State of Real Estate: Silicon Valley Style

silicon valley real estate market

SILICON VALLEY MARKET CONDITIONS

The end of summer is anything but a sign that the year is winding down; in fact, it seems to be a rush of catching-up on everything you had plan need to accomplish by 2017 and now it’s time to make it happen! With school back in session and the hottest days behind us, you may be wondering if cooler times are ahead for the real estate industry. You’ve likely followed regional and national headlines all summer about the impact of inventory, the strategies of a sellers’ market and the banter behind Brexit But in the spirit of looking forward, let’s start with exactly where we are today with the state of real estate …right where you live here in Silicon Valley!

“BREXIT”

The British are coming …or not. Starting with what was on everyone’s mind about three months ago (and hardly on anyone’s mind today!), let’s address the initial impact and weeks that followed the news of Britain’s decided and lengthy exit from the European Union. With an immediate benefit to rates, there was also a ‘watch and wait’ period as the market digested the news from June 19th to July 1Qth. However, local forces and global logic initiated a quick return to the selling season and those sales numbers that we expected in late August are simply being delivered in early September.

INVENTORY

With levels of available homes being measured by months of inventory, Santa Clara County single­ family home inventory in July was 1.7 months, compared to 1.3 months the same time last year. Condos and town homes demonstrated greater gains but tighter supply, with inventory at 1.4 in July of 2016 compared to 0.8 in July 2015.

PRICES

With Silicon Valley’s steady and unwavering demand persisting, home prices followed suit with a median Santa Clara County home price of $1.0SM compared to July 2015;s average of $963K. Condo and town home median prices increased marginally year-over-year in July from $635K to $640K. Here are the recent charts for Almaden, Los Gatos, Willow Glen and

chart-almaden chart-lg

chart-willow-glen

DAYS ON MARKET

The speed of sales is still considerably quick, with single-family homes averaging 26 days on market and condos/town homes averaging 23. Last summer, those figures were 23 and 18 days on market for single-family homes and condos/town homes respectively.

OUR PERSPECTIVE

While these recent statistics provide a helpful frame of reference, we’d like to add our inside perspective to make sure you have access to the complete state of real estate today! We were definitely feeling a ‘typical August’ by industry standards; that usual late summer slowdown that occurs as a result of school starting and people trying to re-group (we all know that feeling, right?)

Notable trends include fewer multiple offers and more selective buyers, also common for this time of year. Inventory remains historically low, though still improved compared to the last 48 months.

Additionally, the figures reported above are only as important as how they relate to your ultimate personal and financial goals for the remainder of 2016. If you have been considering listing your home, it’s not too late. End of summer sales climbing into September indicate that serious buyers are here to stay, even as the seasons change. The local job market remains strong, so I don’t see a “bubble bursting” scenario in the near future.

If the state of Silicon Valley real estate has inspired you to further assess your options, we’d be happy to help. The only thing that matters today is what you decide to do tomorrow, and you don’t have to make that determination alone.

All the best,

Steve & Christine Perry, Perry Group Real Estate

How Young Entrepreneurs Are Changing Silicon Valley

Walk into your typical Silicon Valley coffee shop and you will run into more than one young entrepreneur.  As the hub of innovation, startups, and creative ideas, young entrepreneurs continuously flock to the area to maximize their resources and capabilities.

The impact young entrepreneurs have on the Silicon Valley is quite profound. Within the real estate industry, we see a rise in first time millennial homebuyers. An increase in demand for young tech talent has companies competing over rising tech stars. Heightened salaries for young entrepreneurs entering the burgeoning tech business affords them the means to purchase homes at a younger age. With the sheer size of the millennial generation and their drive toward entrepreneurship, the high demand for homes is likely to continue.

Beyond the housing market, millennial entrepreneurs’ ambition, persistence, and philosophical outlooks on life has a significant impact on the Silicon Valley community.

Transforming the Workplace – From garage startups to companies like Facebook, Google and more, young entrepreneurs have established a new dynamic in the workplace. Throughout the SFBA, entrepreneurs take the time to craft a workplace that engages their employees. This new generation of CEO’s strive to make work fun, in the hopes of boosting morale and enhancing work-life for their employees. Whether it’s phenomenal employee perks like on site gyms, organic food in the fridge or the ability to spend 5 minuets at the foosball table between coding sessions, new CEOs see the benefit in keeping their employees happy and healthy at work. For the Silicon Valley, this shift towards dynamic work environments is beneficial to overall quality of life.

