West San Jose, CA (Lynbrook High School) August 2008 Market Wrap

johnleahy — Tue, 12 Aug 2008 18:06:55 +0000

The August market for homes with Lynbrook High School remains strong but the inventory level has been increasing and some homes staying on the market for now as many as 115 days. We’re seeing some strength in some other areas of the county such as inventory in the Cambrian area dropping to 189 units from a high of 219 in May. Meanwhile the Cupertino / West San Jose zone has seen inventory slowly rising to 113 units from only 33 at the first of the year. We’re up to 19 active houses with the 259 (Lynbrook High School) search code and a pretty nice balance of 15 pending sales in this category. The 7 closed sales in July had a median closing price of $1,035,000 with 6 of 7 selling for over list.

What we seem to be seeing is that the more expensive homes seem to be taking longer to sell even though given that they are often “scrape and bake” brand new homes and the construction costs for a homeowner for this type of quality can easily be $300 per square foot; the market does not seem to be rewarding these homes at a level of bare lot plus construction costs. Instead buyers are opting for more modest homes in the $1 million to $1.2 million price range. The buyers are still leaning towards homes that have been significantly upgraded, but are happy with 1200-1400 sf; as long as it is in the right school attendance areas.

West San Jose Specific Properties Listings and Pending Sales

Street List Price Sales Price SqFt BD BA COE

Johnson Avenue $800,000 1100 3 2 active

Canterbury Court $950,000 1904 6 3 active

Miller Avenue $958,000 1266 3 2 active

Ardenwood Drive $988,000 1292 3 2 active

Rainbow Drive $998,000 1652 3 2 active

Canterbury Court $1,035,000 1271 3 2 active

Countess Drive $1,080,000 1376 4 2 active

Prospect Road $1,120,00 1812 3 2.5 active

Harlan Court $1,279,950 1703 4 2 active

Danbury Drive $1,498,888 2032 4 2.5 active

Cynthia Lane $1,525,000 2300 4 4 active

Avondale Street $1,695,000 3708 6 4 active

Ardenwood Drive $1,698,888 3010 5 4 active

Bollinger Road $879,000 pending 1264 3 2 Aug 13, ‘08

Huntingdon Drive $985,000 pending 1187 3 2 Aug 29, ‘08

Lynbrook Way $988,800 pending 1187 3 2 Aug 26 ‘08

Corvette Drive $950,000 pending 1284 4 2.5 Aug 28, 08

Hanver Drive $1,025,888 pending 1188 3 2 Aug 19, 08

Bonnie Joy Avenue $1,048,800 pending 1300 3 2 Aug 21, 08

Longfellow Way $1,099,950 pending 1357 3 2 Sept 3, 08

Avondale Street $1,128,000 pending 1536 4 2 Aug 28, ‘08

Glenhaven Drive $1,198,000 pending 1688 3 2 Sept 9, ‘08

Galli Drive $1,249,000 pending 1944 4 2 Aug 13, ‘08

Harlan Court $1,299,950 pending 2082 5 3 Aug 15, ‘08

Countess Drive $1,300,000 pending 2346 4 3.5 Aug 16, ‘08

Huntingdon Drive $1,599,888 pending 2700 5 4 Aug 22, ‘08

Huntingdon Drive $1,619,800 pending 3015 5 4 Aug 29, ‘08

The Cambrian Park, CA Market Wrap for August 2008

johnleahy — Tue, 12 Aug 2008 17:36:31 +0000

The market in the Cambrian Park area of San Jose is still struggling just a bit under the weight of short sales and foreclosures. Three short sales have closed recently so on the bright side they are out of the way, but on the down side they sold for $602,000, $531,900 and $496,000. Active listings remain at a comfortable but high level of 186 and the median list price of $650,000 is static. The pending sales have increased to a respectable 91 units. Given that rate of absorbsion the days of active inventory has dropped to about 61 days. This is remains a balanced market with a bias favoring buyers. We continue to see some great buying opportunities and the marketplace does seem to be taking advantage of these properties, buying up some of the best bargains we’ve seen in a decade. Still, some move-in types of homes are selling in more traditional transactions at pretty fair prices. Of course, move-up buyers are still getting a net percentage benefit given the larger numbers on the purchase. Call me for some investment ideas.

