Los Altos Real Estate Blog

Los Altos Hills - Earth Day Celebration

2011-02-01T13:14:00.000-08:00

The town of Los Altos Hills will be holding it's annual Earth Day Celebration on April 17, 2011 from 1-4PM a the Westwind Community Barn. This is a chance for local residents to showcase their green products.

As many local know, the town of Los Altos Hills is a "green" community. They encourage the development of homes that use solar power, low-impact landscaping, reduce water and power consumption, and keep the overall carbon footprint small. This event showcases local produce (there are a lot of farms and vineyard in Los Altos Hills), ideas, and other things that encourage being "green".

For more information on the event and to exhibit produce, technology, or ideas, take a look at this article on the Los Altos Town Crier website.

BusinessWeek Report on America's Richest Small Towns Is Wrong

2011-01-21T12:47:00.000-08:00

Many of the high-end markets in California have made great strides in 2010. Some markets that had been hit hard in 2007-2009 came back strongly in 2010 with solid gains in median and average selling prices. A recovery of expensive real estate is important because when the high-end markets do well, the lower-tier markets do well too - usually because of move-up buyers. So when the media decides to report on the health (or lack thereof) of the high-end markets I'm ready to jump in with facts!

BusinessWeek reporter Andrea Wong wrote an article entitled "In America's Richest Small Towns: Big sales Stall" about high-end real estate sales in expensive small towns around America. Local markets Los Altos Hills (where I frequently do business) and Woodside are always on lists like this. In the article the writer states that the price of homes dropped 13.6% in 2010. That's incorrect. The average selling price dropped less than 1% and the median dropped about 5%. Either way, the figures are wrong.

Assuming the writer was also including raw land, those values are even less in line with the article. Land prices rose 13% in Los Altos Hills (based on 3 closed sales) but the median dropped 18%. Those 3 sales (totaling over $5 million) have little impact on the average or median sales prices of property overall in Los Altos Hills so again, the article is wrong.

It's interesting that the article casts a pall over the entire high-end market by saying that 33 of the 50 towns on the list dropped. Los Altos Hills ranked #4 on the list which makes it one of the more important towns upon which to base the statistics. However, if one of most critical towns hasn't actually seen that much of a drop, it makes me wonder how far off the other figures are.

I myself have more than one client looking at homes priced $4-8 million and I know other agents who are writing offers with similar clients of their own. This segment of the market is not as bad as this article portrays and we'll see a lot of activity in 2011.

Bryan Robertson installed as Director-at-Large with SILVAR

2011-01-20T13:59:00.000-08:00

I was sworn in last week as a director-at-large serving a 2-year term on the board of directors at SILVAR, the Silicon Valley Association of REALTORS. This follows my previous service as Los Altos/Mountain View District Chair for 2010. My primary focus will be on advancing the technology used by our agents including the MLS. As part of my duties I'll also be helping to organize the next Tech Trilogy which is a 3-part technology education seminar series delivered to members of the association.

In addition to serving on the local board, I will be serving again as a director for the California Association of REALTORS. My services there will include working with the Federal Committee and the Housing Affordability Foundation. In the latter committee, I'll be helping to raise funds to ensure housing is available to those who can't afford it in the difficult California market. In working on Federal issues, I'll do what I can to take on critical issues including the mortgage interest deduction.

Default Notices Drop In Santa Clara County

2011-01-20T13:32:00.000-08:00

As most buyers know, there are very few default notices in Los Altos or Los Altos Hills. Now we hear word that default notices are dropping again in Santa Clara County as a whole. An article in the San Jose Mercury News reports that default notices (often mistakenly called foreclosure notices) dropped year-over-year in 2010, down over 33% to 10,052. That's still higher than 2007 but it shows a trend driven by a stronger economy.

There are 11 properties in Los Altos with notices of default filed at this time. Most of these will either have the default corrected (by bringing the loan current) or they'll be sold on the open market. There are only 4 properties in Los Altos that have become "bank owned" or REO properties. One of those has been on the market for a long time because it's in an undesirable location and the property condition has deteriorated considerably. Poor locations are a common theme with foreclosed properties in Los Altos and Los Altos Hills.

Los Altos Hills has 3 properties with notices of default at this time. The homes are a mix of moderagely sized homes (for the hills) and generally they will also be sold on the open market. Recent REO homes in Los Altos Hills have been priced very low and some have gotten 50+ offers (many all cash) pushing the prices up to or close to market rates.

The market will see a few more of these in the coming year but the trend has been to sell these homes before they hit the market. If you're looking for a bargain on foreclosed properties, there are two things to consider; location of the property and general market strength. The properties that don't sell in the open market are usually in very poor locations which is why they stay REO for so long. The rest sell at market rates because the market in Los Altos and Los Altos Hills have recovered substantially from years past.

Silicon Valley Real Estate Market Report

2011-01-18T14:28:00.000-08:00

This is a quick update on the performance of several local markets around Silicon Valley. As the statistics below clearly show, most markets showed nice price gains in 2010 including most of the luxury markets. These figures indicate that the trend down has stopped and the trend up is beginning again. While the markets are improving, this doesn't mean we've entered a seller's market where prices will spiral upward in the hot spring market.

I expect that this year we'll see most markets improve in the 1-6% range again (depending on the market). The hottest markets from last year will likely cool down a little this year and the softer markets will likely see larger gains this year. What will drive these price increases includes corporate spending, job growth, and low interest rates. As the high-tech industry continues to recover, move-up buyers from the lower end of the market will start entering upgraded markets such as Sunnyvale, Mountain View, and Cupertino. Sellers from those markets will continue moving to Los Altos and Palo Alto further driving demand.

2010 Market Summary Statistics

Average Selling Price

2009 2010 Change

Los Altos $1,654,914 $1,688,322 +2.0%

Los Altos Hills $2,614,368 $2,590,416 -0.9%

Mountain View $946,438 $956,709 +1.1%

Sunnyvale $714,442 $760,772 +6.5%

Cupertino $1,121,641 $1,112,847 -0.8%

Saratoga $1,557,682 $1,646,386 +5.7%

Palo Alto $1,516,480 $1,557,004 +2.7%

Menlo Park $1,239,814 $1,309,892 +5.7%

Atherton $3,317,045 $3,510,434 +5.8%

Development Concerns About First Street in Los Altos

2011-01-18T12:55:00.000-08:00

Downtown Los Altos is at the forefront of major changes to build more offices, retail space, and residential units. The area with the biggest developments in the near future is First Street. The entire street was rezoned to allow residential, better retail, and more office space. However, a recent article in the Los Altos Town Crier brings to light concerns about traffic congestion.

Personally, I'm with most people who feel that having a little traffic congestion is a sign of success. It's rare that you can't find a spot unless there's a major event. The loss of so many downtown businesses has made traffic and parking nearly non-existant. The concerns about major traffic congestion on First Street and Main Street are based in the idea that downtown Los Altos should be a "sleepy little town". Unfortunately, for the businesses to thrive, we need more people and that often, but not necessarily, means more cars.

Adding 48 condos on First Street will help downtown a little but it won't be enough to drive real growth. It's a start. Another 150-200 on top of that would create real critical mass and those residents would be foot traffic, not car traffic. That's probably why the traffic study didn't show an appreciable increase even with all the new construction. The question now is, where to add those living units. The new zoning regulations approved in 2009 will allow for residential units above retail on Main Street. That would be a huge step in the right direction but those residential units will mostly generate foot traffic. The homeowners may have cars but with jobs and services right down town, the frequency of car traffic will probably be very low.

Los Altos Loses Another Restaurant

2011-01-15T08:35:00.000-08:00

Los Altos has lost another fine restaurant from it's line of greats - Zitune. They shut the doors on Monday after determining that the patron traffic wasn't enough to stay in business. The final dinner on Sunday night was bittersweet because many patrons showed up for one final meal at the 4-year old restaurant. There was a nice story in the Los Altos Town Crier about all the reasons for ending the business.

I've eaten at Zitune many times and found the food to be creative and first-class quality. The service was good and the staff welcoming. The last time I was there in late November with a group, we had a mix of menu and special items that impressed everyone. One thing that surprised me was that the restaurant was, in fact, relatively quiet for prime lunch time.

The busiest restaurants always seem to have a steady stream of people every day. Some notable popular spots include Le Boulanger, Aldo, Spot Pizza, and Main Street Cafe. While we need more good restaurants, one of the issues with getting critical mass is a lack of offices downtown with people wanting lunch. There are plans for more offices on the table and construction has already started on the new Packard Foundation building on 2nd Street. As more offices are built, we should have more foot traffic and hopefully that will translate into fewer good restaurants closing.

Los Altos Real Estate Market Summary Report for 2010

2011-01-07T10:27:00.000-08:00

December was a busy month for Los Altos real estate. I had posted an earlier report indicating that we had 29 sales that closed as of December 28th. That figure is revised down to 26 as some homes sold were misreported. There was one sale at $820,000 that I am not counting in the statistics for the month because it's considered a statistical anomoly. It's less than half the average sales price and well below the normal sale range.

When removing that sale, the average selling price in December 2010 is flat compared to December 2009 at $1.61 million. The mnumer of closed sales is the same at 25 and the inventory is slightly lower at 33 units, compared to 38 units in December 2009.Total sales volume was up about 8%.

There were a few homes that expired on December 31 at midnight so the actual inventory dropped a little as of January 1st. Those homes could come back on the market in the next few weeks. A number of homes were taken off the market in December and are starting to come back on. One property in South Los Altos has come back on with a 6% price reduction.

As expected, the average selling price and median selling prices are up in 2010 versus 2009. The average and median for 2010 were $1.688 million and $1.55 million respectively. The average and median in 2009 were $1.654 million and $1.51 million respectively. These are small increases but they show that the market has recovered and we're now in a balanced market, it is neither a buyers nor sellers market - in general. It is still a buyers market at the high-end for homes priced over $3 million.

The total number of new listings were about the same, 437 (2009) versus 440 (2010). The days on market dropped quite a bit from 65 to 54 in 2010. The total number of closed sales rose significantly from 269 to 334 in 2010. All the figures support a full recovery in the Los Altos area. This should help the general market in surrounding areas as well by bolstering confidence in a prime market, move-up markets nearby such as Mountain View and Sunnyvale should improve as well.

The improvement in the average selling price of about 2% is indicative of where the market will continue to go. The balance of buyers and sellers should keep prices moving up and discounts have all but disappeared. The current low inventory and lack of new listings indicate a potential squeeze in Q1. That will become more clear as we finish out January.

Los Altos Hills Market Summary Report for 2010

2011-01-07T10:08:00.000-08:00

Los Altos Hills has been having a rough few years recently. Homes that were listed for $5 million end up selling for less than $3 million and multiple listings were on the market for 18 months or more. Fortunately, that trend seems to have slowed substantially in 2010. As noted in my price analysis of homes in the $2-3 million range a few months ago, the market seems to be favoring older homes with lower prices but a high price per square foot than new homes. This is showing up as an increase in total sales volume and units but at a lower average selling price.

There were 81 closed sales in Los Altos Hills in 2010 versus 68 in 2009, an increase of about 20%. The average days on market was 120 in 2010 versus 98 in 2009, an increase of about 20% as well. The substantial increase in volume is most telling. The spike in the days on market figure can be attributed to a few homes that sold after being on the market a long time.

The average selling price was $2.59 million in 2010 versus $2.614 million in 2009. That's a drop of less than 1%. This means that Los Altos Hills has reached a certain level of partity between buyers and sellers with a slight bias to buyers. Based on annecdotal feedback I'm hearing about open houses and offers on some properties, I expect that the shift will continue to turn in favor of sellers. Where buyers will still have control is at the high-end of the market. Anything priced over $3 million is fair game for sellers if it hasn't been priced well. At the really high-end, homes priced between $4 million and up to $15 million or more the buyers are in control. Very few of those homes are selling and while sellers are not desperate to sell, buyers are not anxious to buy. The impass is creating a stalemate with sales and homes are not selling regardless of discounts. Many high-end homes have seen price drops of $1 million or more and had no offers.

There were several homes taken off the market in December 2010, so expect to see a small spike in inventory in January as those come back on the market. About 15% of December inventory was removed with explicit intent to relist in 2011. Many of those homes were priced in segments of the market that are doing well.

Based on the performance the market in Q4 and overall for 2010, I expect that 2011 will see Los Altos Hills continue to recover with average prices moving up 2-3% for the year just as they did in Los Altos last year.

The Vision for the Future of Los Altos

2011-01-06T15:51:00.000-08:00

A recent article in the Los Altos Town Crier talked about all the changes implemented or started in 2010 that will come to full fruition in 2011 and beyond. All the changes are designed to modernize the town and make it competitive to other nearby communities.

Los Altos has been a sleepy little town for a long time. Much to the chagrin of locals, the town has been kept in a state of "Mayberry Syndrome" for decades falling well behind the development of other local towns including Los Gatos, Mountain View, and Burlingame. The small shops typically close by 6PM, leaving the town nearly empty on most nights. There is no "critical mass" to the distribution of restaurants so the typical synergy you get with restaurants and shops isn't available. In 2010, all that small town feel was dismissed in a sweeping series of changes set to make Los Altos a true destination.

I had reported months ago that someone was buying large parts of downtown Los Altos. Many felt it was a prelude to a developer using the new multi-story zoning laws to rebuild large parts of the downtown to make it more like Santana Row, with residential or office space above retail. Knocking down several buildings, especially smaller ones, to make way for wider buildings would enable chains to enter the downtown. While old residents and power brokers have spent years stopping introduction of chains, small chain stores would bring new revenue and foot traffic to an otherwise quiet town.

We also need a little more style and that is coming with the new developments approved in 2010. Abigail Ahren's new luxury hotel at the corner of San Antonio and Main Streets will make that gateway entrance to Los Altos beautiful instead of just a dusty sandlot. Other projects include housing and offices along First Street that will transform that area as well.

The activity with new zoning, increased developer activity, and many projects going before the Planning Commission should result in a substantial number of improvements in Los Altos over the next year and into 2012. All these changes will have a lasting impact by making Los Altos a more desirable destination town.

Los Altos Traffic Issues Impact Neighborhoods

2011-01-04T15:02:00.000-08:00

As with many local communities, any neighborhood with a school nearby will see traffic increase substantially during morning drop-offs and afternoon pickups. With the loss of school buses and paranoid parents driving their kids to school so they can be "safe", traffic congestion before and after school can be worse than peak commuter hours. An article in the Los Altos Town Crier talks about the issue of traffic near Blach Junior High school.

The neighborhood around Blach Junior High school in central Los Altos is one of the places where traffic is a major issue. A lot of people use Covington Road as a cut-through between Miramonte and Grant Roads. There's traffic with St. Francis High School and El Camino Hospital. The issue being discussed tonight is about allowing parking on Altamead and Carmel Terrace as well permit parking and drop-offs. For people dropping kids off at school, the rules present a major issue.

