San Jose’s Cambrian, or Cambrian Park, area is a very hot seller’s market.  Multiple offers are not uncommon, especially in the Union School District, where schools are trending upward.  My Cambrian Park Real Estate Report has just been published with the updated numbers from the closed sales in April. Please click on the link to see much more information there.

Prices are up nicely year over year! Inventory is crazy low – just 35 homes for sale in April compared to 57 in March and 84 in April 2011. Days on market is far lower too. All around, it is a deepening seller’s market.

Even stronger is the Cambrian condo market, which is skyrocketing!!!  Please see the Cambrian Condominium & Townhouse Real Estate Report for all of the numbers, but I’ll include a quick summary below.

Here again, notice the ratio of active to pending homes, the sale vs list price (over 100%), and most of all, the tremendous rise in both the average and median sales price.  Few homes closed escrow in February, so it is possible that these numbers are a little exaggerated.  We will know more in a month – if it’s a trend or if this is a fluke.

Now let’s work with Altos Research’s graphs and get a feel for the Cambrian realty market in “real time”.  These use list prices, whereas my REReport uses sold data.

First, the statistics by quartile for houses in San Jose 95118:

Next, the stats and trends by price quartile for houses in San Jose 95124:

Median list price of homes for sale in 95124 and 95118 (all quartiles combined):

Very interesting that the 95124 pricing appears to be swinging upward while the 95118 pricing continues to go down.  I believe that this is mainly because the schools in 95124 have been trending upward strongly with the API scores.  Prices are also at a higher level, and those are less impacted by short sales and REOs countywide.  So it may be the result of multiple factors.  (95124 is about 2/3 of the Cambrian real estate market.)

Inventory in Cambrian area of San Jose 95124, 95118:

Surprising, isn’t it, to see how differently these two San Jose zip codes are behaving from each other?

Average days on Market in San Jose’s Cambrian area

And again, really different trends on these neighboring zips, both in Cambrian!

Another anecdotal story to share: Recently I closed the sale on my listing at 5114 Nerissa Way in Cambrian with Union Schools and Alta Vista in particular. We were listed at $579,000 and received 4 offers and sold at $585,000. Interestingly, we received 2 nearly identical “best” offers, both at $585,000. One was completely As Is and the other was almost As Is (they wanted a fumigation and pest clearance provided).  That is usually a pretty good affirmation of market value, and the property did appraise at the sales price.  The other two offers we got were below list price.  One was all cash and it was extremely low.  Buyers who are purchasing without financing sometimes misunderstand the type of discount that their all-cash status will get for them, so sometimes the worst offers are all cash and that was the case this time.

Want more info on your neighborhood, your house, or your target home to buy? Please call me!

Showing properties 1 - 5 of 35. See more 95124 zip code real estate.
(all data current as of 5/24/2012)

1. $699,000 : 2757 Theresa Ln, San Jose
   
   3 beds, 2 full baths

   Home size: 1,563 sq ft

   Lot size: 8,580 sqft
   
2. $699,000 : 1898 Kay Dr, San Jose
   
   3 beds, 2 full baths

   Home size: 1,331 sq ft

   Lot size: 7,062 sqft
   
3. $1,299,999 : 14904 Leigh Av, San Jose
   
   4 beds, 3 full, 1 part baths

   Home size: 3,340 sq ft

   Lot size: 10,125 sqft
   
4. $682,950 : 3591 Gavota Av, San Jose
   
   3 beds, 2 full baths

   Home size: 1,600 sq ft

   Lot size: 7,500 sqft
   
5. $1,180,000 : 1777 Kirkmont Dr, San Jose
   
   4 beds, 2 full, 1 part baths

   Home size: 2,306 sq ft

   Lot size: 8,249 sqft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Showing properties 1 - 5 of 23. See more 95118 zip code real estate.
(all data current as of 5/24/2012)