Specific Market Data for the “Dutch Haven” area of Cambrian Park, CA

Active Listings

Kooser Road    $465,000            1252    4    2       active
Kooser Road    $471,469            1185    3    2       active
Princeton Drive    $495,000            1185    3    2       active
Princeton Drive    $499,000            1250    4    2       active
Blossom Hill Road    $499,950            1446    3    2       active
Blossom Hill Road    $510,000            1189    3    2       active
Joseph Lane    $595,000            1400    4    2       active
Yale Drive    $599,999            1198    3    2       active
Tobias Drive    $639,800            1272    3    2       active
Weathersfield Way    $799,000            1501    3    3       active

Pending Listings and reported expected close of escrow dates:

Holland Lane    $515,000    pending        1189    3    2    Aug. 22, 08
Holland Lane    $540,000    pending        1252    4    2     Apr 15, 08
Cornell Drive    $568,000    pending        1252    4    2    Aug 13, 08
Joseph Lane    $695,000    pending        1466    3    2     Aug 8, 08
Rotterdam Lane    $725,000    pending        1694    4    2     Apr 15, 08

Closed Sale Listings with List Price, Sales Price, SF, Bedrooms, Baths and Close of Escrow Date

5604 Holland Lane    $509,000    $496,000        1252    4    2     July 25, 08
5522 Yale Drive    $535,000    $530,000        1185    3    2     July 24, 08
5726 Holland Lane    $575,000    $531,900        1252    4    2    July 3, 08
1564 Kooser Road    $608,000    $602,000        1392    3    2    Aug 11, 08
5577 Yale Drive    $749,900    $730,000        2051    4    2.5 Aug 5, 08

May 2008 Newsletter for Cambrian Park, Californina

johnleahy — Fri, 02 May 2008 05:34:23 +0000

The market in the the Cambrian Park area of San Jose has shown slow but steady improvement. Active listings have climbed to 198 and the median list price of $699,000 is static. The pending sales have increased to 69. Given that rate of absorbsion the days of active inventory has dropped to about 86 days. This is approaching a balanced market with a bias favoring buyers; much better than the all-out buyer’s market we’ve had over the past 8 months. In our local market there’s a mix that has quite a few short sales and a bank owned home so the inventory is pretty rough and difficult to close a sale with. This is not supportive of pricing. Buyers are either looking for a real deal or a real “shiny penny”; a home that has been remodeled with all of the modern design features like granite, crown molding, custom baseboards and quality landscaping. It’s still a great time to be an investor. In fact, with an improving market but still discouraging news coverage the downside risk is somewhat mitigated. Call me for some ideas.

Local Market Activity for May 2008

Street List Price Sales Price SqFt BD BA COE

Princeton Drive $499,000 1250 4 2 active
Princeton Drive $519,000 1211 3 2 active
Holland Lane $540,000 1252 4 2 active
Kooser Road $549,900 1185 3 2 active
Princeton Drive $559,900 1185 3 2 active
Holland Lane $575,000 1252 4 2 active
Yale Drive $599,999 1198 3 1.5 active
Yale Drive $599,999 1185 3 2 active
Kooser Road $608,000 1392 3 2 active
Kooser Road $629,000 1252 4 2 active
Blossom Hill Road $649,900 1446 3 2 active
Blossom Hill Road $730,000 1630 3 3 active
Holland Lane $509,000 pending 1252 4 2 Mar 15, ‘08
Holland Lane $540,000 pending 1252 4 2 Apr 15, 08
Rotterdam Lane $699,000 pending 2277 4 3.5 Apr 22, ‘08
Waltrip Lane $499,900 pending 1196 3 2 May 28, 08
Tobias Drive $669,000 pending 1400 4 2 Apr 17, ‘08
Boone Drive $638,000 $656,000 1218 3 2 Apr 17, ‘08
Antwerp Lane $699,000 $714,000 1370 3 2 Apr 23, ‘08