I used to live on a cul-de-sac close to Blach Junior High and found that the traffic during school hours and at school events was a major turn-off to an otherwise great neighborhood. The issue the morning hours in particular is that the intersection of Covington and Miramonte gets traffic going to Loyola, Blach, and St. Francis schools as well as commuter traffic and general resident traffic. It can be a 10-15 minute wait just to get through the stop sign.

Traffic congestion may get worse with the construction of new homes at the intersection of Grant and Covington. While traffic studies show a small difference in traffic, since that intersection is only two blocks way from Blach Junior High, I would expect the folks in Los Altos to take that into account as well.

Los Altos Market Update for December 2010

2010-12-29T14:01:00.000-08:00

In Los Altos we've had 29 closed sales in the month of December as od December 28th. That up from 25 in December 2009. The average selling price was $1,589,705 which is a 4.5% decrease from December 2009. There are still pending sales so this is an excellent indication of the strength of the Los Altos real estate market which continues to lead the local recovery.

The high-end, defined as homes priced over $2 million, saw four sales between $2 and $2.425 million. One sale that started as a high-end listing with a list price of just under $2.5 million sold at $1.95 million which had an impact on the overall average for the entire market. While the high-end market continues to do well, a few homes seem to get priced too high. That property started at nearly $2.8 million.

Another weight on the overages was a low-end sale under $1 million (an extremely rare event in Los Altos) which sold at $820,000. Another sale right at $1 million also helped pull the averages down. It's not uncommon to see a lot of bargains get sold at this time of year but they tend to skew the numbers. Los Altos rarely sees sales under $1.3 million in a single family home.

Over bidding is coming back strong with 9 homes selling for 100% or more of their asking price. That's a really good sign that the market is strong going into the end of the year. Those homes were across the board from the low-end to the high-end so there isn't any one market segment showing signs of strength.

The average days on market was reasonable at 55. Current inventory is low and there have been several expired or cancelled listings in the last 3 weeks. I know for certain that many of those will come back on the market but not untill well into 2011. Open house activity has been good going into the holiday season and offers are being written so we can expect this strength to continue in January. I'll provide a final December update next week.

Los Altos Spotlight: Rick's Cafe

2010-12-28T14:12:00.000-08:00

Rick's Cafe
205 State Street
HOURS: 7:30AM - 3:00PM Mon-Sun
PRICES: $

Bryan's Opinion: I can't begin to say enough great things about this place. It is everything a breakfast place should be and then some. First, a little history. Rick's Cafe came to Los Altos in 2008. It started as a breakfast and lunch place before trying a dinner menu. The dinner menu didn't take off so it's back to breakfast and lunch.

Breakfast is incredible and there are few places in the entire area that will even come close to the quality. A perfect example is their Denver Omelette which comes filled with tender ham, bell pepper, and onion all folded over in a half-pan shape that looks like it was carved out of egg. Covered with your choice of cheese, the flavors are balanced and hearty. You also get a side of hash browns that are cooked to just the right side of tender and seasoned well plus a bagel that gives the best in New York a run for their money. All that for about $11.

Lunch has the usual fare but the best is their burger. I'm not sure how they season it but it'll beat anything you've had at Red Robin and it's one of the best burgers in town. Los Altos has many fine restaurants offering great burgers. These are juicy, tasty, and cooked to perfection. You get all the usual condiments plus a small salad and the same tasty potatoes they serve with breakfast. Keep in mind that these are no ordinary has browns, in fact they're not even browned but really sauteed. Tasty!

One special feature they have that is truly unique is that they roast their own coffee on-site. No other breakfast place offers that and you can taste it in their brew.

The service is always warm and friendly with the owner usually there helping people get seated or taking care of the register. This relatively young addition to the Los Altos restaurant collection has proven to be wildly popular and will be busy at peak hours on the weekends and at lunch.

Los Altos Spotlight: 5K Fun Run on January 1, 2011

2010-12-28T10:58:00.000-08:00

The Los Altos 5K Fun Run has been taking place on New Year's Day for many years. It's the finale in a string of holiday events in downtown Los Altos. After the carriage rides, Festival of Lights parade, holiday shopping, and more this event is a welcome break. It's also a great way to kick off the new year with some exercise to work off all the food and drink from the last few weeks.

Registration isn't required and it's completely free. You can stop by the Los Altos Recreation Department website for more details. Basically, you just show up on Saturday morning at 9AM and you'll get to run with thousands of other people. Anyone can run, walk, or stroll the course (they usually do with kids in strollers, pets, etc) and you can stay in town for brunch afterwards. The race starts at State and Main Streets where the clock tower is in front of Citibank.

You'll also find updates on the Los Altos Online website with an article there along with comments.

REALTORS Give $2500 To Los Altos / Mountain View Charity

2010-12-23T07:46:00.000-08:00

As the district chairman of the Los Altos / Mountain View area I've had the pleasure of presenting many checks to local charities that support community. At the final meeting of the year, a special breakfast presentation to the Los Altos Hills Country Club, I made my last check presentation to JustREAD.

An article in the Los Altos Town Crier talks about the event. This organization focuses on getting kids who have reading difficulties a completely fresh start. They literally start the kids from the basics of sight words (pre-K level) up to proficient reading. It's hard work but the program has proven to be successful and our donation was designed to expand the program significantly at three schools. This is another clear signal that REALTORS provide significant benefits to our Los Altos and Mountain View communities.

Our district has made many other donations and done other community service efforts throughout the year. The largest of these was Relay for Life. I know that in 2011 and future years, we'll continue this tradition of providing support for the Los Altos and Mountain View charities that build a better community.

Los Altos had a 3.1 earthquake on December 19, 2010

2010-12-19T21:58:00.000-08:00

The SJ Mercury News reported this morning that good old Los Altos had a 3.1 earthquake this morning. While not major, it's very rare that a quake is ever centered in Los Altos or even Los Altos Hills, even with all the fault lines nearby.

The quake was 2.1 miles deep and there were no reports of damage.
The article is posted here if you'd like to read more.

I've felt many quakes in Los Altos and was around for the major quakes in recent memory. None ever felt significant and the town always seems to get little or any impact from them. I'm not sure if the town is just lucky or is well placed but it seems that earthquakes have little impact on Los Altos.

Has the Los Altos housing market hit bottom?

2010-12-16T14:04:00.000-08:00

A recent article written by local financial advisor Artie Green and published in the Los Altos Town Crier asks the question "Have housing prices hit bottom yet?". Based on my experience and the current pricing trend in Los Altos, we have indeed hit bottom and are moving back up.
The article was primarily aimed at the general market around the country. Most economists, even the pessimists, will argue that the market has turned and will rise anywhere from 3-20% in the coming year. The few dim spots in the economy can't overshadow the fact that home prices in many areas are rising, Los Altos being one of them.
The biggest challenge in Los Altos has been the high-end. This is also true in Los Altos Hills. While the overall market in Los Altos has done very well, rising several points this year alone, the market segment over $2 million is still weak. It's not dropping but it also isn't moving up. That may indicate a bottom but since so few transactions occur in that price range, it's hard to say. It's even harder to define the market over $3 million.
So the general answer for Los Altos is that, yes, we've hit the bottom. However, we need to see strength in the high-end of the market in order to say that the entire market has hit bottom. This same conclusion applies to Los Altos Hills.

Los Altos Hills Home Inventory Coming Off The Market

2010-12-14T14:25:00.000-08:00

Just in case you've been tracking inventory in Los Altos Hills, there have been 6 homes taken off the market in the last 2 weeks that will specifically be brought back in 2011. This is a common practice because the high-end market has been slow for many years now and Los Altos Hills isn't immune to bargain hunters looking for deals.

There are currently 42 homes on the market in Los Altos Hills, the 6 homes taken off the market account for about 15% of the total inventory. While this doesn't mean a record low, it's unusual to see so much inventory disappear in such a short time as a percentage of available inventory. What's even more interesting is that ALL of the listings have notes indicating that they'll be back on in the following year or are still available.

What does this mean for buyers? Basically it means what was stated with similar homes last year, sellers are hoping to get more for their homes in the Spring. The trend on newer homes has been to see prices drop. However, the price per square foot on older homes has been increasing. So, about half the homes just taken off will increase their chance of getting an offer at asking price but the other half (larger, newer homes) will probably see more bargain hunters.

Los Altos Spotlight: Kiwanis Christmas Tree Lot

2010-12-14T13:52:00.000-08:00

There are a lot of traditions in Los Altos around Christmas time; carriage rides, Breakfast with Santa, and tree lots. One lot that was around for ages but disappeared a few years ago was the lot at Grant and Covington (technically in Mountain View) but many Los Altos residents went there.

The Kiwanis Tree Lot is one of those things you just look forward to because they've been around so long. Operating since 1987 (24 years) they've been one of the few consistent lots actually selling trees in Los Altos. Many of the "local" providers are in Montain View and not truly a Los Altos business.

As with many of the civic services that have been around a long time in Los Altos, this one benefits another institution, the Los Altos Pet Parade. That has been around for a long time as well and become an even bigger Los Altos institution. Stop by, get a great Christmas tree, and help support our fine community.

Los Altos Spotlight: De Martini Orchard

2010-12-14T12:58:00.000-08:00

DeMartini Orchard of Los Altos
RETAIL - GROCERY
Prices: $-$$
Hours: 8-7 OPEN DAILY
Credit/Debit: Yes

BRYAN'S OPINION: There are two great grocery stores in town offering produce, but neither offers the quality and pricing that De Martini offers. Having been at their current location for years, it's become a bit of an institution for those wanting fresh, high-quality produce at very reasonable prices. They're also one of the few places you can still get locally dried apricots which used be to one of the major crops in Los Altos.

The stock rotates on a regular basis offering staples and seasonable produce alike. One huge plus is that they offer local produce all year round from a variety of producers. By local, I mean, within a 30 mile radius or closer. I like this because it means we're supporting our community as well as getting "a taste of the area" instead of getting bulk poduced goods from some distant land. There's something about farm fresh fruits and veggies that make a meal special. Even if the local goods aren't always from Los Altos, they're still representative of our area.

During the holidays you can get fruit baskets with a wide array of fruits, nuts, and gourmet foods in a range of sizes. While they may not be like Harry & David, I think you get a better product from De Martini because it's all fresh. Giving such a gift will mean more than the usual store bought stuff.

In addition to all the produce, there are several gourmet products, spices, and such that can help make your meals that much better. Again, prices are very reasonable and far better than the grocers in town. This is one of the unique services available in Los Altos and I recommend stopping by.

Breakfast With Santa in Los Altos - December 18th, 9AM

2010-12-13T15:20:00.000-08:00

The "Breakfast with Santa" is a long-time tradition in Los Altos put on by the Los Altos Village Association. Families and children are invited to gather at a local restaurant for a nice breakfast before being joined by Santa who stops by to sit with kids, take gift requests, stand for photos, and more.

This local tradition is what makes Los Altos such a nice place to live, offering a bit of fun along with strong community involvement. This year, the event takes place at Maltby's Restaurant. This place has been catering to families for a long time and is a great selection to host this year's Breakfast with Santa.

Participation costs $20 per person and seating is limited. It usually sells out fast so I highly recommend getting to one of the many stores selling tickets as soon as possible. This is another event coordinated by the Los Altos Village Association who helps downtown Los Altos merchants connect with residents and hosts several events downtown throughout the year.

For more information click here for the Los Altos Village Association.

ar-old stuck and killed in crosswalk in Los Altos. Could it have been prevented?

2010-12-10T13:02:00.000-08:00

A 76-year old Los Altos resident was struck and killed at the intersection of Los Altos Avenue and Hacienda Way. The driver has not been charged and the investigation is still on-going. As many locals know, there have been issues with pedestrians being killed in crosswalks on San Antonio Road in recent years. Those incidents resulted in almost all the crosswalks on that road getting special crosswalk lights that illuminate to indicate to drivers that someone is walking across the road.

More Lights? The question now is "Do we need more crosswalk lights on long streets where people are likely to speed? Speeding is a common issue on San Antonio. While I don't know if it's a factor is the latest accident, the question remains the same. By that virtue, which streets should have the markers.

Expensive But Worth It. While I'm not a fan of overprotecting people, this seems like a good idea on the many streets at risk for this sort of thing. Some major streets that might benefit from crosswalk lights include Almond Avenue, Los Altos Avenue, El Monte, Covington Road, Grant Road, Springer Road, Magdalena, and Foothill Expressway. The cost may be more than we can afford but I think they should be added over time.
A lot of these roads have kids crossing for schools and many have walkers or joggers trying to cross. In my opinion, we should add these lights to improve the safety of our community.

Here's a link to the article in the Los Altos Town Crier.

Los Altos Real Estate Market Update - November 2010

2010-12-03T11:01:00.000-08:00

November was a slow month for sales in Los Altos. There were 22 sales with an average listing price of $1,593,485 and an average selling price of $1,547,586 which is 97% listing/sold ratio. This is down from 28 sales in November 2009 when the average listing price was $1,678,518. No matter how you slice it, the market is down from October 2010 or November 2009. Does this mean we're heading down in general? No. In my opinion based on watching this market for years, this is just a one time slowdown. The trend in Los Altos has been up for the year. Inventory is low and listings are getting a lot of buyer interest. Uncertainty tied to the economy is probably having an affect on buyers making offers.

Sales Over $2 and $3 Million
There were 3 sales over $2 million but they were well off their asking prices with one exception which was n overbid. In November 2009 there were 5 sales and three of those were well over the $2 million mark. Those big sales are exactly why the market isn't as high right now. So, as discussed before, this critical segment of the market is where improvements in median and average sales prices are being made or lost. This month the high-end sales didn't happen so the median and averages took a hit. Los Altos usually does well in this price range and we've seen better activity recently so we may have gotten such a good run in October that November was that much less active.

Inventory Trend
Inventory is trending lower which is normal. There were virtually no new listings in the last 2 weeks of November which is a trend that has continued into December. With the limited inventory, buyers will have to decide if they want to wait until next year in the hopes of seeing more of just snap up what is available. We'll see.

Los Altos Real Estate: 939 Clinton Road

2010-11-30T15:12:00.000-08:00

939 CLINTON ROAD, Los Altos 94024
MLS# 81055814
Listing Agent: Don Yarkin, Yarkin Realty
List Price: $1,450,000
Days On Market: 1
Bedrooms: 4
Bathrooms: 3
Living space: 2,117 SqFt
Lot size: 9,440 SqFt
Age: 58

Bryan's Opinion: Central Los Altos covers such a wide range of neighborhoods with quiet little streets such as this one. From this street, you're minutes to downtown Los Altos, Rancho Shopping Center, MacKenzie Park, and commute routes. On the one hand, you're getting a street that will have quite a few people heading just down to the park so you will get some traffic. Otherwise, it's pretty quiet.

The home itself is pretty typical for this area of Los Altos although the lot is a bit on the small side. Most lots in this area (and thus the comps) have lots 1000-2000 SqFt larger. Not a big deal but still something to consider with respect to price. The home is larger than most in the area so that offers some compensation.

The property needs updating and that should be a factor when comparing to others in the area. The back yard is almost entirely taken up by the pool and deck. This should be considered a HUGE plus. Why? You can walk to the park in 60 seconds. Why have all the maintenance of a yard when you can enjoy the pool and play in the park. Besides, MacKenzie Park is one of the best in Los Altos in my opinion.

