Cambrian

What does it cost to buy a 4 bedroom, 2 bath home in the West Valley areas of Silicon Valley?

It can be really challenging for people moving to Silicon Valley to get a sense of pricing for home buying. So to compare “apples to apples,” let’s take a hypothetical case of a 4 bedroom, 2 bath home of approximately 2,000 SF house (appx 185 square meters) and see how the cost looks in one area versus another.

Today I compared several areas and cities using the same formula: homes of 1800 – 2200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 6000 SF to 10,000 SF that have sold within the last 120 days.  Here’s how it shakes out in the “west valley areas” along the Highway 85 corridor. What areas are most affordable? One way of analyzing this is the “price per square foot” figure. How competitive is it? Have a look at the DOM or “Days on Market” figure.  All of these days on market are short, but they range from low to heart-skipping fast.

How much have prices changed? That really depends on where you live, or where you want to live. Below is a flashback to September 2016.  Do you notice the difference in ordering? A couple of markets have switched places, but there’s not too much different. Sunnyvale has fallen behind a good deal, and Campbell and Santa Clara have swapped positions. For the most part, rankings have changed very little as far as cost per square foot.

This next chart was from last March.

In most cases, the most expensive and desirable places have either the best schools or shortest commute location. Had I ranked these for school scores, you’d find that Cambrian is fairly high up and a good “bang for the buck” location – though not a super short commute for folks who work in Mountain View (though not so bad for people working in Cupertino). None of these is especially close to North San Jose (Cisco).

What about a little longer term? What did this look like in 2013? Click through to see. Continue reading

What does it take to buy a home in Silicon Valley?

Graphic of people running to an open houseYou’ve probably heard that buying a home in Silicon Valley is a bit like purchasing real estate in Manhatten, London, Tokyo, Paris, or other regions where the prices are in the stratosphere.  It’s true. It’s a strong seller’s market.

And yet, every day, homes are bought and sold in the San Jose – Palo Alto – Foster City area.  They aren’t all cash; perhaps 20-30% are bought without any loan or mortgage, but the rest of the properties are sold with some sort of financing.

Here’s a quick summary of what is needed to buy a house, condominium, or townhouse in Silicon Valley (this list applies MOST of the time and with few exceptions):

  1. A large down payment is needed – usually 25% or more – to win in the multiple offer situations which are the norm right now.
  2. Nerves of steel: it’s scary to buy a house, but here, many homes are purchased without the normal contingencies for loan, appraisal or inspection.  (But home sellers do provide a full battery of inspections that you can review before making your offer in most cases.)
  3. The ability to move quickly and decisively as the best homes sell very, very fast – often in a week to nine days.  In the last 30 days, there were 385 houses which sold and closed in the city of San Jose.  Of those, 282 went under contract and became pending sales in 14 days or less.   That’s 73%.    In Sunnyvale the numbers were 47 and 47, so 79%.  Here you need to be 110% sure.  If you give off signals that you are hesitant, your offer is unlikely to be accepted.
  4. It’s a big help if you have a really good Realtor who’s known, liked and respected in the local real estate community.  Listing agents will prefer to work with an agent who’s trusted. In some areas, like Palo Alto, many homes sell “off market” and then the full inventory tends to be known only by those local and trusted agents.
  5. A strong lender, especially if you are coming from abroad, who’s experienced in tracking work history, credit, etc. in other countries (and in some cases other languages). Don’t just walk into a bank and pick someone.  Get a good recommendation, either from someone at your company who’s had a similar experience or from your Realtor, who should be used to working with international home buyers.
  6. Being clear on priorities and being able to put them in order is crucially important.  It’s usually not possible to get everything on the wish list and also get it in budget.  So decide which is most valuable to you: schools, commute time, home type (perhaps you can get what you want, where you want – but only if you buy a condo?), commute time or?

Those are the key ingredients.  Perhaps the hardest one, when getting started, is the last one.  Let’s talk about that.

Priorities list: pick any 2 out of 3

A request I often get is to find a nice sized home and yard in good shape with good schools and a commute to Palo Alto that’s under an hour.  So far, so good.  Then comes the desired price tag: under $1,200,000 or under $1,500,000.    You can get the home, yard, schools, and commute, but it won’t be under $1.5 million for a good sized, remodeled house and a big yard with better schools.   The price tag fitting that description is probably closer to $2 million due to our clogged commute routes.