What is a Bank willing to accept on its REO listings?

johnleahy — Fri, 25 Apr 2008 00:45:04 +0000

How do banks determine what they will accept on their bank owned properties (REOs)? Do they use a percentage of what the loan amount was and adjust from a loan loss perspective? Short Sale loss mitigation departments think like that. Banks selling their own inventory don’t really think that way. They think more like homeowners. They want to get as much as possible…however, they know that they are perceived as inferior properties and they know that buyers are going to make low-ball runs at them. They also do not have the emotions that homeowners have so they are willing to accept less if that’s what the market will bear. After all, they have huge financial stakes in getting these properties off their books. More on that another time. But that being said, how do they value their REO inventories? They have relied on their agents’ BPOs (broker price opinion). These BPOs come from a few sources but primarily the agents who the banks have build a relationship with to help them sell their properties; agents who in another market would be helping the average homeowner in the area to sell their home; are doing the BPO. Since the agent’s interests aren’t alighed perfectly with their client’s they may have told them a) what they wanted to hear in order to get the listing, b) what the market was like when the lender was contemplating foreclosure, and c) what the broker thought it was going to take in order for a short sale not to occur (so that the REO broker could get the listing instead)…so the lender may be working off dated and/or incorrect data. In addition, lenders seem to think that the longer a house is given as far as marketing time, the more likely they are to get their price. Maybe in other, slower moving markets does this apply, but in Santa Clara County, a hot property is going to sell fast, and a home with long days on market counter is going to be perceived as “what’s wrong with this home?”. So the lender has a little bit of a learning curve here as well.

So what does this all mean? 1) Buyers need to be patient. As long as this market continues to appear to be weak, properties are going to take awhile to sell and opportunities will arise. 2) Buyers need to continue to work their offer; As long as they don’t have another buyer coming to the plate with a better offer then your offer is still in the running; even if this particular offer dies on the vine for lack of a counter-offer. You just need to wait awhile and put in another offer. 3) Once this market starts to improve, it’s too late to get a bargain; however, once it begins to improve, prices will bounce; I think by 7-10%. That could happen in as little as 2-3 months, but the market won’t perceive the change until 2-3 months after it has begun. After the bounce, there may be a second downturn, since there are many homeowners who would like to sell, but won’t compete against the short sales and foreclosures. That may be a second opportunity since these tend to be nicer homes, but will be valued based upon some of the distressed comparable sales.

How will I know when the market is turning. Well, I go to regular market updates and watch statistics as far as inventory and initiated contracts. One strangely odd signal will be that the median home sales price will dropped precipitously. That seems counter-intuitive since this is usually an indicator or a weaker market. But in today’s Silicon Valley market, we’ve seen that the median home price has been supported by the fact that homes in nicer, more expensive areas have continued to sell, while homes in traditional starter markets have not been selling well at all. Once these homes at the bottom of the food chain begin selling, they will soon start selling in large numbers. Even if the prices that they are selling at is increasing, the fact that so many are selling will bring down the median home price since this is the mid-point of all the homes that are selling. There is so much inventory languishing in the lower price ranges that this decrease in median home prices will be very pronounced once these homes begin to sell. Very strange indeed; a dropping of “prices” indicates a recovering market.

Previewing Homes in Saratoga, CA on April 9, 2008

johnleahy — Thu, 10 Apr 2008 07:34:10 +0000

Well, homes still continue to sell well in Saratoga. The flight to quality assets continues unabated, although I’d say there are some properties hanging around for a little while. Today I had a chance to preview six homes; all of them very nice quality homes, two of them significantly upgraded and modernized and three either new or newer and very modern homes.