As for the pricing, it's in line with the comps so taking into account all other things I think it's reasonable.

Los Altos Spotlight: Burger Town

2010-11-30T12:07:00.000-08:00

Burger Town in Los Altos
RESTAURANT - CASUAL
Prices: $
Hours: 10-7 (Closed Sunday)
Credit/Debit: Yes

Yelp Review

BRYAN'S OPINION: This place is a classic example of the "greasy spoon" burger joints of the old days but with better quality. It's totally unassuming, operating in what was a Dairy Queen and sandwiched between a vacant lot and a vacant building. The clientele ranges from construction workers to locals with something for everyone on the menu.

Burger Town is the best "bang for the buck" burger joint of any place in Los Altos. While I love the burgers at First and Main, The Grill, and Maltby's, they are all much more expensive. For $6 I get a quarter pounder and fries hot and fresh. The flavors and quality are excellent. This place is not about ambiance but about hearty food. Onion rings, shakes, and more are all made to order fast.

Similar to In and Out Burger, you can opt to get more patties for a small extra fee. They have a 3/4 pound burger on the menu but if you want more you can get it. Grilled onions, no problem. Extra cheese, coming right up. It's truly a burger joint for those who are all about the burger. Lots of options that all taste great.

If you read the reviews on various sites, you'll get mixed feedback. Trust me, it's worth a visit. I eat there more than I should and I've always walked away satisfied.

Los Altos Spotlight: Assistance League of Los Altos Costume Bank

2010-11-25T07:47:00.000-08:00

ASSISTANCE LEAGUE OF LOS ALTOS CUSTOM BANK
RETAIL - COSTUMES
Open: Wed-Sat
Prices: $-$$

BRYAN'S OPINION: Are you attending or hosting a costume party? Then this is the place to be! The Costume Bank has been around for decades and offers, in my opinion, some of the best costumes in the area. Located on the corner of State Street and Third Street in downtown Los Altos, this is one of the oldest continually running businesses in Los Altos.

The costume selections include everything from vintage flappers and soldiers to cartoon characters. Many off the costumes are hand-made from high-quality materials by volunteers from the Assistance League. These are the same people who staff the store and help with selecting a costume to suit your particular party or event. Obviously, many of the great parties in Los Altos and Los Altos Hills are attended by residents who stop by the Costume Bank to get their costume.

The customer service here is much better than other costume stores in the area. They'll really take the time to work with you on finding a costume, adding accents, and sizing. While most costumes are designed to fit average folks, they do have tricks to make them fit if the costume is a little too big or small.

The profits all go to charity so no matter what you do, the price is for a good cause. A word on price, the prices here are as good or better than many other local shops and with fewer crowds. So, stop by for your next costume party!

Los Altos Ranks #1 Most Expensive In California

2010-11-23T15:59:00.000-08:00

According to the San Jose Mercury News, Los Altos was the most expensive town in California for the month of October 2010 with a median sales price of $1.7 million. While I love that Los Altos is always near the top of the state and national ranking as most expensive ZIP code, this time the paper got it wrong.

Los Altos Hills and Atherton both had median sales prices higher than Los Altos in October. It wasn't a matter of being close, both were well past Los Altos.

So, why the differences? I have found that when papers post #1 stats for any town based on sales they often have minimum population sizes. So, Los Altos will make the top of the list with a population over 30,000 but Los Altos Hills won't. Atherton is also left of the list.

The good news is that Los Altos prices are, in fact, increasing and we should continue to see market leading home prices going into 2011.

Hot Los Altos Hills Real Estate 11/17

2010-11-17T16:22:00.000-08:00

24632 OLIVE TREE LANE, Los Altos Hills 94024
MLS# 81001641
Listing Agent: Terri Couture, Coldwell Banker
List Price: $2,700,000
Days On Market: 1
Bedrooms: 5
Bathrooms: 3
Living space: 4,430 SqFt
Lot size: 49,222 SqFt
Age: 47

Bryan's Opinion: This section of Los Altos Hillls is one of the more "rural" areas and there's a real mix of estates and older homes. Because it's so far away from town, you don't get the same sense of connection to Downtown Los Altos you do from other areas. This is great, if that's what you're looking for.
The home was completely remodeled and the finish quality looks fine for the price range. The size of the home and the fact that it's completely turn-key makes this an excellent value at this price. It sold 2 years ago for $2.9 million so it's priced $200K below the current asking price and after the owners invested money in improvements. Considering how far we've come in the current market, that also makes this a good value.
There are very few new homes on the market this week (or last) in Los Altos or Los Altos Hills in this price range. I expect there will be only a handful of homes put on the market over the next month. If you're looking at a newer home in Los Altos Hills, this should definitely be on your short list.

Los Altos Spotlight: Adventure Toys

2010-11-15T14:36:00.000-08:00

FAST FACTS
RETAIL - CHILDREN

Open: Mon-Sun
Prices: $-$$$
Adventure Toys

BRYAN'S OPINION: This place is full of toys that are more interesting that the typically stuff you see at Toys r Us. I've been here so many times with my son that it's like a destination spot. We used to have a routine that after karate we'd stop off here to look at toys before walking down the street to Spot Pizza. This place isn't about quantity, it's about quality - a theme in Los Altos.
When you walk in, head right, and look at the section between the girls toys in front and the Legos and building toys in back. That middle section is a goldmine of scientific learning toys and family games you'll have a hard time finding anywhere else. You want to build a rocket? There is a kit to build one. In the same section is a wide range of puzzles with enough challenge for kids 2-80. You want a 5000 piece super-puzzle, they've got it.
Opposite that section is their game area. There are lots of individual and family games including old classics. What is most interesting is there are games there I haven't seen anywhere else including similar specialty toy stores in other areas of the state. Many are award winning and some are just plain creative.
The rest of the store offers just a much variety. There are the usual Legos and dolls plus crafting kits and dress-up clothes to let a kids imagination go wild. Along with their usual creative selection, you'll find special displays for certain holidays and nice extras especially during Christmas.

Los Altos Spotlight: First and Main Sport Lounge

2010-11-15T12:08:00.000-08:00

FAST FACTS
RESTAURANT - SPORTS BAR
Open: Mon-Sun
Prices: $$
First and Main Sports Lounge

BRYAN'S OPINION: The only real sports bar in Los Altos is First and Main Sports Lounge. It's a great place for everything from group meetings to gathering with friends. There are screens everywhere. It is impossible to NOT see a game and they have all the major sports on. There's memorabilia everywhere and many sports folks have signed the wall above the bar. This place exudes a cool sports vibe from every corner.

The food is, for me, the best part of First and Main Sports Lounge. They have arguably the best burger in Los Altos and their variety is excellent. The salads are always like getting a hand-picked from the garden fresh. The quantity is more than enough to satisfy a big appetite. I'm always impressed with the service which is always delivered with a smile. The best part is that the owner (one of them) is frequently onsite so there's a lot of consistency in both quality of food and service.

This is one of my favorite places to visit in Los Altos and I highly recommend stopping in to visit with friends and watch a game.

Los Altos Real Estate - Price Drop of the Week 11/10

2010-11-10T12:08:00.000-08:00

803 MORA DRIVE, Los Altos 94024
MLS# 81001641
Listing Agent: Ed Graziani, Sereno Group
List Price: $2,495,000 (down $300,000 from original list)
Days On Market: 301
Bedrooms: 4
Bathrooms: 3 1/2
Living space: 3,488 SqFt
Lot size: 11,784 SqFt
Age: 1

Bryan's Opinion: The Country Club neighborhood of Los Altos is very popular with buyers wanting larger lots and an even more "rural" feel than other areas of Los Altos. There has been a lot of new construction in this area with prices doing fairly well even during the downturn. This home is now officially a bargain.

The price was actually dropped a month ago but it never got the attention it deserved. The listing expired last week and it was relisted by the same agent. I've actually held this house open and buyers have all said it stands out as being of higher quality than many others in the area.

This home was custom built for the owners who had other plans but changed their minds. The attention to detail is much higher than a "spec" home. That said, it has some features you won't find in most homes including an outdoor fireplace. It's one of the best examples of new home construction in the Country Club neighborhood of Los Altos.

Someone is buying up downtown Los Altos

2010-11-10T11:50:00.000-08:00

A lot has been happening in downtown Los Altos in recent months with new construction and an emphasis on major redevelopment of downtown Los Altos into something more than just a sleepy little town. Someone is buying large sections of downtown Los Altos. The question is, what for?

I've lived here on and off since the 60s. In all that time Los Altos seems to have been stuck between two camps; people who want a sleepy little town and those who want something like Santana Row or Los Gatos. The folks who want to keep the "village" feel are against large chain stores coming into town. The other folks, like me, would like to see the town become something interesting where we have a lively downtown similar to Los Gatos. The inability to make the change has been landowners downtown who refuse to allow chains.

Well, Los Altos is heading for change - big change. The zoning has been changed to allow multi-story buildings downtown. That will make knocking down old buildings in favor of newer ones economically viable. In addition, the city is moving ahead with plans to make First Street more walkable with wider sidewalks.

The entity that is buying up Los Altos has purchased buildings on State Street, First Street, and other areas. Over $40 million has been invested so far and more may be spent. Is a developer on the way to buying up downtown to make it a vibrant destination like Los Gatos? I certainly hope so. I'll be keeping an eye on this topic and talking to my friends in commercial real estate to see where this goes.

Hot Los Altos Hills Real Estate 11/9

2010-11-09T10:04:00.000-08:00

26390 ANACAPA DRIVE, Los Altos Hills 94022
MLS# 81053519
Listing Agent: Kathy Bridgman, Alain Pinel Realtors
List Price: $2,295,000
Days On Market: 1
Bedrooms: 4
Bathrooms: 2 1/2
Living space: 3,344 SqFt
Lot size: 1.18 Acres
Age: 49

Bryan's Opinion: When people think of views in Los Altos Hills, this is the sort of thing they're looking for. This area of Los Altos Hills is full of fabulous luxury homes. There are a lot of people looking for opportunities such as this - an older home on a great lot with spectacular views and easy access to the Los Altos Village.

It's in move-in condition and large enough that you could live in the house while working on plans for an estate for the ages. Compared to other homes in the area or even in other sections of Los Altos Hills, this one is particularly appealing because the price is perfectly matched for the lot size, location, and best use.

Another huge plus is the fact that this home is serviced by Palo Alto schools. I know so many buyers who want the Los Altos Hills address but with Palo Alto schools. With so few homes in this price range with that feature, I'm sure this will sell fast.

Rosita Park in Los Altos - Major Upgrade Coming

2010-11-08T12:36:00.000-08:00

This park, located at the end of Rosita Avenue in Los Altos, has been a spot for tennis, BBQ, kids playing, and more for decades. I remember going to this park when the pool at Covington School was still available to swim in. Nearby the park was a Catholic School with a large field for baseball and general play.

Now the park will be completely updated with a cleaned up baseball diamond, three new tennis courts (instead of the current 2), a childrens play area, new trees and shrubbery, and more. It's the most money the city has ever spent on a park which bodes well for this gem literally at the heart of Los Altos.

I think this park, along with many others in Los Altos, it part of what makes this town so special. We have a very active community who likes to be outside for sports and recreation. Keeping our parks in great condition and continually improving them goes to the core values of Los Altos.

Stop by the Los Altos Town Crier for more details and a small picture of the new park.

October Market Report - Los Altos Hills Real Estate

2010-11-08T11:54:00.000-08:00

October was a mixed month for the Los Altos Hills real estate market. As I said in my preliminary report, the sale of one $8 million home has skewed some of the value. That's most evident in the percentage of listing price received. That was down to 88% in October 2010, down from 95% a year ago.
The median and average sales prices were $2,150,000 and $3,012,000 respectively. Last year, those figures in Los Altos Hills were $2,435,000 and $2,545,000. So, the average is up (due to the one large sale) but the median is down. Median has little meaning for this month because there were only 8 sales, compared to 11 in 2009. Inventory was up to 64 units vs. 58 a year ago and new listings were up to 14 from 6 a year ago. The trend is more inventory and fewer sales but few days on market (only 102 vs. 128 last year).

Sales Over $2 and $3 Million
There were 3 sales over $2 million and each was very close to their asking price. There was 1 sale over $3 million (except the $8M property) and it was also very close to its asking price. Those are critical for the stats in Los Altos Hills because the market in the $2-3 million market band has had trouble still this year. As I said in my last report, one month is not a trend but it could bode well in establishing 2010 as a turning point in the high-end market of Los Altos Hills.

One Big Sale

The home that sold for $8.2 million was listed at $10.9 million so that has skewed a few numbers. The bright side of October 2010 is that all the other homes sold for close to their asking prices. This would seem to indicate that homes priced well are in fact getting solid offers.

Comparison to September

The October market in Los Altos Hills had fewer new listings, lower inventory, more sales, lower days on market, and a higher average selling price which is all good for the long-term trend. The activity of buyers in November indicates that this trend could continue. What will impact sales this month is the loss of several selling days due to holidays.

October Market Report - Los Altos Real Estate

2010-11-08T09:16:00.000-08:00

The month of October was great for Los Altos real estate. The final numbers show that October is one of the strongest months for selling homes in Los Altos for many, many months. There were 34 homes sold compared to 25 sold in October 2009, and 19 in September 2010. The average selling price was $1.94 million which is much higher than any previous month this year. What drove this bump was sales over $2 milion and strong performance in the market band of homes in the $2-3 million range.
The median and average sales prices were $1,737,000 and $1,940,000 respectively. Those figures in Los Altos were $1,580,000 and $1,710,000, respectively, in October 2009. Inventory was down to 73 units vs. 89 a year ago and new listings were down to 26 from 36 a year ago. The percentage of listing price sold is up to 97% from 95% last year. This shows that Los Altos is doing much better.

Sales Over $2 Million
Los Altos had 4 properties listed over $3 million that were set to close this month and of those, 2 actually closed over $3 million, one was within $15,000 of that mark, and the last was at $2.775 million.
Los Altos had 8 properties listed over $2 million and all of them sold for over $2 million. This is huge for this market segment because as I had reported in September, homes in this price range have been selling with no up or down movement. We'll see how sales this month change the course of median and averages in this critical high-end of the Los Altos market.

Days On Market
The Average Days On Market did not skew to the high side even with the sale of a few homes that had been on the market a long time. the average days on market for Los Altos in October was 59, down from 75 in October 2009.

OPEN HOUSE: 900 Madonna Way in Los Altos 1:30-4:30 11/6

2010-11-06T12:35:00.000-07:00

I'm holding open 900 Madonna Way in Los Altos today from 1:30-4:30PM. This has just recently had a price reduction of $150,000 and is now priced at $1,998,000! For the size and location, this is an excellent deal!

The home is a 4 bedroom, 2 1/2 bath with 2,957 SqFt on a 9000 SqFt lot. It offers spectacular views of Silicon Valley and the flats of Los Altos. The location is only minutes from downtown Los Altos with easy access to Hwy 280 and Foothill Expressway.

