Remodeling Magazine, published by Hanley-Wood, LLC, Washington, D.C., has been publishing the "Cost vs. Value Report" annually for more than twenty years. The 2009-2010 version compiles information for 80 markets, (up from 79 in the last report) on 33 home improvement projects included in the analysis by HomeTech Information Systems (www.hometechonline.com), which publishes estimating software for professional remodelers. This information is collected and compiled from their national network of remodeling contractors and suppliers. Adjustment factors are employed to account for regional pricing differences.
What do the latest numbers have to say? Being pragmatic seems to rule the day as lowered home values have moved remodelers to those projects which don't require, in most instances, large outlays of capital. Six of the top ten projects involve home maintenance that costs less than $14,000. A couple of more pricey projects made the list involving the expansion of livable space within and around the home.
The least expensive of the 33 projects, a mid-range entry door replacement, actually had the highest return on investment nationally at 128.9% and 128.0% in the Pacific region. Mid-range projects had the best returns overall so the if the objective is to have the possibility of a good return on money invested, the best approach is foregoing the expensive and going with the mid-range. Owners stand a better chance with mid-range projects to reap incremental value.
Higher cost estimates for projects coupled with lower resale prices have tipped the percentages to below 100% with one exception -- the previously mentioned the mid-range entry door replacement. The report's findings underscored the fact that the percentage of cost recouped on upscale additions and remodels were lower than mid-range additions and remodels. As you might suspect, many upscale projects are not undertaken using an investment return mentality.
If interested, check out the full national Cost vs. Value Report. A map on the site shows cost comparisons by region. You may click on the region to make the information more relevant to your needs. For instance, click for the Pacific region report.
Here are selected 2009-2010 mid-range projects for the Pacific region along with its average percentage of cost recouped (last report values in parentheses):
* Bathroom addition - 68% (76%)
* Deck addition (wood) - 91% (97%)
* Family room addition - 73% (75%)
* Master Suite addition - 72% (74%)
* Bathroom remodel - 77% (76%)
* Home office remodel - 56% (65%)
* Major kitchen remodel - 84% (87%)
* Minor kitchen remodel - 94% (96%)(project I have advised my clients to consider)
* Roof replacement - 68% (79%)
* Siding replacement (fiber cement) - 92% (84%)
* Windows replacement (vinyl) - 88% (94%) (project I have advised my clients to consider)
Hope this information is of help to you as you decide on remodeling projects to either enhance the value of your home for immediate reselling or to enjoy the lifestyle benefits of the improvements and have no plans to sell. Please remember that not all remodeling projects will result in higher resale values. Many folks think that someone will want to pay $100,000 more for their remodeled home that costs them $50,000 to complete. Perhaps, but it depends upon on the project, the neighborhood, the likely market conditions upon completion, and other factors. If you are considering remodeling for a sale or just want to see what projects may cost and understand the process, I recommend reading the book "Remodel or Move?" by Dan Fritschen. His website has a remodel or move calculator to help you with your decision.
For more information and to view the entire Cost vs. Value Report online, please visit www.realtor.org/realtormag. Of particular note, this article includes a section devoted to the 10 Big-Impact, Low-Cost Remodeling Projects that I highly recommend you check out.
If you want a professional opinion of how the market will react to your proposed project and as a way to save time, money and hassle, please contact me. I would provide you a market assessment of your contemplated remodeling project and if you want, a referral to a licensed trades-person who can provide free estimates or just to talk it over with as you firm up your plans, please let me know. I would do this whether or not you would be doing the project for resale as I work exclusively by referral so regularly provide referrals to my clients to help them maintain or improve their homes. By the way, the only thing I get for a referral of this type is the satisfaction that you will be well-cared for by a licensed professional.
Thanks for reading Tom McEvoy's blog! Post your comment here or send me an email to Tom.McEvoy@remax.net.
Monday, January 18, 2010
Saturday, January 16, 2010
Silicon Valley Martin Luther King Day Events & Holidays Closings Information
This is a partial list of area events celebrating Dr. Martin Luther King Jr. Day on Monday, January, 18st.
* Annual Dr. Martin Luther King Jr. Luncheon. Keynote speaker will be Bryan Monroe, CEO of Monroe Media Group and former editorial director of Ebony magazines, speaks. 11:00am to 2:00pm, Monday, January 18st, Parkside Hall, 180 Park Avenue, San Jose. $55. 408-292-3157. www.mlksantaclaravalley.com
* MLK Freedom Train. Join King devotees aboard the San Francisco-bound Freedom Train on Monday for a trip to the Bill Graham Civic Auditorium. Leaves Diridon Station at 9:30am and makes stops in Sunnyvale, Palo Alto and San Mateo. Tickets, $10, must be purchased in advance. 408-861-5352. www.brownpapertickets.com/event/86924
* Freedom March. Public participation encouraged in a re-enactment of a civil rights march supporting King's ideals. Noon-2:00pm, February 6th, Dr. Martin King Library, 150 E. San Fernando St., San Jose. 408-808-2183. www.sjlibrary.org.
* Treading the Dream. Live music, art and fashion shows celebrating the dream of Dr. Martin Luther King Jr. Includes wine tasting and appetizers. 6:00pm-9:00pm, Sunday, January 17th. X Studio, 2147 S. 10th St., San Jose. $10-15. 408-826-2498.
