Buyers Market: As the chart above shows, according to Altos Research, Saratoga CA has been a “buyers market” since late 2007.  This means that the rate at which homes are being absorbed (sold) is relatively slow compared with total available inventory.  This market condition is more the case in the upper price range, but there was a good price distribution of Saratoga home sales during 2010 as the detail below shows.  There was actually a hot market for homes within the Saratoga school district in the $1.3-1.5 million price ranges during the Spring, 2010.

Sales Volume: There were 287 homes sold in Saratoga, CA during 2010.  Note: this includes only those homes listed on the Multiple Listing Service and there were a few properties sold, but not listed.  This volume  is up from 2009 and 2008, but lower that previous years prior to the national recession.  The average and median price of Saratoga homes sold during 2010 was actually higher than in 2004.

Price Range: Prices of detached homes actually sold (closed escrow) in 2010 ranged in price from $5.6 million to $456,000.

Inventory : At the start of 2011 there were only 68 detached homes and 8 attached homes listed on the Multiple Listing Service in Saratoga, CA.  This is expected in increase seasonally this Spring.

Distressed Sales: There were only 20 detached homes sold through the MLS that were distressed (Real Estate Owner or Short Sales) – this represents less than 8% of the market!

Days on Market: Many overpriced homes have been on the market quite a while, but for those properties that actually sold (closed escrow) the DOM in 2010 was a reasonable 66 days.

Here is the detail for 2010 detached homes sales (closed escrow) in Saratoga, CA:

Here is the detail for attached homes sold (closed escrow) in Saratoga, CA:

Rick Bonetti | APR Referral Network | 408-8800 | DRE #01237009

There are currently (Mid August, 2010) only 11 Los Gatos or Monte Sereno distressed homes currently available for sale listed on the MLS (multiple listing service).

Home buyers often ask me if there are distressed home bargains available and I caution them that shorts sales are often frustrating to buyers, sellers and real estate agents; REO properties, already owned by the bank are much more likely to close escrow.

National Distressed Property Trends – To put local markets in perspective with what you may read in the newspaper, the National Association of Realtors reported that “in the past year approximately 33 percent of existing home sales at the national level have involved distressed properties (foreclosures, short sales) selling at discounts of 15 to 20 percent from non-distressed market prices”exerting a major negative impact on overall market prices.

Shadow Inventory – There is still national concern over a potential shadow inventory of distressed properties – “as of the first quarter of 2010 over 6.5 million homes were in foreclosure or had overdue mortgage payments. Possibly as much as 75 percent of the shadow inventory will ultimately be sold as distressed. However, given the ongoing time delays for problem resolution it appears that distressed properties will enter the market at approximately the current or a slightly increased rate for the next few years.

In summary NAR says: “Foreclosures are a major negative market influence in terms of price, consumer confidence, and expectations; however, a tsunami of shadow inventory appears unlikely.”

The West Valley of Silicon Valley does not follow the national trend.  It is still one of the better places for homebuyers concerned about stable property values.

I love interactive maps and potential homebuyers can get lots of important information online at the official Los Gatos City website about property they are considering purchasing.  You can search by street address or assessors parcel number and get maps showing topography, zoning, general plan designation, buildings, lot size and more – even street sweeping schedules!  Check it out.

(PS: You have to used Internet Explorer and download a MapGuide Viewer).

In addition to Los Gatos’ Sunday Music in the Park, I also enjoy Jazz on the Plazz, which starts this Wednesday at 6:30 PM, June 23, 2010:

Here’s the 2010 lineup:

June 23 – Kathleen Grace
June 30 – Blue Wednesday, featuring Chris Cain
July 7 – John Proulx
July 14 – Judy Wexler
July 21 – Spencer Day
July 28 – Terrance Brewer Trio
August 4 – Janice Mann
August 11 – Robin McKelle
August 18 – Monterey Jazz Festival High School All Stars
August 25 – Barbara Morrison

Rick Bonetti | 408-857-8800

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

This coming weekend May 8-9 focuses primarily on Southern San Mateo County communities of Atherton, Belmont, Hillsborough, Menlo Park, Portola Valley, Redwood City, San Carlos, San Mateo and Woodside.

