Real Estate

Real Estate

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San Jose apartment rental prices

San Jose apartment rental prices have softened during the coronavirus pandemic. Each month, ApartmentList.com produces a national and local report on rental market trends, including prices. If you are interested in renting an apartment, it’s a good idea to bookmark this page so you can circle back to it every few weeks. Apartment List National Rent Report

Here are some of this month’s highlights:
  • Rents in San Jose decreased by 2.9% month-over-month, and are down 12.2% since the start of the pandemic in March, the #5 biggest decline among the nation’s 50 largest cities.
  • Year-over-year rent growth in San Jose currently stands at -11.1%, the lowest rate in October of any year since the start of our estimates.
  • Median rents in San Jose currently stand at $1,777 for a 1-bedroom apartment and $2,111 for a two-bedroom.

How are the San Jose apartment rental prices as compared to other areas in the U.S.?

Here’s their graphic, but visit the link above to see the whole report.

San Jose apartment rental prices and national rent data as of October 2020

Tools You Can Use When Relocating to the San Jose Area

If you’re relocating to the San Jose area, there are a few items you may want to assemble in your “toolkit” as you evaluate different parts of the region. When I started this website, I had books listed that you could purchase. Today, mostly I have websites that you should bookmark – for free!

Natural & Environmental Hazard Information

Natural hazards are found throughout the United States, often the major one people consider is the one hundred year flood plain. Here in the Golden State, we have some additional concerns relating to fire and earthquake risks.

  • California MyHazards can display a map anywhere in the state with information relating to liquefaction zones, earthquake faults, 100 year flood plains, and high fire risk areas.
  • Flooding from Dam Failure (potentially caused by earthquakes as well as other possibilities) is scary. Learn more about those zones at the link I’m providing here. (As of this writing, the Approved Inundation Maps link is not working.)
  • A Barclay’s Locaide will outline earthquake faults, flood plains, and other natural hazard zones you might want to know about. This is now out of date, but you may be able to locate a used one online.  (Here’s a link on Amazon for a 2000 version.)
  • Earthquake Zones of Required Investigation can be used throughout the state to identify landslide, liquefaction, and other zones relating to quakes.
  • Something else to know is that there are state mapped earthquake faults (the more active ones, such as the Hayward or San Andreas Fault) and also the city, town or county mapped fault zones (for example, the Shannon Fault). The latter may have been dormant for 11,000 years or more.
  • Buying a home? Sellers usually provide a Natural Hazard Report, an Environmental Hazard Report, and a Tax Report from a company such as JCP. This same company / site has a great amount of information on local conditions on its About the Hazards page that newcomers would benefit from.
  • When buying a home in California, consumers are given a link to download brochures, or one combined document, on a variety of hazards. I’m not sure that most of them take the time to read it, but it’s excellent info and I highly encourage anyone living in CA, whether renting or owning, to read it:
    Homeowner’s Guide to Earthquake Safety & Environmental Hazards

Environmental Hazard Zones

  • Local concerns also include environmental ones, such as SuperFund sites. here you can see SuperFund sites in reuse (meaning offices and homes on those sites).
  • Some sites with spills, leaking underground storage tanks, or other issues can be found at this Cleanups in my community page (nationwide info)
  • Mercury, or quicksilver, was mined in Almaden (New Almaden and related mines) and east Los Gatos (Guadalupe Mine area) – it is a naturally occurring element in cinnabar. For that reason, creeks in those areas should not be entered or fished in.
  • Asbestos is another naturally occurring element here. It was prized for being somewhat fire resistant and was mined under Communications Hill. It’s something to investigate if you want to live in that area.
  • Oil, gold silver, and other elements were mined here as well as granite (we still have quarries active in Santa Clara County today, a couple in the Cupertino area and one in the hills by Lexington Reservoir just outside of Los Gatos). Some old mines are not mapped if they are on private land, so one of the disclosures we have relates to unmapped, abandoned mines., which may be found in more rural pockets of the county.

Other Priorities

In addition to natural and environmental hazards, there are big plusses that will attract new residents.

It is also helpful to have a knowledgeable Realtor as your resource!  Please call me if you’d like assistance in your move to SIlicon Valley. I’d be happy to help you.

