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 1,800 – 2,200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 5,000 SF – 10,000 SF that have sold within the last 60 days. The prices listed are the average from sales in this criteria, so areas with a higher volume of sales will have more stable averages than those with less sales to analyze. DOM means “Days on Market”, the number of days a home was listed as available before pending.

Please note that this is a rough sketch of home prices based on averages taken across large, diverse residential communities. There are many factors that will affect market value beyond these boundaries.

Now, on to the charts.

The Cost To Buy A 4 Bedroom 2 Bath Home In…

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. Occasionally one of these markets will have no sales within the timeframe, so those will be left in place from where they were when we last checked, but will show “n/a” in place of any pricing or statistics. Once you’ve reviewed the most recent data, scroll down farther to compare today’s market against past years!

Please use the list below 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.)

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

Comparing West Valley House Prices 2021-06-28

There have been a number of changes to the order since the last time we checked in December 2020. Campbell, Sunnyvale, and Mountain View have all moved down the list. Their prices are higher than last time we checked, they just haven’t gone up this spring as much as some of the other markets. Saratoga has climbed much higher on the chart, but with so few sales it’s normal to see broad fluctuations in the charts for this community.

What we see across the entire chart is sky high spring pricing and extremely low days on market – under 2 weeks in all but two areas! Looking more closely, the Cambrian (San Jose) market had one highly unusual sale where the MLS listing shows a whopping 496 days on market. Discounting that sale, the average becomes a lighting fast 10 DOM! So while there are still the occasional slow sales the majority are selling at breakneck speeds! As for pricing, communities are showing increases from roughly 3% all the way up to 31%! Averaging it out, the West Valley average home is selling 16%-18% above where they were early last winter.

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 would be fairly high up as it is 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).

Also, 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.

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 unless you 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.

Now let’s have a look at that December 2020 chart I’ve been referencing. Los Altos had no sales during this time, although overall it was an active market in the West Valley.

2020-12-10 60D SFH 4B/2B Cost

Historical Comparisons of Home Prices in the Same (or Similar) Areas

We’ll start off with something fairly recent, a report from October 29th, 2019.

October 29th, 2019:

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San Jose Mercury News Headlines April 15 – 16 2014: home prices to buy or rent are rising steeply

Flashback Friday!

As I was going through old blog posts, I found this brief installment from April 17th, 2014. Often I write that the current hot sellers market in the Bay is “prolonged,” “steady,” or “persistent,” but seeing these two headlines from over 3 years ago really shows just how unyielding it has been. It is highly unusual to be in such a strong, drawn-out market, but there’s no clear indicator that things will change anytime soon, either. Buyers and renters might find some relief now that autumn is here in hopes that it brings the usual seasonal cooling.

Find the original post immediately below. – Update October 22nd, 2017

 

Here are the headlines from the San Jose Mercury News in mid April 2014:

Home Prices to buy or rent going up April 15-16 2014

Rental article: Bay Area apartment rents set record 4/16/14

Excerpt:  Bay Area apartment rents are rising at nearly double-digit annual rates and have reached record levels, according to a report released Tuesday, prompting some analysts to warn that the region’s economic boom could be choked off by the relentless rise…..  Among the Bay Area’s three largest cities, San Jose had an average asking rent of $2,066 during this year’s January-March quarter, up 10.3 percent from the same period last year, RealFacts reported. Oakland had an average rental rate of $2,187, up 12.3 percent, while San Francisco posted an average of $3,057, up 9.5 percent.

Home buying article:   Bay Area home prices jump year over year

Excerpt:  March marked more than 20 consecutive months of year-over-year price gains for single-family homes in the East Bay, South Bay and Peninsula, according to real estate information service DataQuick, which released a report on March sales Wednesday…. The San Diego-based company said that prices were up 29.2 percent from the previous March in Alameda County to $575,000. In Contra Costa County, prices rose 22.8 percent to $425,000. Santa Clara County gained 20.3 percent to $800,000, and San Mateo County was up 13.2 percent to $860,000.

Whether you buy or rent, prices have been rising dramatically.  When factoring in what housing will cost, include the trajectory of appreciation per month.

What does it cost to buy a 3-5 bedroom house in an area with good schools in Silicon Valley?

School District MapIt’s a hot seller’s market in Silicon Valley, but it’s also a time of great job growth here! Each week I get calls or emails from people considering job offers in Cupertino, Palo Alto, Mountain View, Sunnyvale, Menlo Park, San Jose and nearby. Many of these recruits are interested in areas with superior public schools.

What’s the cost of buying a house of about 2,000 square feet with 3-5 bedrooms and great schools?  A few communities with better education are these: Los Gatos, Saratoga, Cupertino, Palo Alto. We’ll consider these to provide a sense of prices in similar areas.

Here’s a quick look at what single family homes have been selling for over the last three months:

  • Los Gatos: mostly $1,200,000 to $2,200,000 depending on the school district, averaging about $1,700,000
  • Saratoga: mostly $1,400,000 to $2,300,000 depending on the school district, averaging about $1,900,000
  • Cupertino: mostly $1,700,000 to $2,100,000 depending on the school district, averaging about $1,950,000
  • Palo Alto: mostly $2,000,000 to $3,300,000 depending on the school district, averaging about $2,650,000

If you are new to Santa Clara County, you may be wondering if this is correct. It is…

Please continue reading here:
How do prices compare between Los Gatos, Saratoga, Cupertino and Palo Alto?

California and Bay Area Real Estate Market at a Glance

Today we’ll take a look at the housing market from a very high overview position, that is, by metro area within California. How’s the San Francisco Bay Area, which includes Silicon Valley, faring in comparison to the rest of the state? And how is the real estate market within the 9 Bay Area Counties? Have a look at the statistics to get a sense of the market at a glance. (Note: SFH stands for Single Family Homes.)

Silicon Valley is found primarily in Santa Clara County, but also substantially in San Mateo County.  There are some pockets, very small, also in Alameda County and Santa Cruz County.  Santa Cruz County is not considered part of the SF Bay Area, but part of the Monterey Bay Area and the Central Coast (the SF Bay area is considered Northern California.)

Statistics for Bay Area Real Estate Market

Statistics for Bay Area Real Estate Market care of the California Association of Realtors

The most expensive places to live in Silicon Valley

High end communities collageIf you’re moving to pricey Silicon Valley, your goal may not be to find the very most expensive places to live.  However, if you are coming here and looking for great schools, it’s very likely that the list of places with fantastic public schools will overlap considerably with that of expensive real estate.

A couple of weeks ago, the Business Insider compiled a list of the 20 most expensive zip codes in the area, and also compared the median sale price in 2014 with that of the same zips in 2013 so you can see how much prices are rising.  These are the median sale price and does not reflect cost per square foot.  If you want a 2,000 SF house, you may not easily find it in the toniest areas!

Their 2014 Silicon Valley areas include zip codes within Atherton (94027 median sale price $3.9 million in 2014) , Los Altos Hills, Palo Alto, Portola Valley, Hillsborough, Saratoga, Cupertino, Los Gatos, Menlo Park, Sunnyvale, Mountain View, Redwood City, Belmont, San Carlos, and the Almaden Valley area of San Jose (95120, median sale price $1.177 mil in 2014).  Since it’s by zip code, some towns or cities show up twice, for more and less costly parts of that community.

Surprising omissions are Woodside and Los Altos.

Not sure how Almaden could be more costly than those two areas, but this is the list they compiled.  Read the whole article with the specifics here:

The 20 Most Expensive Zip Codes In Silicon Valley