Late April 2009 Los Gatos Real Estate Market Update

The real estate market seems to be turning, but primarily in the lower priced areas of Silicon Valley.  The single family homes in the lowest price points seem to be flying off the market.  In some areas, the majority of houses that fit that description are bank owned and short sale properties (such as the Alum Rock district of San Jose, where all but 5% of home sales in the first quarter were distressed property sales).

But what about Los Gatos?

At this point there are 254 homes for sale (single family homes, condos and townhomes), 56 pending sales and 29 which have closed in the last thirty days. That represents an inventory of 8.75 months (listings divided by closed sales).  It's also evident that not everything which sells actually closes since the ratio of pendings to list prices is stronger than the ratio of closeds to list prices.

The lowest priced homes in Los Gatos are faring better than more expensive homes in Los Gatos, which is also the case throughout Santa Clara County.

Here are some graphs to help Live in Los Gatos readers to see what's happening in Los Gatos:

As you can see from the graphs, the condos (representing the lowest price points in Los Gatos) seem to be faring better than the single family homes.

Below is a chart of the list prices for single family homes in Los Gatos with 95030 and 95032 zip codes ("in the town") as well as 95033 (county area in the mountains).  In all cases, the market is more favorable in the lowest price points.

Los Gatos Real Estate Market Update for April 2009

The Silicon Valley real estate market is picking up, but we are primarily seeing that in entry level housing in more affordable areas of San Jose such as Cambrian Park, Blossom Valley, and South San Jose.  In Los Gatos, Monte Sereno and Saratoga, it's still a tough time for selling a home.

Luxury condos have been hard hit too since people who could buy an upscale townhouse may instead opt to simply buy a house in a less expensive area. 

Below please find a graph displaying the aborption rate of both single family homes (houses) and condominiums and townhouses in Los Gatos.  This measurement is the relationship between available inventory and homes which sold and closed escrow that month. (For instance, in March in Monte Sereno, there were 36 homes for sale and just one closed escrow - my listing on Francesca Court - so that makes for 36 "months of inventory".)

Six months of inventory is considered neutral. Less than six months is a sellers market. More is a buyers market.  As you can see, we have been in a deep buyers market in Los Gatos for awhile.

What is the opportunity here?  This is actually a great time for people to "move up" because the lowest priced homes are moving and the higher priced homes are a bit stalled out. 

If you would like more data, I invite you to visit my Silicon Valley Real Estate Report online to get all the stats available for Santa Clara County.  Below, please find a few quick links:

Market data and statistics for:

• Los Gatos condos and townhomes
• Los Gatos single family homes (houses)
   
• Monte Sereno homes (no condos)
   
• Saratoga condominiums and townhouses
• Saratoga houses (single family homes)
   
• Cambrian Park condos and townhomes
• Cambrian Park single family homes

And many more areas: Almaden Valley, Campbell, Santa Clara, Cupertino, Willow Glen, and all of the cities and areas in Santa Clara County.

Please contact me if you'd like more information on your particular circumstances, whether buying or selling here in Silicon Valley. I'd be happy to talk with you.

Town of Los Gatos General Plan Workshop - You Are Invited!

The Town of Los Gatos is updating its general plan and is holding workshops to get the public's input.  The next one is Saturday April 18th from 10 am to 12 noon at Calvary Church, 1633o Los Gatos Boulevard (in the Parkside Rooms).

The Town Council has identified these areas as topics to consider:  recreation, parks & open space; green building; youth and senior services. 

Want more information? Visit www.lggeneralplanupdate.org.

Heritage Grove & Heintz Open Space Preserve in Los Gatos

An old apricot orchard used to line Blossom Hill Road between Union and Leigh Avenues until the 1990s.  The former owners, Ralph and Sophie Heintz, lived there in their farmhouse until their deaths, at which time the property was willed to UC Berkeley for eye research.

Sophie and Ralph were interesting people. He ran a small train on their property and was an inventor. She was a ham radio operator.

In 1998, the Heintz land (and house etc.) was sold to Summerhill Homes and a portion developed as housing. That Los Gatos neighborhood is now called Heritage Grove A strip of trees was planted along Blossom Hill Road, reminiscent of the history of the area.  A large section of land was made a permanent open space, now known as the Heintz Open Space Preserve.  This open space connects directly with Belgatos Park, which also connects with the Santa Rosa Open Space Preserve. So the network of trails is quite extensive. (Link to Town of Los Gatos page with pdf files of these three trail maps. Link to Google Maps map of Blossom Hill Trails, drawn by Jim Handy.)

The Heintz's big, old farmhouse has been renovated and is being lived in.  Ralph Heintz's old workshop, the Ramohs Laboratory, is preserved with signs explaining the history of the place nearby.

Summerhill Homes did a nice job of developing the land to keep some of the historic character.  Please enjoy the slideshow below to get a feel for the area.... This scenic spot is well worth a visit: enjoy!

There are only five streets that make up Heritage Grove:  Regent Drive, Regent Court, Ayala Court, Ramohs Way, and Heintz Court.  Regent Drive is a long loop road while the rest of the streets are quite short, so the vast majority of Heritage Grove homes are on Regent Drive.

How big are Heritage Grove homes and lots?

The size of houses and lots within Heritage Grove varies a bit, as you might expect in any subdivision, but additionally there's the historic Heintz farmhouse.

The farmhouse is appx 4100 square feet and sits on 3/4 of an acre (31,000 sf lot). 

The rest of the neighborhood consists of newer homes on smaller lots. The houses range from about 2850 square feet to about 3750 square feet.  Parcels of land may be as small as 10,000 SF (appx 1/4 acre) to as large as 25,000 SF (a little more than a half acre). 

What does it cost to buy a home in Heritage Grove?

There are a lot of variables here! 

Potential ingredients to make a home more affordable would be smaller home, smaller lot, proximity to Blossom Hill Road, a backyard or home with another higher up (and "looking in" - a lack of privacy).

Raising the value of the home would be things like a view, having open space or a large lot adjacent (less crowded feeling), being further into the development, having a larger home, larger lot, three car garage.

Historically, prices have gone from over $1,000,000 to under $2,500,000.  The most recent solds in Heritage Grove have been for about $1.7 million for homes on the smaller side that sold in 2007 or 2008.  

Other items of note:

Regent Drive rises as it gets away from Blossom Hill Road; many of the homes nearest to the Heintz Open Space Preserve enjoy nice views of Santa Clara County and downtown San Jose in the distance.

Heritage Grove is a great commute location as it's close to Union Avenue, which provides fast access to highway 85. 

It's also close to shopping - the Downing Oaks Center, which includes a Safeway, a local (non chain) coffee house, a restaurant, and other services, is less than a mile away.

Heritage Grove is served by the Union School District and the Campbell Union High School District.  Schools are Alta Vista or Noddin Elementary,  Union Middle School, and Leigh High School.