Coronavirus

Computer with words Coronavirus and real estate - online onlyHow quickly things can change. The novel coronavirus, or Covid-19, is growing at a quick speed in the US, and in Santa Clara County particularly.  With the necessary Shelter in Place order across California, real estate has pretty much ground to a halt (see my related article on the coronavirus impact on real estate sales here).

Coronavirus: is work or a task essential or non-essential?

The crux of the matter comes down to what the government deems essential versus non-essential work or activity.

YES:  Grocery stores, pharmacies, police, fire fighters, medical work, bankers, contractors doing home repairs (electrical, roof, plumbing) or residential construction, and title companies fall under essential. Walking one’s dog, getting exercise by walking, jogging, or biking are essential – but individuals must keep that 6′ social distance while doing so.  Restaurants are essential but can only operate takeout food (link to article on my Live in Los Gatos blog about eateries offering meals and even groceries at this time). Home sales can get completed, thanks to the county recorder’s office accepting e-recordings. Notaries are allowed to meet with signers (but no real estate licensees or lenders present).

NO: Real estate in-person work is non-essential under this coronavirus order. Real estate agents must stay home, like everyone else. No showings, no appointments in person, no open houses, no meeting appraisers or inspectors. Movers are a no-go, too.

NO for now – may change? Home inspectors seem to be non-essential, but it’s possible that it could be changed a little as the home confinement for everyone continues. It would not surprise me if both inspectors and appraisers could work, but only alone, without buyers, sellers, or agents present sometime in the coming weeks. We Realtors are watching this carefully to see what happens. There’s a push for permitting virtual notarization that I suspect will go through (and become permitted at some point soon).

Appraisers are working for some lenders. Others are not. Today I got an update from my wonderful Wells Fargo lender: “For purchase and no cash out refinance, Wells Fargo will use Drive-By Appraisal report.  We will prioritize the purchase appraisal order. ”

Is it possible to buy a home during the Shelter in Place order?

Technically, it is possible to get into contract right now. Closing during this coronavirus Shelter in Place period is another matter. What can happen is:

  • you may write an offer with your agent and sign it using DocuSign, Authentisign, or another electronic service
  • you can wire your initial deposit to the title company
  • you are able to review all of the disclosures, reports, and pre-sale inspections etc. and sign them electronically
  • you must meet with a mobile notary or escrow officer to sign the final documents
  • the title company can record the deed electronically

All of that is good, but what cannot happen right now, under the current order, is still a big hurdle:

  • Appraisers cannot visit the home (perhaps that will change?)
  • Inspectors cannot go to the property (may change?)
  • your agent cannot do his or her Agent Visual Inspection Disclosure (mandated, no work arounds exist)
  • you cannot visit the house or condo

I would not suggest that you buy a house sight unseen, which we call a blind offer. It’s dangerous and unwise. There’s enough danger with coronavirus alone without compounding it!

My belief is that this Shelter in Place will go on for 2 or 3 months as that is what the governor of California said last night. In that case, it would be practical to allow certain real estate functions to move forward in a limited way so that people can buy and sell. It would make sense to permit private showings with clients staying 6′ away from their agents, for inspectors to visit the property with no one else present, and same with appraisers.

There is a lot we do not know. With sales pretty much stopped, we don’t know where values are. Are they falling? Are they rising? There’s no data. With the stock market falling and unemployment rising, it seems like prices should fall in real estate, but we never really know until there’s a look into the past.

We don’t know how long the situation will last. Given that there’s no vaccine, and it will be 12-18 months before we get one, it’s probable that the Shelter in Place will not stretch that whole period. But it seems probable that there will be cycles of sheltering and more liberty based on the number of cases in any given area. I believe that we will have spurts of freedom and being able to sell and close escrows between periods of home isolation.

This is an unfolding situation that seems to be changing almost daily, do expect it to change along with the number of cases of coronavirus, hospitalizations, and deaths from Covid-19. Leaders know that residents do need to buy and sell homes, and they are working on a path forward.

Meanwhile, you can work on your pre-approval, or better yet, a pre-underwritten approval which will enable you to buy faster once that is more possible.

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

It can be 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 cities and areas using the formula: single family homes of 1800 – 2200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 5000 SF to 10,000 SF that have sold within the last 30 days (short window of time due to price changes in the last 6 months or so – first dropping in the 2nd half of 2018, and now nosing up again).

DOM means “Days on Market”, the number of days a home was listed as available before pending.