* Birthday celebration. Storyteller Diane Ferlatte leads a program of stories and songs about King. 12:30, 2:00 and 3:30pm, Monday. Children's Discovery Museum, 180 Woz Way, San Jose. 408-298-5437. www.cdm.org.
* Community cleanup. Join others removing graffiti and litter from neighborhoods, parks and along Coyote Creek, 8:30am - 12:30pm, Monday. Meet at Happy Hollow Park & Zoo, 1300 Senter Road, San Jose. Must be age 12 and older. Ages 12-18 must be accompanied by an adult chaperone. 408-794-6400.
Holiday Closings: Federal, State offices will be closed. County offices in Santa Clara, San Mateo, Alameda, Santa Cruz, Monterey, San Benito all will be closed. City offices in the above counties will be closed. No mail delivery. Libraries will be closed. Schools in the above counties will be closed. Banks, title & escrow firms will be closed.
Thanks for reading!
* Annual Dr. Martin Luther King Jr. Luncheon. Keynote speaker will be Bryan Monroe, CEO of Monroe Media Group and former editorial director of Ebony magazines, speaks. 11:00am to 2:00pm, Monday, January 18st, Parkside Hall, 180 Park Avenue, San Jose. $55. 408-292-3157. www.mlksantaclaravalley.com
* MLK Freedom Train. Join King devotees aboard the San Francisco-bound Freedom Train on Monday for a trip to the Bill Graham Civic Auditorium. Leaves Diridon Station at 9:30am and makes stops in Sunnyvale, Palo Alto and San Mateo. Tickets, $10, must be purchased in advance. 408-861-5352. www.brownpapertickets.com/event/86924
* Freedom March. Public participation encouraged in a re-enactment of a civil rights march supporting King's ideals. Noon-2:00pm, February 6th, Dr. Martin King Library, 150 E. San Fernando St., San Jose. 408-808-2183. www.sjlibrary.org.
* Treading the Dream. Live music, art and fashion shows celebrating the dream of Dr. Martin Luther King Jr. Includes wine tasting and appetizers. 6:00pm-9:00pm, Sunday, January 17th. X Studio, 2147 S. 10th St., San Jose. $10-15. 408-826-2498.
* Birthday celebration. Storyteller Diane Ferlatte leads a program of stories and songs about King. 12:30, 2:00 and 3:30pm, Monday. Children's Discovery Museum, 180 Woz Way, San Jose. 408-298-5437. www.cdm.org.
* Community cleanup. Join others removing graffiti and litter from neighborhoods, parks and along Coyote Creek, 8:30am - 12:30pm, Monday. Meet at Happy Hollow Park & Zoo, 1300 Senter Road, San Jose. Must be age 12 and older. Ages 12-18 must be accompanied by an adult chaperone. 408-794-6400.
Holiday Closings: Federal, State offices will be closed. County offices in Santa Clara, San Mateo, Alameda, Santa Cruz, Monterey, San Benito all will be closed. City offices in the above counties will be closed. No mail delivery. Libraries will be closed. Schools in the above counties will be closed. Banks, title & escrow firms will be closed.
Thanks for reading!
Wednesday, January 13, 2010
January Silicon Valley Real Estate Market Highlights
Here are the highlights of December's transactions and market actions for Santa Clara, San Mateo, Santa Cruz, and Monterey counties. Your comments and questions are welcome. If you have an update as to what you are witnessing in your neighborhood, please don't hesitate to share with us. You may leave comments here, or contact me through my website.
> Market continues to show improvement -- March 2009 saw the trend change in Santa Clara County -- a trend that continues to date. Closings in Santa Clara County were 938 versus an anemic 676 in December 2008, an increase of 38.8%. Even though median prices decreased from November, seasonal factors outweigh the direction as smaller homes sell this time of year -- fully 5% smaller since last month! My analysis of the transactional information reveals:
* The supply of homes available for sale (inventory) continues to trend lower in each of the four counties without exception. This trend has been virtually uninterrupted since February 2009 and it is still more pronounced in Santa Clara and Monterey counties. Santa Clara County available homes inventory has fallen 59.7% from December 2008.
* The sale price to list price ratio continues above 100% in Santa Clara County and stands at 101.0%, continuing an upward trend; whereas, San Mateo County stands at 99.1%.
* The Days of Unsold Inventory (DUI) continues to improve generally in each county for single family residences and condos/townhouses, respectively. For December, however, we saw an uptick as the rate of sales decreased faster than the decrease in inventory. This is a normal seasonal factor that should reverse in the near future.
> Super-heated Seller's Markets? -- You bet! South San Jose, North Valley, Milpitas, Santa Teresa, East Valley, Evergreen (lower priced homes only!) are all hot markets. The characteristics of a seller's market are shorter time on the market, fewer number of homes available for sale, higher probability of multiple offers with many sale prices exceeding list prices and a tendency towards price appreciation.
> Buyer's Markets? -- For Santa Clara County, we see buyer's markets in Saratoga, Los Gatos and Los Gatos Mountains. Saratoga exhibits the highest Days of Unsold Inventory in the county at 238 due mostly to low demand and is my current "Best Buy" area in the county. To refresh you, characteristics of a buyer's market are longer time on the market, higher number of homes available for sale, lower probability of multiple offers or even an offer with most sale prices below list price. The tendency is to have price depreciation or stable prices at best case under this market condition.
