Archive for the ‘Los Altos Real Estate’ Category

Top 10 Silicon Valley Real Estate Trends for 2009

By Dawn Thomas | December 16th, 2009 0 Comments

As 2009 draws to a close – you’ll soon be reading lots of  top 10 lists for the movers, shakers, and trends of the year and the decade!   In the spirit of being just a little ahead of the crowd, here’s our list of the top Silicon Valley Real Estate trends of 2009:

1. Low Interest Rates – with More Strings –  Interest rates have been low this year, with periodic dips into historic record  ”low” territory.   These great rates, though, come with seemingly ever-changing requirements and conditions.  Selecting a great financing source who can get you great rates AND help you navigate through the process has never been more important.

2. We’ve Got to Keep It Together For Longer – With the changing lending guidelines, it’s been taking longer for properties to close escrow and having a signed purchase contract did not automatically mean a closed escrow in 2009.   Having a black belt negotiator on your real estate team has been critical this year.

3. “Turn Key” is Hotter than Ever – A few years ago – buyers could purchase a property & count on some quick appreciation to pay for a remodel in just a little time.  Now – buyers can’t count on home appreciation to finance a remodel in the near term & are looking for great condition, move-in ready homes to buy  (as if location and condition ever go out of style in the world of real estate!).  On the other hand – for buyers seeking to purchase a property in a high-demand area like Palo Alto or Cupertino – it may pay to look for properties needing some work.  If you can see the potential in a fixer – you may have fewer competing bids from other potential buyers.

4. Buying a Silicon Valley Foreclosure is not as Easy As It Sounds - Some of the busiest agents in any real estate office are the ones listing “Real Estate Owned” or REO properties for the banks.    Buying one of these properties means navigating a maze of bank-specific requirements for making the offer, competing against multiple offers (some properties are getting 20, 30 or even 50 offers), and positioning your offer against “all cash” investors.  Finding a deal & making sure it stays a “good deal” through the process is not for the faint-of-heart!

5. No Shortage of Short Sales – over the course of 2009 – we continued to see properties listed for less than what is owed to the lender(s) – resulting in a short sale requiring lender(s) approval to go through.   We’re starting to see short sale listings where the lender has approved a short listing price – allowing the whole process to go smoother and quicker.

6. The Year of the First-Time Buyer – with more affordable home prices, the First Time Home Buyer Tax Credit, and sweet interest rates – many of the homes sold in 2009 went to first time home buyers.   In the final months of the year – we are starting to see more and more “move up” buyers rousing the mid and higher-end price points.  Welcome!  Please bring friends!   This is a trend we want to see continue & grow in 2010!

7. Deal Hunting in Palo Alto – Where’s the deal on a single family home in Palo Alto for less than $300,000?  The media in 2009 did a fantastic job of painting the picture of real estate in free fall, and we went through a period in the spring where every day brought Internet inquiries looking for the extraordinary deal in Palo Alto.  According to the MLS – the least expensive Palo Alto single family home sold so far in 2009 went for $703,000 for a 67 year old, 703 square foot cottage with foundation issues.

8. Your Home May Have a Bigger Electronic Footprint than You Do - Social media sites like Facebook and Twitter are 2009 Trendsetters above and beyond the world of buying and selling dirt.  In real estate, though,  the savvy home seller now ensures that their Real Estate agent is marketing  their property through multiple Internet channels.    Wouldn’t  you want 30 million visitors at your open house – especially the ones who can’t leave foot prints on your new carpet?

9. Welcome to California! – We are working with an increasing number of clients who are relocating to Silicon Valley for a new job.  It looks like both our job market and our real estate market are picking up!   Welcome!

10. Less to Pick From, More Competition – And finally, in many areas of Silicon Valley – we are seeing fewer homes on the market.    In fact, for Silicon Valley overall – more homes are “pending sale” than are actively for sale.  For buyers – this means that there are fewer homes to consider and more competition to get  your offer accepted. For sellers – it means that there are fewer competing properties.  This sets the stage for an even brighter 2010!

We wish you the best holiday season & look forward to serving you and your referrals in 2010!