1. $670,000 : 4241 Ranwick Ct, San Jose
   
   4 beds, 3 full baths

   Home size: 2,199 sq ft

   Lot size: 5,000 sqft
   
2. $785,000 : 3339 Beacon Ln, San Jose
   
   3 beds, 2 full, 1 part baths

   Home size: 1,952 sq ft

   Lot size: 6,784 sqft
   
3. $998,000 : 5715 Mireille Dr, San Jose
   
   4 beds, 2 full, 1 part baths

   Home size: 2,000 sq ft

   Lot size: 6,566 sqft
   
4. $649,000 : 1373 Adobe Ct, San Jose
   
   4 beds, 2 full baths

   Home size: 1,966 sq ft

   Lot size: 8,800 sqft
   
5. $499,500 : 5576 Dwight Av, San Jose
   
   3 beds, 2 full baths

   Home size: 1,401 sq ft

   Lot size: 6,000 sqft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Browse lists of Cambrian & Cambrian Park homes for sale:
Houses for sale in the 95118 part of Cambrian
Cambrian Park Houses for Sale in 95124

Mary Pope-Handy, Realtor, CRS, ABR, e-PRO, SRES, ASP, CNHS, ACRE
Helping Nice Folks to Buy & Sell Homes Since 1993
Co-Author: “Get The Best Deal When Selling Your Home In Silicon Valley”
408 204-7673 (Cell)
emailto: Mary (at) PopeHandy.com
Blog: www.LiveInLosGatos.com & www.ValleyOfHeartsDelight.com

In case you haven’t heard, The Carbon Monoxide Poisoning Prevention Act of 2010 (Cal. Health & Safety Code §§ 13260 et seq.) is now law.  As of July 1, 2011, California homes need to have a carbon monoxide detector installed.  This is not a “point of sale” ordinance just for people selling their homes, but instead is for all houses, condominiums, townhouses etc.  (whether occupied by owners or tenants).  For apartment buildings the deadline is later, January 1, 2013.

These detectors look a lot like smoke detectors and can be run on either batteries or plugged into the wall, depending on which model you purchase.  Experts suggest that you place the detector in the sleeping area of the home and on every floor of it (including basement, if your dwelling has one).

To learn more, I suggest doing research online, and be sure to include the Consumer Reports information on carbon monoxide detectors too.  The Cal Fire news release regarding the requirement can be viewed online also.

Located close to the Guadalupe Creek and the foothills of the coastal mountain range, the Montevideo neighborhood enjoys tree lined streets and scenic green views of the hills.  Houses and yards are nicely kept. It is fairly convenient for commuting as it’s not too deeply into the San Jose area of Almaden Valley.  About 500 residents call this beautiful neighborhood home.

The Montevideo Neighborhood in the Almaden Valley area of San Jose

Shuffle board area of Montevideo cabana

In addition to the pleasant vistas, the Montevideo home owners and residents enjoy the cabaña, which includes a community pool, clubhouse, recreation grounds (shuffleboard, volleyball court and more), a fun swim team for kids.   There are very few cabañas in the west valley, so this is a big draw.

Adjacent is the very highly regarded Guadaulupe Elementary School, which can boast API scores in the 900s (it was 930 in the 2010 study).

Where is the Montevideo neighborhood located?

The Montevideo neighborhood is situated close to the intersection of Camden Avenue and Coleman Road (not quite to Redmond Avenue) in southwest San Jose (Almaden area, zip code 95120).  The development was built in two phases – the map below shows in a darker green the “Montevideo 2″ area.  The lighter area was the original Montevideo tract.

Map of the Montevideo neighborhood in San Jose's Almaden Valley - click on the image to go to the live map on Google

The Montevideo neighborhood is just across Coleman Road from the also-very-desirable Oak Canyon neighborhood of Almaden.

Which schools serve the Montevideo community?

The Montevideo area is part of the Union School District and the Campbell Union High School District.  (School API scores below can be found on the County List of Schools API Scores for 2009 – 2010 here.)  It should be noted that Union Schools have been “trending upward” for the last few years and that trend is not anticipated to change.

Elementary:  Guadalupe Elementary School – API 930

Middle:  Castillero Middle School – API 806

High School:  this is an “open area” and students here may attend either Leigh High School  – API 817 – or Branham High School – API 781 – (you can choose).

What are homes like in Montevideo? What do they cost?

