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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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What’s New in Los Altos?

By Dawn Thomas | October 9th, 2009 0 Comments

Silicon-Valley-And-Beyond-Presents-New-Homes-In-Los-Altos-CABuyers often contact us – looking for a new home.  With the limited land available in Silicon Valley – most folks start off with a home that could be 30, 40, or even 50 or more years old.  And even though – these older homes might be extensively remodeled and in wonderful condition – the dream of owning a brand new – never lived in – home remains.

In Los Altos – there are approximately 10,000 homes and the median age of Los Altos homes on the market is currently 47 years.  So what’s new in Los Altos?   What is available on the market that is brand new?

Currently – there are 11 new homes on the market.

Here’s the range of new single family homes in Los Altos -

High End: A brand new home with over 6700 sq feet of living space – 6 bedrooms, 4+ bathrooms, a wine cellar, and full basement on a 14,000+ sq ft lot.  List price:  $4,995,000.

Low End: A brand new home with 4000 square feet of living space – 4 bedrooms, 2 ½ bathrooms, and a basement on a 7000 sq foot lot.  This home is located on a smaller corner lot on the edge of a busy street.  On a larger lot on a quieter street – I think this home would sell for significantly more than its current list price of $1,599,000.

Just the Dirt - Note that there is one more brand new “single family” home listed for sale in Los Altos for the bargain price of only $998,888.   On closer inspection – though – it turns out that this home is actually just a nice piece of dirt.  It’s a 6750 square foot lot with approved plans and permits for a 4 bedroom, 2 ½ bath home.   You supply the general contractor, materials, labor and construction budget to build your new dream home.

The median new home on the market in Los Altos is listed for $3.2 million and features 5 bedrooms and 4+ bathrooms.  It has 3557 sq feet of living space on a lot that is approximately a quarter acre.    The spec builders in Los Altos are making these new houses “big” with lots of amenities like

  • wine cellars, outdoor kitchens and dedicated theater rooms
  • basement “suites” for the extended family (a place for your teenagers)
  • decadent master suites with huge master baths and walk-in closets bigger than my first apartment
  • great rooms combining a gourmet kitchen, walk-in pantry and family room
  • dedicated offices with built in bookcases and enough high tech wiring to make your favorite geek grin

In Los Altos, I expect to see a trend in the coming years towards slightly smaller single-level homes with an ongoing emphasis on special amenities and high end finishes.   We need our toys.

If you’re not quite ready to buy or build your brand new dream home in Los Altos, here’s a market snapshot of the overall Los Altos real estate market for single family homes:

Market Snapshot:
All  Los Altos CA Single Family Homes
As of October 5, 2009
Median List Price $1,950,000
Average List Price $2,241,075
Least Expensive Listing $998,888
Most Expensive Listing $4,995,000
Asking Price per Sq. Foot $695
Average Days on Market 123
Total Single Family Homes on Market 78
Median Home Size (sq ft) 2915
Median Lot Size (acre) 0.25- 0.50
Median Number of Bedrooms 4.0
Median Number of Bathrooms 3.0
Median Age 47
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Hot or Not? Silicon Valley Market Trends

By Dawn Thomas | September 25th, 2009 0 Comments

Hot or not?  How is the real estate market these days in Silicon Valley?  Here’s the latest snapshot for the West Valley.

One closely monitored real estate measure is a market’s “inventory” – the number of months it would take to sell everything that is currently on the market.    The “heat” of a real estate market is often described as:

  • Cold – 6 or more months of inventory (a “buyer’s market)
  • Neutral – 3 to 6 months of inventory  (a “balanced” market)
  • Hot – less than 3 months of inventory (a “seller’s” market)

Based on these definitions – it looks like the market is warming up in Silicon Valley!

Silicon Valley Market Snapshot (as of September 1, 2009)


City
# Active
on Market
 #
Pending
Sales		 #
Closed
Sales		 Months
Supply
(Inventory)		 Average
Sales
Price		 Sales Price vs.
List Price
(%)
Santa Clara 76 128 56 1.12 $609,054 98%
San Jose 1110 1997 605 1.17 $540,550 96%
Sunnyvale 107 98 66 1.60 $708,832 96%
Cupertino 105 52 37 2.19 $1,161,895 95%
Campbell 119 79 37 2.16 $670,612 96%
Willow Glen 184 119 55 2.45 $769,212 92%
Mountain View 60 39 20 1.88 $879,950 95%
Palo Alto 91 54 29 2.07 $1,483,068 91%
Los Altos 78 32 27 2.36 $1,787,086 92%
Saratoga 143 41 31 4.33 $1,598,459 94%
Los Gatos 188 48 33 5.22 $1,431,736 87%
Los Altos Hills 65 17 4 4.33 $2,238,750 96%

Santa Clara County Totals

2398

2987

1043

1.52

$703,160

95%

Call us for a more detailed analysis of real estate market conditions in your neighborhood in Silicon Valley!