Stop by and I'll be happy to provide a tour as well as insights into the local market.

Los Altos Pre-School Needs Help

2010-11-06T08:02:00.000-07:00

Los Altos schools rank among the best in the state, especially the elementary schools. Our top elementary schools even score above Palo Alto schools which most home buyers seem not to know. So, where do we get all these fine students from? Pre-schools! Almost every incoming child has had at least a year of pre-school before they get into kindergarten. My son had 3 years of pre-school so he was very well prepared going in. So, I was shocked to learn that one of the oldest pre-schools in Los Altos is at risk of disappearing.

The Los Altos Parent Preschool lost its lease and is now looking for a new home. They've been serving the community since 1954 and currently support almost 60 families. As a co-op, parent participation is required and part of how it does so well. They are currently looking for new space that is available at below market rates so that tuitions can be kept low. If tuititions aren't kept low, the pre-school may not survive. Take a look at this story in the San Jose Mercury News for more perspective.

I encourage any reader who knows of space in the area to contact the school so this part of the Los Altos educational legacy isn't lost. I'll be on the look out as well.

Hot Los Altos Real Estate 11/4

2010-11-04T11:11:00.000-07:00

595 ROSITA AVENUE, Los Altos 94024
MLS# 81052959
Listing Agent: Hiep Nguyen, Intero Real Estate
List Price: $3,795,000
Days On Market: 1
Bedrooms: 4
Bathrooms: 4 1/2
Living space: 4,986 SqFt
Lot size: 22,100 SqFt
Age: 2

Bryan's Opinion: This is the Los Altos neighborhood I grew up in and I've watched many new homes get built over the years. This particular area of Central Los Altos is one of the most popular areas for developers. There have been some spectacular homes built in this area and this is one of them.

A few key points, this lot is much larger than the others in this section of Los Altos. Most lots in this neighborhood are about half this size so you're getting a lot of value. There is some traffic for people going to Covington Park but it's relatively mild. The street is generally really quiet. The home itself is much larger than some of the newer homes that have sold recently on connecting streets such as Parma. Those homes have sold for close to $3 million.

in my opinion, the price is good and the location with quality make this a winner.

Los Altos Hills Real Estate - Price Drop of the Week 11/4

2010-11-04T07:45:00.000-07:00

10869 MORA DRIVE, Los Altos Hills 94024
MLS# 81042247
Listing Agent: Mickey Shaevitz, Coldwell Banker
List Price: $4,795,000 (drop of $1,200,000)
Days On Market: 2
Bedrooms: 4
Bathrooms: 4 (and 2 half baths)
Living space: 5,120 SqFt
Lot size: 70,567 SqFt
Age: 75

Bryan's Opinion: Here is another huge price reduction on a luxury estate in Los Altos Hills. This section of Mora is very private as it is near the end that ends against the Rancho San Antonio County Park. That means you'll get very little traffic and have easy access to one of the most popular hiking areas in the SF Bay Area.

The house itself is a heavily remodeled home on nearly 1.75 acres of land. While the modern feel may not appeal to everyone, it's still got the casual charm consistent with the area. In addition to being gated and private, it's also large enough to be competitive with similar sized properties in the area. When compared to other Country Club homes on Mora and nearby priced in the $2.5 million range (in either Los Altos or Los Altos Hills) this seems like a bargain.

Los Altos Holiday Stroll

2010-11-03T14:54:00.000-07:00

A little break from the usual blog posts about Los Altos real estate this time. Here's a note about the upcoming Holiday Stroll held in downtown Los Altos on November 12th. The stroll is on from 5-9PM and offers shoppers a chance to do their holiday shopping while enjoying live entertainment, snacks or drinks at the various stores, and live entertainment.

When I served on the board of the Los Altos Village Association, this was considered a great event for residents or anyone who likes Los Altos because it showcases the charm of the Los Altos village. You'll see all the trees on Main Street lit up with white Christmas lights, restaurants open with lots of friendly people, and a vibrant atmosphere of holiday cheer.

For more information, take a look at the website for the Los Altos Village Association.

Hot Los Altos Real Estate 11/3

2010-11-03T09:45:00.000-07:00

26 SUNKIST LANE, Los Altos 94022
MLS# 81052599
Listing Agent: Kathy Bridgman, Alain Pinel Realtors
List Price: $2,149,000
Days On Market: 2
Bedrooms: 3
Bathrooms: 3
Living space: 2,974 SqFt
Lot size: 11,280 SqFt
Age: 51

Bryan's Opinion: I used to walk this neighborhood in North Los Altos when I lived nearby. This area has lots of new construction and remodels, is close to downtown Los Altos, and is very quiet (little street traffic or noise).

This home has a healthy sized lot and offers an above-average size home in great condition. The grounds are amazing and there's even a pool. What I think will limit many people is having only 3 bedrooms. I've seen other larger homes come on the market (remodeled and/or expanded) that didn't get a 4th bedroom and the price took a hit as a result. Other than that, this is a great home.

Early Market Report for October - Los Altos Hills Real Estate Sales

2010-10-31T16:22:00.000-07:00

October was a great month for the Los Altos Hills real estate market. One sale over $8 million has definitely skewed the numbers higher across the board. There were only 8 sales but that's actually more than normal so even more good news!

Sales Over $2 and $3 Million

There were 3 sales over $2 million and each was very close to their asking price. There was 1 sale over $3 million and it was also very close to its asking price. Those are critical for the stats in Los Altos Hills because the market in the $2-3 million market band has had trouble still this year. One month is not a trend but it could bode well in establishing 2010 as a turning point in the high-end market of Los Altos Hills.

Averages Doing Well

The average listing and sales prices were $3.4 million and $3.01 million respectively. While it would appear from those numbers, which are higher than average, that homes are getting 10% discounts, that's not true. The home that sold for $8.2 million was listed at $10.9 million so it's skewing the numbers. In fact, all the other homes sold for close to their asking prices. This would seem to indicate that homes priced well are in fact getting solid offers.

The average days on market was also high at 102 but again this number is skewed by the 524 days on market that the $8.2 million house sold in. Los Altos Hills has seen the average days on market getting stronger recently so this will set that trend back a little.

Price Per Square Foot

This is an often quoted figure by people shopping in Los Altos Hills. However, the vast majority of buyers use the figure incorrectly. You can't compare the price per square foot for a 3000 SqFt home to one with 6000 SqFt. It's not a linear progression and never has been. Other factors including comparing new, old, and remodeled homes also skew this figure. This month has some good examples. the $8.2 million home sold for $751/SqFt while a home that sold for $1.875 million was $1257/SqFt. One was old and small, the other newer and much larger. Buyers need to get a proper market analysis to get a realistic view of how well a home is priced.

Early Market Report for October - Los Altos Real Estate Sales

2010-10-31T15:38:00.000-07:00

October is looking like an incredible month after a slow September. There are 32 homes with close of escrow dates in October which is substantial. The average selling price for the month is $1.993 million which is a substantial spike over September. Here are a few standout transactions.

Sales Over $3 Million
Los Altos had 4 properties listed over $3 million that were set to close this month and of those, 2 actually closed over $3 million, one was within $15,000 of that mark, and the last was at $2.775 million.

Sales Over $2 Million
Los Altos had 8 properties listed over $2 million and all of them sold for over $2 million. This is huge for this market segment because as I had reported in September, homes in this price range have been selling with no up or down movement. We'll see how sales this month change the course of median and averages in this critical high-end of the Los Altos market.

Days On Market
This figure will see a skew to the high side in the October stats as well as month-over-month, and possibly Q4. This is because 4 homes had days on market over 200 days each. The days on market for October was 61 but with 25% of the properties sold having 100 or more days on market, it's a little higher than most. Quick look at the results shows that most homes sold in less than 30 days with many selling in 2 weeks or less.

Hot New Home in Los Altos 10/29 - Happy Halloween

2010-10-29T11:53:00.000-07:00

1365 FAIRWAY DRIVE, Los Altos 94024
MLS# 81052109
Listing Agent: Kirk Mahncke, Coldwell Banker
List Price: $1,895,000
Days On Market: 2
Bedrooms: 3
Bathrooms: 3
Living space: 3,007 SqFt
Lot size: 27,720 SqFt
Age: 63

Bryan's Opinion: The Country Club neighborhood of Los Altos is always in demand when you get a nice lot size combined with a great home. This home is in great condition and in an excellent location with a very large lot size, even by Country Club standards.

What's most compelling for this home is that you get a lot of house for the money and the lot size gives you the option to build a larger home when the time is right. After all, this is an older home that has been remodeled. That said, the price is a challenge with only 3 bedrooms, in my opinion. I could also make the argument that the price is right due to home and lot sizes. Tough call but still a great house.

Hot New Home Los Altos Hills 10/28

2010-10-28T09:37:00.000-07:00

14414 SADDLE MOUNTAIN DRIVE, Los Altos Hills 94022
MLS# 81051923
Listing Agent: Jim & Jimmy nappo, Alain Pinel Realtors
List Price: $2,295,000
Days On Market: 1
Bedrooms: 4
Bathrooms: 3 1/2
Living space: 3,573 SqFt
Lot size: 84,942 SqFt
Age: 27

Bryan's Opinion: I'm not a fan of this area of Los Altos Hills because it's so far away from the town and it's too close to Hwy 280. That said, this is an excellent opportunity to get a large chunk of land with a nice house and Palo Alto schools.

When the listing includes MFA and MDA figures in the public comments, that tells me that the seller and/or agent feel it is best bought by someone who is looking at future development. I agree with that. With close to 2 acres, this is definitely a good home for someone who wants to build a true compound or estate. It's definitely value priced and should get a lot of interest fast with a relatively quick sale.

Los Altos Hills Real Estate - Price Drop of the Week

2010-10-26T16:47:00.000-07:00

24855 PROSPECT AVENUE, Los Altos Hills 94022
MLS# 81044501
Listing Agent: Edward Graziani, Sereno Group
List Price: $2,585,000
Days On Market: 48
Bedrooms: 4
Bathrooms: 3
Living space: 2,850 SqFt
Lot size: 43,560 SqFt
Age: 51

Bryan's Opinion: This is a great house in a neighborhood with truly world-class homes. Nearby Morgan Manor, a fixture in Los Altos Hills history, is in direct view from the back of this home along with San Francisco, Oakland, and the Bay. The price was reduced today and, considering those views, it's now quite a deal.

In addition to having great views, the home has been completely upgraded in 1997 and the lot is relatively level for such a Los Altos Hills location. While some people may not be fond of the small downslope driveway, the pros outweigh the cons, especially at this new price.

Halloween Fun in Los Altos

2010-10-25T23:37:00.000-07:00

If there's one thing Los Altos does well, it's celebrate holidays and throw parties. Halloween is no exception. As the start of the holiday season, the town has a tradition of hosting an in-town trick-or-treat event designed just for kids.

This Friday from 12-4PM in downtown, kids can walk into particpating stores and collect a piece of candy in teh grand tradition of Halloween. In addition, from 2-4PM there is a street party at Second and State streets usually with face painting, balloons, crafts, kids rides, and more. It's a lot of fun, especially for younger kids new to the whole Halloween experience.

Afterward, there are plenty of restaurants to visit so your stay in Los Altos can be extended a little longer.

This event, as with many others in downtown Los Altos, is hosted by the Los Altos Village Association. I've been a member of this group for a while and appreciate their on-going efforts to support downtown businesses and the community. For more information, visit their website.

Los Altos Foreclosure Update - October 2010

2010-10-25T14:35:00.000-07:00

During my most recent open house I had a few people ask if I was aware of any foreclosures in Los Altos or Los Altos Hills. I said yes but also pointed out that very few homes ever become REO (bank owned) property in Los Altos or Los Altos Hills for several reasons including:

Strong buyer demand
Ability to sell as a short sale
Significant equity in the home

So, will you get a deal on a foreclosure in Los Altos or Los Altos Hills? Not likely. Why? Because the homes that are listed as short sales that have eventually become REOs are usually in poor locations and didn't sell in the open market for a reason. One street in Los Altos Hills that has been a few of these is Elena Road. The homes that have had trouble selling there have been close to 280 and priced too high. The banks have been unwilling to reduce the price they take so the homes languish. The short sale home on Lincoln Ave is in disrepair so potential buyers will have to look past the potential repair costs to get a good value.

Los Altos - Foreclosure vs. Short Sales Deals
One home that recently transitioned from short sale to foreclosure is facing the same issue that others have, the buyers want a deal but the bank won't reduce the price. One home in South Los Altos on Richardson Avenue has been on the market for a long time but the bank won't take less than the asking price.

The few foreclosed homes that have come up in Los Altos Hills include a couple that were underpriced on purpose (under $1 million) and ended up receiving dozens of offers hundreds of thousands of dollars over the asking price.

Can You Get A Deal In Los Altos?
You may but don't count on it. As I said, the few homes or properties that have become REOs are usually in poor locations and not the best investment. The ones that have come up in good locations sell quickly at market rates. If you're looking to save money on a home in Los Altos, I recommend looking at homes that have been overpriced and negotiate with the seller on a value in line with the market. Remember, prices are trending up slowly in Los Altos so buying before the Spring push could get you a great deal!

Hot New Home in Los Altos 10/20

2010-10-20T14:25:00.000-07:00

1525 KENSINGTON CIRCLE, Los Altos 94024
MLS# 81050843
Listing Agent: Donna LaCroix, Coldwell Banker
List Price: $1,985,000
Days On Market: 1
Bedrooms: 4
Bathrooms: 3
Living space: 3,061 SqFt
Lot size: 19,215 SqFt
Age: 51

Bryan's Opinion: This is one of the most coveted streets in Central Los Altos and properties rarely become available. It offers lots that are substantially larger than most in Los Altos and the privacy is hard to beat. This home is at the end of the cul-du-sac which makes for even more privacy. While the location is at the farthest southern section of Central Los Altos, it still offers Los Altos schools and easy access to both 280 and 85.

While this home is not upgraded as much as other nearby homes, it is still on a larger lot and has comparatively more square footage. With such a convenient location, privacy, lot size, and more as pluses for this home, I expect this to get a lot of attention. I'm a little concerned about the price but not too much . We'll see how it goes during tour on Friday.

Los Altos Hills Real Estate Market Report for September

2010-10-20T11:55:00.000-07:00

Mixed Average and Median Prices
For the month of September, 2010 the average sales price (ASP) in Los Altos Hills was $2,670,000 compared to $2,062,500 in September 2009. That's an increase of 29%. While that appears to indicate that the high-end market is on fire, it isn't. I did a price analysis of homes selling in the $2-3 million range and the market is still having difficulty. The median sales price in Los Altos Hills for September 2010 was $2,540,000 versus $2,297,500 in September 2009. That's a respectable 5.5% increase. However, I'm not a fan of median prices so this is merely a reflection of a single month and not the year. Yes, the market is doing better but not quite as good as these figures would suggest.

