I wanted to share a recent data analysis of median home prices for resale homes. I always take median numbers with a grain of salt due to the large variance in the data; but this is interesting data nonetheless.
Location, Location, Location!!!
I have been stating that the "good" areas have been immune to the affects of the sub prime mortgage situation. The reason for this is that the folks buying in these neighborhoods have secure jobs, high credit, equity and downpayments. These are not the people that were flipping homes or extending themselves too far as in "other" neighborhoods, which caused the real estate issues in the market today.
San Francisco County
County/City/Area #Sold 2007 2006 % Change
San Francisco 5,451 $780,000 $763,000 2.23%
The unique, historic and one of a kind San Francisco has shown a 2.23% gain. Of course, a destination for people of all backgrounds, this diverse city has some of the oldest homes that still sell for very high prices. Low supply and high demand will continue to drive real estate prices in the city for many many years to come. The many landmarks and amount of activities make this "the" place to live for city dwellers.
Santa Clara County
Santa Clara County 15,781 $700,000 $680,000 2.94%
Here is an analysis of Santa Clara County homes:
ALVISO 11 $600,000 $710,000 -15.49%
Alviso is a small neighborhood, with some spotty areas and new homes surrounded by older homes. The older homes may have been the culprit in dragging these home prices down in this area. There is also no lure of any schools, but it is close to many Silicon Valley Companies. The low amount of activity maybe skewing the data.
CAMPBELL 503 $720,000 $689,500 4.42%
Campbell borders Cupertino, Saratoga and West San Jose and boasts a decent school system with a small town feel. This area has had substantial gains at 4.42%. I have seen more smaller new home developments sprout up in this area as well.
CUPERTINO 701 $945,000 $935,000 1.07%
The infamous Cupertino schools are no stranger to those seeking the best schools for their children in the Bay Area. Parents will pay top dollar to have their children be in this school district. Things have not slowed, although the median has only increased by 1.07%, you must remember the prices in this area have always been higher and the fact that they are holding shows that schools will always be valuable to parents in the Valley.
GILROY 496 $665,000 $686,000 -3.06%
Gilroy, the distance from Gilroy to the majority of the jobs in the Silicon Valley make this place a bit less popular than most. With gas prices soaring, the long commute no longer seems to cancel out the savings of the cheaper home in cities further from work.
LOS ALTOS 366 $1,655,000 $1,550,000 6.77%, LOS GATOS 548 $1,140,000 $1,100,000 3.64%
Los Altos gained 6.77% and Los Gatos gained 3.64%. This is proof that the subprime issues do not affect the upper middle to upper class. These areas have shown solid growth even in a tough real estate market.
MILPITAS 554 $645,000 $626,000 3.04%
The city of Milpitas has sustained a decent 3.04% gain even in this tough market. This small town is a jumping point between the East Bay, the South Bay and the Penninsula. Also this city boasts excellent API scores in their elementary schools and attracts younger home owners who value a new home and don't have children or have young children and do not need to sacrifice for an older pricey home in Cupertino just yet.
MORGAN HILL 487 $770,000 $771,000 -0.13%
Morgan Hill is much different than Gilroy in that it contains a lovely community that has sustained it's home values. Morgan Hill is a beautiful city with newer homes surrounding. Although it is also a distance from the Silicon Valley, this area has still held in value with a minor dip of .13%.
MOUNTAIN VIEW 673 $720,000 $681,000 5.73%
Mountain View's allure will never cease with Google continually taking over more commercial buildings, many more employees seek housing in this area. Mountain View provides a good mix between the city life and small town feel with Castro street and El Camino Real. Showing a 5.73% gain, shows that Mountain View is still highly desired by all in the Bay Area.
PALO ALTO 200 $1,175,000 $1,010,000 16.34%
Palo Alto by far gained the most in the Bay Area at 16.34%. The prestigious Stanford University, excellent schools and Downtown Palo Alto draws people from all backgrounds to move into this very diverse city.
SAN JOSE 8,336 $663,000 $660,000 0.45%
I am a little surprised to see a .45% gain in San Jose, but it seems to make sense if we are talking about homes that have "sold" during this time frame. High inventory levels exist especially in East San Jose. It is important to note that San Jose is a very large city and should be divided into North, South, East and West. North and West San Jose have sustained well in this market. North Valley has a large section of newer homes and West San Jose bordering Cupertino allows families to send their children to Cupertino Schools. The East and South seems to have had the most people who have sub prime loan issues.
SANTA CLARA 1,116 $660,000 $660,000 0.00%
Santa Clara has remained flat which is still a credit to this area. Being close to companies and being diversified with a mix of homes has sustained this area. Rivermark is by far still the hottest community in Santa Clara.
SARATOGA 395 $1,510,000 $1,397,500 8.05%
Saratoga has sustained itself through some of the worst of times. A private town where there are no street lamps, here are some of the best schools in the Valley. Whether folks are looking for a quiet home in the hills or some of the best schools for their children, Saratoga has shown that no matter how bad the times, their city is still one of the most desired places to live.
SUNNYVALE 1,225 $733,500 $710,000 3.31%
Sunnyvale, a city bordering Cupertino, West San Jose and Mountain View, and also nearby many Silicon Valley companies is still a hot city to live in. Building many many new Townhomes, young workers find this city a great city to reside.
All data was gathered from Data Quick Information Systems: http://www.dqnews.com/ZIPCAR2007.shtm.
All explainations are the opinion of the writer and his interpretation of the data at hand.
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