Please note that this is a rough estimate of home prices. In many areas, cities, or towns, there can be multiple school districts. In those cases, the home price will be impacted by which school district the property is located within. (If you are interested in prices for similar homes a year or two ago, please also scroll down to find similar charts and data.)

 

 

I have arranged this chart in descending order by Sales Price. This is usually how I organize the data, and you can see certain markets shifting position, moving up or down the order depending on what’s hot. To compare, below is a report from April 3rd, 2019 using the same formula.

 

Comparison of Santa Clara County home prices April 3 2019

 

In the past, I’ve done similar studies, but using a larger window of time to even out any aberrations.

In most cases, the most expensive and desirable places have either the best schools or shortest commute location or both. 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).

Palo Alto is a gorgeous, exciting area with all kinds of wonderful features – beautiful neighborhoods, lower crime, great schools, short commute. It is usually the most expensive area on this list.  But if you didn’t found a successful startup company or inherit a couple of million bucks, it can be hard to buy a single family home there. Many people would like to live in the shadow of Stanford University, but the budget just won’t allow it. What, then?

Please use the list above as a way to get your bearings on nearby areas in the South Bay (southern part of the San Francisco Bay Area). This is not an exhaustive list – it’s just most of the areas closest to Highway 85 or the West Valley Freeway. You can study various cities, downs, and districts within the region at my stats site, popehandy.rereport.com. (Free and you do not have to register unless you want email updates.)

Finally, it should be noted that one of the main drivers of home values is school districts. In the San Jose / Silicon Valley area, the school district boundaries do NOT follow the city or town boundaries. Los Gatos, for example, has 3 different elementary school districts, with varying scores which impact home values.  So too with Saratoga and many other areas, San Jose especially! All this to say that the figures above are only ROUGH GUIDES. When you break it down to micro-markets, the picture changes more. But as a starter guide, I think you’ll find the above info helpful to give you a general idea of how far your money can go in home buying for areas in Santa Clara County from Palo Alto to Blossom Valley.

Want to do a deep dive on any of these areas? Please visit my Valley of Heart’s Delight Blog to learn about them.

Historical comparisons of home prices in the same / similar areas

Here’s similar info from about 22 months ago (one change is that the lot sizes used before was a range of 6,000 to 10,000 SF, and in 2019 I went down to 5,000). I also thought it would be useful to share the number of sales represented, since obviously a small number may not be truly representative of home values in today’s market.

January 25, 2018: Continue reading

How to find the median rental price by zip code

Looking to get a sense of the rental prices in Silicon Valley? Today I’ll show you how to find the median rental price by zip code for homes in Silicon Valley by using my weekly Altos Research real estate market reports for Silicon Valley.

We will use Cupertino’s housing market as an example, because many high tech employees plan to work in that city. My Altos Research report for Cupertino. You can access it at this link  Mary Pope-Handy’s Cupertino Market Report. When you click through, it will look something like this:

Mary Pope-Handy's Cupertino Market Report - updated weekly by Altos Research

There are tabs for houses and condos, and you can toggle as desired.

On the right, you will see the market profile. Below, view one for the single family homes and one for condos. I have outlined where the median rental value shows so that you can locate it fast.

Cupertino collage - how to learn median rental prices

Not really wanting to live in Cupertino? Find the “Search Anywhere” field near the top and enter a city name or a zip code and you can spot check areas of interest.

Subscribe for the weekly reports

Please click the “Subscribe” button in the upper right corner to get any of the reports emailed to you weekly.

 

Not a rental Realtor

NB: I do not work in the rental market as 99.99% of rental homes are “for rent by owner” and there’s not a place for a Realtor in that structure.  When folks first move to Silicon Valley, though, they usually want to rent for awhile, so I will sometimes provide rental info because I know it’s needed.  Interested in buying or selling? Please do reach out to me! Best to start with email so that a phone call can be scheduled: mary@popehandy.com as I get a lot of spam / robo calls. However, feel free to call first if you prefer – 408-204-7673.
Related reading:

Silicon Valley neighborhoods

San Jose Districts and their Values (Feb 2018)

Facts about San Jose, the Capital of Silicon Valley

How’s the Silicon Valley real estate market?