Social Change – Driven by social consciousness, many of Silicon Valley’s young leaders have devised business plans rooted in social change. They proactively implement social responsibility guidelines and projects into their daily operations. This awareness and intention to act on social justice creates sustainable business practice and entices social conscious consumers to use their products and services. Furthermore, the amount of charitable acts, donations and engagement with non-profits is on the rise in the local area. With social justice on the forefront of many young professional’s minds, our community will greatly benefit from the increase in activism by younger entrepreneurs.

The Entrepreneur Impact – The flood of young talent largely propelling growth in the Silicon Valley has impacted much more than innovation. These young risk takers have created more jobs and increase the amount of local hires, particularly around college campuses like Stanford and Berkeley. This is beneficial for new grads who often struggle to find employment in the Bay Area. Furthermore, entrepreneurs and their lifestyle habits have boosted the local economy. Young leaders are often eating out, they have business meetings at local restaurants and coffee shops. They no longer feel confined to the workplace for conducting business meetings. These leaders are making more money at a younger age and thus have the means to funnel that income back into local businesses, the housing market, and charitable endeavors.

As the number of startups and young entrepreneurs rise, we can expect the social and economic impact these entrepreneurs to expand as well. With their charitable acts and drive to enhance the wellbeing of society, the Silicon Valley will continue to benefit from these ambitious cohort of young leaders.

 

What do you thing has been the biggest impact young entrepreneurs have made so far?

Let us know in the comments below!

Top 10 Luxury Home Features

Searching for your Silicon Valley luxury home? Before you buy, consider what high-end home features are your absolute “must-haves.”

Here are Perry Group Real Estate’s Top 10 Recommended Luxury Home Features:

1  Location, Location, Location

Luxury homes are often situated on sprawling tree-lined properties for added privacy. Here in the Silicon Valley, expansive lots may be hard to come by, however that does not mean you need to compromise. Search for a home with lush landscaping situated in a gated neighborhood. An ideal location will also place you in the right school district, of course, and with all of the other shopping amenities you desire nearby. Most important in the Silicon Valley, is commute time and easy access to freeways.

2  Gourmet Kitchen

Whether or not you cook, a luxury kitchen is a must-have in your new luxury home. If you plan on hosting parties or cooking extravagant family meals, search for a kitchen with all the upgrades. For example, double ovens, warming drawers, wine fridges and under cabinet lighting are some luxury features you should look for in your new home. Even better, a butler’s kitchen for all your catered events.

3  Wine Cellar

Do you have a large wine collection? Elegantly store all your favorite wines in your next luxury home.  Long term storage solutions for your collectable bottles is important. Because home temperatures run around 70 degrees on average, fluctuations could lead to the oxidation of your wine over time.

4   Spa Bathroom

Relax in elegance in your own personal spa! No luxury home would be complete without a spa inspired master bath. A luxurious soaking tub, and walk-in shower lined with multiple shower heads, will create the ultimate relaxing atmosphere. Other luxury features to look for are heated flooring, aromatherapy infused shower heads, and towel warmers.

5  Gym & Home Theater

A home gym is a must have! Dedicated fitness rooms have increased in popularity among home buyers. Not only will you have the privacy you want during your workout, you can customize the space to include the exact equipment you prefer. The home gym is a convenient alternative to your local athletic club. In addition to the gym, a home theater will make all your viewing experiences unique. Enjoy game day and  movie showings in luxurious chairs. Watch on an oversized screen and enjoy added amenities like a snack or drink bar. This will make your TV experience truly high-end.

6  High-Tech Features

Luxury homes often feature the latest and greatest in smart home technology. Here in the Silicon Valley, we are no stranger to tech gadgets and forward thinking. Expect the same in your luxury home. Intelligent heating and cooling systems like the Nest Thermostat are a must-have for many new homeowners. Homes with high-end security systems and home monitoring are also a feature to consider. Look for the best in your home theater with high-end surround sound options and curved home theater screens for the ultimate viewing experience. Check out our previous blog post on high-tech home features for even more ideas.

7   Outdoor Living

Outdoor living is a luxury home essential. Fully functional outdoor kitchens are perfect for entertaining. Beautiful built-in barbecues and fire pits offer endless hours of cooking and family enjoyment. Your backyard patio should be an extension of your home, complete with luxurious fabrics, a pergola for shaded seating, and ample water features or a pool. Here in Silicon Valley you can enjoy your outdoor space all year long.

8  Guest House

A separate living space for your family and friends is ideal for luxury home properties. Your guests will love to visit and stay in your casita, complete with all the necessities, like a fully functional kitchen, laundry area, master suite, and spacious floor plan. A guest house is perfect for extended family members, or your favorite friends. The separate space allows everyone to enjoy each other’s company while allowing everyone to also retreat to their own space.