18849 Kosich Drive, Saratoga, CA 95070 is listed with Intero Real Estate Services by David Kelso. It is 3 bedrooms, 2.5 baths in 2395 sf on a 10,005 sf lot. Listed for $1,585,000 (mls #789556). This home has been gorgeously remodeled and has a very nice kitchen with granite slab counter tops and modern appliances. There is plenty of room to spread out in a traditional floor-plan. The master bedroom is to the back of the home and although not incredible is avery spacious and functional. The other two bedrooms are also fairly large and the bathrooms are both very nicely remodeled. The home is a little unique in that it has a quarter basement which could be useful for a wine cellar or a work-out room, etc. The home is in the Saratoga Woods neighborhood so although it is in Saratoga, it does not have Saratoga schools. Instead it has the also highly regarded Moreland Elementary School District and Campbell Union High School District. In fact the property backs up to an outside corner of the playing fields at Prospect High School. Very nice curb appeal and a very nice home.

12067 Ingrid Court, Saratoga, CA 95070 is another very nice home and is listed with Alain Pinel Realtors by Moe Baniani and Rick Bonetti. It is a 4 bedroom, 2.5 bathroom home with 2369 sf and a large 11,160 sf lot. This home is listed for $1,498,000 (mls #789667) This home is a great traditional design in a very nice location on a cul-de-sac lot. It is, however, very dated in terms of the bathrooms and kitchen even though the master bathroom has been remodeled and the kitchen is very clean and functional. In all it appears to be in good condition, but upgrading would likely be in order. The lot is large and has wide side yards and while not overly impressive, the home does look nice from the street with a courtyard entry. I do like the cathedral ceiling in the living room with the open beam architecture. It seems to me that there used to be an island at the end of Ingrid Court with a flag pole. It must have been unacceptable to the fire department because the end of the street is now a traditional bulb cul-de-sac. This home has the very popular Cupertino Elementary School District and Fremont Union High School District including the very highly rated (and my alma mater) Lynbrook High School. Given some of the recent listings I’ve seen in the Lynbrook High School attendance area, I would prefer the homes on Scully but this home does offer a lot of square footage, great location and large lot for the money.

18549 Paseo Pueblo, Saratoga, CA 95070 is a newly constructed 5 bedroom, 4 bathroom home with 3036 sf on a 11,652 sf lot. It is listed by Jaleh Taghipour with Coldwell Banker in Saratoga. It is listed for $2,180,000 (mls #787808). Paseo Pueblo is a gorgeous home with about the most fantastic kitchen I have even seen in this price range. It is large enough for a bevy of cooks to work in concert and still have room to spare. The 4 bathrooms are all fantastic, especially the large master bathroom with large jetted tub and the spacious hall bathroom with steam sauna. The backyard is very open and nicely landscaped and also features two nice light posts and accent lighting reminiscent of a city park. The floor plan is separated into two different sleeping areas, the main area with three bedrooms off a traditional hallway and two bedrooms off of the family room area which works well for a guest retreat and spearated office. This is a gorgeous home that is in an area of older flat top homes that is gradually morphing into newer homes and significantly upgraded homes. It has Moreland Elementary School District and Campbell Union high School District.

18500 Aquino Way, Saratoga, CA 95070 is moving our way up the price scale to $2,500,000. It’s lsited by Dana Rogers and Cyndi Stewart with Alain Pinel Realtors. In this price range the homes are pretty spectacular and Aquino Way is no exception. Perhaps the best feature s are the lot and the location. It’s located on a 43,995 sf lot on a slight rise in an exclusive neighborhood. This home is 3524 sf with 4 bedrooms, 2.5 baths. (mls #776193) It is dressed to the nines and and has a terrific kitchen and exceptional master bedroom. It is Campbell Union Elementary School Distict and Campbell Union High School District which will not carry the same values as Saratoga Schools but I don’t think that you can go wrong with ahome like this. An acre in Saratoga is among the most coveted possessions in Silicon Valley Real Estate.