Aerial vew over San Jose looking east - photo by Mary Pope-Handy

Aerial vew over San Jose looking east – photo by Mary Pope-Handy

What’s going on with the Silicon Valley real estate market? Is it as crazy as ever with multiple offers, overbids, and few or no contingencies?  Today we’ll consider the regional view, aka The Big Picture, to provide a sense of what is going on. For info on smaller areas or districts, please head over to my main blog, the Valley Of Heart’s Delight Blog – SanJoseRealEstateLosGatosHomes.com. There cities, towns, and districts are looked at in depth.

Seasonal Patterns in Silicon Valley

The quietest time (number of sales, traffic, etc.) and lowest prices in the real estate market tend to fall in January, or sometimes in December.  As with most years, this time around January had the lowest prices.

Most years, we see strong buyer activity with multiple offers early in the year – often emerging as a pattern by the middle of February.

Right now, some home sellers have not accepted that home prices have dropped 20% or so since the peak last spring (more or less depending on location, pricing tier, school districts, property condition, and so on). Those properties are not moving quickly.

For sellers who understand the current market conditions and have priced appropriately, home buyers are flocking and multiple offers are back – in force.

In short, there’s a kind of duality right now, so it’s a weird time. Homes that were sitting on the market but get a price reduction may linger awhile, and then sell with multiple offers. This catches buyers and their Realtors off guard.

To provide regional Silicon Valley market conditions, today I’ll post info on  the three counties (San Mateo, Santa Clara, and Santa Cruz).

In terms of expense, San Mateo is the most costly of these 3, and overall it becomes less expensive in Santa Clara County, then less expensive still in Santa Cruz County.  Alameda County has a little of Silicon Valley, but that area is in a  different MLS system so is not part of this analysis.

Next, a look at sale prices an market conditions for single family homes and condominiums / townhomes by county.

What does it cost to buy a house or condo in Silicon Valley?

In Santa Clara County (home to Palo Alto, Cupertino, Sunnyvale, Mountain View, San Jose, and my own Los Gatos), the average sale price is $1,413,000 and the median sale price $1,185,000 – quite a bit lower than last spring.

Santa Clara County
http://rereport.com/scc/print/Mary.PopeHandySCC.pdf

Please click to enlarge:

Santa Clara County trends at a glance

 

For condominiums and townhouses, of course, it is a more affordable.

Santa Clara County condo trends at a glance

 

In San Mateo County (home to Redwood Shores, Foster City, Menlo Park, San Mateo), the average sale price is about $1.78 million for houses recently sold.  The median is a little lower at $1.425 million. Continue reading

Silicon Valley real estate market softens again

2018-11-25 Av DOM and SP to LP RatioIt is not at all unusual for the housing market to go flat or even decline a little in the second half of the year. In October, the local Silicon Valley real estate market got an uptick as prices rose from the month before, homes sold a little faster, and basically things inched back into the seller’s favor. Sometimes homes that sell between Labor Day and Halloween seem to be in a second spring of sorts. In November so far, though, the Silicon Valley real estate market softens again – slightly. It’s all slightly more depressed than in October: prices are a little lower, days on market a little longer, etc. It is still a seller’s market, but not nearly to the degree it was in spring.

In other words, it’s a good time to buy (at least compared to 6 months ago).

Home buyers are funny, as a rule. They tend to buy when it’s a frenzy and prices are skyrocketing and multiple offers are in the crazy zone with buyers going in without any contingencies. Once the foot comes off the gas and they can buy with some rights to contingencies and can purchase closer to list price, many buyers freak out and won’t buy at all. It’s like the market has to be against them if they are at all interested.

Let’s look at the numbers for Santa Clara County. I pulled these tonight from MLS Listings and the data reflects single family homes in Santa Clara County. (Remember, closed sales were usually ratified about 30 days prior.)

First – inventory – I think it’s very important to not just view the month-over-month changes, but the year over year. How does it usually look for this month in the past? 2017 was a weird year, so going back a little further in time provides helpful perspective.

Continue reading

An uptick in the market

The Silicon Valley market recently seemed to be on the skids from late spring through summer. The question was whether the decline in average and median sales prices was “seasonally normal” or if it was the beginning of a correction. Depending on which way you look at the data (or which data you used), you might come up with a different conclusion. What I did not expect at this point was an uptick in the market.

Today I did a quick study of pricing in Santa Clara County and San Mateo County. To my surprise, it appears that the closed sale prices so far in October are noticeably higher than in August – perhaps the sliding prices are sliding no more? Do we have an uptick in the market? We’ll have to watch and see. There are obviously very few sales so early in the month, but no matter which angle I tried, I did keep getting the same result: higher median and average sale prices in Santa Clara County and San Mateo County for single family homes. It was also strong for the condo / townhome market in Santa Clara County, but there’s a little dip for San Mateo County so far this month.