However, some Saratoga artists such as Rick Waltonsmith are open this weekend as well as next May 15-16.  Rick also exhibit at Aegis Gallery in Saratoga, CA if you miss Open Studios.

May 15-16 will focus on artist’s open studios in East Palo Alto, Ladera, Los Altos, Los Altos Hills, Lyola, Mountain View, Palo Alto, Santa Clara and Sunnyvale.

Rick Bonetti | APR Referral Network | 408-857-8800

On May 1, 2010 from 1-4PM, the Assistance League of Los Gatos-Saratoga will be having an intergenerational tea and boutique they call Tea & Fashions, Then and Now.

Proceeds from this event will support services to children, families and seniors in the local community.

Two 18″ dolls with complete handmade wardrobes of clothes will be raffled and the boutique will offer items for young girls and teens as well as mothers.

Models from area high schools wearing vintage fashions from the 1900s through the 1970s.  $35 per person.

The location is at Saratoga’s North Campus, 19848 Prospect Road. 408.278.5300 or www.allgs.org.

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• South Bay Garden Tour May 2, 2010 (saratogavoice.com)
• Saratoga Rotary Art Show May 2, 2010 (saratogavoice.com)

Do you love private gardens? On Sunday, May 2, 2010 from 10 AM – 4 PM you can visit four private gardens in Los Gatos, Monte Sereno, and Saratoga organized by the Garden Conservancy and  promoted by Heritage Tree Society of Saratoga.  You can see the private  Holton Kownacki Garden, Ohlund Garden, Twin Creeks Japanese Garden and Glen Una Garden. Admission is $5 per garden. Children 12 and under are free. Open Days are self-guided and are rain or shine.  No reservations are required.

Also at 1 p.m. the Montalvo Arts Center Italiante Garden will host a free informal talk “The Italianate Garden Arrives in California”  by Betsy G. Fryberger.  Elegant box lunches available to order in advance at 408-961-5858.

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• Montalvo Arts Center Adds Value to Saratoga Real Estate
• Saratoga Arbor Day April 22, 2010

Not only does this improve the borrowing capacity of home buyers in communities such as Saratoga, Monte Sereno and Los Gatos, but it also signals important news that Santa Clara County is no longer considered a distressed market by Wells Fargo portfolio managers.

For more information on second trust deed and mortgage financing, please contact John Shapiro of Private Mortgage Advisors, an affiliate of Wells Fargo Bank.

Rick Bonetti | APR Referral Network | 408-857-8800 | DRE #01237009

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• Santa Clara County Jumbo Mortgages Now Classified Less Risky

Should seniors who have lived in their Saratoga home for many years and have built up considerable equity sell now or wait until the value of their home rebounds?  What if they need cash now – are there other ways should they consider to tap that equity without selling.

Wall Street Journal Online has a report called Encore, geared for retirement planning concerns.  A recent article Trading on the Future suggests that a “shared-appreciation arrangement” (equity release) is gaining popularity among homeowners in or near retirement, as an alternative to a standard equity loan or reverse mortgage on their home.

Through a share equity agreement a homeowner agrees to give up part of a home’s future appreciation in exchange for cash — typically 10% to 15% of the property’s current value.  If a property’s value has declined by the time the owner decides to sell it or terminate the contract, the homeowner gets to keep some or all (depending on the agreement) of the cash he or she is given upfront, but if it appreciates they might give up half the gain and in the end pay more than if they had taken out a conventional home equity loan.

Part of the initial appeal of a shared equity agreement to homeowners is that they aren’t saddled with monthly payments, as in the case of a home-equity loan and closing costs are typically less than that of a reverse mortgage.  But be careful, because as the article explains, there are risks involved.

In my personal opinion, a standard equity loan is a preferred way to go if you need cash to live on right now (because rates are low) and want to stay in your home a while longer.  If you are ready to sell for other reasons, call me and I will let you know what your home is currently worth and what real estate market trends are telling us.  It’s your decision when is the best time to sell your home and you need good data and a Realtor you trust to help you make that choice.

Rick Bonetti | APR Referral Network | 408-857-8800 | DRE #01237009