Where do I get "Seller's" and "Buyer's" market information? This is not an opinion thing but a calculation I make using the number of homes for sale (supply) and the number of sales (demand) in the prior month which results in days of unsold inventory (DUI). Additionally, this is not based on price levels but a supply-demand relationship. Generally, we see that the hottest markets are those in the more affordable price areas.
> Median prices -- Santa Clara County median price for single family homes now stands at $564,000 versus $512,450 or 10.0% increase from December 2008. The median price for condos/townhouses was $357,000 or 14.2% higher than December 2008. San Mateo County's median reached $682,500, 13.1% higher than the same month a year ago. I coach my clients to not use an entire county's median price level to decide on whether to buy or sell but use the trend information in a general manner. To formulate an effective strategy, I use analysis of the supply-demand characteristics of the neighborhood under consideration.
> Sellers Be Sooner Still -- I continue to maintain my recommendation for sellers of higher-priced homes, especially those above $1 million that they should consider selling sooner and having an initially more-aggressive list price as the market usually softens when we go move into the winter/holiday season. Sellers need to be positioned properly otherwise they risk languishing on the market.
For those considering a purchase of a home in an expensive area like Los Altos Hills, Los Gatos/Monte Sereno, Saratoga, an opportune time for negotiating is upon us! Some motivated sellers are reducing their list prices but as you may know, not all sellers have to sell. Some of the prices we term "sticky" on the way down as some sellers can't believe their home has fallen in value from what they thought it was worth. As many of my consistent readers and subscribers know, markets are not made between agents.
Thanks for reading my blog. I'm Tom McEvoy, Realtor -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.
> Market continues to show improvement -- March 2009 saw the trend change in Santa Clara County -- a trend that continues to date. Closings in Santa Clara County were 938 versus an anemic 676 in December 2008, an increase of 38.8%. Even though median prices decreased from November, seasonal factors outweigh the direction as smaller homes sell this time of year -- fully 5% smaller since last month! My analysis of the transactional information reveals:
* The supply of homes available for sale (inventory) continues to trend lower in each of the four counties without exception. This trend has been virtually uninterrupted since February 2009 and it is still more pronounced in Santa Clara and Monterey counties. Santa Clara County available homes inventory has fallen 59.7% from December 2008.
* The sale price to list price ratio continues above 100% in Santa Clara County and stands at 101.0%, continuing an upward trend; whereas, San Mateo County stands at 99.1%.
* The Days of Unsold Inventory (DUI) continues to improve generally in each county for single family residences and condos/townhouses, respectively. For December, however, we saw an uptick as the rate of sales decreased faster than the decrease in inventory. This is a normal seasonal factor that should reverse in the near future.
> Super-heated Seller's Markets? -- You bet! South San Jose, North Valley, Milpitas, Santa Teresa, East Valley, Evergreen (lower priced homes only!) are all hot markets. The characteristics of a seller's market are shorter time on the market, fewer number of homes available for sale, higher probability of multiple offers with many sale prices exceeding list prices and a tendency towards price appreciation.
> Buyer's Markets? -- For Santa Clara County, we see buyer's markets in Saratoga, Los Gatos and Los Gatos Mountains. Saratoga exhibits the highest Days of Unsold Inventory in the county at 238 due mostly to low demand and is my current "Best Buy" area in the county. To refresh you, characteristics of a buyer's market are longer time on the market, higher number of homes available for sale, lower probability of multiple offers or even an offer with most sale prices below list price. The tendency is to have price depreciation or stable prices at best case under this market condition.
Where do I get "Seller's" and "Buyer's" market information? This is not an opinion thing but a calculation I make using the number of homes for sale (supply) and the number of sales (demand) in the prior month which results in days of unsold inventory (DUI). Additionally, this is not based on price levels but a supply-demand relationship. Generally, we see that the hottest markets are those in the more affordable price areas.
> Median prices -- Santa Clara County median price for single family homes now stands at $564,000 versus $512,450 or 10.0% increase from December 2008. The median price for condos/townhouses was $357,000 or 14.2% higher than December 2008. San Mateo County's median reached $682,500, 13.1% higher than the same month a year ago. I coach my clients to not use an entire county's median price level to decide on whether to buy or sell but use the trend information in a general manner. To formulate an effective strategy, I use analysis of the supply-demand characteristics of the neighborhood under consideration.
> Sellers Be Sooner Still -- I continue to maintain my recommendation for sellers of higher-priced homes, especially those above $1 million that they should consider selling sooner and having an initially more-aggressive list price as the market usually softens when we go move into the winter/holiday season. Sellers need to be positioned properly otherwise they risk languishing on the market.
For those considering a purchase of a home in an expensive area like Los Altos Hills, Los Gatos/Monte Sereno, Saratoga, an opportune time for negotiating is upon us! Some motivated sellers are reducing their list prices but as you may know, not all sellers have to sell. Some of the prices we term "sticky" on the way down as some sellers can't believe their home has fallen in value from what they thought it was worth. As many of my consistent readers and subscribers know, markets are not made between agents.
Thanks for reading my blog. I'm Tom McEvoy, Realtor -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.
