After reviewing the data from home sales and inventory from the first quarter of 2017, we are pleased to report that the market remains SUPER HOT! Here’s what contributes to that assessment:
- The NASDAQ, Dow and S&P are at or near record highs, meaning the overall consumer confidence is high
- The Silicon Valley job market remains extremely strong, contributing to local consumer confidence
- If you review every March for the last 14 years, you’ll see that this March held the lowest inventory of all 14 years. Houses are in demand, with many buyers bidding on the same home.
- As is normal, the market for entry level price ranges in the whole area is better than the luxury home market
In conclusion, because the market is so incredibly hot, you need experienced Realtors to make sure you get the best guidance for your real estate transaction. Call Steve at 408-391-4465 or Christine at 408-858-5587 for a consultation regarding your individual needs.
All our best,
Steve & Christine
Happy January! The sparkle and pop of a new year’s celebration may have passed…but recent real estate news is anything but bland and boring.
With the just-announced reduction in FHA’s mortgage insurance premium, plus last week’s rate dip and the Bay Area location making the year’s hottest neighborhoods of the country, 2017 is turning out to be fast-paced and full of opportunity. In addition, the data we are about to drop will demonstrate the theme that is currently dominating the market – inventory, inventory, inventory – or lack thereof! Think the old game ‘limbo” and “how low can you go” when it comes to counting what’s on the market today.
The tables below might look like a lot of numbers – and they are! These figures represent home inventory levels from 2003-2017 – first summarized in Santa Clara County as a whole and then by area (Saratoga, Los Gatos, Almaden & Willow Glen). You’ll see the data distributed in two forms – active single-family units and months of inventory.
‘Active single-family units’ refers to the actual number of residential single family homes on the MLS at the year & month indicated. You’ll see a dramatic drop over time from thousands of units available county-wide over the years…to just hundreds in the most recent months. Individual area stats are just as telling; for example Saratoga had nearly 200 listings per month in some periods, whereas the current level sits at merely 26 homes for sale!
‘Months of inventory’ figures represent how long it would take to sell all current listings at the current sales pace if no new listings became available. In a balanced market, standard months of inventory is 3-4. You’ll see how that number reached 12.3 at the height of the Great Recession in Santa Clara County, to just 0.7 in Willow Glen today.
It’s clear that local inventory has reached 12-year lows…but what may not be clear is what it means to you. That’s where we come in! With a firm grasp of the current market pulse and career-success rooted in strategic timing, we can help you weigh the where, how & when of your next move. Whether you are thinking of buying, selling, investing or just want to talk ‘shop’ – let us know! We’d love to hear your thoughts on the industry news so far, as well as assess what it means for you, your family and your own goals for 2017.
All our best,
Steve & Christine
Active Single-Family Units
Months of Inventory
If you’ve lived in the Silicon Valley for the past decade or so, then you’ll already know about the traditional Vasona Lights event and Christmas in the Park in downtown San Jose. We thought we’d share a few more local goodies to help you and your family enjoy the holiday season.
CLASSIC FESTIVE FUN
Christmas Carriage Rides in Los Gatos
Enjoy a treat of hot chocolate and a cookie while you are driven through historic and festive areas of Los Gatos via an old fashioned horse and carriage! Carriage rides run every hour between 5-9 pm from December 9 – 23. Check the calendar to make sure the evening you want is available and be sure to dress warmly!
For more information and the carriage calendar, visit: http://losgatoschamber.com/carriage-rides
Join the community this Sunday, December 11 from 11:00 am – 4:00 pm for our first annual Holiday Stroll in downtown Los Gatos. Bring the kids for fun activities, caroling, and hot chocolate. The event is free to attend, and supports our local merchants!
Learn more at: http://business.losgatoschamber.com/events/details/holiday-stroll-6627
A Magical Nutcracker Not to Miss!
Los Gatos Ballet performs the sparkling, magical Nutcracker at the Flint Center for the Performing Arts in Cupertino this weekend. This traditional event will get you in the holiday spirit for sure! Los Gatos Ballet collaborate with the San Jose Youth Symphony conducted by Yair Samet and are joined by acclaimed dancers from the San Francisco Ballet. They feature some of the finest youth and professional dancers in the Bay Area, and are ranked in the top 5 Silicon Valley Nutcracker performances!
For show times and ticket information, visit http://www.losgatosballet.org/nutcracker.html
Breakfast with Santa!
Bring your kids to talk to Santa and enjoy a fully catered breakfast by CB Hannigans! The event is brought to you by Los Gatos Saratoga Recreation and takes place this Saturday, December 10.
