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 chart.

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. Since Los Altos had no sales in the last 60 days, I have left it where it was in the last chart but cannot offer any numbers. Scroll down farther to compare this chart against past years.

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

Before we get into analysis, here’s a chart from October of 2019 for comparison. Back in 2019 I switched to analyzing the market using a 30 day window instead of the 60 days seen above. This short window of time was due to significant price changes over the course of the year – first dropping in the 2nd half of 2018, and climbing again in the latter half of 2019. You can see a chart from early 2019 down below.

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 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. 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 (or Similar) Areas

We’ll start off with something fairly recent, a report from April 3rd, 2019 using the same formula the October report from the same year.

April 3rd, 2019:

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Comparing 4 west valley real estate markets

Market comparison_ Los Gatos, Saratoga, Cupertino, and Los AltosToday on the Valley of Heart’s Delight Blog,  I looked at the real estate markets for Los Gatos, Saratoga, Cupertino, and Los Altos.

All four of these areas are known for good public schools, proximity to the coastal range, and a nice way of life. All but Cupertino have a quaint downtown area, and those three communities each have about 31,000 residents, while Cupertino is more than double that. For folks relocating to the San Jose area for work, most likely, all four will be considered if schools are a priority.

To see how these 4 highly regarded communities compare in terms of market conditions and what you can buy for your money, please visit:
Market comparison: Los Gatos, Saratoga, Cupertino and Los Altos on the Valley of Heart’s Delight Blog.

 

 

Related Reading:

Silicon Valley neighborhoods

Los Gatos neighborhood videos

How to find the median rental price by zip code

Where Are the Good Public Schools in Silicon Valley?

Finding Good Public Schools in Silicon ValleyMany relocating families search specifically for neighborhoods with the very best, or at least very good public schools.  There are many sites which will give you this information in immense detail, but if you want a “quick answer” on excellent schools in Silicon Valley and San Jose, I can give that to you quickly here.

The finest public schools and districts (with excellent scores at all levels of schooling) tend to be found in the most expensive parts of Santa Clara County, and most of them are along the “west valley” areas, including Almaden Valley (an area of San Jose), Los Gatos, Monte Sereno, Saratoga, Cupertino, Los Altos, Los Altos Hills, and Palo Alto.  Most of these communities are found along the base of the coastal foothills, aka the Santa Cruz Mountains, are are located not too far from Highway 85.  The Silver Creek area (of the Evergreen District of San Jose) on the east side also has some fine schools.  There are pockets with great elementary schools scattered throughout the valley too.

What do these homes cost? In the best areas, it is not uncommon to spend a million dollars or more for a “turnkey” home of 1800 square feet with no issues (no high voltage lines, no busy road, etc.).  In some areas, like Saratoga, that might be closer to $2 million.

In many parts of Santa Clara County the elementary schools are excellent, middle schools are “very good” and the high schools are good.  This is true for parts of west San Jose (bordering Cupertino and Saratoga) and Cambrian Park.  These areas tend to be much more affordable than those with excellent schools in all levels. For home buyers not so worried about high schools as cost, these can be a great option for getting more home (and school) for your money.

While many home buyers are reluctant to consider private schools, sometimes it is much less expensive in the long run to purchase a comfortable home in an area you like but which doesn’t have fantastic schools and then send your kids to private or parochial schools.  In Los Gatos, where the schools run from very good to exceptional, about one-third of students are not in public schools.

If you are planning a relocation to Silicon Valley and want to know more about local schools (public or private) please email me and I’ll be happy to chat with you about them more in person. I can also help you to find areas which are more affordable and offer strong schools.