Haiti -- From A Personal View
A couple of years ago I wrote a post that mainly involved itself with a movie review. That movie, La Bamba, was interesting because they used antique cars owned by a special friend of mine. Click here if you want to take another look at it. The movie review, in my humble opinion, was good and viewing the movie brought back memories of my childhood, growing up in Los Altos.
However, later in the review, I mentioned the name of the owner of the antique cars, Donald Skow. Don, part of a delightful family, is Pastor of the Hollister Christian Fellowship Church in Hollister, California.
One of Don's passions, has been and continues to be, the care he provides to the people of Haiti. He regularly travels from California to Haiti to help those in abject poverty improve their lives and get a leg up, so to speak.
If there were ever a time to help those in Haiti, it is now.
Sketchy news accounts of the devastation from yesterday's 7.0 magnitude earthquake which rocked this impoverished country, especially around the populous capital city of Port-Au-Prince, seem almost unbelievable and certainly terrifying. Just today, it was reported that early estimates of death rates were going to be above 100,000!
Don's work -- his passion really -- is helping those people who live in an area not too far away from the Haitian capital, yet close to the epicenter of yesterday's quake. He is constantly on a quest for donations of either financial aid or basic supplies and tools. Things like school supplies, basic items for families to enable them to better their living conditions are key. Don, as well as his son, often goes there to keep the program focused and to reach more people. If you can be of help, contact Don so he can let you know what is most needed and coordinate the efficient transfer of help to those in Haiti. He has told me before that for those in Haiti, "giving a little will help a lot". Especially true now.
He said about ten days ago that his church had seen its membership grow, something difficult to do during the economic mess we're in. When he told me this, I knew the reason for his ever-increasing congregation -- his steadfast resolve in caring for those in need. He also is a personally-engaging and kind individual.
Again, please help with what you can for the sake of those in Haiti, and contact Don. He'd love to bring additional help to the Haitian people, especially now.
Donald Skow, Pastor
Hollister Christian Fellowship Church
2350-A Technology Parkway
Hollister, CA 95023
831-637-1056
dpskow@gmail.com
www.hcfonline.com (Click on "Haiti Project" for more information)
Thanks for reading this important post. I'll update you as things progress.
However, later in the review, I mentioned the name of the owner of the antique cars, Donald Skow. Don, part of a delightful family, is Pastor of the Hollister Christian Fellowship Church in Hollister, California.
One of Don's passions, has been and continues to be, the care he provides to the people of Haiti. He regularly travels from California to Haiti to help those in abject poverty improve their lives and get a leg up, so to speak.
If there were ever a time to help those in Haiti, it is now.
Sketchy news accounts of the devastation from yesterday's 7.0 magnitude earthquake which rocked this impoverished country, especially around the populous capital city of Port-Au-Prince, seem almost unbelievable and certainly terrifying. Just today, it was reported that early estimates of death rates were going to be above 100,000!
Don's work -- his passion really -- is helping those people who live in an area not too far away from the Haitian capital, yet close to the epicenter of yesterday's quake. He is constantly on a quest for donations of either financial aid or basic supplies and tools. Things like school supplies, basic items for families to enable them to better their living conditions are key. Don, as well as his son, often goes there to keep the program focused and to reach more people. If you can be of help, contact Don so he can let you know what is most needed and coordinate the efficient transfer of help to those in Haiti. He has told me before that for those in Haiti, "giving a little will help a lot". Especially true now.
He said about ten days ago that his church had seen its membership grow, something difficult to do during the economic mess we're in. When he told me this, I knew the reason for his ever-increasing congregation -- his steadfast resolve in caring for those in need. He also is a personally-engaging and kind individual.
Again, please help with what you can for the sake of those in Haiti, and contact Don. He'd love to bring additional help to the Haitian people, especially now.
Donald Skow, Pastor
Hollister Christian Fellowship Church
2350-A Technology Parkway
Hollister, CA 95023
831-637-1056
dpskow@gmail.com
www.hcfonline.com (Click on "Haiti Project" for more information)
Thanks for reading this important post. I'll update you as things progress.
Friday, December 11, 2009
December Silicon Valley Real Estate Market Highlights
Here are the highlights of November's transactions and market actions for Santa Clara, San Mateo, Santa Cruz, and Monterey counties. Your comments and questions are welcome. If you have an update as to what you are witnessing in your neighborhood, please don't hesitate to share with us. You may leave comments here, or contact me through my website.
> Market continues to show improvement -- March 2009 saw the trend change in Santa Clara County. Market activity has continued to display improvement for seven months and saw closings in Santa Clara County reach 899 versus an anemic 613 in November 2008 or 46% more. For some perspective, this November 2009 level of closings represents just slightly under the ten year average. My analysis of the transactional information reveals:
* The supply of homes available for sale (inventory) continues to trend lower in each of the four counties without exception. This trend has been virtually uninterrupted since February 2009 and it is still more pronounced in Santa Clara and Monterey counties. Santa Clara County available homes inventory has fallen 58% from November 2008.
* The sale price to list price ratio continues above 100% in Santa Clara County and stands at 100.7%, continuing an upward trend; San Mateo stands at 99.5%.
* The Days of Unsold Inventory (DUI) continues to improve generally in each county for single family residences and condos/townhouses, respectively.