Smaller Montevideo ranch style house

The Montevideo neighborhood was built by Schulte-Blackwell in the mid to late 1960s on land which used to be vineyards for the wine making endeavors of the Jesuit Novitiate in Los Gatos (the Society of Jesus, a Catholic religious order of priests and brothers).  The terrain is flat in most areas and gently rolling hilly areas in others.  Some of them have mountain or valley views.

The community is comprised of detached, single family homes, primarily ranch style or two story houses, with a few split level homes, featuring attached 2 car garages.   The smallest dwellings are around 1400 to 1600 square feet and the largest ones usually no more than 2600 or 2800 SF (unless they were added onto).  Most are situated on lots of about 8000 square feet, but some are a hair under 7000 on the small side or closer to 10,000 (with a few exceptions that are bigger) on the large side.

Purchasing real estate in Montevideo is usually a “move up” buy as prices run from the mid $700s (if small, distressed, or needing a lot of work) to the $800,000s on the low end up to the low $1 million price range on the high end, depending on many variables (size of home and yard, view, proximity to busier roads or the school, etc.).  Most of these are owner occupied and the neighborhood does display the pride of ownership which is apparent in many better neighborhoods.  (To read up on how to sell one property and buy another, please read my article on that topic on my popehandy.com website.)

The Montevideo Improvement Association has a blog where you can read more about the community, view the original brochures when the subdivision was created and the first homes sold,  find out about pool hours and renting the cabaña, and learn how to access the association documents if purchasing a home there. There aren’t a lot of updates on the blog but still the site has a wealth of general information.

What’s for sale in and near Montevideo now?

Below please find a map with properties for sale, listed on our local MLS, in Montevideo as well as some of the nearby areas such as Oak Canyon, Almaden Meadows and the TJ Martin Park area.  If you are interested in buying or selling a home in the Montevideo neighborhood or anywhere in or near Almaden, please contact me today!

Luxury home sales remain sluggish in the west valley areas of Santa Clara County. Right now in Almaden Valley, Los Gatos, Monte Sereno and Saratoga, there are over 125 homes for sale listed at more than two million dollars, but in the last month only 6 have sold and closed escrow in those same areas and price ranges.

Today we’ll look at these four Silicon Valley communities and their luxury homes market to see what’s selling and where.

Almaden Valley (San Jose, 95120)

Currently in Almaden there are 11 homes for sale which are listed at or over $2,000,000.  In the last month, zero (0) sold.  That makes for an infinite number of “months of inventory”. It is an extraordinarily deep buyer’s market: great for buyers, a nightmare for sellers of high end homes there.

Will it improve? Probably not soon as there are no houses pending sale in that price range either. There are 55 pending sales in Almaden, but none listed at more than 1.6 mil and the average list price of these pending sales is under 1 mil.

Los Gatos (Town of Los Gatos, 95030, 95032)

Right now there are 49 homes listed in the luxury price point of 2 million or more, and just 2 which have sold & closed in the last month, so there is a 24.5 month supply of inventory.  It’s a very deep buyer’s market in Los Gatos among the most expensive real estate offerings for sale.  What about pending sales?  There are 10 homes in this price range “under contract” – so it is faring a lot better in Los Gatos than in Almaden Valley.

Monte Sereno (City of Monte Sereno, 95030)

In Monte Sereno, a very high end but very small community of only about 4,000 residents, currently there are 23 properties for sale in this upper pricing tier.  None have sold in the last month, so like Almaden, it has an infinite supply of inventory. There’s a little  light at the end of the tunnel, though, as there are two pending sales, both of which fall between 3 and 4 million dollars.

Saratoga (City of Saratoga, 95070)

Saratoga enjoys a good number of estate properties and very high-end real estate.  As of today, there are 43 such homes on the market and 6 sold and closed escrow in the last month.  In Saratoga, the months of inventory is 7.16.  This is a buyer’s market, but the closest to a balanced market of the four areas we’re studying today.  Additionally, there are 12 pending sales in this upper price range.

The average list price of the luxury homes under contract in Saratoga is $3,347,917; the average home size is 4252 & average lot size is 66,902 (about an acre and a half).  The most expensive home which is sale pending is a fabulous home on Fruitvale which was listed at $5,799,000.