Sales Volume Was Down
Los Altos Hills had 7 closed sales in September 2010 versus 8 in the same period of 2009. The number of days on market went up, from 83 days last year to 125 days this year. Many homes that have been on the market a while have finally sold and it's skewing the numbers.

Inventory Is Flat In Los Altos Hills
There were 67 homes on the market in September versus 70 in the same period of 2009. There have been fewer listings this year but in general the inventory in Los Altos Hills is down as most sellers are taking a "wait and see" approach to the market.

Fourth Quarter Trends
As with other area, we typically see inventory drop along with average and median selling prices as well as the number of homes sold in Q4. I feel we'll see more strength going into the end of the year as the economy continues to strengthen.

Los Altos Real Estate Market Report for September

2010-10-19T16:57:00.000-07:00

Mixed Average and Median Prices
For the month of September, 2010 the average sales price in Los Altos was $1,682,581 compared to $1,638,960 in September 2009. That's an increase of 2.66%. However, the median sales price in Los Altos for September 2010 was $1,476,000 versus $1,676,000 in September 2009. That's a substantial 12% drop. I personally don't place my weight in median prices as they don't tend to show the true trend of the market.

Sales Volume Was Down
Los Altos had 19 closed sales in September 2010 versus 29 in the same period of 2009. That's a large drop as well. However, the number of days on market or how fast homes sold was way down, 91 days last year to 43 days this year. That shows that homes are selling faster, which is a trend most Los Altos based agents will attest to. The market is strongest with entry level homes priced under $1.5 million.

Inventory Is Flat In Los Altos
There were 85 homes on the market in September versus 86 in the same period of 2009. There were more new homes coming on the market but since they sold faster the final inventory count ended up being lower.

Fourth Quarter Trends
Going into the final quarter of the year we typically see inventory drop along with average and median selling prices as well as the number of homes sold. This is in contrast to the year as a whole. Based on sales so far in October, that trend may not hold true this year. So far, the market is strong and we'll see how the final figures for Los Altos settle in a 12 days.

Los Altos Market Performance for Homes Priced $2-3 Million

2010-10-18T14:21:00.000-07:00

The good news is that unit sales are up and the average price per square foot are up in this challenging segment of the market. Los Altos home prices have been trending up slightly, especially after this past Spring when many homes priced under $1.5 million sold with multiple offers. The high-end market has had more difficulty but has greatly improved this year.

In 2009, some of the figures are distorted because there were several new or newer homes priced over $3 million that had substantial price reductions under $3 million. Two of these were on Manor Way in the Loyola Corners section of Los Altos. As a result of removing those homes, a more accurate comparison on 2009 and 2010 is shown.

While sales and the average price per square foot are up, the overall average listing price is down about 7%. The average sales price is down about 5% compared to 2009. Does this mean that prices are down in Los Altos? Yes and no. The average price per square foot is up but not enough to counter the overall sales price. So, prices are down but slightly - when put into that perspective. This only applies to this segment of the market. Los Altos general single-family home prices are up when including homes in all price ranges.

I'm seeing more sales activity in Q4 and expect to see a strong finish to the year.

Hot New Home in Los Altos 10/14

2010-10-14T14:13:00.000-07:00

91 ARBUELO WAY, Los Altos 94022
MLS# 81049871
Listing Agent: Yvette Stout, Alain Pinel Realtors
List Price: $2,795,000
Days On Market: 1
Bedrooms: 4
Bathrooms: 3 and 1/2
Living space: 3,206 SqFt
Lot size: 10,138 SqFt
Age: 4

Bryan's Opinion: Arbuelo is in North Los Altos which is considered one of the most prestigious sections in the town. Many homes in on Arbuelo and on nearby streets have been upgraded or built new but not so much that the unique charm of the area has been drowned out. This home is similar to others in terms of size and look/feel that have sold in recent months. It should get a lot of attention and interest but will get some push-back on price.

Arbuelo is close to downtown Los Altos but a healthy walk at just over 1 mile. The neighborhood is generally quiet with little cut-through traffic compared to other nearby streets like East Portola.

Developers in Los Altos Hills - Super Mansions and Protected Land

2010-10-13T13:50:00.000-07:00

Los Altos Hills has long been a destination for the rich and famous to build high-end estates and small developments of luxury homes. It's an attractive destination for developers and private land owners. Los Altos Hills is facing a couple of issues right now; restricting home sizes and development of Hidden Villa.

Hidden Villa
Hidden Villa is a 1600 acre preserve and farm that locals have enjoyed for decades. A developer has proposed building homes within an area too close to a creek running through the land, in violation of county regulations. While not officially a part of Los Altos Hills (it's technically county land), development in the area is considered undesirable by many local residents.

In my opinion, development of the site is not in the best interest of the community and further work within the 150-foot setback is an affront to the existing residents. I understand that a developer has to maximize the use of the land but in this case the setback was known prior to acquisition. Developers need to work within the rules to as much a degree as possible.

Super Mansions
There's a 28,000 square foot home planned for Los Altos Hills that has become one of a few that residents are taking issue with. In some local towns where such homes are built, including Woodside and Atherton, the solution has been to build smaller homes and get the additional square footage through more buildings - effectively creating a compound.

My question to the people building these homes is; do you really need all that space? It seems to me that such a home is merely a statement of wealth and not need. In light of the social backlash of overpaid executives it might be worthwhile to take a "less is more" approach and build more modest homes.

I'm not against development at all. However, I see an opportunity for restraint and practicality.

Perfect Symmetry: Los Altos Boy Born on 10/10/10 at 10:10

2010-10-12T11:29:00.000-07:00

We all know that Los Altos is a distinctive place with a storied history filled with the names of interesting people. Well, we can add Rafael Terrell-Hondl to that list. He's the newest Los Altos resident, born on October 10, 2010 at 10:10AM in Room 10 of Kaiser Hospital!

Fortunately for mom he wasn't 10 pounds but he did weigh in at a nice 8 pounds 11 ounces and he measured 20 inches (2x10). The birth wasn't planned and in fact he was expected 10 days early.

Rafael joins his 6 year old brother and 3 year old sister when he goes back home to Los Altos. His is one of a rare number of babies born on this auspicious date and he'll have plenty of newspaper clippings to look at when he's older.

Hot Home Price Drop in Los Altos 10/11

2010-10-11T13:11:00.000-07:00

1504 COUNTRY CLUB DRIVE, Los Altos 94024
MLS# 81040749
Listing Agent: Judy Bogard-Tanigami, Alain Pinel Realtors
List Price: $5,495,000 PRICE DROP OF $1.455 MILLION!!
Days On Market: 0
Bedrooms: 5
Bathrooms: 4 and 1/2
Living space: 7,585 SqFt
Lot size: 81,457 SqFt
Age: 82

Bryan's Opinion: This home is in the Country Club section of Los Altos and is considered one of the most desirable areas, especially with golf course views. This is a grand estate in the greatest tradition of Los Altos. While many will have an issue with the pricing, I suggest you consider quality, location, and lot size in that consideration. The homes priced in the $2-3 million range with 3000-4000 sqft are usually on lots 20,000 sqft or smaller, even if they're in great condition. This home is on a nearly 2 acre lot.

There are very few homes in the Country Club neighborhood that could achieve this price point. However, most are on smaller lots, are smaller homes, and don't have the same views. While not a historic home, it is a piece of Los Altos history. This is truly a great opportunity.

Hot New Properties in Los Altos Hills 10/7

2010-10-07T13:33:00.000-07:00

26620 PURISSIMA ROAD, Los Altos Hills 94022
MLS# 81049100
Listing Agent: Kevin Flynn, RE/MAX
List Price: $3,995,000
Days On Market: 0
Bedrooms: 3
Bathrooms: 1
Living space: 1,101 SqFt
Lot size: 108,900 SqFt
Age: 85

Bryan's Opinion: This seciton of Los Altos Hills is home to many large lots with older smaller homes, horses, and other farm animals. It feels to me to be more rural that some other sections. There are a few nice estate homes in this area but not as many as other areas of the hills. The downside of this area is that you do get noise from Highway 280. On the other hand, it is hard to find a nearly flat 2 acre lot as well. You will get no real views from this lot.

This is priced in line with other lots currently available in Los Altos Hills that are flat and running about $2 million an acre. If you're considering a large flat lot to build a new home and want space for animals, pool, tennis court, etc then this is a great opportunity.

Hot New Properties in Los Altos 10/7

2010-10-07T13:11:00.000-07:00

2204 VINEYARD COURT, Los Altos 94024
MLS# 81049095
Listing Agent: David Troyer, Intero Real Estate
List Price: $1,828,000
Days On Market: 1
Bedrooms: 5
Bathrooms: 3
Living space: 2,743 SqFt
Lot size: 16,592 SqFt
Age: 51

Bryan's Opinion: Sitting on more than 1/3 acre of land at the end of a court, this home is located in a highly desirable section of the Highlands Neighborhood of Los Altos. Having sold a property in the same neighborhood this summer at $1,637,000 I can say that the pricing on this home is in line with the area. It is rare to get a lot of this size in Los Altos as most are 10-12K square feet.

The Highlands Neighborhood is generally hilly and some lots offer views and good privacy. There is very little traffic or road noise. I see this as being an excellent value especially considering recent sales.

Home sales and the 3.8% Medicare tax - it's real, sellers will pay it, be ready

2010-10-05T14:09:00.000-07:00

There has been a lot of coverage in the media and throughout our industry about this 3.8% tax on home sales. There have been articles saying it's a lie, myth, false, etc. NAR Mythbusters called it false but if you read carefully, they in fact acknowledge it's REAL! However, the bar is set for markets with high-value homes and high income individuals. In Los Altos and Los Altos Hills we have a significant number of people who meet these criteria.

BARRIER 1: Personal Income (Adjusted Gross Income or AGI)
Your household needs to have income of $200,000 (individuals) or $250,000 (married couples). This barrier is easily passed in Silicon Valley with two engineers or managers each making $125K or more per person. This sort of household income may be rare in other parts of the country but here it's common.

BARRIER 2: Net Investment Income
You get an exemption of $250,000 (individuals) or $500,000 (married couples) from the sale of your personal residence. This covers most people in the country and even a fair number of people in Los Altos and Los Altos Hills. However, once you go past that THE TAX TAKES EFFECT. Keep in mind, you have to meet barrier 1 and 2 - BOTH.

This will impact residents of Los Altos and Los Altos Hills because a lot of people bought homes priced at $500,000 years ago and those homes easily sell for $1.5 million or more today. So, with $1 million in equity, you'll a break on the first $500,000 but you'll pay the 3.8% tax on the remaining 3.8%. Check with your tax advisor on the details. This tax takes effect January 1, 2013.

Hot New Properties in Los Altos Hills 10/5

2010-10-04T22:49:00.000-07:00

25701 DEERFIELD DRIVE, Los Altos Hills 94022
MLS# 81047316
Listing Agent: Patricia Lindo, Cashin Company
List Price: $3,400,000
Days On Market: 8
Bedrooms: 4
Bathrooms: 4 (and 2 half baths)
Living space: 3,924
Lot size: 17,466 SqFt
Age: 3

Bryan's Opinion: This home is located on a quiet street within walking distance of downtown Los Altos Hills. The lot is small compared to the one acre standard in Los Altos Hills but it's still a respectable size. This area of Los Altos Hills has a mix of smaller lots in addition to the conventional one acre minimum.

The home does have some views but they're low level over the valley, not the high up views you get from homes on the other side of Highway 280. The proximity to town and high-quality neighborhood make this a prime place to be.

Market Trends: Los Altos Hills home prices have dropped, sort of

2010-10-04T12:09:00.000-07:00

I've had a lot of clients tell me Los Altos Hills prices have dropped. I'm a pragmatic Realtor and have no issue with the facts behind a weak or strong market. My gut instinct is that the market is good overall but some segments are weak. So I looked specifically ONLY at homes that have SOLD where the sales price was $2-3 million. This is a key segment of this market because the average selling price is about $2.2 million.

ARE WE UP, DOWN, OR BOTH?
The chart below spells it all out. The median and average prices are down both Q3 2009 to Q3 2010 as well as the year-to-date (YTD) trends for both years. The average listing price is down over 7% and the average sales price is down about 5%. However, the homes that have sold are smaller and on smaller lots. So, the price per square foot is effectively up.

Does this mean the overall market in this range of prices is up or down? I'd go with down because the price per square foot argument is difficult to truly quantify. Smaller homes typically sell for higher prices per square foot.

UNIT SALES ARE OFF
There were only 5 homes sold in Q3 2010 versus 20 in Q3 of 2009. To see if this is really an issue you could look at the number of pending sales but that would not make up the difference. The YTD sales are off as well with 31 in 2009 versus 22 in 2010.

Why are prices and unit sales down so much but they're up in Palo Alto in the same price range? Good question. I know that a lot of buyers are looking at Los Altos instead of Los Altos Hills because they want traditional neighborhoods and less land to take care of. I think Q4 will be strong and we'll see less of an difference between the two years.

Los Altos Short Sale Property 10/3

2010-10-03T09:53:00.000-07:00

688 LINCOLN AVENUE, Los Altos 94022
MLS# 81035757
Listing Agent: George Ho, George Realty
List Price: $1,378,000
Days On Market: 3
Bedrooms: 4
Bathrooms: 3 1/2
Living space: 3,078
Lot size: 7,405 SqFt
Age: 63

Bryan's Opinion: This home is located at the end of Lincoln Street which runs along Foothill Expressway. It is within walking distance of downtown Los Altos with nice homes nearby. It has been on the market (off and on) for about 3 years, starting at over $2 million and at one time being as low as $799,000. The current price is very close to the lender approved sale price of $1,380,000.

For the size and location, this home is very well priced. While in great condition, it offers little flair or character. The view out the front door is of the Foothill Expressway sound wall. However, if you need a larger home, a Los Altos address, and a good general location. This is a home worth considering.

Keep in mind, this is one of a limited number of short sales in Los Altos, ever. Within a half-mile radius there are three other properties that are much smaller and with similar location challenges priced within $200K or so of this home.

Hot New Properties in Los Altos 10/2

2010-10-01T22:39:00.000-07:00

555 SHELBY LANE, Los Altos 94024
MLS# 81047918
Listing Agent: Sunny Kim, Alain Pinel Realtors
List Price: $1,895,000
Days On Market: 3
Bedrooms: 4
Bathrooms: 2 1/2
Living space: 3,389
Lot size: 12,632 SqFt
Age: 35

Bryan's Opinion: This home is located on a cul-du-sac within walking distance of downtown Los Altos with nice homes on the whole street. It's backed up to Covington Elementary which may not appeal to some people but the overall nearby neighborhood is excellent. There's a lot of remodeling and new construction in this area of Los Altos which is helping prop up property values.

For the size and location, this is reasonably well priced. While in great condition, it does feel a little dated. Given what else is on the market in Los Altos, I'd highly recommend looking at this for the size and convenience.