The last home that I had the pleasure to visit today on my previews in Saratoga was Bill Gorman’s listing at 18584 Sobey Road listed for $3,399,000. 18584 Sobey Road, Saratoga, Ca 95070 is simply an awesome property with so many of the fine features you look for in a home in this area. My words can’t do it justice, but Mr. Gorman has some descriptive marketing pieces at www.billgorman.com. This is a 12 year old home with very modern architecture, open spaces and an elegant entry and stairway. Naturally, there is a wonderful kitchen and the master bedroom suite has a bathroom/walk-in closet combo that is the size of a small house. The master bedroom itself takes advantage of the rising hillside location and allows a treetop valley view and also overlooks the Marshall Lane Elementary School playing fields. There are 4 bedrooms, 4 bathrooms in a 4397 sf home on a slightly under 1 acre lot. Bill Gorman is with Coldwell Banker and 18584 Sobey road is mls #800322. Campbell Union Elementary School District and Campbell Union High School District.

The New York Fed’s Mortgage Maps Gives Data on Sub-Prime and Alt-A Mortgages

johnleahy — Wed, 09 Apr 2008 05:59:57 +0000

I ran across an interesting government widget today. It’s great for mortgage watchers and shows the percentage of homes in any given ZIP code with sub-prime or Alt-A mortgages and also gives numbers for how many are in foreclosure and other distressed conditions. I had no idea that the Fed could even gather this much data. I’ll leave you to fiddle with, but it could be useful for predicting short sales, predicting foreclosures or predicting what markets will recover first. http://www2.newyorkfed.org/mortgagemaps/

Comments on Recent SF Chronicle article on Lenders Rescinding Home Credit Lines

johnleahy — Mon, 07 Apr 2008 21:55:07 +0000

The recent article in the San Francisco Chronicle by Sam Zuckerman titled Lenders Retreat as the Home Market Plummets regarding a homeowner in Moraga who recently had his $150,000 HELOC (home equity line of credit) frozen by his lender due to what the lender perceived as declining home values elicited some chatter among my friends. As it turns out we had been talking about this very thing about two weeks earlier and wanted to make sure it didn’t happen to us.

There is no question that the banks are pulling in their risk portfolios. As a friend and fellow Realtor told me, some of his credit cards limits were frozen after he paid them down. Frozen at the new balance of about $1,000. This is a guy who has excellent credit, excellent income and great standing in the community. When this was brought up at the (Realtors) meeting we were at, others in the group mentioned similar stories and one was even told point blank that his line of credit was, in fact, being reduced because of his line of work. Another had his request to extend his photocopier lease refused for the same reason. He, also, is an excellent producer with great standing in the local community. Besides, the copier is already in place and being paid for. His tongue in cheek quote was “they can pick it up at the curb; I’ll buy my own.” I can understand the logic; real estate sales in the Silicaon Valley area have been down by 30-50% off their levels from last year; but these are people in the top rankings of their industry.

Another home-buyer who used a purchase loan with an attached line of credit had the line of credit frozen. They were basically screwed because they had planned (and hired an architect) to remodel their new home to make it fit their needs. Nope, even though it’s in

Campbell and in a market that is maintaining values, the lender pulled the plug on their (contracted for) credit line; using some shabby homes that were for sale in the area as comps.

I personally have been rearranging my credit portfolio in order to maintain my liquidity, given my profession. Fortunately, most of my business is in

West Silicon Valley so the sales are still fairly brisk and the prices mostly stable or increasing. As far as

Moraga goes, that is still a very upscale area, and I suspect that the gentleman’s home is worth more than the lender says. I also suspect that when the bank credit managers review his appeal they will find that his credit risk is just fine and restore most, if not all of his credit line. But I wouldn’t count on that for everyone. The banks have lost a ton of liquidity and the Asset and Liability managers are trying to put the money that they do have available into the most profitable and secure business areas for the bank. Hmmm; I smell a conspiracy theory coming on. What if the banks are creating PR about their lines of credit being yanked is just an inducement for people (like me) with good credit to max out their credit lines and put the money into a mattress (read CD) so that the banks can make their return off these secure people instead of putting into that risky real estate market? Naaaah! They’re probably just letting the pendulum swing too far back to the conservative side after letting it go way to far to the risky side over the first 7 years of the decade.