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12 Reasons Why It’s Great to be a Dog in Los Altos

By Dawn Thomas | November 15th, 2009 0 Comments

1.  It’s a Great Place for a Walk!

Los Altos is a “walker-friendly” town with miles of quiet residential streets to explore, as well as several great parks. Just remember to bring a flashlight – with the scarcity of street lights in Los Altos, it can be hard to see!

2. A Little Shopping is always Fun
A little exercise can make a dog hungry! Check out the 5 Paw Bakery (315 Main Street)– where they bake such canine culinary confections as birthday cakes, yogurt and carob-dipped cookies and savory biscuits.

3. Coffee and Canines
Catch up with dog and human friends alike at one of the coffee shops in Los Altos. You’ll almost always see at least one dog sharing the love outside Starbucks (296 Main Street & 643 Los Altos Rancho), Peets (367 State Street) and Main Street Café (134 Main Street).

4. Fine Doggie Dining
When it’s time for more than a cup of coffee – enjoy a great meal on a dog-friendly patio.  The staff will even bring a bowl of water for your canine friends!

5. Ouchies Fixed 24 x 7
The Adobe Animal Hospital is open 7 days a week, 24 hours per day, providing regular and emergency vet services for dogs and other pets. From regular preventative check-ups to fast attention during an unexpected emergency – it’s reassuring to be able to go to one place.  Ask someone in Los Altos which vet they use – and chances are – they’ll say Adobe.

6. Buff and Fluff
The staff at the Barking Lot (467 First Street) makes sure that Fido and Princess look sharp for their strolls through the Village. From nail clipping to baths, clips and coifs – this is the place for the latest Los Altos canine look!

7. Hanging out at Home
Some days – it’s great to just hang around home. The median lot size in Los Altos is just about a quarter acre – bigger than the average lot size in Palo Alto and Mountain View.  The kids and the dog need lots of room to romp!

8. Room to Run
Los Altos does not yet have its own dog park – but it is considering working with the City of Cupertino and Santa Clara county to build one. In the meantime- check out the nearby dog parks in Mountain View and Palo Alto  (Mountain
View Shoreline Dog Park) and Palo Alto (Mitchell Dog Park).

9. Need a SPaw Day?
When your pooch needs pampering – it’s time for a short drive to the Pooch Hotel in Sunnyvale. Here, your favorite companion can enjoy the swim facilities, personal trainers, aromatherapy baths, facials, massages, and pawdicures.

10. Certified Canine Design & Construction
John Hammerschmidt of Hammerschmidt Construction in Los Altos jokingly refers to himself as a “Certified Canine Designer”.  Having completed multiple Los Altos remodels with custom canine features,  John is well-versed in designing fido-friendly features including dog washes, dog runs and landscaping, custom breed-specific tiling, and scratch-resistant flooring.

11. Ms. Manners
Does your dog need a visit from Ms. Manners?  Maybe it’s time for obedience classes. Some the best local classes are taught by the Deep Peninsula Dog Training Club at nearby Rengstorff Park.

12. Strut Your Stuff!
Since 1947, the Los Altos Kiwanis Club sponsors the Annual Los Altos Pet Parade on the Saturday following Mother’s Day each year. It features thousands of kids, their pets, and some very creative costumes!

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“Great Deal” with Pre-foreclosures? Guess Again!

By Dawn Thomas | June 9th, 2009 0 Comments

posted by the Dawn Thomas Team of the Intero Los Altos office

Since everyone is looking for that “great deal” in real estate and there is a lot of misinformation, I thought that the attached videos would be interesting to see. About 20 Intero Real Estate agents from my Los Altos office visited the Santa Clara County pre-foreclosure property auction.  Really–it was downright boring!

A high percentage of the properties were getting postponed until future dates or the starting price was pretty close (or over) what market value is on these houses.  We spoke at great length with one of the auctioneers that day.  He told us that these homes are not the “great deal” that everyone is looking for or are hearing about in the media.  Most of the time these pre-foreclosure properties sell for $30K, $40K, or $50K below market value.