For more information, visit: http://business.losgatoschamber.com/events/details/santa-breakfast-or-snack-with-santa-los-gatos-saratoga-recreation-6275
Special, Unique Holiday Events
Girls Night Out: The Art of Antipasti
Prosciutto-wrapped shrimp…warm baked olives with orange and fennel…pizzettes with burrata and sweet pepper confit – need we say more?! Invite the ladies in your life to pull up a seat next to you at Sur la table’s cooking experience designed just for BFF’s ~ and expect to cook up a little laughter with a lot of great appetizers perfect for your upcoming entertaining events! This hands-on class features recipe tips, timeless techniques and of course – a generous taste of each dish! Sunday, December 11, 5-7 pm. Cost is $69 per person; learn more HERE. (http://www.surlatable.com/sku/3022191/Girls+Night+Out%3A+The+Art+of+Antipasti)
The Fratello Marionettes
Watch holiday visions literally come to life with a notable viewing of the Fratello Marionettes at the Los Gatos Library! View high-quality, custom characters standing 1-3 feet tall as they present “The North Pole Review”, complete with Russian Trepak Dancers, the one and only graceful ice skater Crystal Chandelier, plus dazzling acrobatic penguins. The Fratello Marionettes have brought adventurous artistry to audiences since 1989…and now they are bringing it to our own bit of book-bound bliss – the Los Gatos Library on 12/14/16! Learn more about this event & others on the Los Gatos Library calendar: http://www.losgatosca.gov/42/Los-Gatos-Library
New Years Eve w/Bridget Marie & Rob
Is there really such a thing as East Coast comfort food in your favorite West Coast Village?! Locals insist it’s true….and you can find out for yourself by stopping by East Coast Alice. Located in Saratoga Village, this newer eatery boasts New York family recipes with Italian American roots and exceptional service. The New Year’s Eve celebration features good eats, great peeps and music from Bridget Marie & Rob, a Bay Area-based duo with flavors of Hip Hop and R&B that blend perfectly with your barrata! Explore the menu and New Year’s Eve details at http://eastcoastalice.com/events.
And a Little Something for…YOU!
Seasonal Spa Packages at Preston Wynne Spa
It’s probably no surprise to learn that the change in seasons and the arrival of year end create some of the most stressful transitions for both body and mind. While hitting holiday shopping and welcoming two dozen of your closest relatives may not help the cause – the Total Body Detox from Preston Wynn just might! Completely custom therapeutic sessions blend healing and detoxifying practices that meet you right where your body and mind are at and take them where you’d hope to be – via infrared sauna therapies, essential oil blends and focused massage (plus product picks & refreshing cold-pressed juice samples as Preston Wynn’s gift to you). Learn more at https://www.prestonwynne.com/seasonal-spa-packages/ .
We wish you a safe, healthy and happy holiday season and hope to see you out in the neighborhood!
Steve & Christine Perry
The Perry Group
We are so fortunate to be living in the beautiful town of Los Gatos, CA. Our downtown offers such a variety of local shops, restaurants, furniture stores, and clothing boutiques! I recently discovered a few new places that I think are noteworthy and worth sharing with you.
WATCH FOR NEW CUISINE IN OLD TOWN
If you’ve been watching with baited breath to see what will replace the recently closed California Café – you don’t have much longer to wait! Presidio Social Club Owner Ray Tang is currently having the space renovated and designed by San Francisco architecture firm Tecta Associates. With seating for 230 guests, plus a large outdoor patio, you can look forward to California/ American comfort food. Think house-made pastas, bar bites and a “California Chop” category to the menu, which will feature regionally-sourced meats (plus a famous burger!). The yet-to-be named venue is expected to open February 2017.
Learn more at: http://insidescoopsf.sfgate.com/blog/2016/09/13/presidio-social-club-owner-breaks-ground-on-new-south-bay-project/
SPIN YOUR HEART OUT AT CYCLEBAR
This boutique premium indoor cycling studio opened late summer…and is a perfect way to pre-burn all those holiday calories we are about to consume! The pay-per-class model offers high-energy, group cycle workouts that feel more like you are at a concert than a traditional gym. The ‘CycleTheater’ features 48 bikes plus LED lighting, wide-screen graphics and state-of-the-art audio with a DJ booth. Amenities include free towels, lockers, and shoes.
15525 Union Ave, Los Gatos PH: (408) 703-1439 www.losgatos.cyclebar.com
Check them out on Facebook at: https://www.facebook.com/CycleBarLosGatos
EXPERIENCE BLENDING, BOTTLE TASTING & BOTTLING AT LEFT BEND WINERY
Known as the ‘hands-on operation’ of the Santa Cruz mountains, Left Bend Winery proudly touts not only their steadfast involvement in every aspect of wine making, but presents a superior selection and ‘Tour of Left Bend Wine Club’. With an annual production of about 250 cases, Left Bend produces handcrafted small lots of wine that capture the mountain terrain of the many small vineyards scattered throughout the Santa Cruz Mountains.
346 N. Santa Cruz Ave, Los Gatos PH: (408) 502-9280 www.leftbend.com
Be sure to follow them on Facebook at: https://www.facebook.com/LeftBend/
WHAT’S NOT TO LOVE AT ‘WE OLIVE LOS GATOS’
Whether you are seeking a great gift or some exceptional additions to your daily kitchen essentials, be sure to visit We Olive Los Gatos. This local ‘olive oil experience’ features California premium artisan wines, olive oil inspired tapas, craft beer and events with artisan producers and winemakers.
Complimentary tastings of all California Extra Virgin Olive Oils, vinegars, and gourmet foods are offered every day. With seasonal menus, gift baskets and a daily Happy Hour – there is a lot to love about We Olive Los Gatos! http://weolive.com/los-gatos/
112 N. Santa Cruz Ave PH: (408)354-7474 www.weolive.com/los-gatos/
Follow them on Facebook at: https://www.facebook.com/weolivelosgatos
We hope you’ve discovered something new to do this fall courtesy of our New & Noteworthy In Los Gatos feature; better yet – we hope to run into you at one of these neighborhood haunts – so see you soon! (P.S. Please share with us YOUR favorite places in Los Gatos on our Facebook page at: https://www.facebook.com/perrysre)
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!
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.
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.
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
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.
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
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.