Previewing Homes in the Belwood Community of Los Gatos on April 3, 2008

johnleahy — Fri, 04 Apr 2008 06:44:34 +0000

by John Leahy

With homes selling so well in the top areas of Silicon Valley lately I wanted to see why one of my agents is having a difficult time getting quality offers on his listing in the Belwood Community of Los Gatos. John Spangberg’s listing at 163 Belvue Drive in Los Gatos, CA 95032 (mls#783971) is located across from the playing fields at Mulberry School and is located in what I like to think of as one of the best school attendance areas after Saratoga, Los Gatos, Cupertino and the more expensive peninsula communities. The Belwood Community is well known locally as a great place to live with a cabana club, excellent access to highway 85, and good access to top rated Noddin Elementary School, Union Middle School and Leigh High School. There is also a neighborhood access to a popular Belgatos Park and hiking trails. So with such a nice neighborhood and such great schools; What’s the hold-up? After looking at the properties that are competing with John’s listing, I honestly can’t tell you. First of all 163 Belvue Drive is listed for just $1,099,000. This would seem pricey for Leigh High School, but certainly cheap for Los Gatos. The home itself is a comfortable floor plan with 1744 sf of living area and a comfortable 3 bedrooms and 2 bathrooms. The home has tons of upgrades including a gorgeous kitchen and it is situated on a wonderful 10,000 sf lot with a huge backyard. It is also perhaps the best location in the Belwood Neighborhood with a flat lot facing the Los Gatos Mountains and well away from busy streets.

The competition in this neighborhood appears to me to readily support the current price on 163 Belvue Drive. There is a gorgeous home located at 14350 Blossom Hill Road, Los Gatos, CA 95032 listed with Jae Chung of Coldwell Banker that is in the Belwood neighborhood. This home is a 2459 sf home with 4 bedrooms and 3 bathrooms and a 7405 sf lot. It is listed for $1,249,000 (mls #785151). It also features a 2nd story patio overlooking the neighborhood cabana club and a huge kitchen with all the whistles and bells. This home would certainly be a better value than 163 Belvue Drive except that it is located on a very busy road which could be compared to a highway in some respects. This will completely eliminate this home from some people’s consideration because of the aversion folks have to living on a busy street. For some buyers this will be an acceptable trade-off but I think that this property generally supports the value of 163 Belvue Drive.

A brand new listing today on 100 Bacigalupi Drive, Los Gatos, CA 95032 has been put on the market by Ray Mazaheri with Alain Pinel Realtors for $1,000,000. This home is 3 bedrooms and 2 bathrooms and 1400 sf on a 7100 sf lot (MLS #788970). This home is located on a corner lot but a location that involves both the feeder street Bacigalupi and sides up to a somewhat busy Harwood Road. In addition this home has an upgraded kitchen but it really doesn’t show nearly as well as 163 Belvue Drive, in my opinion. It is also a bit smaller in home size and lot size. I would say that while 100 Bacigalupi Drive may be a good value for the neighborhood, it would certainly behoove someone who can afford this price range to spring just a little bit more to get what I would consider an excellent value on Belvue.

Two homes that I drove by but did not get a chance to preview were 138 Belridge Drive and 300 Westhill Drive. Based upon what I saw from the street I would love to go inside and preview these two. 138 Belridge Dr. Los Gatos, CA 95032 is a stately home featuring 6 (or more) bedrooms, 3 bathrooms, 2448 sf and a 10,349 sf lot and a list price of $1,450,000 (mls #787981). This home is listed by Roberto Ruiz of Fireside Realty and from the description has all of the features that you might expect in a home of this price range. This home has a great location, beautiful curb appeal and would seem to be priced attractively. This, in my opinion, also supports the list price for 163 Belvue Drive. After all, someone who is in the market for a home in Belvue’s price range, may very well not be in the market for a home of $1,450,000, about 32% higher. And the fact that the neighborhood supports home prices of $1,450,000 certainly indicates that the schools and neighborhood support higher priced homes. This brings us to 300 Westhill Drive, Los Gatos, CA 95032. This Belwood beauty is listed by Richard White of Coldwell Banker and is 6 (or more) bedrooms and 4 (or more) bathrooms with 3638 sf and a 10,370 sf lot listed for $1,729,000 (mls #788174). Again, I didn’t have a chance to go inside 300 Westhill Drive, but from the description it sounds like a fairly amazing home. While the home buyer for this home will almost certainly be different from the home-buyer for 163 Belvue Drive, the fact that this home is just a short block away indicates that the smart home-buyer who buys 163 Belvue will be moving into a well-heeled neighborhood indeed.