> Super-heated Seller's Markets? -- You bet! Blossom Valley, South San Jose, Evergreen, Santa Teresa, East Valley, Santa Clara, North Valley, Milpitas. The characteristics of a seller's market are shorter time on the market, fewer number of homes available for sale, higher probability of multiple offers with many sale prices exceeding list prices and a tendency towards price appreciation.
> Buyer's Markets? -- For Santa Clara County, we see buyer's markets in Los Gatos Mountains, Los Gatos and Saratoga. Saratoga exhibits the highest Days of Unsold Inventory in the county at 265 and is currently the "Best Buy" area in the county. To refresh you, characteristics of a buyer's market are longer time on the market, higher number of homes available for sale, lower probability of multiple offers or even an offer with most sale prices below list price. The tendency is to have price depreciation or stable prices at best case under this market condition.
Where do I get "Seller's" and "Buyer's" market information? This is not an opinion thing but a calculation I make using the number of homes for sale (supply) and the number of sales (demand) in the prior month which results in days of unsold inventory (DUI). Additionally, this is not based on price levels but a supply-demand relationship. For instance, the higher-priced area of Palo Alto/Mountain View/Los Altos exhibits a DUI of only 64 which translates into a balanced market.
> Median prices -- Santa Clara County median prices took another jump upwards last month and now stands at $605,000 versus $593,250 or 2.0% higher from October and $515,000 or 17.5% higher over November 2008. San Mateo County's median reached $725,000 and now stands 8.9% higher than November 2008. I coach my clients to not use an entire county's median price level to decide on whether to buy or sell but use the trend information in a general manner. To formulate an effective strategy, I use analysis of the supply-demand characteristics of the neighborhood, in most cases.
> Tale of Two Markets -- Sales of affordable homes in Santa Clara County less than $450,000 level have gotten even hotter than the past few months. There are just 24 days of unsold inventory for single family residences below $450,000 and 40 for homes with prices from $450,000 to $600,000. As the price ranges increase, the DUI increases in what we call a normal pattern. For Santa Clara County, high-priced homes in the $2,500,000 to $5,000,000 range showed a DUI of 206 or about seven months of supply whereas in San Mateo County showed a similar result of 150 or about five months of supply.
> Polarized Market -- Sales of higher-priced homes (above $1,000,000) are sluggish at best, depending upon area. Last month, there were just one sale of a $5+ million home in Santa Clara County (equivalent to about 3.5 years of unsold inventory!) and none in San Mateo County. With slow movements in higher-priced homes and a white-hot situation in lower-priced homes, I call this a polarized market.
> Phoenix Rising/Bay Area Falling -- Not necessarily a good thing is that the amount of homes listed for sale climbed in Phoenix and Tucson, AZ, Las Vegas, NV, Los Angeles and Orlando, FL. This according to the ZipRealty latest monthly survey.
The San Francisco Bay Area saw this number drop about 9%, exceeding all other metro areas in the country. Now, inventory usually drops every year at this time of year but the rate of decline has been greater than the average seasonal tendency.
> Sellers Be Sooner Still -- I continue to maintain my recommendation for sellers of higher-priced homes, especially those above $1 million that they should consider selling sooner and having an initially more-aggressive list price as the market usually softens when we go move into the winter/holiday season. Sellers need to be positioned properly otherwise they risk languishing on the market.
For those considering a purchase of a home in an expensive area like Los Altos Hills, Los Gatos/Monte Sereno, Saratoga, an opportune time for negotiating is upon us! Some motivated sellers are reducing their list prices but as you may know, not all sellers have to sell.
> Investor's Corner -- Activity continues to trend upwards as more and more investors reenter the market, many of them are completing all cash purchases, especially in the more affordable price ranges. For Santa Clara County, there were 63 sales during the month with 41 of them in the less than $600,000 price range as that price range had a DUI of just 47 whereas the DUI for residential investment properties above $600,000 jumps to nearly a year. For investors who have the ability to purchase higher-priced properties (above $1,000,000), currently there is about 1.4 years of unsold inventory. This represents a BUYER'S market as I'm sure there are at least some motivated sellers in that range!
Thanks for reading my blog. I'm Tom McEvoy -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.
> Market continues to show improvement -- March 2009 saw the trend change in Santa Clara County. Market activity has continued to display improvement for seven months and saw closings in Santa Clara County reach 899 versus an anemic 613 in November 2008 or 46% more. For some perspective, this November 2009 level of closings represents just slightly under the ten year average. My analysis of the transactional information reveals:
* The supply of homes available for sale (inventory) continues to trend lower in each of the four counties without exception. This trend has been virtually uninterrupted since February 2009 and it is still more pronounced in Santa Clara and Monterey counties. Santa Clara County available homes inventory has fallen 58% from November 2008.
* The sale price to list price ratio continues above 100% in Santa Clara County and stands at 100.7%, continuing an upward trend; San Mateo stands at 99.5%.
* The Days of Unsold Inventory (DUI) continues to improve generally in each county for single family residences and condos/townhouses, respectively.
> Super-heated Seller's Markets? -- You bet! Blossom Valley, South San Jose, Evergreen, Santa Teresa, East Valley, Santa Clara, North Valley, Milpitas. The characteristics of a seller's market are shorter time on the market, fewer number of homes available for sale, higher probability of multiple offers with many sale prices exceeding list prices and a tendency towards price appreciation.
