Silicon Valley Real Estate Guide

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One Investor’s Reason For Purchasing An Investment Home In Los Altos

January 5th, 2009-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · 1 Comment

Sue McAllister had an interesting article in today’s San Jose Mercury News.  The topic of the article focused on who is buying homes in our declining real estate market.  Her conclusion; first time home buyers and investors made up the majority of today’s home buyers. 

Below is an example detailing one investor’s reasoning for purchasing a single family home in Los Altos as an investment.   

I represented the seller of a property in south Los Altos that closed escrow in December  2008.  The buyer completed a 1031 exchange, selling two properties in southern California and “trading up” and purchasing a single family home as an investment property in Los Altos.  Each of the properties in southern California had good cash flow and a reasonable rate of return (apparently, he owned them for quite some time).

One may ask why this investor took two properties that had good cash flow and a reasonable rate of return and traded up to a home in Los Altos that would (initially) have a much poorer rate of return and less cash flow?  Usually, one doesn’t buy a $1,350,000. home and rent it out for $4,500. per month and call it a good investment.  The answer…

Two reasons:

(1)  Short term: the ability to locally manage the investment property - it tends to be easier and less expensive.

(2) Long term: the Los Altos investment property will eventually be converted into a personal residence and the investor’s current (personal) residence will be sold.  This allows the investor to take the 500K capital gains exclusion on the sale of their personal residence yet maintain a residence in Los Altos.

This type of transaction has tax implications and the 1031 exchange has specific rules to follow, but with proper planning this type of investment can save an investor tens of thousands of dollars.  This investor analyzed the real estate market in Los Altos and saw the potential to make a wise investment that made sense with his overall investment objectives.  Smart guy!

Note:  Should you be interesting in investing in real estate, make sure that you have a well qualified tax consultant to answer questions specific to your tax situation.  Without one, you can get yourself into a lot of financial trouble.

→ 1 CommentTags: Los Altos Up Close · Buyer's Information · Real Estate Investments

Los Altos’ New Year’s Day Fun Run

December 31st, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · No Comments

Downtown Los Altos is hosting its annual New Year’s Fun Run at 9:00 a.m.  The 5K race/walk/stroll starts at the corner of Main and State streets and is a four and a half loop through the streets of downtown Los Altos.  No registration is required and there will be free refreshments (usually coffee cake, bananas, oranges, water and hot coffee).  Dogs are welcome, but bikes are not. 

I hope to see you there!

Pictures below are from last year’s run:

2008 los altos fun run

Before the run - Bear (our dog) won!

2008 los altos fun run

The race/walk/stroll begins!

2008 los altos fun run

The initial sprint - notice, none of my family is near the front.

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It’s Beginning to Look Alot Like Christmas….

December 18th, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · No Comments

A bottle of Ridge Zinfandel.Image via WikipediaA friend of mine sent me photos of our most recent snow storm.  Although the Bay Area gets a dusting of snow every few years (and usually melts right away), it is always exciting to see.

These photos were taken at Ridge Vineyards on the top of Monte Bello Road in the Cupertino foothills.  Enjoy! 

By the way, Ridge Vineyards is a great place to go wine tasting.  Their staff is knowledgeable, the setting is outstanding, and the wine is excellent.

snow covered vines at Ridge Vineyards

Snow covered vines at Ridge Vineyards

snow at ridge vineyards, cupertino

Snow at Ridge’s Monte Bello tasting room

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Los Altos Real Estate Sales Numbers Are In The Toilet!

December 12th, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · 2 Comments

The number of single family homes sold in Los Altos is at an 11 year low.  Since 1998, the average number of number of homes sold (closed escrow) in November is 26.  In November 2008, only 8 Los Altos homes closed escrow.  Note: most of these purchase contracts were ratified in mid/late September. 

That is a 69% drop over an 11 year average (of 26) and a whopping 78% drop from the just 2 years ago (2007 had 36 closed sales in November).  2007 was the next lowest year in sales volume with 21 closed sales.  See graph below for November sales history since 1998.

Los Altos single family home sales november 1998 - 2008

The volatility in the stock market has had a huge (negative) impact on our market by reducing the amount of funds available for the down payment and financing (especially jumbo loans) continues to be difficult at best. 

Over the past several weeks, I have had the opportunity to speak with many buyers who have come through my open houses.  The one constant - buyers tell me they are “hunkering down.”  They are in a “wait and see” mode and aren’t likely to make a home purchase until they believe the real estate market is getting stronger.  In short, buyers feel our local real estate market will continue to soften.    

