Realty One Group
Silicon Valley is a large metropolitan area consists of many neighborhoods. Many major technology jobs have been on west side. Mountain View, Sunnyvale, Santa Clara as well as Cupertino areas are clustered with 100s, if 1000s of companies that provide information technology transforming chips, computer, software, internet technology to improve our lives. There are also medical research to improve human health.
A couple years ago I thought $1,000 per sf in Palo Alto was high. The price was close to one of the highest in the US. Only a few cities like London, Manhattan, New York, and Hong Kong were higher. At $1200+/sf today for a modest 1200 sf flat roof 3br /1.5 bath home on a smaller 5000 sf lot. Is $1.45million dollars excessive? When town homes and condo are close to $1M that were selling a fraction just a few years ago, will it go even way higher? I think not. My recommendation is put it on the market this year don't try to time the market. The risk by putting off sell can be high.
There are still lots of companies clustered in downtown and some streets. For example, I did not know Zynga, Netflix were all located in Los Gatos close to each other.
Avg Size(1300-1999 sf) Single Family homes in Palo Alto, Los Altos, Los Altos hills
Marketing time=15 days
Avg home(1200-1999 sf)
$2.451M (Jan-Mar 2016) $2.253 (1 yr ago) + 9.6%
$1,502/sf $1,389/sf + 8.1%
In better school neighborhoods home prices have gone up exponentially. The following is Cupertino Unified School neighborhood home prices. Most are 3 to 4 br, 2 ba 1 story ranch style 50+ year-old between 1,300 to 1,999 sf gla mostly come with updates.
They are in Sunnyvale, west Santa Clara and Cupertino and west San Jose area. They are closer to high technology workplaces. Since one paid an arm and leg for housing, home owners choose public schools to reduce spending.
Cupertino Unified School historical home prices
Total listings SFH =53 (ref to above chart)
Inventory: 1.5 month (2.5 month is healthy)
Marketing time=18 days
Avg home(1200-1999 sf)
$1.668M (Jan-Mar 2016) $1.561M(1 yr ago) + 6.8%
$1,041/sf $990/sf +5.1%
While prices are still moving up because of strong local economy, the appreciation rates of 5-6% YTY seems to be less than +10-15% enjoyed before. Affordability can be a key question.
Prepared by SamShuehRealtor@Gmail.com
Sam Shueh Realtor
I've called San Francisco South Bay home for over 37 years. We love this area and all it has to offer, and I enjoy sharing what I know about homes. I documented in several books about Silicon Valley history. I have much expertise in real estate...please give me a call. Silicon Valley Realtor Sam Website (Four-O-Eight) 425-1601