Homes in Mountain View – with Los Altos Schools...?

Many people ask for the best schools, and it often means higher prices. There are a few complexes which are less expensive than Los Altos proper, or Palo Alto, - in the more affordable Mountain View community. I have updated the information I keep on two of these complexes, as an example of what one can get for, for what kind of price:

The Old Mill complex, With both townhouse-style homes and condominiums, and current dues of $320 per month. Web tour and price history available at:
http://www.oldmillcomplex.com/

The Parc Crossings complex, with the 3 types of homes: single-family residences, townhouses (or “row-houses”), and condominiums (flats). Dues vary depending on the home. Web tour & price history available at:
http://www.theparccrossings.com/


These types of homes can also be attractive for rental purposes, until they are used later for personal use, even though of course in the Bay Area it is hard to have a good return on investment when renting a property. But they have enjoyed a good reputation over all these years. Price evolution over time is noted on these web sites.
Note: there is also a small area of Palo Alto which is served by Los Altos schools (South of the Adobe Creek, West of Alma).

For complete information on a particular neighborhood or property, contact me.
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Real estate market: good but slower...

Home sales remained stagnant after tax credits expired.

The market has been much slower since the beginning of July. It is typically the case in a normal year (which is seldom the case in the Valley), but it has been brutal this year, as it probably was compounded with the end of the tax credits.

(the number of) Sales of existing single-family homes in California fell by more than 10% in July, from their June level, and hit the lowest level since June 2008 when sales were at 428,000. Although this was the first back-to-back double-digit monthly decrease since early 2007, monthly sales remained well above the cyclical trough of 254,650 sales that occurred in October 2007.

However, remember that the real estate market is a very local matter. No two areas, houses, are the same.
Indeed, in the County of Santa Clara for instance, prices are UP, year-over-year.

Prices for single-family, re-sale homes were up in August, year-over-year, for the eleventh month in a row. The median price rose 13.7%, while the average price was up 15.4%, reflecting a higher share of $1 million + home sales.

However, the number of sales of single-family, re-sale homes continued to slide and were lower than the year before for the third straight month: -13.1%.
Inventory was higher than last year for the second month in a row: 18.4%. This should translate into softer sales prices.
... A little known fact, showing that the market in this County is pretty good: the sales price to list price ratio for homes dropped below 100% for the first time since June 2009: 99.6%.
– many places envy the Silicon Valley situation…

The median price for condominiums was up 5.3% year-over-year. This is the tenth month in a row the median price has been higher than the year before. After nine straight months of year-over-year gains, the average prices for condos dropped 1.7%.

For complete information on a particular neighborhood or property, don't hesitate to contact me. And remember, real estate is not a short-term proposition. Timing the market is impossible.

Thank you for reading !
www.TrendsbyFrancis.com

Market Has Hit Bottom? hmmm.. yes.

A very good indication of where the market is heading in a given area is the level of inventory of homes available at a given time, and compare this to the past.

In the County of Santa Clara, where we have been hit hard by the downturn in the past year or so, the inventory of available homes (SFR's and condo/townhouses combined) as of 9/11/09 stands at 3,315; a year ago at the same time, it was 6,844, and in 2007, it was 6,542.

This level of inventory has not been that low since January of 2007.I believe this sets the stage for a very healthy market.We have seen in the past months an impressive number of foreclosures being bought from investors and home buyers alike, often in multiple offers situations.

It is important to remember too that the percentage of houses which sold for more than the listing price, in the County of Santa Clara, has been consistently above 30% for the past year, and stands now at 40.6%. (Sunday real estate section in the SJ Merc.). Who would think based on the news articles in the papers?

For instant insight and smart graphs on the market, County-wide, and area by area within the Cities, go to:
www.TrendsByFrancis.com

If you like this article, share it! Thank you for your time.
Francis

Francis' Real Estate corner...: How is the market doing these days?... (2)...

Francis' Real Estate corner...: How is the market doing these days?... (2)...

How is the market doing these days?... (2)...

...or: another way to ask the question may be: “how are the mortgage rates these days?”

How much home you can afford is affected by mortgage interest rates. Where the interest rates are right now, for each additional percentage point, the payment on a $600k loan would be an additional $381 per month, which is roughly equivalent to a purchase amount of $64,000. Interest rates are at an historical low as shown below, and the consensus among the financial specialists is that it will not continue that way for ever. … The fear of inflation is real.

During the last downturn, a lot of people started to get in the market as soon as it was evident that interest rates were increasing. The same phenomenon might occur again, reducing the comfort and purchasing power for those waiting to “time the market”.

As written recently in an article in Realtytimes®, “the average homeowner is worth 35 times more than the average renter”.

Owning a home becomes part of your investment portfolio, provides tax benefits, allows you build equity (yes, it still exists), and … if you buy now, you may get an excellent deal. Of course, you need to consider how long you would be in the home. You need to plan on staying at least 3 to 5 years in a house. Although even if you have an unexpected move, a valid strategy is to keep the property and rent it out.

Finally, with the last changes from the administration, new home buyers will receive substantial subsidies, just to make the step to homeownership. Definitely something to consider… For more information on this subject, do not hesitate to contact me.

As always, I advise buyers to find the place they love, and buy it for many years to come in a safe, affordable way.

Francis C. Rolland

How is the market doing these days?

.. The million dollar question...
The answer locally is very specific to the town, and within a town very specific to the area, and the price range. There is no immediate “cover-it-all” qualification. One thing for sure: the good schools are at an all-high premium.
Only a full-time agent can tell you ahead of the News how the market is faring, by feeling the pulse of the market. One way I “feel” the market is by sharing with my colleagues their open house experience. Right now, it is very positive, in that we see a lot of pre-approved buyers going to open houses in large numbers. The clientele is picky, looking for a bargain, but is there to buy.
Based on that, I do not think the market is going to “crash” like some news articles report. Prices will continue to adjust quickly as they always do in the Valley, but I would not try to “time” the market: what counts is to buy a house you love, at a price you know you can afford comfortably.
Francis C. ROLLAND
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Invest in the Bay Area?

Some of my clients have been interested over the years in placing some money in a modest investment, in the Bay Area. The reasons may vary, but often it is to use the property later for themselves, or for their kids, and to benefit from the good appreciation that we enjoy here - or the good value that it holds over time.

A rule of thumb in the world of real estate is that whereever there is appreciation, the return on investment (ROI) is pretty small, and where the ROI is good, appreciation is much less.

In the Bay Area, I have often counselled my clients to look into areas moderately priced, but with excellent schools. I submit as examples the following two complexes in Mountain View (which as a City is a good middle ground between the very expensive and the cheapest areas of the Bay):

- The Old Mill Complex;
- the Parc Crossings: http://www.theparccrossings.com/

These links, besides giving a history of prices in the complexes, also give detailed resources as to the schools.
I hope you find this of interest.
Francis

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