Hot New Properties in Los Altos Hills 9/29

2010-09-29T13:17:00.000-07:00

12000 SOUTH EL MONTE ROAD, Los Altos Hills 94022
MLS# 81047765
Listing Agent: Jackie Schoelerman, Alain Pinel Realtors
List Price: $1,625,000
Days On Market: 0
Bedrooms: 5
Bathrooms: 3 1/2
Living space: 3,113
Lot size: 42,000 SqFt
Age: 47

Bryan's Opinion: This home was listed earlier in February 2010 for $980,000 and sold for $1.1 million. I was asked to give a pricing opinion on the property before it was listed is it eventually sold for almost exactly what I estimated.

The location is very close to Foothill College and the house itself is situated in such as way that you will get noise from El Monte and Foothill College. There are no views to speak of and there is a common driveway with another property. However, given the remodeled condition, this represents an excellent value for the Los Altos Hills. If you want a Los Altos Hills address and a nice, updated home, this is a great opportunity.

Can home pricing be part of a bigger strategy?

2010-09-29T10:58:00.000-07:00

Home prices in Los Altos generally follow the same pattern. A market analysis will generally show where a home should be priced and the listing agent will price is 1-5% of where it will actually sell. For example, if the market analysis shows a recommended price of $1,429,000 the agent may price it at $1,450,000 or $1,395,000 depending on market conditions at the time, time of year, and amount of competition.

Optimal Pricing is Set By The Market
I'm of the opinion that pricing spot on is the best way to go, especially in Los Altos. You'll get more offers and a better overall response from both agents and buyers. Overpricing, even in a hot market, will tend to turn off buyers and agents. I priced a great home in Central Los Altos at $1,395,000 this spring and it sold with multiple offers for full price.

There are those that differ and price low to drive a lot of offers. While that strategy may work from time to time, again, the key consideration is market timing. If there's a lot of inventory and quality houses, pricing low may not be in your best interest. It might actually be better for your client to price with the rest of the market and wait until some inventory clears. Don't give up $50K just to get a quick sale.

Beyond Pricing High or Low
I offer another option to pricing that I've seen done. I call it "weird pricing". We all generally follow the same rules with prices in the thousands and hundreds, ending in 0, 9, or 5. But could we stand out more with "weird pricing"! Like this:

$1,483,725
$647,182
and so forth...

If I'm looking down a list of prices, that weird pricing grabs my attention. Could is also grad the attention of other agents and buyers? Perhaps.

Then I ask these questions. Does this become part of an overall strategy to make the property stand out more? Could this weird pricing make a home sell faster in Los Altos than other listings? Would an offer be more inclined to round up or round down?

Squatters in mansions? Say it isn't so!

2010-09-24T14:47:00.000-07:00

I read an article on MSNBC about squatters living in mansions in high-end areas of cities such as Seattle, St. Louis, Chicago and Los Angeles. The focus of the article was Randy Quaid (of National Lampoons Vacation fame) who was "squatting" in a home he used to own in Montecito, California.

Normally, the issue of squatting is the domain of low-end homes and areas where there are so many vacant homes it's hard to keep track of who owns what. The problem still exists and in some cases the occupants are quite open about it, even being interviewed in local news stories about living rent free while their foreclosed home gets sold. Evictions take time and money which isn't something the "out of area" REO agents are often unwilling to do.

So as I'm reading this I'm thinking, "Is this really a problem or is it just another piece of bad news pumped out by the mass media?" Then I read the story and realize it really is just a load of crap.

There's an advocacy group in the Seattle suburbs that squats in mansions intentionally to draw attention to the plight of homeowners overall, not just the high-end. However, the article really only cites four instances of what amounts to trespassing. Is this a major issue? NO!!

As far as I know, and I'd say I'm fairly well connected, there are no cases of this here in Los Altos, Los Altos Hills, Atherton, Palo Alto, or the other high-end towns around here. There are certainly boatloads of "mansions" on the market around here and I have yet to hear of one having a squatter.

Hot New Properties in Los Altos 9/21

2010-09-21T11:42:00.000-07:00

1450 MONTCLAIRE PLACE, Los Altos 94024
MLS# 81046289
Listing Agent: Kathy Bridgman, Alain Pinel Realtors
List Price: $2,749,000
Days On Market: 1
Bedrooms: 4
Bathrooms: 4 1/2
Living space: 4,957
Lot size: 10,170 SqFt
Age: 5

Bryan's Opinion: This home was listed last year for $2,895,000 (started at $3,185,000) and didn't sell. It was a difficult market in this price range last year. Located in the Highlands Neighborhood, this home is large for the area and at the top end of the price range. It's larger than homes on similar sized lots in the Country Club area which makes it a relatively good value. If you're looking for large, newer, and well located, check this listing out.

Hot New Properties in Los Altos 9/15

2010-09-15T15:06:00.000-07:00

252 FRANCES DRIVE, Los Altos 94022
MLS# 81045081
Listing Agent: Lynn North, Alain Pinel Realtors
List Price: $3,099,000
Days On Market: 2
Bedrooms: 4
Bathrooms: 3 (plus 2 more 1/2 baths)
Living space: 3,342
Lot size: 12,600 SqFt
Age: 4

Bryan's Opinion: This last sold in 2006 for $3.07 million so the current price shows how well Los Altos is holding up compared to other markets. This neighborhood is great with lots of new/newer construction, walking distance to town, and a quiet street. Since this is relatively new, it commands a premium over similarly sized properties priced lower. This is very close to my where I used to live so I know the walking is great with lots of friendly neighbors.

97 PEPPER DRIVE, Los Altos 94022
MLS# 81045165
Listing Agent: Hilda Balakhane, Alain Pinel Realtors
List Price: $4,288,000
Days On Market: 2
Bedrooms: 6
Bathrooms: 4 1/2
Living space: 4,000
Lot size: 16,675 SqFt
Age: 0

Bryan's Opinion: This is near the house shown above (3 short blocks away) and also close to town which is a huge plus. Very modern construction is not very popular in Los Altos but green construction is, which this house offers. The price is over $1000/SqFt which is rare and hard to justify in Los Altos.

Stronger markets, better banks, fewer foreclosures

2010-09-15T10:00:00.000-07:00

Negative Media Spin
The local media is back in the habit of negative spin with the SJ Mercury News publishing a headline entitled "Silicon Valley foreclosure data: signs of stress, but some improvement". The first line states that hundreds of homeowners fell behind but foreclosures increased. Nice start to a story guys. Knowing that most people just read the first couple of lines in a story, it's no wonder people think we're in trouble.

Positive Reality
However, in reading the article we find that default notices were down a whopping 36.7% in August as compared to August 2009. That's a huge reduction! In addition, actual foreclosures were DOWN 7.5% in Santa Clara County. In addition, cancellations of foreclosures were up almost 100% from the year before and they outpace overall foreclosures. Only San Mateo County saw an increase in actual foreclosures, up 8.7% in August.

Market Shifting
The market is moving away from foreclosures for a couple reasons, properties are selling in the open market as regular or short sales (not all foreclosures are negative equity) and banks are working with more homeowners to avoid foreclosure. Both of those statements are supported by sales statistics and banks. There is less build-up of "shadow inventory" which means as more buyers enter the market, there is less inventory available. This also supports the rationale behind increased median and average selling prices.

Los Altos is not a hotbed of foreclosure activity and the few homes that get a Notice of Default end up selling well in the open market. Our market and the general area are selling well with prices trending up. As long as inventory stays low, we should post solid numbers for the year.

Hot New Properties in Los Altos Hills 9/14

2010-09-14T14:50:00.000-07:00

14176 Stanford Court, Los Altos Hills, CA 94022
MLS# 81045160
Listing Agent: Ellen Barton, Coldwell Banker
List Price: $3,288,000
Days On Market: 3
Bedrooms: 5
Bathrooms: 4 1/2
Living space: 4,280
Lot size: 61,419 SqFt
Age: 22

Bryan's Opinion: This home offers Palo Alto schools which is a popular option for buyers in Los Altos Hills. This is very close to another recent listing on Mir Mirou in Los Altos Hills and a relative bargain compared to that one. While the area and location are good I'd like to see a more contemporary kitchen at this price.

Local schools even better, home values up?

2010-09-14T14:02:00.000-07:00

We all know that school scores boost property values and reduce inventory. Guess what, the Los Altos School District is #1 in the area with a new district-wide API score of 965! Within our district, Bullis Charter School in Los Altos is the 9th highest scoring elementary school in the state with a score of 988. To get the latest scores I highly recommend visiting www.greatschools.org.

Los Altos is #1
With the Los Altos School District the best in the local luxury home markets (in particular, better than Las Lomitas or Palo Alto Unified), how will this drive sales and pricing of homes in the area. As with most peninsula towns, real estate sales are heavily driven by school scores. Will we see a spike in sales or a rise in prices because of these new scores?

One of Many Factors
I don't expect that the current round of scores will drive a significant spike in sales or prices. I say this because we're already at the top of the score rankings. The gains in most schools are only a few points. While we get closer to a perfect 1000 score, we're already so close that a few more points don't matter much.

I feel that school scores are one of many factors driving buyers in this market. The strong scores will probably boost interest and may result in a few more sales but that's about it. We can just relish the fact that we have some of the best schools in the state and that that fact will keep us a popular place to buy.

Los Altos Open House Report: Patterns and Trends

2010-09-13T14:05:00.000-07:00

I held open two homes this weekend; one priced at $2.7 million in Cupertino and the other at $2.5 million in Los Altos. Both were very nice homes, comfortable and casual living, and priced reasonably for their respective markets and locations.

Patterns: Who Are The Buyers
The traffic was average on both days but the types of buyers was similar across the board. Here are the types of buyers I see:

- Upgrade buyers moving from a slightly lower priced neighborhood, even within Los Altos, who are considering upgrading from the $1.5 million range to about the $2.5 million.
- Relocation buyers who have been looking at multiple local markets and are still trying to define where exactly they want to go. This type of shopper is also heavily considering how far their dollar will go in each town or neighborhood.
- Value buyers have been looking for a while and know the statistics. These folks have looked in several markets just like the relocation buyers. They are different because they know all the statistics and pride themselves on comparing one area to another. They'll typically make an offer when a property appears to be undervalued and they see a perceptual, if not real, bargain.

What's The Trend For These Buyers
Many buyers are taking a wait and see approach expecting to see prices drop. Unfortunately, that's not the trend. Good homes, priced well, as selling quickly. The misperception among most of the buyers is that prices are still dropping. That's not exactly true.

The list prices are dropping but the averages are increasing. What's happening is that sellers will list higher to provide negotiating room and they assume the market is moving up. Prices are increasing, but barely and not at the high end. So, they'll price a property at $2.7 million, drop the price to $2.5 million, and finally sell it. Buyers see prices dropping as a result.

As a buyer, you'll have a better pick of inventory if your agent does an market analysis and provides a range of values for the home you want to buy. I do this all the time. You won't end up overpaying because you'll pay a price in line with the current market. Plus, you'll get settled sooner rather than waiting weeks for a price drop initiated by the listing agent. Buyers can take control with the right information.

Inventory is low in Los Altos right now but there are plenty of options in the $2-3 million range. If you're shopping in this range, this is a good time to buy and get a good value if you're well informed.

Hot New Properties in Los Altos 9/9

2010-09-09T14:09:00.000-07:00

623 Benvenue Ave, Los Altos, CA 94024
MLS# 81044310
Listing Agent: Pam Blackman, Intero
List Price: $2,398,000
Days On Market: 1
Bedrooms: 5
Bathrooms: 3 1/2
Living space: 3,255
Lot size: 11,088 SqFt
Age: 59

Bryan's Opinion: This street and area is extremely popular because it's so close to town (walking distance) and there is a lot of new construction. A larger house on a smaller lot 2 doors down the street sold in May for $2.75 million.

900 Madonna Way, Los Altos, CA 94024
MLS# 81044456
Listing Agent: Charlene Sawe, Sereno Group
List Price: $2,295,000
Days On Market: 0
Bedrooms: 4
Bathrooms: 2 1/2
Living space: 2,957
Lot size: 9000 SqFt
Age: 40

Bryan's Opinion: This home is in the inner foothills on the other side of Summerhill Road, 2 minutes from downtown Los Altos (almost walking distance), and offers views that rival more expensive homes.

Living in Los Altos: Little known resources you need to know

2010-09-07T11:12:00.000-07:00

There are a lot of resources available online to learn about everyday life and history in Los Altos. Some are better than others but all should be referenced every so often just to make sure you're not missing anything.

Neighborhood Information
Los Altos Neighborhood Network (LANN) - This monthly newsletter offers insights into events and activities around the city. It has been around for about 10 years and offers an online archive of past newletters free of charge. Current newletters require a modest $20 subscription fee.

The newsletter offers links to other resources including civic services, utilities, schools, communications, transportation (school routes and bike maps), recreational activities, and traffic data.

Downtown Activities Information
Los Altos Village Assocation (LAVA) - This group highlights the downtown merchants much like the Chamber of Commerce. However, that also coordinate major events including the farmer's market, Los Altos Art & Wine Festival (one of the best in the Bay Area), Friday Movie Nights, and more.

Their website offers details on events, links to merchants, and information on promotions and coupons for merchant products and services.

Los Altos History
The Los Altos History Museum - Whenever you want to look back on how Los Altos came to be, this is the place to go. Whether visiting in person or online, you can see how life was like when the town was little more than a train stop with a few houses. They also showcase exhibits from local artisans with everything from crafts and collections to painting and pictures.

This little slice of local color is often overlooked by new and existing residents because it is set back behind the library and civic center. Take a look and learn more about where we live.

The San Antonio Hills neighborhood in Los Altos, California

2010-09-04T09:53:00.000-07:00

Los Altos Neighborhood Spotlight - San Antonio Hills

Where Is It?
This prime area of Los Altos is actually unincorporated Santa Clara County land. The borders are Foothill Expressway, Magdelena Avenue, Ravensbury Avenue, and Permenente Creek.

Types of Homes and Land
Most homes in the area are new or newer and in a variety of styles from Mediterranean to contemporary. There are a lot of custom home styles that stand out including Cape Cod, Carmel-cottage, French Provincial. Home sizes start as small as a few hundred square feet to 6000+. Lot sizes tend to be larger than Los Altos standard with many lots in the 12000-15000 s.f. range. There are a lot of ranch-style homes left over from early development.

Special Features
The Los Altos Hills Country Club takes up a significant portion of the available land. Streets tend to be narrower than other areas of Los Altos but the larger lots offset that. Of course, the area is slightly hilly similar to the Highlands Area of South Los Altos. The HOA for the area is open to annexation but only by Los Altos Hills.

Other Resources
The area has an HOA with its own website. Visit here for even more details and history:
San Antonio Hills HOA Website

Hot New Properties in Los Altos Hills

2010-09-03T14:36:00.000-07:00

27040 Old Trace Lane, Los Altos Hills, CA 94022
MLS# 81042917
Listing Agent: Mary and Brent Gullixson, Alain Pinel Realtors
List Price: $24,950,000
Days On Market: 4
Bedrooms: 6
Bathrooms: 6 1/2
Living space: 14,855
Lot size: 3.394 acres
Age: 20

Bryan's Opinion: This is one of the most beautiful estates in Los Altos Hills and among the more expensive ones as well.