> Buyer's Markets? -- For Santa Clara County, we see buyer's markets in Los Gatos Mountains, Los Gatos and Saratoga. Saratoga exhibits the highest Days of Unsold Inventory in the county at 265 and is currently the "Best Buy" area in the county. To refresh you, characteristics of a buyer's market are longer time on the market, higher number of homes available for sale, lower probability of multiple offers or even an offer with most sale prices below list price. The tendency is to have price depreciation or stable prices at best case under this market condition.
Where do I get "Seller's" and "Buyer's" market information? This is not an opinion thing but a calculation I make using the number of homes for sale (supply) and the number of sales (demand) in the prior month which results in days of unsold inventory (DUI). Additionally, this is not based on price levels but a supply-demand relationship. For instance, the higher-priced area of Palo Alto/Mountain View/Los Altos exhibits a DUI of only 64 which translates into a balanced market.
> Median prices -- Santa Clara County median prices took another jump upwards last month and now stands at $605,000 versus $593,250 or 2.0% higher from October and $515,000 or 17.5% higher over November 2008. San Mateo County's median reached $725,000 and now stands 8.9% higher than November 2008. I coach my clients to not use an entire county's median price level to decide on whether to buy or sell but use the trend information in a general manner. To formulate an effective strategy, I use analysis of the supply-demand characteristics of the neighborhood, in most cases.
> Tale of Two Markets -- Sales of affordable homes in Santa Clara County less than $450,000 level have gotten even hotter than the past few months. There are just 24 days of unsold inventory for single family residences below $450,000 and 40 for homes with prices from $450,000 to $600,000. As the price ranges increase, the DUI increases in what we call a normal pattern. For Santa Clara County, high-priced homes in the $2,500,000 to $5,000,000 range showed a DUI of 206 or about seven months of supply whereas in San Mateo County showed a similar result of 150 or about five months of supply.
> Polarized Market -- Sales of higher-priced homes (above $1,000,000) are sluggish at best, depending upon area. Last month, there were just one sale of a $5+ million home in Santa Clara County (equivalent to about 3.5 years of unsold inventory!) and none in San Mateo County. With slow movements in higher-priced homes and a white-hot situation in lower-priced homes, I call this a polarized market.
> Phoenix Rising/Bay Area Falling -- Not necessarily a good thing is that the amount of homes listed for sale climbed in Phoenix and Tucson, AZ, Las Vegas, NV, Los Angeles and Orlando, FL. This according to the ZipRealty latest monthly survey.
The San Francisco Bay Area saw this number drop about 9%, exceeding all other metro areas in the country. Now, inventory usually drops every year at this time of year but the rate of decline has been greater than the average seasonal tendency.
> Sellers Be Sooner Still -- I continue to maintain my recommendation for sellers of higher-priced homes, especially those above $1 million that they should consider selling sooner and having an initially more-aggressive list price as the market usually softens when we go move into the winter/holiday season. Sellers need to be positioned properly otherwise they risk languishing on the market.
For those considering a purchase of a home in an expensive area like Los Altos Hills, Los Gatos/Monte Sereno, Saratoga, an opportune time for negotiating is upon us! Some motivated sellers are reducing their list prices but as you may know, not all sellers have to sell.
> Investor's Corner -- Activity continues to trend upwards as more and more investors reenter the market, many of them are completing all cash purchases, especially in the more affordable price ranges. For Santa Clara County, there were 63 sales during the month with 41 of them in the less than $600,000 price range as that price range had a DUI of just 47 whereas the DUI for residential investment properties above $600,000 jumps to nearly a year. For investors who have the ability to purchase higher-priced properties (above $1,000,000), currently there is about 1.4 years of unsold inventory. This represents a BUYER'S market as I'm sure there are at least some motivated sellers in that range!
Thanks for reading my blog. I'm Tom McEvoy -- Let me know your comments, questions, observations you may have or any future topics you'd like me to address.
Friday, November 20, 2009
November Silicon Valley Real Estate Market Highlights
Here are my observations of October's transactions and market actions for Santa Clara, San Mateo, Santa Cruz, and Monterey counties. You are encouraged to leave your comments and questions or even update us on what you are witnessing in your neighborhood or area.
> Market continues showing strength and improvement -- Market activity has continued to display improvement for six months! For instance, in Santa Clara County, October saw an 18% increase in closings over the same month last year. My analysis of the transactional information reveals:
* Buyers continue to trip over each other to submit offers for homes in the more affordable areas of Santa Clara, San Mateo, Santa Cruz, and Monterey counties. Many offers submitted are for all cash or have substantial down payments. There are still only 22 days of unsold inventory on single family residences in Santa Clara County with a price of under $450,000! For those in the range of $450,000 to $600,000, there is only 33 days of unsold inventory. It is similar in San Mateo County.
* The supply of homes available for sale (inventory) continues to trend lower in each of the four counties without exception. This trend has been virtually uninterrupted since February 2009 and it is still more pronounced in Santa Clara and Monterey counties.
* The sale price to list price ratio continues above 100% in Santa Clara County and stands at 100.8%, continuing an upward trend; San Mateo stands at 99.3%.
* The Days of Unsold Inventory (DUI) continues to improve generally in each county for single family residences and condos/townhouses, respectively. Santa Clara's DUI stands at 47 and 44, San Mateo's DUI is 69 and 77, Santa Cruz's DUI is 108 and 105 and Monterey's DUI is 70 and 83.