Please note: In all of these areas, “the market” will be influenced further by each property’s school district and whether or not it’s a short sale, bank owned property, or regular sale – among other factors.

How can this information help you if you’re are a buyer or seller?

If you are a home owner thinking of selling an estate property, it is a tremendous help to know whether or not there is much demand for the type of home you wish to sell.  If nothing is “moving”, either the whole lot of listings is overpriced (which can happen) or buyers are voting with their feet and choosing another community in which to buy. Sometimes this happens because of schools, other times simply because the lower price ranges make a home purchase in a more exclusive area possible now when it wasn’t as possible before. In any case, if you need to sell in an area where little or nothing is selling, you will have to price your home so attractively that it’s probably painful.

On the other hand, if homes are selling, as is the case in Saratoga, pricing will still be important but you may not have to do the deep pricing cuts that might be required in Almaden right now, for instance.

If you are a home buyer interested in purchasing luxury real estate, you will also benefit from knowing how much competition there is for the type of home you wish to buy.  Right now, you may have an easier time negotiating in Almaden or Monte Sereno rather than in Los Gatos or Saratoga.  Of course it depends entirely on the house you like and whether or not it’s priced right.

Interested in understanding the market a little more? Please contact me for a confidential, no-obligation meeting.

The Alta Vista neighborhood, which sits along the border of Los Gatos and the Cambrian Park district of San Jose, is very highly sought after and valued for many, many reasons. Real estate prices vary depending upon the precise location within the neighborhood as well as the size and condition of the home.

Why is this area so popular?  Most of the streets close to Alta Vista School are beautifully tree-lined, and from virtually everywhere in the neighborhood, you are close to Blossom Hill (that’s the name of the hill, not just the name of the road!).  Homes are well kept, streets are wide enough, and except when there’s a school function, there really aren’t too many cars on the street. It is very scenic, pleasant and uncrowded feeling.  Although you’re in the city or town, you feel close to the country there.

Additionally, many homebuyers select this area because the school scores are high and because it’s easy to get to the elementary and middle schools without crossing any major streets: that is a big plus!  It is also a quick drive to highway 85, just a couple of miles to the Los Gatos shopping areas (at Los Gatos Blvd and Blossom Hill Road) or to Vasona Lake County Park.  For many, it’s a way to be close to Los Gatos while paying less expensive San Jose prices.

Prior to being developed for housing, this spot at the base of Blossom Hill was once blanketed in orchards and was scenic enough that it was part of the “blossom tours” that used to take place at the height of the flowering.  Hence, one large section of this neighborhood has street names that begin with “blossom”.

Where is the Alta Vista neighborhood? What are the landmarks?

The neighborhood considered to be “Alta Vista” has three strong borders and one vague one. The three well defined edges are Blossom Hill Road, Union Avenue, and Los Gatos Almaden Road. The fourth boundary is approximately the edge of Ross Creek, which runs behind Westchester Drive, but perhaps some would argue that it goes a little further.

View Alta Vista Area of Cambrian & Los Gatos in a larger map

There are several landmarks in the neighorhood:

• Alta Vista School
• Union Middle School
• The Downing Shopping Center (at the corner of Union & LG ALmaden)
• Blossom Hill and the coastal foothills
• The high voltage power lines (runs behind Blossom Valley Drive)
• Ross Creek (behind Westchester)
• Three major roads: Blossom Hill Road, Union Avenue, and Los Gatos Almaden Road

The terrain of the neighborhood runs from hilly (only a few homes close to Blossom Hill Road have much of a slope or a view) to flat, with most of the properties being fairly or completely level.

San Jose and Los Gatos have a very strange boundary line in this area, and it is very confusing to folks who visit for the first time.  If you were to drive along Blossom Valley Drive, for instance, at the intersection with Westchester you’d be in Los Gatos, then heading south east you’d be in San Jose, and by the time you get to Pinehurst you’re back in Los Gatos again.  The house numbers jump and you move in and out of Cambrian Park: a home with 3 digits is in Los Gatos but one with a 4 digit address is San Jose.  When it goes back and forth, it’s very confusing. The neighborhood has something like a peninsula of San Jose poking into a sea of Los Gatos – perhaps because the builder could put more homes on San Jose lots, which could be smaller? That would be my guess.