One of the best areas in terms of schools and pricing is Cambrian, which is a part of San Jose, with either the Union School District or the Cambrian School District.  You can get a Cambrian home with good schools for under $1.4 million and it will have a decent sized lot, be in good condition, etc.  But the morning commute to Palo Alto will likely be a little more than an hour, and the evening commute perhaps 80-90 minutes, depending on where in PA or Cambrian you’re going and what time it is.  A nice house in east Los Gatos with the same schools but more house and yard will probably run around $1,700,000 to $1,800,000 for 2500 SF on a 10,000 SF lot.

Cupertino has great schools but the houses there tend to start at around 1.5 million – so if you are ok with a townhouse or condo, that might work.

The upset as reality sinks in

Most home buyers, even if they’ve studied the market here intensely before arriving, go through some strong emotional stages as they learn the real estate ropes and what their budget can and cannot buy.   Sometimes the main shock hits before arriving, though.  Recently I got an email from someone moving here from the south, who lamented the situation with a question along these lines:  “can you explain to me why home prices in Silicon Valley are 5-6 times more than they are in Atlanta?”  It is that bad, yes, and I am sorry.  It is upsetting.  The faster you can move through the shock and upset, the sooner you’ll be able to clear the emotional clutter and buy that next home and really settle in.

Focus on the positive

The good news is, aside from the cost of housing and the traffic, San Jose – Sunnyvale – Los Gatos and whole Silicon Valley region really is a wonderful place to live.  We enjoy 300 sunny days a year on average.  San Jose has often been named the best place to raise kids.  The intellectual climate cannot be beat as we have great minds from all over the world here.  The coast is close, and so is San Francisco.   If you do buy a home, appreciation may be substantial, far more than in most of the U.S., if you can “buy and hold“. (We’ve had a lot of real estate corrections and downturns since the 1940s, but look at some old Los Gatos real estate home prices then and see the buy and hold value at its best.)

San Jose is big and sprawling: where are the districts?

San Jose is the 10th largest city in the United States, and it’s quite sprawling, too.  As an introduction, it’s helpful to know a bit about each of the major districts or areas.   Within them, of course, there are smaller sections which have their own distinct style.

San Jose Districts or Areas map

Below, please find links to most of these areas with articles found on my popehandy.com site.

Almaden

Alviso

Blossom Valley

Cambrian

Coyote Valley

Downtown (and Central) San Jose

East Foothills

East San Jose

Evergreen

Santa Teresa

South San Jose

West San Jose

Willow Glen

Want more information?  Please also check http://SanJoseRealEstateLosGatosHomes.com

How do home prices compare between Los Gatos, Saratoga, Cupertino, Campbell, and areas of San Jose such as Cambrian, Almaden and West San Jose?

Yesterday on my Live in Los Gatos blog, I compared a number of “west valley” areas in Santa Clara County, or southern Silicon Valley, to provide a sense of how much home you can get for your money in Los Gatos, Saratoga, Cupertino, Campbell, and areas of San Jose such as Cambrian, Almaden and West San Jose.  I used my Altos Research weekly newsletters, which provide a snapshot view of four real estate pricing tiers for various cities or areas.   In these, you see the median list price per quartile with the type of square footage, lots size, beds and baths found for each one.

Let’s look at Cupertino first, since I get a lot of folks wanting to relocate to Silicon Valley for Apple employment, and many of the new recruits have heard about the wonderful public schools in that city – a major draw.  A few years ago, it was very possible to purchase a small house in Cupertino for under a million dollars.  But have a look at the chart below and check out the days on market as well as the other data….

Cupertino real estate prices by value tier

 

In many areas, the most affordable homes are the ones that get gobbled up fastest.  Why is it that in Cupertino, the lowest priced listings are on the market the longest?  It’s not their size – I can tell you this from two decades of experience selling homes in the Bay Area.  It is very likely that these properties are not too livable as a group.  They probably need serious remodeling or rebuilding (and perhaps expansion as well).  Most buyers do not have the cash to totally “rehab” a house, especially if they are starting at over $1,000,000.  If you want to live in Cupertino and not throw a ton of money into the existing house, or tear down and rebuild, you’re most likely to need a budget closer to $1.3 or $1.4 million as a starting point.  Want to be able to walk to Infinity Loop?  Make that $1.5 or more – and you will still need to do some remodeling unless it’s very small!