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Shadow Inventory of Foreclosed Homes-Fact or Fiction?

By Russ Boyd | August 28th, 2009 0 Comments

You may have heard media stories of a so called “shadow inventory” of foreclosed homes that banks are holding off the market. According to a story in the San Francisco Chronicle, Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures said, “We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market.” He went on to say, “California probably represents 80,000 of those homes.”
The story suggests that there will soon be a torrent of bank owned homes flooding the market. I’m not here to second guess the data reported in the Chronicle article or the data compiled by RealtyTrac, however, I continually marvel at how media stories differ from everyday life experience. In the Bay Area, the inventory of homes for sale has been decreasing for many months and at the same time the number of sales has increased as has the median price.
According to bay area sales activity, in San Mateo County, the median price is up for the seventh month in a row, the number of homes for sale is down 25% from one year ago and the number of days on the market average down to its lowest point since September of ‘08.
In Santa Clara County, the median price is up for the sixth month in a row, the number of homes for sale is down 40% from one year ago and the number of days on the market average is down to its lowest point since March.
For Alameda County, the median price is trending up since the low in March, the number of homes for sale is down 49% from one year ago and the number of days on the market is down to its lowest point in a year.
In Contra Costa County, the median price is up for the sixth month in a row, the number of homes for sale is down 51% from one year ago and the number of days on the market is at its lowest point in a year.
A basic market fundamental is supply and demand. Keep in mind that a market in balance is considered a six month supply of homes for sale. For the four counties above, the highest is San Mateo County with 2.75 month of inventory and the low is Contra Costa County with 1.75%.
Shadow inventory or not, I can confidentially report that there is every indication that what we need in the Bay Area is more inventory. Multiple offers are common and, although qualifying for a loan takes, well, qualifications, there appear to be plenty of qualified buyers eager to buy in the Bay Area.

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A Night Out with the Kids in Los Altos

By Dawn Thomas | August 14th, 2009 0 Comments

As summer starts to wind down – check out Friday Movie Nights in Los Altos.  Enjoy fun (and free!) movies under the stars in the Village!   The movie schedule is:

•    You already missed “Back to the Future” which showed last week!
•    August 14 – Kung Fu Panda
•    August 21 – Tale of Despereaux
•    August 28 – Wizard of Oz (Dorothy, I don’t think we’re in Kansas anymore!)

If you have ever attended a Los Altos event like this – you know that securing a primo viewing spot is a competitive event!   Come early & stake your claim.    The movies are shown on Main Street in downtown Los Altos at the intersection with 3rd Street.   Main Street is closed starting at 5:30 p.m. and you can start setting up your family’s movie home base at 6 p.m.  Think blankets, chairs, sleeping bags and picnics!

The movies start at 8:30 p.m. – and until then the kids will enjoy face painting, balloon artists and bouncy houses.   If you are looking for a great picnic ideas – consider

Enjoy your last weeks of summer in Los Altos!   Race you to the bouncy house – last one there is a rotten egg!

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The Value of Fixer Uppers

By Steve Ricketts | August 5th, 2009 0 Comments

All home buyers are looking for value, and to most this means getting the largest home for the lowest price. For many buyers this translates into purchasing the renowned ‘fixer-upper’.

So what exactly qualifies a home as a ‘fixer-upper?’

There’s a wide range of subjective credentials, as some homes may only need new paint and carpet, while others may need more extensive repairs to their foundation, roof, plumbing, or electrical systems, etc.

While on your search for the right home, remember to be realistic on accomplishing the repairs – who will do it? Will it be you, or will you be hiring a contractor? Estimate how much the repairs will cost with, and without, professional help. Does it make your purchase worth it? If you have to hire an expensive outside contractor you may not see the potential value of buying the home in the first place.

If you choose to buy a home requiring repair it is especially important to work with a licensed REALTOR, due to so many potentially expensive issues you may be confronted with. Your agent will walk you through the details of the property and termite inspections, and help guide your decision-making process based on your own ability to repair the home.

Your REALTOR should also be able to recommend the best vendors in your area, based on their past experience and company recommendations, in case you need further help on your project, or even just some quality advice. Choosing the wrong people to help repair your home can be very costly in both time and money.