What kind of homes are found in the Alta Vista Neighborhood? What does it cost to live there?

There are a few larger homes on much bigger parcels along Nimrick Lane but most of the homes are ranch style, ranging from about 1100 square feet on the small side to perhaps 2500 on the large side, with most houses under 2000 SF.  There are a few multi-family units along Pinehurst, but by and large the area has single family homes.  Parcels run, generally, between 6000 SF and 8000 SF – with exceptions.  There are a few larger lots closer to Blossom Hill Road and toward Los Gatos along and near Lu Ray Drive, Camino del Cerro etc.

The “blossom” streets (Blossom Dale, Blossom Tree, Blossom Vista, Blossom Crest etc.) were Garcia-built tract homes (Garcia homes are found in many parts of San Jose, including along the “King” streets near Good Samaritan Hospital).  Most of those properties are in San Jose, 95124.  Part of the same tract, though, is in Los Gatos 95032: homes along the southern part of Pinehurst, Danville, Blossom Villa and parts of Blossom Valley. They’re solidly built homes.

The other side of the power lines was built by a several builders.  There are some tract homes with shared floorplans, but many of the homes there (Baron, Kunkel, Keene, etc.) are semi-custom homes.

Behind the school and closer to downtown Los Gatos, homes and lots are larger, the addresses are Los Gatos and there were a few builders involved.  These are, of course, more expensive than much smaller homes on  smaller lots with a San Jose address.

Home prices can range from the $600′s to well past one and a half million dollars, “depending”. Estimating what a home might be worth can be tricky because there are a number of variables, from which city the property is located in (can make a 3-5% difference, sometimes more or less), whether or not there’s a view, the home & lot size, the proximity of the power lines, whether or not the property is on the Shannon Fault, how close it is to the schools, and the improvements made or deferred.

Would you like to see Alta Vista homes for sale?  Click on the link below for an interactive map of homes for sale in the Alta Vista neighborhood. Note, there aren’t many! This is a “low turnover” neighborhood!

What are the “issues”, if any, in the Alta Vista area?

There aren’t many, but here are the biggest areas of concern:

1. The Shannon Earthquake Fault cuts through part of this area, so a few homes may be sitting directly on this fault (which I believe is considered “minor”, but check it out with a geologist)
2. The high voltage power lines cut through the middle of the neighborhood. Homes that are immediately adjacent to them, especially to the power towers, will have a harder time selling and will sell for less than a similar home further away. Those who own the homes, though, are often happy at the extra open space. Many have had P, G & E test the area and found that the EMFs emitted are stronger in front of their microwave than in their front or back yards…but do check out this issue thoroughly yourself if you decide to buy in that location.
3. The proximity of the beautiful hill means that water is going to be more of an issue with the clay soils that we have here.  Too many homeowners, in this neighborhood and throughout Silicon Valley, do not divert water away from their homes (even neglecting downspout extenders, which are very cheap and extremely important).  This translates into potential drainage and foundation issues, and the closer you are to the hill, the more crucial an issue this can become.  Ignore the water and the foundation will probably crack, your home will get out of level to an unacceptable amount, and the repairs will be costly.

How is the Alta Vista real estate market? It is part Cambrian Park real estate market, part Los Gatos so it’s a good idea to keep an eye on both markets in the Union School District area.
I have had the pleasure of selling a number of homes in the Alta Vista area over the years (since 1993), both in this immediate area as well as on streets that “belong” to Alta Vista such as Heather Drive, Rosswood Drive, Bel Estos, Kensington, and many more. Whether you are buying or selling a home in or near Alta Vista, please give me a call. I would welcome the chance to talk with you about working together to meet your real estate goals in this beautiful neighborhood.