Now before you grab your jacket and decide to hop in your car and zip down to the daily auction at the courthouse, please understand that these properties come “AS-IS”, with NO title insurance, NO disclosures, NO inspections, and can be riddled with back taxes or other liabilities that you as the new owner will need to make good on as the new party on title.   Plus, you have to show-up with cashier’s checks in the amount enough to cover the entire cost of the property.

You will notice that there are folks standing around with cell phones, clip boards, and brief cases (stuffed with cashier’s checks).  These are professionals that are out there every day.  Some of them have “handles” or code names like “Dragon Lady.” Notice the gentleman in the black jacket–he is likely getting instructions from his boss or a partner on which properties to place a bid.

When you hear in the videos that the property will be “sold back to the beneficiary,” what this means is that the bank will take the property back and will then have to proceed with the full foreclosure process.  The foreclosure process costs banks oodles of money, and the courthouse steps is the last resort before having to go down that path.   About 90-95% of the time, the properties that are sold back to the beneficiaries wind up listed by a Realtor and are on the MLS.  Did I mention that many of them are in not-so-desirable areas?

All in all, it was an interesting experience and I’m glad to be able to share it with you.  I look at educating those I know as a big part of my real estate business.  Goodness knows that several news media outlets are completely failing at this piece!

Comments?  E-mail me.  Thank you!

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Has The Silicon Valley Real Estate Market Hit Bottom?

By Dawn Thomas | May 22nd, 2009 0 Comments

posted by the Dawn Thomas Team of the Intero Los Altos office

The Silicon Valley Real Estate Market continues to pick up momentum.  The question is, have we hit bottom and are we heading out of this or is this just a short upswing before the bottom really falls out?  I wish I had the answers to that question.  My suggestion right now would be that if you are considering a real estate purchase, jump in now.  You simply cannot go wrong.  If you are selling or need to sell—list now and price your home to move fast.  If this is a short upswing then you don’t want to miss your chance to sell now during an upswing.

How long of a window might we have?  Who knows???  I would guess that we might see a better market for at least the next 60-90 days.  The longer term problem could be increased interest rates or the increase in inventory of short-sale and foreclosed homes.  Any of these could have a negative impact on our local market.  My suggestion is don’t watch national trends, but focus mostly on what you see taking place in our community and listen to your Real Estate professional for the best perspective on what’s really going on.  Your Realtor® has his/her ear to the ground every day and knows the pulse of the local market.

Have you noticed that mass media has stopped talking about Real Estate since the drama is no longer left in the story and there’s no more “tragedy?” Take notice of this, my readers!

Let’s Talk Trends
For Silicon Valley Real Estate as a whole, check out these trends. Bottom line—if the trends continue, we will see a shortage of inventory in the not-so-distant future. The last time this happened was in 2005.

In Los Altos, Los Altos Hills, and Mountain View, we are seeing some upward momentum in certain areas and fairly regular activity in others (stats from April 2009):

Los Altos—New listings increased (118% of April 2008); Inventory is 203% of April 2008; Closed sales are 45% of April 2008.

Los Altos (comparing April ’09 to March ’09)—17 more new listings entered the market in April, making the current inventory of active homes 132. Closed sales were down a bit—11, which was 78.5% of March’s closings.

Los Altos Hills—New listings increased – 1.5 times more in April 2009 than in April 2008; Inventory is 159% of April 2008; Closed sales were right on point with April 2008.

Los Altos Hills (comparing April ’09 to March ’09)—27 more listings came on in April, making the current inventory of active homes 70. Closed sales were 6, which is the total of combined sales for all of Dec. ‘08 – Mar. ’09). This is an excellent trend for the higher-end!

Mountain View—New listings increased (115% of April 2008); Inventory is 200% of April 2008; Closed sales are 133% of April 2008—another great upward momentum indicator for our market!

Mountain View (comparing April ’09 to March ’09)—45 more listings came onto the market in April, completing month-end active inventory at 108. April’s closed sales exactly doubled March’s at 20!

So, I will ask you—have we hit bottom? I would love hear your comments!

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