In conclusion, while I was previewing homes in the Belwood neighborhood of Los Gatos; watching at least a half dozen people walking the street for their afternoon strolls or workouts, seeing a lively game of basketball being played at the Belwood Cabana Club and enjoying the open space of the Mulberry School Grounds and the open space trails, I couldn’t help but think that some lucky home-buyer will be able to get this opportunity of a lifetime. Some lucky home-buyer, who is a bit better off than I am will be moving into the Belwood neighborhood and the very gorgeous home at 300 Westhill Drive as well. And just maybe, these two neighbors will get a chance to wave hello during their late afternoon walks in the neighborhood. It certainly makes for a nice picture.

Saratoga Previewing March 26, 2008

johnleahy — Thu, 27 Mar 2008 05:10:26 +0000

Tour today was pretty light, perhaps because of the Easter holiday. I looked at three homes that were in the $1.5 to $2m price range and I also took a look at a small house on De Sanka.

12464 Scully Avenue, Saratoga, CA 95070 is listed with Mark Thomason with RE/MAX Real Estate Services. It is 4 bedrooms, 2.5 bathrooms and 2500 sf on a 12,632 sf lot. $1,659,000 MLS #785737. I looks like it went into contract today. Beautiful home across from park w/ large yard & pool. Wide side yard, walk-in pantry. Low fence but elevation on rear neighbors. Nice home. Not much as far as master bedroom goes but a very nice bathroom and the soaking tub is in the hall bath. Beautiful pool and grounds and all the whistles and bells in bathrooms and kitchen that you would expect at this price.

13002 Ten Oaks Way, Saratoga, CA 95070 is listed by Michael Kelley with Kinetic Properties. 4 bedrooms, 2.5 baths with 2602 sf on a 12,632 sf lot. $1,799,000 MLS #786672. Beautiful remodel w/ 2 zone heat & whole house fan, but no A/C. Nice location on cul-de-sac lot. Good separation from power lines and tracks. This was bought about a month ago by a contractor and is back on the market as a complete remodel. I like this one quite a bit because it has a nice large backyard and a cul-de-sac location. I also like that the garage is set behind the house with a breezeway in between. The garage is off an “alleyway” which is the driveway to the house on the flag lot behind. The house itself has been remodeled completely and the price is…well…perhaps set too low. Offers are on Tuesday April 1. It is also supposed to be open over the weekend.

20280 Saratoga Vista Court, Saratoga, CA 95070 is listed with Jerry Houston with Coldwell Banker. It is 3 bedrooms, 2.5 baths and 1640 sf on a 8712 sf lot. $1,488,888 MLS #786673. This house is a bit on the small side, but it is beautifully remodeled and the backyard, although not huge is very nicely done with a low retaining wall designed to complement the patio area and a nice bar-b-q area with wet bar.

12488 De Sanka Avenue, Saratoga, CA 95070 is also in the I’d be nice if I were bigger class. Listed with Anita Hunter of Alain Pinel Realtors it is a 3 bedroom, 2 bathroom home with 1068 sf on a 10875 sf lot. MLS #780472. This home is more like a one bathroom house because the second bathroom is in the garage. The lot and location are great, and the house has been remodeled very nicely. I’m not sure that I would have put the money into remodeling sice I see more value in this as a lot for a nice new home, but at $1,248,800 it does mark the starting price for entry into the Saratoga address with Cupertino schools class.