13914 Mir Mirou Drive, Los Altos Hills, CA 94022
MLS# 81043038
Listing Agent: Gary Campi, Campi Properties
List Price: $6,450,000
Days On Market: 4
Bedrooms: 5
Bathrooms: 4 1/2
Living space: 5,524
Lot size: 2.37 acres
Age: 28

Bryan's Opinion: Close to the Palo Alto Hills Country Club and very private. It's not in the primary Los Altos Hills area but it's still a great location.

Hello Los Altos! Can you hear me now?

2010-09-02T12:08:00.000-07:00

Our poor town is having such a hard time actually embracing the 21st century. Once again, we've got neighbors complaining about someone who wants to install a new Verizon transmission tower in the San Antonio Hills neighborhood. This new 55 foot tower would be placed along with 3 others in a residential neighborhood.

I'm sorry, but are all these neighbors using AT&T service? Have they tried to make a call in Los Altos on Verizon? Verizon does not have a strong presence in Los Altos and they need the signal boost. It's ridiculous that I get 1 bar in a town filled with engineers and high-tech executives. We should have 5 bars!

I understand the issue of blight and not wanting commercial technology sitting in the middle of multi-million dollar homes. HOWEVER, there are ways to hide those towers. In my opinion, this town has been suffering with poor cell service for a long time and this is a viable solution. Hide the tower and pick something else to argue about.

There's a concern that having the tower there will impact property values. I don't see how. The area has been selling well with the three towers already there. Having another one is unlikely to make an impact.

BTW - For those of you, even locals, who don't know where San Antonio Hills is, I'll blog about the area soon.

Just how wrong is Zillow and what do you tell your clients?

2010-08-27T13:58:00.000-07:00

With Free Data, You Get What You Pay For
We all have clients who go to Zillow, CyberHomes and other sites to get an estimate of the value of their home. An article in the Sacramento Bee a couple of weeks ago talked about how far off these sites can be. Even Zillow's chief economist says they are accurate to within 10% on their best day. Since it's free to consumers, do these sites do more damage than good. Is the free data offered without the expertise of an agent setting expectations higher or lower than they should be? The value of Zillow and other automated estimating sites is just as they present themselves, a starting point. Where they fall short is in areas where the homes become more distinctive.

It's Just A Step Along The Way
A lot of agents, myself included, feel that in some markets these estimates are so far off the mark as to be at least useless and at most dangerous. Sellers could feel their home is undervalued and decide not to sell. Buyers could get unrealistic expectations on value and press agents to make offers based on those estimates. However, I seldom see these things happen. What is most often the case is that buyers and sellers get an idea of the relative value of the home to others in the area. In general, these estimates are a starting point from which they and their agents can start.

A Local Realtor Is Better
These automated tools will never replace an expert in the area. A Realtor will be able to account for variables the software can't. In the process, the Realtor can educate the seller or buyer about the market and set a price that makes sense.

In the local market of Los Altos and Los Altos Hills, Zillow is often very wrong. A few times it has been very accurate, but 9 times out of ten it's way off. It's often wrong because an entry-level rancher with 1800 square feet can appear on Zillow to be worth $1.2 million because it hasn't been fixed up. However, with some updates it may be worth as much as $1.5 million. The 25% discrepancy is huge and requires a Realtor to discuss and explain. There's a piece of property on Loyola Drive in Los Altos that Zillow shows as worth $902K. It has a 672 s.f. house and a 20,000 s.f. lot so it's really worth at least $1.2M - based on my expertise.

This problem is even more pronounced in Los Altos Hills. It's easy to find examples of valuations where updated homes with $3-5 million are given estimated values of $2-3 million. Just remember to check with your local Realtor to get the most accurate estimate of the value of your home.

Do luxury hotels bode well for the local housing market?

2010-08-24T13:38:00.000-07:00

A new luxury, boutique bed and breakfast hotel has been approved for construction at the corner of San Antonio and Main Street in Los Altos. The three-story 12,000 square foot building will have 18 rooms. The builder, Abigail Company, has been a long-time successful builder of luxury residences in Los Altos. This latest project is inspired by homes and estates seen in the French countryside.

So, does this mean that the economy is coming around enough that visitors will stay in town? I can't imagine the room rates will be cheap, given what else is available locally. Though rates haven't been published, it's safe to say they'll be in line with other luxury hotels in the area. That said, I see this new hotel as an indicator that there are people who believe that the economy is turning around. Building such a hotel tells me that we'll see more discretionary spending which could result in empty stores replaced with new businesses and downtown becoming a lively "destination" on the Peninsula.

Assuming the economy is turning around enough to warrant investors backing such a project, does that mean we can expect the housing market to continue improving? Inventory in Los Altos is lower than it was a year ago. The median is exactly the same from Q2 '09 to Q2 '10 and the average is up in 2010. We'll have to see as the year progresses.

What is a foreclosure really like on the courthouse steps?

2010-08-23T15:38:00.000-07:00

Foreclosures are a hot topic these days but have you ever actually been on the courthouse steps while they auction off someone's home? Probably not.

It was the best of times, it was the worst of times...
A moderate group of about 12 people were standing or sitting in various spots on the steps of the civic center building in Santa Cruz, California. Nearly everyone looked like they shopped for clothes at Eddie Bauer (except one lady who looked just a bit unique). As the minutes went buy it was clear that most of these people knew each other and exchanged witty banter back and forth as the court clerk read off the list of properties that would presented today. The mood was lighthearted and as warm as the weather.

Lots of foreclosed homes but then again, maybe not...
The clerk reads the list quickly and clearly of everything on the docket for today. Those are homes all scheduled to be auctioned, but wait! They're not all really being auctioned. What!? Why?

Well, as she reads through all the properties not being auctioned today some interesting reasons are offered such as "bankruptcy" and my personal favorite "lender discretion". Bankruptcy I understand, but lender discretion? Does that indicate a banker with a heart? of course not silly reader, bankers are blood-sucking vampires as anyone knows. The discretion in this case, while unexplained, was probably a private money lender willing to "work a deal". Then again, who knows.

In the end, after reading off the list of about 50 properties we actually have two...yes 2...actual properties being sold at auction.

There's a sucker born every minute....
Because I'm such a believer in the mass media and all their fine reporting on the profits to be made in foreclosures, I'm really excited about the prospects of what I can buy. I've actually got my checkbook in the car (just by chance) ready to buy that deal of a lifetime.

Up first is...drumroll...a mobile home for a mere $89,250. Really?! No land, no rights, just an oversized camper? Argh!!! Up next, an actual house! Cool! But, the other buyers all laugh as the address is read by the clerk. It's a run down dump in a location slightly better than prison. So I waited on the steps for nothing?

No, but I thought it would be fun to convey that the media portrayal of heated sales of fine homes is a bit off. This is just one auction of thousands around the country. Sure, many fine homes have been sold in both Santa Cruz and Santa Clara counties. There's a home in Los Altos Hills heading to the steps that is worth about $2 million. However, the lesson I offer is that foreclosures are not all they're cracked up to be.

The signs of the times are changing in Los Altos

2010-08-03T15:08:00.000-07:00

A hot topic these days in Los Altos is signage, of any kind. Those discussions have included signs used by Realtors. In the course of those discussions we've got two highly polarized camps; those who want signs and those who don't. The ones who don't would like to see ALL Realtor signs banned. They may, and I use that term loosely, yield to allow directional arrows.

So, why all the fuss? It's simple, some agents use too many signs. There are numerous intersections and streets with 2-3 signs at every corner on many weekends. There are signs in medians, sidewalks, and other places. In fact, there are signs in a lot of places they are NOT LEGALLY ALLOWED. The agents have been told the rules and choose to ignore them or just forget.

Here's my take on what we need:

No More Than 3 Signs
People don't drive around at random and follow signs for miles. You need one in front of the house and one each at the two closest intersections. That's it.

Directional Signs Only
The purpose of putting a lot of extra signs out is to make the agent look bigger, busier, etc. So we kill that benefit by limiting ourselves to directional signs only when placed off the property. That levels the playing field for everyone.

Penalties For Violators
As of now, there are no penalties for violators due to how NAR and CAR rules work. I'd advocate that agents violating local sign ordinances be fined (perhaps $500 per sign) to make it hurt when someone breaks the law. If we're supposed to be fine upstanding members of society, let's try acting like it and follow the rules.

As of now, nothing has changed but there have been some strong recommendations. If agents can't regulate themselves, the cities and towns will do it for us.

Mass media reporting is real estate's worst enemy

2010-07-29T08:35:00.000-07:00

The Public Has Questions
I had an interesting conversation with a stranger yesterday who I met while running errands. I was wearing my Coldwell Banker polo shirt so the person wanted to ask questions. All the questions were aimed at getting a reality check about reports in the media about short sales, foreclosures, interest rates, etc.

News Stories Are Deceptive
The person had the impression, based on media reports, that short sales and foreclosures were a major issue in Silicon Valley. That's flat out wrong. Both short sales and foreclosures have been dropping, "shadow inventory" is not increasing, and sales remain strong throughout the area. After explaining the facts and citing real figures from the MLS, she was upset.

What's The Real Story?
Her anger was focused on why the media portray one image while reality is so different. What I told her was the media tends to:

- generalize their statements and include stats for an entire region or the country
- make notices of default equal foreclosures
- speculate with statements such as "...millions of homeowners could..."

This story today on MSNBC:
http://www.msnbc.msn.com/id/38457609/ns/business-real_estate/
is a prime example where the writer is using notices of default (NOD) to make it sound like foreclosures themselves are actually coming soon. In reality, earlier reports of actual foreclosures show they're dropping in most areas.

Truth Lay With Bloggers
In my opinion, the local real estate professionals blogging about their local area can give a much more accurate picture of short sales and foreclosures. I encourage all of us to write the truth and fight the mass media. The deception and lies in the mass media are hurting our markets and buyer/seller confidence.

Homeowner limbo is the new purgatory for our markets

2010-07-27T15:19:00.000-07:00

According to Corelogic, a company that tracks mortgage performance, there are nearly 12,000 homeowners in default in the San Jose metro area. A number of them are in a new form of limbo where the bank tells them they're in default but hasn't moved forward with foreclosure or authorized a short sale. This creates a very dark market for our local market because we don't know if that inventory will become available or not.

The homeowners themselves are stuck in limbo because the stay in the homes without paying rent. Others are still negotiating with their banks but not making any progress. In the meantime, banks and HOAs don't get paid.

There are several major issues this could cause for our local markets. These include:

- A large surge in inventory, especially at the low end
- A possible increase in HOAs going bankrupt due to unpaid fees
- A decline in neighborhood quality as poor homeowners abandon maintenance

In the Los Altos area, this isn't a problem. It's also not an issue in Mountain View, Palo Alto, or Sunnyvale which all neighbor our town. However, as we saw during the downturn, what hurts one market will hurt us all - eventually.

Silicon Valley million-dollar homes sales keep getting better

2010-07-20T20:20:00.000-07:00

SALES ARE UP
A total of 266 homes priced at $1 million or more were sold in Silicon Valley in June, up 24% from the same time last year. The top 3 cities were San Jose (54), Los Altos (44), and Palo Alto (38). Relative to available inventory, Los Altos is the best market for sales at $1 million or more. It is rare to find a home in Los Altos priced under $1 million and if you do, it's a shack (literally) on a tiny lot.

...AND INVENTORY DOWN
Available homes have been dropping steadily for the past two months as we go into the slow August period. We should see more inventory in September. However, most homes are selling in a couple of weeks with good offers.

...SO WHERE'S THE CRISIS?
In the minds of the media and buyers dreaming of getting a deal. There is no short-sale or foreclosure crisis in Los Altos or Los Altos Hills. I can count on two hands how many homes actually became REOs in the past YEAR! The market is too strong to let the homes go to the bank. There have been a small number of short sales.

While the real estate market may be waning in some areas of the country, Silicon Valley and Los Altos specifically is strong. As predicted in January, I expect demand to remain strong with prices balanced trending slightly up.

If you're considering buying at this point, your best strategy is to look for homes that were priced high and have been on the market awhile.

High-end hit in foreclosure crisis...NOT!

2010-07-15T14:28:00.000-07:00

It amazes me to no end that our mass media are allowed to write stories anymore. The SJ Mercury News (news?, really?) had the gall to publish a story entitled "Santa Clara County's high-end houses hit in foreclosure crisis". What's stunning is that near the end of the article the author says "Lee said that at this point, the default notices hitting expensive homes have not translated into actual sales of those homes." So this news isn't really news then?

Here's a little education for the media...

DEFAULT NOTICE DOES NOT EQUAL FORECLOSURE!

It never has and it never will. The media have made a business out of publishing scary "news" that is nothing of the sort. It's just conjecture and fear-mongering designed to sell papers. I tore apart the New York Times article that other day claiming that Los Altos is an example of a flashpoint for high-end foreclosures.

The reality is that sales of homes over $1 million in the SF Bay Area are up. A few areas where home prices crept over $1 million during the boom are having more difficulty now because they don't have a history of supporting that price point. However, Los Altos has been priced over $1M for a long time and will continue to do so. Inventory is dropping because homes are selling - fast.

In the Los Altos market, if someone got a notice of default they have a good chance of selling their home on the open market long before they go into foreclosure. Foreclosure crisis? I don't think so.

Read the original article for yourself:
http://www.mercurynews.com/top-stories/ci_15508205

Are the rich really the biggest mortgage defaulters?

2010-07-09T12:28:00.000-07:00

Rich Defaulters? Hot off the New York Times presses this morning is a report that there are five homes in Los Altos - my primary market - are coming up for foreclosure. Furthermore, this town, one of the most expensive in the country, is an indicator that the wealthy are walking away from their loans.

Very Few Actually Do: The article states that Los Altos had 16 defaults for the first five months in 2010 versus the same period in 2009. However, those are NOT translating into foreclosures. Of the 141 homes sold in 2010 so far, the MLS data only shows 7 homes sold as short sales and 2 as REOs. The defaults may be happening but owners are mostly selling them as short sales, just like everybody else. The picture painted in the article is that one in seven high-end homeowners are defaulting on loans over $1 million but the numbers for Los Altos tell a different story.

Why Default? Because these "wealthy" folks are mostly dual-income families of people in middle or senior management, engineers, etc who lose their jobs just like everyone else. They may live in a $1.5 million house but they're also working 50 hours a week earning the $300-400K household income needed to cover the bills. If one person loses their job, they don't have millions in reserve to keep going. Again, the article has made our town look like we're all rich and a default is just another financial decision. I sold three homes in Los Altos and Los Altos Hills in June and none fit the bill of "rich" painted in the article.

Here's a link to the original article to compare my opinion.
http://www.msnbc.msn.com/id/38158763/ns/business-real_estate/

Kuish v. Smith - goodbye non-refundable deposits...

2010-07-07T16:18:00.000-07:00

This was a recent case in California in which the buyer submitted an offer with a $620,000 non-refundable deposit. The buyer cancelled the agreement and the seller eventually sold the property for more than the original offer. The seller refused to return the deposit because the contract had said it was "non-refundable".