Please also check out posts on Cambrian Gardens neighborhood (half goes to Alta Vista, half to Carlton) and also post on my listing at 5114 Nerissa Way, San Jose (affordable home in Alta Vista’s attendance area)

Today we’ll have a look at the Campbell real estate market. Sitting on the western side of Silicon Valley between downtown San Jose and Los Gatos, Campbell has small town charm with big city ammenities.  The schools are good, the crime is fairly low, and there’s a nice sense of community identity & participation. The downtown area is vital, but so are the shopping hubs outside of the historic zone.  The local parks are a big draw too.

Homes range from modest condos to historic properties and large, estate-like homes on big lots. Just about every type of residential architecture can be found here, with of course a preponderance of ranch style homes but also Eichler homes, Victorian houses, Craftsman style homes, Spanish or Mediterranean design, and Contemporary homes.

“How’s the market?” will elicit different answers by neighborhood, home type, school district, and price point.  We’ll separate out the “markets” by pricing quartile in this post.

First, an overview of listing activity among single family homes in Campbell (data from Altos Research, used by permission/subscription):

And now the same but for condominiums and townhomes:

Generally speaking, inventory is somewhere between flat and barely declining. List prices appear to be falling slightly among single family homes and rising slightly among condos (which are more likely to qualify for FHA loans and benefit from some of the first time homebuyer credits).  Nothing dramatic here, but the condo market may have already hit bottom while the market among single family homes is coasting there … almost there….

Visually, the median list price ”looks” like this when viewed over the course of the last year and both the conglomerates of single family homes and condos are shown (rather than broken down by price quartile):

These kinds of graphs and charts can be a little deceiving, though. The perception has a lot to do with which data you’re looking at. Below is JUST the combined “curve” for the median price of single family homes over the last 1 year.

Overall, pricing looks grim because of the rapid looking falloff on the chart. Take a look at the numbers, though. The median list price slipped from about $796,000 to $766,000, which is actually not a huge price change over he course of a year. (But please note that these are list prices, not sales prices.)

 View of Campbell Houses Median List Prices By Quartile

Now let’s see the single family homes broken down by quartile for the year. Below, the chart displays all four quartiles, each one representing 25% of the market. Interestingly, the top two quartiles look as though they haven’t lost much ground from one year ago, while the lower price points have slipped consistently.

All four quartiles shown together:

Somehow, taken together, the above chart does not seem so bad. But is that correct?

Next let’s pull out the market data on list prices one quartile at a time - one of the segments representing 25% of the market – to see how it looks.

(1) List prices of upper quartile (1st) of houses in Campbell:

On the whole, these top tier homes are not asking less than they were a year ago, but they are far less than at the beginning of 2009. (The question, of course, is whether these prices are causing sales to happen or not. In many areas, while prices among the most expensive haven’t slipped so much compared to entry level housing, the highest priced homes are not selling nearly as well either. A look at the very first image on this post will show that few of these homes are selling, with 22 homes available and only 1 pending sale.)

(2) Upper middle (2nd) quartile for the median list price of single family homes in Campbell, CA:

That appears more dramatic, doesn’t it? The real surprise is not today’s list price as compared to a year ago, but the spike upwards over the winter to early spring months. The year over year slippage is extremely minor.

(3) Lower middle quartile:

The lower middle quartile also took a beating, with the median list price diving from $755,000 to $690,000, close to a 9% drop year over year.

(4) Lowest or bottom quartile of list prices among Campbell houses:

This group looks dismal – list prices are down about $100,000 from $650,000 to $550,000 or about 15% lower – but it’s informative. It appears that listed prices really fell through the floor beween last fall and March (so using “comps” from prior to March is truly not helpful), but that the fall has been far more gentle since March first. Is the worst behind us?

What about the condo market?

I’m not going to pick apart the townhouse and condo market quartile by quartile, but if you have a good look at the actual numbers (and not just the dips in the lines representing the median list price), you’ll see that again the lowest price points have taken the largest hits with price drops, wheras the most expensive condos and townhouses in Campbell appear to be listing for more than they were a year ago.

So you get the idea – it’s not what “Campbell” is doing, it’s what your type of home and price point are doing. The lowest priced houses have come down the most, percentage-wise, on prices.