> Super-heated Seller's Markets? -- You bet! East Valley, South San Jose, Blossom Valley, Evergreen, Santa Teresa, Santa Clara, North Valley, Milpitas. To refresh you, characteristics of a seller's market are shorter time on the market, fewer number of homes available for sale, higher probability of multiple offers with many sale prices exceeding list prices and a tendency towards price appreciation.
> Buyer's Markets? -- For Santa Clara County, we see buyer's markets in Saratoga, Los Gatos, and Los Gatos Mountains. Los Gatos exhibits the highest Days of Unsold Inventory in the county at 141. To refresh you, characteristics of a buyer's market are longer time on the market, higher number of homes available for sale, lower probability of multiple offers or even an offer with most sale prices below list price. The tendency is to have price depreciation or stable prices at best case under this market condition.
Where do I get "Seller's" and "Buyer's" market information? This is not an opinion thing but a calculation I make using the number of homes for sale (supply) and the number of sales (demand) in the prior month which results in days of unsold inventory (DUI). Additionally, this is not based on price levels but a supply-demand relationship. For instance, the higher-priced area of Palo Alto/Mountain View/Los Altos exhibits a DUI of only 56 which translates into a balanced market.
> Median prices -- Took another jump upwards last month median price now stands at $593,250 for Santa Clara County and $702,000 for San Mateo County. These are UP about 8% from the same month a year ago in Santa Clara County and down 1% in San Mateo Ccounty. I coach my clients to no use an entire county's median price level to decide on whether to buy or sell. To formulate an effective strategy, I use analysis of the supply-demand characteristics on a much smaller area down to the neighborhood in most cases.
> Tale of Two Markets -- Sales of affordable homes in Santa Clara County less than $450,000 level have gotten even hotter than the past few months. There are just 21 days of unsold inventory for single family residences below $450,000 and 41 for homes with prices from $450,000 to $600,000. As the price ranges increase, the DUI increases in what we call a normal pattern. For Santa Clara County, high-priced homes in the $2,500,000 to $5,000,000 range showed a DUI of 242 or about eight months of supply whereas in San Mateo County showed a similar result of 192.
> Polarized Market -- Sales of higher-priced homes (above $1,000,000) are sluggish at best, depending upon area. Last month, there were no sales of $5+ million homes in Santa Clara County and just one in San Mateo County (4.2 years of unsold inventory). With slow movements in higher-priced homes and a white-hot situation in lower-priced homes, I call this a polarized market.
> Forbes Says We're Safe -- According to an article in the Silicon Valley Business Journal, Forbes Magazine reported that San Jose-Sunnyvale-Santa Clara was the 7th safest area in the country. Factors included were: violent crime, workplace fatality rates, traffic death rates and natural disaster risk. Silicon Valley was the second safest area behind the Twin Cities of Minneapolis-St. Paul.
> Sellers Be Sooner -- I continue to maintain my recommendation for sellers of higher-priced homes, especially those above $1 million that they should consider selling sooner and having an initially more-aggressive list price as the market usually softens when we go move into the holiday season. In any case, check with a Realtor knowledgeable about the technical aspects of the market conditions to guide you in positioning your home for maximum activity and price while minimizing time on market.
For those considering a purchase of a home in an expensive area like Los Altos Hills, Los Gatos/Monte Sereno, Saratoga, your time is getting closer! Be ready but I think we'll see list prices reduced and sale prices dropping as we get into the holiday season this year. Most years we experience more activity in the early spring and spring so the best time for a purchase is coming up soon!
> Investor's Corner -- Activity continues to trend upwards as more and more investors reenter the market, many of them are completing all cash purchases, especially in the more affordable price ranges. For Santa Clara County, there were 88 sales during the month with 47 of them in the less than $600,000 price range as that price range had a DUI of just 37 whereas the DUI for residential investment properties above $600,000 jumps to nearly a year. For investors who have the ability to purchase higher-priced properties (above $1,000,000), there is about one year of unsold inventory at current sales demand and represents a BUYER'S market as I'm sure there are at least some motivated sellers in that range.
Thanks for reading my blog. I'm Tom McEvoy -- Let me know your comments, questions, observations you may have.
> Market continues showing strength and improvement -- Market activity has continued to display improvement for six months! For instance, in Santa Clara County, October saw an 18% increase in closings over the same month last year. My analysis of the transactional information reveals:
* Buyers continue to trip over each other to submit offers for homes in the more affordable areas of Santa Clara, San Mateo, Santa Cruz, and Monterey counties. Many offers submitted are for all cash or have substantial down payments. There are still only 22 days of unsold inventory on single family residences in Santa Clara County with a price of under $450,000! For those in the range of $450,000 to $600,000, there is only 33 days of unsold inventory. It is similar in San Mateo County.
* The supply of homes available for sale (inventory) continues to trend lower in each of the four counties without exception. This trend has been virtually uninterrupted since February 2009 and it is still more pronounced in Santa Clara and Monterey counties.
* The sale price to list price ratio continues above 100% in Santa Clara County and stands at 100.8%, continuing an upward trend; San Mateo stands at 99.3%.
* The Days of Unsold Inventory (DUI) continues to improve generally in each county for single family residences and condos/townhouses, respectively. Santa Clara's DUI stands at 47 and 44, San Mateo's DUI is 69 and 77, Santa Cruz's DUI is 108 and 105 and Monterey's DUI is 70 and 83.
