Silicon Valley's economy and housing market are booming, but each neighborhood has its distinct characteristics, which attract certain buyers for different reasons. Realtors representing the five districts of the Silicon Valley Association of Realtors recently shared their perspective on their marketplace. The professional trade organization representing over 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay has five districts within its service area - Menlo Park/Atherton, Palo Alto, Los Altos/Mountain View, Cupertino/Sunnyvale, Los Gatos/Saratoga.
Ducky Graybill with Sereno Group Real Estate in Los Gatos said compared to other districts, she felt the Los Gatos/Saratoga marketplace market was slow from April to December of last year. She is seeing more activity these days, especially from pent-up buyers.
Graybill said buyers come to her wanting to live near a downtown area, but cannot afford to live in the higher-priced communities of Menlo Park or Palo Alto. She also gets buyers from Cupertino and Sunnyvale who want to upgrade.
Graybill estimated that 20 percent of buyers work at Apple. The Cupertino company's workforce continues to grow. Its new campus is set to open in April, at which time a total of 12,000 employees will be moving in.
Mark Burns, a Realtor with Referral Realty in Cupertino, said inventory is very low in his market area, prices are on the rise, and the buyers are mostly high-tech and executives. Their accessibility to Apple and other tech companies and Cupertino's excellent rated schools make the Cupertino/Sunnyvale communities a top choice for buyers.
Even once their children are out of school, Burns said residents are not interested in selling their home. Where people move an average of every five to seven years nationwide, in Cupertino, many sellers say "they'll be carried out in a pine box," said Burns.
Burns added with fewer young families moving in, Lynbrook High School cannot recruit enough students to operate efficiently. As a result, the school is opening enrollment to students outside its boundaries.
According to Michael Dreyfus, broker and owner of Dreyfus Sotheby's International Realty, last year Palo Alto was a healthy market for luxury properties because the Chinese stock market was performing well. That has changed today because of double-digit losses from China's stock market and the Chinese government has tightened rules on money flowing out of the country. However, Dreyfus noted even with fewer foreign buyers, competition in Palo Alto is stiff and many homes continue to receive multiple offers.
Dreyfus said he is observing a very troubling trend - that of buyers that think they can represent themselves. He explained some buyers think they can get all of the information on the internet and cautioned against this.
Kirk Mahncke, a Realtor with Alain Pinel Realtors in Los Altos, said the Los Altos/Mountain View market is still experiencing very low inventory. The Terraces, a retirement community, offers move-down buyers a place to go; however, the general lack of inventory for move-down buyers contributes to the lack of inventory in other segments of the market.
Brett Caviness, a Realtor with Coldwell Banker Residential brokerage in Menlo Park, has noticed that the days on market have increased in the Menlo Park/Atherton communities. He explained there is an expectation in his marketplace for properties to be well-presented and he feels the inclement weather has delayed getting properties ready. Caviness expects a higher inventory by spring. Caviness added he is getting many buyers who want to live near the Caltrain station, so they can shuffle from San Francisco to San Jose.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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