First Quarter 2010 Silicon Valley Real Estate Results

Saratoga – Home sales in Saratoga, CA during the first quarter of 2010 totaled 40 homes, almost double the volume during the first quarter of 2009! Prices were up 4% too, for an average of $1.898 million! Average days on the market dropped from 111 to 69 days and months of inventory plummeted 65% from 11.9 months to only 4.2 months.

Los Gatos – Nearby Los Gatos also increased home sales volume during the first quarter 2010 from 36 to 49 homes, but average prices dropped slightly (6%) to $1.287 million. Average days on market declined 15% to 100 days and months of inventory dropped dramatically to a low 5.3 months, based on current absorption rate during the last month of the quarter.

Monte Sereno – Eight homes were sold in Monte Sereno during Q1 2010 (a 167% increase) with the highest average sales price of $2.553 million and the lowest average days on market (21 days) among Santa Clara County cities!

Strong sales and low inventory were also achieved in Cupertino, Los Altos, Mountain View and Palo Alto. Desirable school scores rather than buyer incentives drives strong demand in more expensive parts of Silicon Valley as well as a sense that the real estate market has bottomed out here.

On the other hand, Gilroy performed below par for Q1 2010 compared with the same period the prior year, although it’s average price is inching up and months of inventory is low. Los Altos Hills had respectable sales volume, but a 48% decline in average price to $2.229 million, with very high DOM and a high of 33 months of inventory, based on recent absorption.

Much of what one reads in the newspaper about increasing sale volume and average sales prices reflects activity in more affordable parts of San Jose and as you can see from above, real estate activity varies greatly between cities.  Real estate is very local – there are huge differences between neighborhoods with different price points.  Call me for specifics about your neighborhood; I will be happy to give you a specific market snapshot and review of trends so you can make an informed decision about whether to buy or sell.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800

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