> Super-heated Seller's Markets? -- You bet! East Valley, South San Jose, Blossom Valley, Evergreen, Santa Teresa, Santa Clara, North Valley, Milpitas. To refresh you, characteristics of a seller's market are shorter time on the market, fewer number of homes available for sale, higher probability of multiple offers with many sale prices exceeding list prices and a tendency towards price appreciation.
> Buyer's Markets? -- For Santa Clara County, we see buyer's markets in Saratoga, Los Gatos, and Los Gatos Mountains. Los Gatos exhibits the highest Days of Unsold Inventory in the county at 141. To refresh you, characteristics of a buyer's market are longer time on the market, higher number of homes available for sale, lower probability of multiple offers or even an offer with most sale prices below list price. The tendency is to have price depreciation or stable prices at best case under this market condition.
Where do I get "Seller's" and "Buyer's" market information? This is not an opinion thing but a calculation I make using the number of homes for sale (supply) and the number of sales (demand) in the prior month which results in days of unsold inventory (DUI). Additionally, this is not based on price levels but a supply-demand relationship. For instance, the higher-priced area of Palo Alto/Mountain View/Los Altos exhibits a DUI of only 56 which translates into a balanced market.
> Median prices -- Took another jump upwards last month median price now stands at $593,250 for Santa Clara County and $702,000 for San Mateo County. These are UP about 8% from the same month a year ago in Santa Clara County and down 1% in San Mateo Ccounty. I coach my clients to no use an entire county's median price level to decide on whether to buy or sell. To formulate an effective strategy, I use analysis of the supply-demand characteristics on a much smaller area down to the neighborhood in most cases.
> Tale of Two Markets -- Sales of affordable homes in Santa Clara County less than $450,000 level have gotten even hotter than the past few months. There are just 21 days of unsold inventory for single family residences below $450,000 and 41 for homes with prices from $450,000 to $600,000. As the price ranges increase, the DUI increases in what we call a normal pattern. For Santa Clara County, high-priced homes in the $2,500,000 to $5,000,000 range showed a DUI of 242 or about eight months of supply whereas in San Mateo County showed a similar result of 192.
> Polarized Market -- Sales of higher-priced homes (above $1,000,000) are sluggish at best, depending upon area. Last month, there were no sales of $5+ million homes in Santa Clara County and just one in San Mateo County (4.2 years of unsold inventory). With slow movements in higher-priced homes and a white-hot situation in lower-priced homes, I call this a polarized market.
> Forbes Says We're Safe -- According to an article in the Silicon Valley Business Journal, Forbes Magazine reported that San Jose-Sunnyvale-Santa Clara was the 7th safest area in the country. Factors included were: violent crime, workplace fatality rates, traffic death rates and natural disaster risk. Silicon Valley was the second safest area behind the Twin Cities of Minneapolis-St. Paul.
> Sellers Be Sooner -- I continue to maintain my recommendation for sellers of higher-priced homes, especially those above $1 million that they should consider selling sooner and having an initially more-aggressive list price as the market usually softens when we go move into the holiday season. In any case, check with a Realtor knowledgeable about the technical aspects of the market conditions to guide you in positioning your home for maximum activity and price while minimizing time on market.
For those considering a purchase of a home in an expensive area like Los Altos Hills, Los Gatos/Monte Sereno, Saratoga, your time is getting closer! Be ready but I think we'll see list prices reduced and sale prices dropping as we get into the holiday season this year. Most years we experience more activity in the early spring and spring so the best time for a purchase is coming up soon!
> Investor's Corner -- Activity continues to trend upwards as more and more investors reenter the market, many of them are completing all cash purchases, especially in the more affordable price ranges. For Santa Clara County, there were 88 sales during the month with 47 of them in the less than $600,000 price range as that price range had a DUI of just 37 whereas the DUI for residential investment properties above $600,000 jumps to nearly a year. For investors who have the ability to purchase higher-priced properties (above $1,000,000), there is about one year of unsold inventory at current sales demand and represents a BUYER'S market as I'm sure there are at least some motivated sellers in that range.
Thanks for reading my blog. I'm Tom McEvoy -- Let me know your comments, questions, observations you may have.
Friday, November 13, 2009
Tastefully Updated Birdland Sunnyvale Home with Cupertino Schools
Open House available this Saturday and Sunday, November 14 & 15
from 1:30pm to 4:30pm, sharp.
from 1:30pm to 4:30pm, sharp.
~ Established Birdland, Sunnyvale Neighborhood Home with Cupertino Schools ~
Beautiful hardwood floors highlight this tastefully-updated Lindsey home with expanded master suite, kitchen and bathrooms. Kitchen was extensively remodeled and offers expansive, Corian counter tops, upgraded cabinetry and top built-in appliances. Living room can be used as dining room. Step-down family room with gas fireplace and wet bar opens to patio with wood deck and spa — great for family gatherings. Recent upgrades include 40-year roof, gutters/downspouts, and fresh exterior paint. Stocklmeir Elementary, Cupertino Middle, Fremont High School.
Take a Virtual Tour and see more Slides
If you have any questions or comments, please contact me, Tom McEvoy, Realtor at 408-830-0092 or by leaving your comment here.
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