically come overbids and sky high sales prices. Clair and I have shown several homes that our buyers did not bid on but which got many offer contracts and which sold for 15 – 20% over list price just over the last 30 days or so.

The hottest part of the market seems to be properties under $2 or $3 million, depending on the area.

When there are tons of buyers lining up to purchase a home, the sellers have usually put a substantial amount of time, energy, and money into making their property look fantastic, and they also take a risk in pricing it low to attract a large number of home buyers.

Multiple offers are common when property sells fast – but it doesn’t always!

When there aren’t multiple offers, it could be location issues, condition of the property (or neighborhood), overpricing (the most common culprit), difficulty in viewing the home, or other missteps on the selling side.  Buyers today want a turnkey home in a superior location that’s in great shape – not remodeled 20 years ago or more – and they will pay a premium price for it.

When homes have been on the market for 3 weeks or more, this may be a great opportunity for buyers to be the lone bidder on it. Does it have the right things wrong? Can what is off be fixed? Is it only overpriced? I would suggest buyers focusing on all of the inventory and not just the hot new inventory.

Why is it that multiple offers are common now?

There are a couple of reasons why homes that are in great shape, priced low, and given good exposure to the market are selling so strongly now.

  • First, there is a dire shortage of inventory, or lack of supply.  This is a chronic problem, but it’s acutely so now due to the higher interest rates and home owners not wanting to sell. It’s unlikely for this to change anytime soon, unfortunately.
  • Second, because Silicon Valley residential real estate has a long track record with good appreciation, those who can buy want to do so. Many are empowered by the rising stock market. If they are here for the long haul, buying makes more sense than renting.
    • Many are purchasing with more than 20% down, and they will watch for an opportunity to refinance.
    • Others are buying all cash. Those buyers may be anywhere from 15% to 35 % of the successful home buyers.

The inventory crisis will likely improve a little as the year goes on because inventory normally rises with the peak being somewhere in the summer most years.  No guarantee – sometimes it doesn’t behave “as usual”.

How can you tell if a home is going to get multiple offers or what the selling price will be?

These are really two different, but related, questions.
(more…)

Five Pricing Mistakes to Avoid

Five pricing mistakes to avoid - not factoring in location problems or other negative issues is a huge mistakePricing is the most important part of “marketing a home for sale” that sellers and their agents do. There are five pricing mistakes to avoid that we’ll go over here.

The one most important tip: over-pricing is the #1 reason why some homes don’t sell. A property has the best chance of selling at highest value and quickly when it’s priced right from the start. Here’s a quick list of the most common pricing errors which Silicon Valley home sellers should avoid because they often lead to over-pricing.

Five Pricing Mistakes to Avoid

  1. Selecting the list price of the home based on what you want or need rather than on what the market will bear (the “probable buyer’s value” of your home).
  2. Using dissimilar “comps”. The best comparable properties will be within a mile  of the subject property, within 10% of the home’s size and 10% of your lot’s size, in the same school district, ideally in similar condition and architectural style, in a similar type of location, and on top of all that sold very recently.  Don’t compare a patio home or zero lot line home with a house on a normal lot where the owners can walk fully around the property. Don’t use the price per SF of a property 20% (or more) larger or smaller.
    • Of the five pricing mistakes to avoid, this is the most common one – for both sellers and for buyers trying to gauge where a property might sell.
  3. Hiring an agent who tells you an inflated price and then using that number. Look at the numbers yourself. A better practice is to first select the best Realtor and then arrive at a pricing strategy together. Many agents are pressured by homeowners to tell the owner what he or she wants to hear. This is truly counter-productive!
  4. Not factoring in negative issues which could impact your home’s value, such as proximity to busy roads, high voltage power lines, the look of nearby homes and yards, non-permitted work or additions, a strange layout, etc. Ignoring it – or believing that buyers will – means you will be perpetually too high in your assessment of your home’s value.
  5. Failing to include the current competition in your assessment of your real estate’s value.  Are there a lot of homes like yours on the market? Are they selling or staying on the market? The buyers are are sending signals, so listen to them! Are there short sales and bank owned homes selling nearby? If so, those are going to pull your home’s value down, so those need to be included in your assessment. It is very important to establish the probable sales price of your home by looking at the competition as well as the pending sales and recently sold homes.

(more…)