Once escrow has closed, and keys are in your hand the fun begins! With the economy as it stands today many home owners with fixer-uppers are turning to “sweat equity”, or do-it-yourself repairs, to enhance their home value.

You will find savvy home owners doing most of the work themselves with friends and family lending a hand. A method of making the project more pleasurable and less of a chore for your invited helpers is to make a party out of it! Offer pizza, drinks, music, etc. to motivate your crew. Offer out-of-town friends and relatives the chance to be your first few guests in your new home. Or, make this a great excuse to call old friends you haven’t seen in awhile. Make your home improvement projects a community effort.

You will be amazed when you are finished. Not only have you repaired and remodeled your new home, you will probably find that you have also built stronger relationships with family and friends.

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If There Ever Was a Time to Buy, This Is It!

By Russ Boyd | July 25th, 2009 0 Comments

Five Reasons Why Now is the Perfect Time to Buy-

  1. Low Mortgage rates – Bankrate.com recently reported, that mortgage rates are at their lowest point ever in their survey taking history. They have been conducting rate surveys since September 1985. The national average for a 30-year fixed rate mortgage is very near 5%. This is great news for buyers.  If you read or listen to the news, you will see that refinancing has increased dramatically.  Why do you think this is? Any further rate drops are likely to be minimal.  One thing that you can count on, when rates begin to rise, they go up much faster then they go down.  The current interest rates alone, is a really good reason to consider purchasing a home.
  2. Housing Prices –  Everyone knows that housing prices are down in most regions.  Do you think prices are going to continue to decline?  Perhaps, but most of the decrease is now reflected in today’s prices.  The number of sales and median prices have been rising steadily in the Bay Area since the first of the year. Multiple offers have become very common in the lower price range.  See for yourself at BayAreaMarketMetrics.com.  Now you have two good reasons to buy.
  3. Seller Motivation –  Due to the current market conditions, it is pretty easy to identify motivated sellers.  In many instances, you can easily find a motivated seller by looking at the property description. Look for keywords such as: “motivated seller,” “make an offer,” or “must sell.”  Be sure your agent is on the lookout for consistent price reductions. If you like the property and the seller is motivated, then you should seriously consider making an offer.  If you don’t, chances are someone else will and you will have missed your opportunity.  Don’t let that happen to you.
  4. Tax Advantages –  Current tax law allows homeowners to deduct interest paid on mortgages and the amount of paid property taxes. If you are paying rent, you do not qualify for these deductions. The Federal and California State governments are also offering incentives.  The most widely publicized are the Federal $8,000 first time home buyer tax credit and the California $10,000 tax credit for a new home purchase. This makes a great opportunity even more incredible.  For find out if you qualify for one or both of these home buyer tax credits, check with your Realtor®.
  5. Timing – You must have heard the expression “buy low and sell high,” right? It might even be your mantra. As with any investment, it is ideal to purchase when prices are low rather than at their peak. However, if you are waiting to purchase a home because you believe prices will continue to drop, you will likely miss out of an ideal opportunity. The time to “buy low” is right now. Once everyone comes to the realization that prices may already be at their lowest point, then you can rest assured that buyers will jump in and start buying. In the lower price range multiple offers are becoming more common.  Remember, the best deals will be the first target.

Now you know, this is a great time to buy a house.  There is plenty of inventory, interest rates are low, house prices are down, sellers are motivated, you can take a tax deduction and you may qualify for up to  $18,000 in tax credits. The timing is perfect. You have nothing to lose and so much to gain.

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Great time to buy investment real estate? Depends.

By Mario Pinedo | July 22nd, 2009 0 Comments

In the single family home market, prices are down significantly. Interest rates are also at close to all-time lows.  So, yes, all indicators are pointing to a great buyers market.

The apartment market is different altogether. First time buyer financing is harder to get and also due to many foreclosures making homeowners into tenants, there are far more renters in the marketplace than normally would be. Therefore, rental rates are up and vacancies are down. Most apartment owners are happy and not very motivated to sell.  Read: no good deals here.

The one opportunity I see is in the duplex – fourplex market. Here there has been financial trouble because of the loose financing that occurred. Compare this to the financing of apartment buildings above 4 units, which has always been very conservative. There are short sales and bank owned foreclosures to be had in the duplex – fourplex market.

With rents healthy… yes, this is indeed a good time to buy a home.

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Has the Silicon Valley Real Estate Market Hit Bottom?

By Dawn Thomas | May 22nd, 2009 0 Comments

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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