What’s Going Up in West San Jose - Cupertino Schools?

johnleahy — Sun, 23 Mar 2008 03:53:53 +0000

Just when it was beginning to look like there was going to be a slowing down in the appreciation rate in the West San Jose real estate market, some of the recent sales tell another story. Even some homes that were on the market for a few weeks are selling for well over their list price. Take 6514 Bibel Avenue, San Jose, CA 95129 for example. Listed by Mark Mena with Intero Real Estate Services on January 14, 2008 for $1,049,000, it didn’t go into contract until 24 days later on February 7, 2008. Still this listing went for $31,000 over list price and closed escrow on March 14, 2008 for $1,080,000. Other listings that went into contract after more than two weeks on the market but still closed for over list price were 6590 Bollinger Road San Jose, CA 95129 which was listed by Michelle Carr Crowe with Altas Realty for $988,000 and sold after 29 days for $13,000 over list for $1,001,000 on March 7, 2008 and 1045 Danbury Drive San Jose, CA 95129 was listed for $1,198,000 by Michelle Carr Crowe with Altas Realty and closed escrow on January 15, 2008 for $1,220,000. This listing was withdrawn from the market for 11 days before being reported pending so perhaps there’s more to the story there. Other homes closing for well over list price are 6221 Tracel Drive San Jose, CA 95129 listed by Francine Tsai with Realty World Noble Investments on February 15, 2008 for $1,299,888, sold 12 days later and closed escrow March 18, 2008 for $1,390,000; more than $90,000 over list price. 5547 Bigoak Drive San Jose, CA 95129 was listed by Lynn Burnett North with Alain Pinel Realtors for $1,298,000 and closed escrow March 19, 2008 for $1,448,880 a $150,880 premium over list price. 5915 Amapola Drive San Jose, CA 95129 was listed by Vivian Wang with Coldwell Banker for $1,198,000 on February 26, 2008 and closed March 19, 2008 for $1,356,000 a $158,000 bonus to the seller. 1074 Huntingdon Drive San Jose, CA 95129 listed on January 29, 2008 by Janine Shue with Infohome Realty closed escrow March 7, 2008 for $1,005,000. Not bad for a cute 1187 sf home. The second largest sales price premium in March appears to be 7055 Phyllis Avenue San Jose, CA 95129 which was listed by Yen Ling Lin with World Properties for $1,088,800 and closed escrow exactly one month later on March 12, 2008 for $1,239,888 a premium of $151,088.

To paraphrase Mark Twain, “rumors of my death appear to be greatly exaggerated”, seems to apply to the West San Jose real estate market. There is still plenty of demand for quality homes in top rated school districts. It seems that they aren’t making any more 6000+ sf lots in the best parts of Silicon Valley and people with good jobs in good industries are still more than willing to pony up and pay the price to get what they want. This is somewhat surprising and, then again, not surprising at all. The people, in general, who are buying homes like these are not terribly affected by the current loan liquidity issues. They have access to substantial down payments through good incomes, stock options and performance bonuses. These home buyers generally have the three c’s of credit down pat. Good down payment, good income and good credit. Most buyers in this price range are putting down large down payments and strangely enough, for many home buyers in this segment this is their first home, so they do not need to sell a home in a lower price range in order to buy up in the market. I think that what this shows more than anything else is that the slowdown in home sales is not so much a function of home-buyers losing confidence in the market as the fact that home-buyers are having a difficult time in getting the type of financing that is useful to them. The recent expansion of FHA loan limits should seriously help the segment of the market that is seeing trouble. With three percent down, home-buyers will be able to get into their first home. Of course, they will need to have substantiated income and a pretty good credit rating, but there are plenty of people who meet these qualifications. Meanwhile, the smart money continues to buy homes in good neighborhoods that are likely to continue to hold their value or in the case of the West Silicon Valley’s best school districts, appreciate; even in the biggest housing price crisis the nation has seen since the savings and loan debacle on the 1970’s or the retreat from the housing bubble of 1989.

In conclusion it seems that good real estate never goes out of style. Even after significant set-backs the market always seems to come back. Something Adam Smith said about supply and demand.