To further drive the point, let’s shorten the timeframe and instead of looking at one year, let’s take a 90 day view. Next, see the median list price for ALL single family homes in Campbell over the last 90 days.

And now  see  the median list price for ALL Campbell (95008) condos in just the last 90 days.

Back to houses now – Divide these into quartiles and it’s a bit messier (no “easy answers” for home buyers or home sellers!). Suddenly it looks like there’s NO change going on. How can that be?

Let’s pull just one of these out – again, just to make the point. For this example we’ll use the 2nd from the top (upper middle). With the above chart, we can see that there’s a gentle downward slope (orange line).  If we look at it by itself, how will it seem then?

Here it’s very, very clear that the market needs to be micro-analyzed to get pricing right. The chart above this one implies a “nothing” change among list prices in this quartile of houses in Campbell. But look closer and there’s a drop of several percent (almost 875k to 840k – about 4%) over the last 90 days.  Being off by 4% can mean the difference between your home selling and not selling because it’s overpriced (or leaving money on the table if it’s badly underpriced).

There are endless stats on Campbell’s real estate market, including days on market and inventory as well as pricing. While the overall market may be “flat to mildly declining” among houses overall, and “rising gently” among condos generally, it’s all a matter of which market segment you’re viewing and what timeframe.

To get the pricing right for the home you want to sell or buy, it is crucial to understand what your particular part of the market is doing. The point of this post is to give both an overview of the Campbell real estate market in terms of list prices but also to make it clear that a lot of data tied specifically to “your market” is key to understanding how to price your home or what a home you want to buy may now be worth in that market’s climate.

This post is not comprehensive – we have looked only at list prices, not at inventory levels, days on market, absorption rates, sales prices, etc.

Please contact me for more assistance with your own particular needs in buying or selling a home in Campbell, San Jose or in the west valley areas of Silicon Valley.

The Almaden Valley real estate market is complex – “how it is” very much depends on the price point, school district (there are several in Almaden) and neighborhood.  The broad overview and the micro-view of this San Jose area are both helpful to buyers and sellers. Today we’ll do a little of each. (Graphs courtesy of two subscriptions I have: one is the REReport and the other is Altos Research. Both used by permission.)

First let’s see how Almaden Valley homes for sale fared in recent months, in 2008 and in recent years. Then we’ll have a look at the current situation. Here are a couple of graphs that make clear the condo market in this part of Silicon Valley:

Inventory has been rising in recent months, and sales have been declining fairly steadily in recent years.  If you have friends who sell homes or home loans and work the Almaden or Silicon Valley market, you already know that things have been worsening for quite awhile.

Now let’s look at the single family home market; first is the the days of inventory over the last 18 months or so and then the number of sales in Almaden over the last few years.

The patterns among single family homes in Almaden are even more clear in terms of the numbers of sales: it’s a straight decline.  Time on the market has fluctuated a little but the overall movement has been for longer time to sell a home.

So that’s a look back in time, using sold data.

Now let’s have a look at “real time” or more current market information using the currently available homes for sale (and list prices).

How long does it take to sell a home in the Almaden Valley area of San Jose? Below please find graphs indicating the average “days on market” for the 95120 zip code, which is the same as the boundaries of the Almaden Valley area of San Jose.  The data is divided by price quartile, since sometimes the market is different from one price point to the next.

First, a look at condos in San Jose, 95120:

Next, the graph for single family homes in San Jose 95120:

While there’s some variation, the patterns are fairly consistent: the days on market were lowest last summer but rose again and are generally higher than they’ve been in recent history.  Obviously, the longer it takes to sell a home, the worse it is for sellers and the better it is for buyers.

How about levels of inventory? First let’s view the condos and then the single family homes.

Next, we’ll see about the inventory of single family homes in the Almaden district of San Jose:

Surprisingly, the inventory levels are almost identical across both housing types and price points. This is often not the case!

Finally, the issue that is most important to home buyers and home sellers in Almaden Valley, in Silicon Valley or virtually anywhere: pricing. How are home values holding up? How is affordability?

Among Almaden Valley condos, real estate median list prices are falling, but not at the same rate or level across all price points. The lowest priced homes appear to have had the “steadiest” pricing, and the second highest price point appears to have had the most volatility.