What’s interesting is a well qualified buyer can negotiate a pretty fantastic deal, even in Los Altos.  We’re talking home purchases at 2004 prices (or better).  The problem is it’s tough to know “a good deal” if one doesn’t know where the market is going or when it will change.   Time will tell.

I thought I would end this post with a little prediction - Investors will take the lead in December home sales.  I predict 5 closed single family home sales in Los Altos for the month of December 2008.

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Los Altos Gingerbread Showhouse Exhibit

December 10th, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · No Comments

Last night I went with my family to check out the Los Altos Gingerbread “Showhouse” Exhibit.  It is put on by the Los Altos Recreation Department and runs until December 12th.  The exhibit is located in Room 2 at the Hillview Community Center (97 Hillview Avenue, Los Altos). 

The Showhouse exhibit is made up of a couple of dozen home made gingerbread houses.  There are several age group categories.  I enjoyed the one’s the kids made, but there were some family-made houses that were quite nice.  I especially liked AT&T Park.

Below are some photos taken from my I-phone of the exhibit.  (click on photo to enlarge)

ginger-bread-hosue-5.jpg     ginger-bread-house-1.jpg     ginger-bread-house-2.jpg

ginger-bread-house-3.jpg     ginger-bread-house-4.jpg     ginger-bread-house-6.jpg

ginger-bread-house-7.jpg     ginger-bread-house-8.jpg     ginger-bread-house-9.jpg

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Great Value In This South Los Altos Home!

November 18th, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · No Comments

I just received a price reduction for my listing at 1701 Penny Way in Los Altos

1701 Penny Way, Los AltosFor those of you who may have missed it, it’s a 4 bedroom 3 full bath home located on the Cupertino School District side of Fremont Avenue in South Los Altos.  At almost 2100 sf and on a lot of slightly over 9500 sf, it’s a great value at $1,428,000.

The home was remodeled and expanded approximately 20 years ago and features a fabulous living room with vaulted ceiling and bay window.  The kitchen is spacious with an abundance of counter space and storage.  Each of the bedrooms are over-sized for the tract.  There is a separate family room with fireplace.  The garage has been extended and has extra storage via a pull down ladder to the attic area.

Children would attend Cupertino Elementary School District: Montclaire Elementary School (956 API) , Cupertino Middle School (915 API) and Homestead High School (846 API).

The home is in close proximity to Grant Park (a 4.5 acre city park), the Foothill Crossing Shopping Center (Trader Joe’s, Peet’s Coffee, Starbucks Coffee etc.), and Rancho San Antonio County Park.

Below are pictures of the property:

1701 penny way - living room     1701 penny way family room     1701 Penny Way - Kitchen

1701 Penny Way - Master bedroom     1701 Penny Way - 2nd bedroom     1701 Penny Way - Office

1701 Penny Way - Backyard

1701 Penny Way map
View Larger Map

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Grant Park, A South Los Altos Gem!

November 17th, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · 1 Comment

Located at the old Grant Elementary school site at 1575 Holt Avenue, the Grant Park Center offers south Los Altos residents excellent recreation facilities.  There is a large natural grass soccer field, three outdoor basketball hoops, a playground area with two age appropriate play structures, toddler water play area,  individual barbecues and picnic area.  Most importantly, there are public restrooms.

In the summer, there are outdoor concerts where locals come with folding chairs and food to enjoy the music.  There are also meeting/classrooms and a large multipurpose room with stage available for rent.  Dogs are allowed on leash.  Note: I’ve been there numerous times when dogs were running off leash.  However, their owners picked up after them.  See below for pictures of the park.

Grant park, south los altos

Grant Park 2-5 year old play area

2-5 year old play area

Grant Park 5-12 year old play area

5-12 year old play area

Grant Park picnic area

Picnic tables and barbecue area

Grant park soccer field

Soccer field (notice the dogs off leash in background)

Grant Park basketball hoops

3 basketball hoops (I think they are going to resurface the courts)

Grant park 1991 dedication plaque

Grant Park dedication plaque 6/21/1991

→ 1 CommentTags: Our Neighborhoods Up Close · Los Altos Up Close

To All Veterans, Thank You!

November 11th, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · 1 Comment

ARLINGTON, VA - NOVEMBER 10:  Sgt Travis Baker...Image by Getty Images via DaylifeOn this Veteran’s day, my family wishes to thank all of those who have served in the armed forces.  We appreciate your service to your country.