What about other nearby Silicon Valley communities and neighborhoods?  Please have a look at the full article with charts for a number of areas (plus one for all of San Jose).

What does a million dollars buy you in Los Gatos 95030, Los Gatos 95032, and nearby areas: Saratoga, Almaden, Cambrian, Campbell, Cupertino?

More affordable homes to buy or rent in Silicon Valley with better schools

This morning I received an email from folks wanting to find a good area in which to move where they’ll have good schools but not pay the kind of prices they see in Palo Alto.  Below is my response to them.  I focus on Santa Clara County, and in particular the west valley areas from Los Altos to Almaden Valley or Blossom Valley areas of Willow Glen to Downtown San Jose, Santa Clara, Campbell, and back toward Los Gatos and its nearest parts.  Below is my response – hope it is helpful to many of my readers!   (The list is not exhaustive.)

The easiest way to check school scores is to use the site www.SchoolAndHousing.com.  It’s good for showing what house has which schools.  The home search feature is not very good, though, so don’t use that.  Best for home searching is www.MLSListings.com, as it is the public branch of our agent MLS and it is updated continuously.   Something to consider, though, is that the school scores do not tell the entire story.  There are many factors to include in your evaluation of a school, such as the variety of coursework offered (some schools may not have art or music, for instance), the availability of sports (for a balanced upbringing) and the overall feeling of a school (are the kids happy or are they overly pressured into excellence at a very young age?).  For many of these things, the best approach is to visit the schools personally and request a tour.  See if you can chat with the parents who are waiting to pick their kids up after school to hear about their experiences.  And of course read reviews online.

In terms of general areas to consider for schools near Mountain View, Palo Alto or Sunnyvale, in general, the better the schools, the more expensive the housing (whether to buy or to rent).  Hence Palo Alto is extremely pricey because the schools are absolutely top. Here are some communities that have great schools or good to very good schools:
  1. Palo Alto (very costly)
  2. Cupertino (less expensive for the school scores compared to other areas up to #5 on this list)
  3. Saratoga (very expensive)
  4. Los Altos & Los Altos Hills
  5. Los Gatos & Monte Sereno (95030 & 95032)
  6. Parts of San Jose in Cambrian 95124 and Almaden 95120 (very good value)
  7. The Los Gatos Mountains (zip code 95033)
  8. Parts of Fremont (Mission San Jose area)
Also it should be noted that in many cases, it makes more economic sense to utilize private schools and to live in an area which is a little less costly, such as Santa Clara (part of SC has Cupertino schools, so that will be expensive) or parts of San Jose (part of west San Jose 95129 has Cupertino schools, and part does not).  Many of my global clients initially do not see private schools as an option, for fear that all the kids in them will be from wealthy families and spoiled.  But often that is not the case at all – the kids are from families who like the curriculum, the teachers, the overall approach of the school and literally make sacrifices to send their kids there.  So I would advise that you at least have a look at that option since homes in the areas with the very best schools can be extremely costly.

Incredible Price on 5114 Nerissa Way in Cambrian Park

Cambrian Park, Santa Clara County

 – 

Announcing newly on MLS and at low price for Alta Vista School, quiet street, updated/remodeled condition and oversized lot! 5114 Nerissa Way, a 1,233 sq. ft., 2 bath, 3 bdrm single story “Room to add on!”. Now

MLS®

$579,000

– Fabulous price!.

Property information not available

Open House in Almaden Winery on Sunday

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Almaden Winery, Cambrian Park  –  We invite everyone to visit our open house at 5641 Le Fevre Dr. on October 17 from 2:00 PM to 4:00 PM.

Property information no longer available.

Mary Pope-Handy
Realtor,
CIPS, CRS, ABR, SRES
Sereno Group
214 Los Gatos-Saratoga Rd.
Los Gatos CA 95030
[Silicon Valley, California, USA]
1-408-204-7673
mary (at) popehandy.com
CA BRE # 01153805

CIPS - Certified International Property Specialist
CRS - Certified Residential Specialist
ABR - Accredited Buyer Representative
SRES - Seniors Real Estate Specialist

Helping nice folks to buy and sell homes in Silicon Valley since 1993. Mary Pope-Handy, Realtor, Silicon Valley
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