Here are some charts that I created from MLSListings, using the stats tools, today.

First, Santa Clara County single family homes, average sale price and median sale price. The uptick in sale prices is clear.

 

Santa Clara County - Average and Median Sale Prices over time - single family homes only

Santa Clara County – Average and Median Sale Prices over time – single family homes only

 

Next, the same criteria, but for San Mateo County, which also shows rising average and median sale prices :

Continue reading

Silicon Valley’s Apartment Rental Market

keyWhether you’re a long-term renter, temporary renter looking for a furnished rental, or a landlord, you’re probably wondering how the Silicon Valley’s apartment rental market is today and where it’s heading. Most real estate agents in this area do not deal with rentals, so rental housing is not typically something we track super closely. That being said, the same things that affect the residential resale market frequently effect the apartment rental market as well. So, without the help from my usual sources, such as the MLS (Multiple Listing Services), let’s look at what people are saying about the current trends.

Silicon Valley’s cooling apartment rental market

There are a few good sources for rental home information. One of them is RentCafe, which provides info  on many cities and towns in Santa Clara County. The RentCafe page on Mountain View, for instance, provided the average apartment rental for all apartments, for studios, 1 bedrooms, 2 bedrooms, and 3 bedrooms. The overall averages seem to be somewhere between the 1 and 2 bedroom price points. It also shared today’s softened prices relative to last year’s. (I find this curious since buying a home is now more expensive than a year ago.)

Rent Cafe: Mountain View rental apartment prices

RentCafe has similar info for a few cities nearby. You can find Santa Clara here, but change the last part of the URL to get a different city:

https://www.rentcafe.com/average-rent-market-trends/us/ca/santa-clara-county/santa-clara/

Sunnyvale

San Jose

Campbell

 

Another excellent source of information is Apartment List.

Apartment List does not analyze every city and town, nor do they study the difference between neighborhoods, such as comparing South San Jose with Willow Glen, but where they do give insight helps to show the major trends happening around the bay area. Check out Apartment List for more detailed analysis, and the most up-to-date information on the market. Also check out their Rentonomics page with more articles on renting.

https://www.apartmentlist.com/ca/san-jose#guide

https://www.apartmentlist.com/ca/sunnyvale#guide

https://www.apartmentlist.com/ca/santa-clara#guide

https://www.apartmentlist.com/ca/campbell#guide

https://www.apartmentlist.com/ca/mountain-view#guide

https://www.apartmentlist.com/rentonomics/national-rent-data

https://www.apartmentlist.com/rentonomics/

Is there a solution to the lack of low-cost apartment rentals?

Analysts all believe there will be some market turnaround in the not too far future, but there are a few answers to where it may come from. CNBC published an article on the housing shortage dealing with high tech companies. Large industry leaders such as Google, Facebook, and Twitter continue to hire, bringing people into the area more quickly than developers are building, and forcing up the prices in both housing and rental markets. Employees have asked these companies to help, and some are responding. Google and Facebook have both come up with plans to construct affordable housing.

https://www.cnbc.com/2017/06/14/google-spending-30-million-on-housing-for-silicon-valley-employees.html

For years, California law has stated that a certain amount of affordable housing must be available in each community. Unfortunately, many communities are ignoring both the law and the need for such developments. If every community were to develop what the law required, the market would be much more balanced. Yet again, it’s the investors that are controlling the development, and it will not likely happen soon.

 

Santa Clara County median home pricing

Dollar signWhat can you get for your housing budget? What are you able to afford to buy in Silicon Valley?

Below, please find a simple chart which provides a pretty good sense of what homes actually cost – not what they are listed for, but where they sell, here in the Valley of Heart’s Delight.

Often when people relocate to the San Jose area, they are interested in communities with good schools, like Cupertino, Saratoga, Los Altos, and Los Gatos. It can be a real shock to the system to find out that buying power isn’t what was hoped.

Santa Clara County median home pricing

This data is courtesy of Sereno Group – thought it would be helpful to folks relocating here as a snapshot on the Silicon Valley real estate market Disclaimer: in many of these cities, there are different school districts within a city’s borders, and they are their own “markets”.   Consider this as general information only.

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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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