Ultimately, the buyer did get his deposit back after the appeals court ruled. The case reflects the idea that actual damages have to occur in order to keep such a deposit. The key was that the liquidated damages provision in the contract wasn't initialed.

Advise your clients are to the meaning and intent of the liquidated damages and arbitration clauses in your contracts. Why? Because they could stand to gain or lose substantial sums by the simple lack of an initial.

I'm not a lawyer and don't offer legal advise but I do explain the contract and disclosures. Keeping my clients informed saves them money. My advice to agents - do the same.

ADA compliance for private home rentals will kill the market

2010-06-28T15:43:00.000-07:00

Hot off the presses from my meetings at C.A.R. in Sacramento just recently is the story of the The Big Bear Association and their fight against ADA compliance for private home rentals. A little insight into the issue and background are here:
http://shastamls.com/wordpress/?page_id=511

To me, this is purely about the rights of private property owners. As a homeowner, particularly someone who has a second property in a vacation area, you should have the right to rent it out to the general population without having to make special concessions to a small group of people.

If this suit passes, does it mean that all vacation rentals need to provide ADA-compliant access? If so, how many millions of dollars will be spent to ensure compliance. How many people with ADA needs will actually want access to these homes?

I think this suit is based on the needs of "the few" trying to assert their position over the rights of "the many". In my opinion, ADA-compliance should be limited to public areas and businesses only. I can see setting up ramps in hotels and resorts but private property should be exempt.

Sales are up. Prices are up. Are we booming again?

2010-06-18T16:29:00.000-07:00

Not exactly.

An article in this mornings San Jose Mercury News discussed the increase in sales and the median price of homes. In Santa Clara County the median sales price in May rose 6.4% from April 2010. However, it's because 54% of homes sold were over $500,000 versus 34% in the same period last year.

Now, this ties in nicely with the other recent report that the sales of million dollar homes has risen recently. This can be seen in Los Altos where entry-level homes priced from $1 - 1.5 million have been selling with multiple offers and many going over their asking prices. Similar behavior can be seen in neighboring markets including Mountain View, Palo Alto, and Sunnyvale.

The really good news is that most of these higher end sales are NOT driven by the tax breaks because the homes are priced too high or the borrowers are making too much money. So that means the market strength is built on solid buyers with the jobs and income to buy without incentives.

Based on the market activity in Los Altos, I expect this strength to continue into the summer and through the end of the year. We'll probably see typical slowness as the year comes to and end but 2010 should end with our local market back to being strong and balanced.

Sales of million dollar homes are increasing

2010-06-15T14:30:00.000-07:00

I read an article this morning that sales of million dollar homes in both San Mateo and Santa Clara counties rose in May. The most expensive home sold in either county in May was in Los Altos Hills, a 5,324 sq. ft. home that sold for $5.95 million.

Overall in Los Altos, the market is much stronger than last year. There were 22 sales, all over a million with the lowest price being $1.12 million for a nice home on West Portola. That's in line with 22 sold homes in May, 2009. However, the average and median prices are up about 10%.

The market in Los Altos under $1.5 million is on FIRE with most homes selling in their first week, many with multiple offers. However, as prices move over $2 million the market slows a bit and is much cooler closer to $3 million.

There has been no slowdown in June so far (I've sold two homes in Los Altos this month) and I expect the market to continue to be strong through the end of summer.

Morgage delinquencies - are they a red herring or real trouble?

2010-05-19T16:40:00.000-07:00

The Mortgage Bankers Association noted today that the number of people who missed a payment increased to records levels indicating a possible future rise in foreclosures. These are the same folks who told us a couple of months ago that the threat of foreclosures was essentially gone.

So, is it all negative hype to sell papers or do we have a real problem?

I say it's hype! Why? We also heard today that consumer prices dipped for the first time in a year and that wholesale prices dropped .1% in April. With consumer prices dropping it seems to me that people will have more money in their pockets. They'll either save it or use it to pay the mortgage.

Either way, money is incredibly cheap right now and 20% of foreclosures are being snapped up by investors. If inventory is being bought up left and right, how can we have a problem.

These "projections" of possible outcomes on the overall economy are nothing more than a red herring to distract regular homebuyers and keep the opportunities open for investors. As home inventory has been bought up in the local area, prices have started to rise. If consumers are kept out, investors will buy and prices will be kept flat - in the investors best interest.

That's my theory, I'm sticking with it. We need less media hype and more focus on financial reforms to help keep solid consumer buyers in the market.

Leave your wallet at the door: out-of-area agents will cost you

2010-05-18T10:13:00.000-07:00

There's a trend afoot in California: a move toward a single MLS system through which an agent from anywhere in the state can market a property anywhere else. As a homeowner, should you choose this option in the future, count on getting less of what you expect from a full-service Realtor.

Out-of-area agent = less market knowledge, less marketing, less negotiating, and less money.

No matter how much the online world has connected us, there is no way an agent from 30, 50, 100, 200 or more miles away can possibly no the subtle aspects of a local market. Sure, they can look at the comps and make a decent determination on price. However, they don't have the local connections or market knowledge to know what price will trigger multiple offers. How do they know where to advertise? Can they distribute flyers to local brokerage managers to give to agents? Can they present at the local broker tour? All those questions will get a "no" from an out-of-area agent.

In Los Altos and other communities, the best agents are the local agents. They know the market because they work here. I'd say that holds true for most other communities.

When evaluating a agent to sell your home, look at how many homes they've sold in the area, what they know, and who they know. Local strength is built on relationships in the neighborhoods and among the other local agents. That will translate into a better marketing plan and more money in your pocket.

For home buying, it's different. It's hard to refute the data on local sales no matter how far away they are. Most agents can run a market analysis on any home. Even then, a 1/4 mile can make a big difference. It's possible to see more agents from out of the area representing buyers and being marginally effective. However, I don't see them being effective on the sales side.

What do you think?

Low-balling can get you black-balled

2010-05-14T17:38:00.000-07:00

The decline in property prices in the last few years has given rise to the unpopular practice of low-balling - offering a price way below the list price in hopes the seller will just take it. When it works, it's great for the buyer but painful for the seller. Unfortunately, low-ball offers are often seen as offensive to sellers and the agents who write them can end up in the dog house.

I had two recent listings that received low-ball offers, as much as 40% off the list price. The homes were both in excellent condition, priced well, and marketed appropriately. The mindset from the buyers and the agents seems to be "let's see if we can get a steal". For the agents, I've politely told them to do better research on values and "get real". If you're a buyer's agent coming in with these ridiculous offers, be careful, you may get a bad reputation in the local market. If that happens, you're unlikely to ever get acceptance.

I understand these agents are willing to write these offers because prices dropped in past years. However, now prices are moving up - at least in Silicon Valley. Everything is moving up, especially the low-end. Multiple offers are common, not rare. Overbids are back in force. Inventory in some areas is so low that 10, 20, 30, or more buyers will go after a home.

If a buyer low-balls a home and the seller declines the offer, that buyer has little chance of coming back and winning. Why? The seller has lost all faith in the buyer. They know that buyer will nit-pick every disclosure to squeeze the seller a little more. Seller's don't want that. My advice for buyers is, be realistic and don't go for the "steal".

For the buyers I represent, I always tell them to be realistic. Don't go too low and don't go too high. We'll work on getting a reasonable deal where everyone wins. When that happens, the clients and agents walk away from the transaction feeling good.

How soon is soon when "coming soon"?

2010-05-11T14:14:00.000-07:00

Without getting tongue-tied, the question is how early is is reasonable to put up a coming soon sign. This is a big issue in California and in my local area as well. The controversy comes from agents who put signs up weeks or months in advance, thus disrupting the flow of the market.

In discussions with the managers of major brokerages in Los Altos and Mountain View, the consensus is that signs should be up no more than 2 weeks in advance. I can live with that. However, we do see agents who put signs up a month or more in advance. While the client and listing agent for that property may think it's great to build interest in their home, it can hold up buyers of other properties.

Often times the intent is to build a fervor for the upcoming property. However, it keeps buyers from bidding on nearby properties. This can be bad for several reasons including lack of comps and lower sales prices. The lack of comps is an issue for appraisers which might impact closing the deal.

The potential for lower sales prices, in my opinion, comes from having buyers be able to choose which property to go after. With more inventory on the market, buyers are in control. However, if homes become "pending sale" or "sold" then there is less inventory, more competition for buyers, and prices trend up.

So, keep the coming soon signs to within a couple of weeks of coming on the market and be reasonable when bringing on competing properties. A fair free market will benefit buyers, sellers, and agents in the long run.

Curmudgeon landlords and their draconian "no pets" policy

2010-05-03T14:54:00.000-07:00

It seems I'm spending a bit too much time lately taking issue with rather unpleasant...issues. Today I put before you the idea that owners of condos, townhomes, and single-family residences available for rent have mostly, as a group, decided that pets of any kinds are unwelcome. In particular, most owners of single-family homes declare "no pets" in postings on Craigslist, Padmapper, and other online resources.

While I understand that there is a desire to keep a home in top condition based on a possible future sale, it seems to be downright uncivilized to discriminate against pet owners. Have these people ever heard of a pet deposit? If $200 is too little to cover the cost of replacing carpet or fixing screen doors, then increase the deposit amount.

According to the Humane Society, 39% of households own at least one dog and 36% of household own at least one cat. They don't address households with combinations so let's assume that at least 39% of the U.S. has a pet. That means millions of people have a nearly impossible time renting a single family home!

Keeping it local, take a look at listings for rental homes in Los Altos, Los Altos Hills, and Mountain View. You'll find that of the available single-family home listings most indicate that either pets are not OK or are "negotiable". Negotiable means that if given the alternative, the owner will rent to someone with no pets. Looking in Cupertino, Sunnyvale, and other nearby communities the number of homes with a "no pets" policy increases substantially.

So, do we need a law on the books to ban pet discrimination? Have a few bad tenants spoiled it for everyone else? Why will almost all apartments take cats and yet so few single-family homes will?

What are your thoughts?

Can you actually see a house on that thing?

2010-04-26T12:03:00.000-07:00

I'm often asked by clients for information on what tools are best for searching for a home. Depending on where you are, the local MLS is probably a good start and there are merits to using major sites like Trulia, Realtor.com, and Zillow. However, I keep seeing articles about applications for smartphones and I have to wonder; can you really see a house on those things?

I've got a smartphone and I have used it to look up listings. I usually do it because someone asks me for details I don't have on a home. Unfortunately for the phone and the broadband network it runs on, downloading lots of high resolution pictures seems, well, impractical.

Sure, it seems cool that you can house hunt on your phone but can you actually see the home in any real detail? You can't see most of the virtual tours and the underlying listing details contain so much data you have to scroll through volumes of text to get what you want. Perhaps we should offer magnifying glasses to our clients who view homes on their tiny smartphone screens.

I just don't see the value in these applications and I have yet to hear from a client who finds them valuable. Most people I talk to use the tools for finding and mapping open houses.

Does anyone out there use these mobile apps to actually preview homes or are the application developers just pumping these things out for our amusement?

Guess who's stalling the real estate recovery...

2010-04-22T20:39:00.000-07:00

Well, here's another clue. It's the same idiots who made a bad problem worse by making the real estate downturn in the worst markets a national headline for months on end - the mainstream media. Why? Bad news sells papers and ad time on TV.

Several articles have been published in the last few days ranging from positive recovery news to more bad foreclosure news. Here are a few headlines:

Home sales, jobless figures point to recovery
Silicon Valley median home price rises 29%
Santa Clara county foreclosures jump 72%

In one article an economist at Credit Suisse says "We don't see another recession."

So, who's right in all this? No one. The reason it takes so long to recover is that the media will continue pumping any sign of bad news it can. This impacts the psychology of the entire country. The big media outlets report on what happens with one or more major metro areas as if it impact the entire country. It doesn't!

The downturn in Phoenix, Las Vegas, and various cities in Florida would not have had as much impact on the rest of the country if they had simply reported the news IN THOSE AREAS. Instead, the media insists on telling us the bad news there and then IMPLIES that the same thing will happen in my home town. Guess what, speculating on bad things often makes then happen - surprise!

Around here, when the foreclosures were starting to hit east San Jose, the media should have said "this applies to east San Jose because the area was showered in cheap loans made to people who couldn't afford them". Instead, we hear "the South Bay is seeing a downturn". Generalizations created fear and that is what took the markets down.

The media creates and continues to stoke fear in the hearts of buyers. The level of activity in the local area is strong with many homes selling in a few days with multiple offers. However, many buyers are cautious because of what they hear.

My advice to you is to look at the stats and don't believe the soundbites.

A coat of paint doesn't mean "recently remodeled"!

2010-04-18T09:35:00.000-07:00

I've been looking at single-family rental homes in areas of Saratoga, West San Jose, and Cupertino lately. In that search, a curious term gets used - remodeled.

For most people, the word "remodeled" implies that a home has had new flooring, new dual-pane windows, or a new kitchen or bathroom installed. The expectation is that some part of the home will look "new" or at least be in very good condition. However, several of the owners of these homes seem to have missed that point.

I've seen several homes that were posted on Craigslist described as "remodeled" or "updated" where nothing more was done than a coat of paint. Even worse, the paint was not done throughout the home or was done badly. Note to the "do it yourself landlords" - streaks, drips, and clumps mean you're doing something wrong! The few homes with real remodeled kitchens or floors looked like the work was done by blind, epileptic monkeys. Gaps, cracks, peeling on the cabinets and bumps in the floors. Is quality a lost art?

Can we get a little truth in advertising here? Painting is not remodeling. If the home was built in 1954 and looks like it was built in 1954 with dingy, nearly original cabinets, tile, and flooring, please don't try to scam me with exterior photos doctored in Photoshop and a complete lack of clear interior shots! As a Realtor who is required to accurately reflect the condition of a property, I find it offensive that after looking at dozens of listings all but two have come up severely short on their descriptions.

You CAN cut your high property taxes and save money!

2010-04-07T08:52:00.000-07:00

The SF Bay Area is one of the most expensive real estate markets in the country. During the boom we all watched as our property values soared and felt a sense of security in knowing we had all that money for the future. When property taxes rose at the same time, nobody cared. Why worry about a few thousand dollars when I'm making hundreds of thousands in appreciation?

Well, the future is upon us and values have collapsed. Unfortunately, the property taxes haven't. To make matters worse, the tax assessor is under no obligation to review your property to see if you're overpaying. How bad can it be? Here's an example...

Let's say you bought a home in Los Altos for $2 million at the peak. It's a nice 4BR/3BA on a quarter acre with upgrades and conveniences. That house is costing you about $22,000 a year in property taxes. That same house now is probably worth about $1.7M, given that the market has dropped about 15%. If the assessor revalues your home at $1.7 million your taxes should be about $18,700. That's a savings of about $3300!

To get this break, all you need to do is call the county tax assessors office and ask for an appraisal. It will take time but the effort is well worth it. You can do it all by yourself, don't fall for scams implying that a company can do it for you. Go save yourself some money and call today!

The website is here: www.scc-assessor.org and their number is 408-299-5500.