9   Collectors Garage

Outdoor living is a luxury home essential. Fully functional outdoor kitchens are perfect for entertaining. Beautiful built-in barbecues and fire pits offer endless hours of cooking and family enjoyment. Your backyard patio should be an extension of your home, complete with luxurious fabrics, a pergola for shaded seating, and ample water features or a pool. Here in Silicon Valley you can enjoy your outdoor space all year long.

10  Eco-Friendly Features

The environmental impact of any home has become a concern for home buyers. Purchase a luxury home that is energy efficient and utilizes sustainable resources as building materials. Homes with solar panels, water collection systems, and other eco-friendly amenities will add to your resale value when the time comes. Even better, search for a Silicon Valley home that comes wired for your Tesla charging station!

 

Your luxury home should cater to your needs. Look for the features that will compliment your lifestyle year-round!

How to Showcase Your Luxury Collection

Are you looking for a way to display your most treasured collection? Perhaps you have purchased prized art pieces or noteworthy sports memorabilia and need the perfect way to showcase each piece. Many Silicon Valley homeowners have unique ways to enjoy their most treasured collections.

Here are three elegant options to display your favorite collectables:

The Home Gallery 

Luxury homes boast ample square footage, why not use one of your bonus rooms to your advantage? Create your own museum or art gallery to feature all the masterpieces you have collected over the years. Built in niches sized to fit each piece, complete with specialized lighting will stage individual artwork appropriately.

Furthermore, if you have specialized pottery or cultural items to display, mirror the look of your favorite museum and display each intricate item on a standalone podium.  Use a minimalist design or theme throughout the space to let your collection shine.

The Sports Fan Experience

Utilize your entertainment area to create the ultimate sports memorabilia display. Dedicate the walls of your home theater, game room or man cave to showcase framed jerseys, signed game balls, helmets and more.  Highlight each jersey with bold frames and individualized lighting in a dynamic configuration.

Alcoves with floating shelves and recessed lighting are ideal for larger items like helmets, cleats, bats and game balls. Immerse your guests in the sensory rich fandom experience when they are surrounded by your noteworthy sports mementos on game day.

Your collection is unique, just like your luxury home. Whether you have elegant art pieces, framed jerseys, Cuban cigars or vintage cars, display them in elegance with specialized lighting and complimentary décor.

The Wine Cellar

Indulge your inner sommelier. Display your extensive wine collection with a built in wine cellar or wall. The traditional wine cellar is often enclosed and has a luxurious bar area for private tastings. For a modern twist choose an elegant glass enclosed wine wall right off your kitchen or formal dining room. Dedicate a luxury space to hold your wine collection for easy access during dinner parties, tasting events or special occasions. STACT, glass enclosed wine walls offer a unique way to showcase your collection for both you and your guests to enjoy.

Your guests will love to learn more about the unique pieces they see throughout your home!
 
What collectibles do you have and how do you display them?

Let us know in the comments below!

Almaden Valley

The Almaden Valley is a picturesque area located in the southern region of San Jose, CA. The area is named after the New Almaden Quicksilver Mines that produced an ore called cinnabar, which was in operation until the early 1900’s. The cinnabar was used for body painting and wall writings by the local Ohlone Indians, but it also contained mercury. Mercury was heavily used in the 1800’s to assist with the processing of silver and gold during the gold rush era, and this mine was one of the most valuable mines in the state. The mine is no longer, and was converted to the Almaden Quicksilver County Park by the County of Santa Clara, and is still operated to this day.

The Almaden Valley is recognized by local residents as an upper-middle class neighborhood with larger homes on larger lots, and some of the best public schools in the San Jose Unified School District. This community is a driving style community with very little in the way of walkable retail or a central downtown core.  Amenities such as grocery stores and retail are primarily located along Almaden Expressway and near Blossom Hill Road and Highway 85 to the north of the Valley.

For those that love outdoor recreation, the southern part of the valley offers convenient access to boating on Calero Reservoir, hiking and biking trails, and a 27-hole championship golf course named Cinnabar Hills.  For those that desire a little more urban recreational environment, Almaden Lake Park and Lake Almaden offers a 32 acre lake that is available for fishing and paddle boating.  It also offers a tremendous amount of walking trails and picnic areas.  For those desiring private golf and country clubs, the Almaden Golf and Country Club and The Golf Club at Boulder Ridge are both excellent local options.

The Almaden Valley has both single family homes, condos, and townhomes that are available for purchase, but the majority of homes in the region are single family homes. The primary zip code for the region is 95120, and the majority of the developed lots in the region are located within the City of San Jose.