Finally, we’ll look at the single family homes’ median list prices by quartile in Almaden.

Here we see that the lower priced homes, the more affordable ones, are not coming down in list price nearly as much as in the high end prices. Relative to the rest of Santa Clara County, Almaden home values are holding up pretty well.  While some areas see a change of 35% in the median price, here we see that it’s often within 10%.   This is also true in Los Gatos, Monte Sereno, Saratoga, Cupertino, Los Altos, Palo Alto, and anywhere in which the incomes are higher than normal and schools are much better than average.

It is reinforced that the old adage about the importance of location is not just something for days gone by, but is equally true today.

In sum, the bargain prices are not going to be found in Almaden as they are in some parts of the Santa Clara Valley. But at the same time, it appears that these homes, whether houses, townhomes or condos, will “hold their value” better than normal too. 

This is, of course, an overview. Your neighborhood, or the one in which you wish to buy, may be different.  The Graystone area is different than Oak Canyon, for instance – they have different school districts, different commutes, etc. For information on a particular area, please contact me today for a confidential consulation.

Readers,

Today I am running a guest post by Asbestos.com. This company approached me a couple of weeks ago and asked to be able to provide some information on asbestos and its abatement and alternatives on this site. Since we find what is likely asbestos laden materials in many homes, I agreed, and have done only a little editing for clarity. (This is not a paid blog post, by the way.)

Asbestos is not hazardous if it remains intact and does not become airborne. If you have a home with asbestos products (often found in heater duct insulation and in “popcorn ceilings” of older Silicon Valley homes), you can either remove them by hiring professionals who follow rigid guidelines to ensure everyone’s safety, or you can leave them alone but encase them and you should have no problems whatsover. Many buyers, of course, would prefer that it be entirely gone. This is not a “do it yourself” project, though. Attempting to do this on your own is potentially quite dangerous. If you wish to find and eradicate asbestos, you will need to call in the experts, who know how to handle hazardous materials.

Guest post written by Joe Lederman of Asbestos.com

Although manufacturers and mankind has known of asbestos’ health hazards for a long period of time, it wasn’t until 1990 when the California Air Resources Board (CARB) began to regulate the amount of asbestos used in surfacing applications. Due to the widespread use of asbestos throughout the 20th century, it is essential for those involved in real estate to take the proper measures in inspecting and removing the harmful product. With the consistent growth in technology and public awareness, there are currently a number of products which replace the need for asbestos.

Renowned for a large industrial history, California’s economy has had success in areas such as ship-building, mining and power generation. These industries found many usages for asbestos, as the material has fire and heat resistant qualities. Homes, workplaces and public facilities built prior to 1980 can still harvest asbestos. Asbestos exposure has resulted in the development of severe lung cancers such as mesothelioma. Typically, signs of this illness will not turn up for 20 to 50 years, making it difficult for physicians to diagnose potential carriers. Mesothelioma treatments vary from chemotherapy, radiation and experimental procedures. Although medical technology continues to improve, mesothelioma claims thousands of victims every year in the United States alone.

The California Environmental Protection Agency reports many sources of naturally occurring asbestos emissions throughout the state. Despite knowledge of the state’s asbestos problems, many communities throughout California still find themselves constructed atop asbestos deposits. (Note by Mary: One such neighborhood is found atop Communications Hill in San Jose. You may recall that when Highway 87 was being constructed from Blossom Valley to Downtown San Jose, there were problems when they got to the hills that the road had to go through. One of the major issues was the asbestos in the soil there.)

With many citizens now living in an environmentally hospitable manner, people in California should hire licensed abatement contractors who will perform in house inspections to search for any hazardous building material that may be present. The removal of asbestos is an extremely finite process which needs to be performed wearing protective gear and masks. Alternatives to asbestos include cotton fiber, which can reduce energy consumption up to 35 percent, and cellulose.

In the 21st century, there is no need to put yourselves and your families at risk at the hands of asbestos. These new alternatives will allow real estate men, women and potential homeowners to be free and clear of any health damaging substances.