Below is a post that I wrote (Nov. 12, 2007) about the dedication of the Cupertino Veteran’s Memorial.  If you have time, please stop by to honor our local men and woman who gave the ultimate sacrifice for our country.

Posted November 12, 2007 -

On a cool and cloudy day, a large patriotic crowd watched as the Cupertino Veteran’s Memorial was dedicated.  In attendance were many local dignitaries, active and retired military and friends.   The Secretary of the Navy, Donald Winter, was one of the many guest speakers.   The centerpiece of the memorial is a life sized statue of two soldiers on their knees scouting the terrain.  Note: the statue is made in the likeness of Matthew Axelson, a Cupertino native who was killed in the Konar Province of Afganistan in Late June 2005, and James Suh, Matthew’s teammate.  The Wall of Honor includes some of the names of the men and women from the Cupertino area who gave their lives in the line of duty.  The Walk of Remembrance allows anyone to purchase a paver to honor those who have served or are currently serving in the military, including MIA’s and POW’s. 

 cupflag.jpg  cup2.jpg  cup3.jpg

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The Cupertino Veteran’s Memorial is located a short stroll from the main parking lot at Memorial Park.

memorial-park.jpg

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Is Real Estate Selling in Los Altos?

November 10th, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · No Comments

Are homes selling in Los Altos or has the economy tank our local market?  If you look below, homes are still selling, but not quite as briskly as in prior years.  You will also see that prices haven’t tanked as well.  However, single family home sales in Los Altos continue to trend down.  Below is a year over year look at the last three months of sales for single family homes in Los Altos.

                                  2006                       2007                         2008

August                        39                           28                               26

September                 33                           15                               21

October                      26                           21                               18

Totals                 98                       64                     65

Below is the most recent 90 day history of the single family homes sales (41 sales) in Los Altos (information taken from Promlslistings.com, our local multiple listing service.  Information is deemed reliable but not guaranteed).  Note: CDOM is continuous days a listing has been on the market.

Address                  Beds     Baths       CDOM         List Price         Sold Price

1355 Arbor              5            3.5             90          $2,995,000      $2,902,500

1551 Plateau           5             4+            150         $2,848,000     $2,800,000

238 Valley               5              3                9           $2,695,000      $2,695,000

87 Pasa Robles       5              4+            19          $2,495,000      $2,495,000

175 Galli                  5              3              7             $2,395,000      $2,348,000

148 Garland            3               2             8             $2,199,000      $2,350,000

132 Hawthorne      3              3              12          $2,098,000      $2,300,000

60 E Portola           4             3.5           86           $2,495,000      $2,300,000

120 S Gordon         4             2.5           97           $2,295,000      $,2225,000

121 Pepper             2             1.5          168          $2,200,000      $2,225,000

926 Lundy              4             2.5           17           $2,195,000      $2,195,000

888 Stagi                 4              4+         122          $2,278,000      $2,175,000

1480 Frontero        4             3.5          20           $2,098,000     $2,065,000

1265 Thurston       4              3            51            $2,150,000     $2,040,000

1196 St. Charles     5             3             9             $1,858,000      $1,952,000

1373 Pritchett        5             4+          49           $1,990,000      $1,900,000

656 Palm                 3             3              7              $1,795,000      $1,815,000

450 Azalea              5            2.5          12              $1,795,000      $1,795,000

152 Pasa Robles     4            3.5         144             $1,828,000     $1,745,000

557 Casita               4              3           12              $1,795,000      $1,738,500 

1945 Knollwood     4             2.5           9              $1,598,000      $1,725,000

949 Altos Oaks      6+           3.5           7              $1,698,000      $1,688,000

656 Kingswood       3               2            8              $1,550,000     $1,605,000

80 Cody                   4             2.5          9               $1,600,000     $1,600,300

835 Orchid              3             2.5          35            $1,698,000      $1,599,000

722 Brentwood       4               2            9              $1,598,000      $1,598,000

618 Hawthorne       3              2            15             $1,598,000     $1,598,000

1632 Kensington     3              2            27            $1,595,000     $1,500,000

545 Clark                 3               2            12           $1,450,000     $1,400,000

1611 Havenhurst    3              2            37            $1,448,000     $1,400,000

1086 Los Altos        2              1             41            $1,395,000    $1,385,000

653 Arboleda           2             1              11            $1,349,000    $1,380,000

1608 Shirley            3              2            34             $1,349,000    $1,375,000

1994 Newcastle       4             2.5          80             $1,449,000    $1,370,000

710 Berry                 3              2             11             $1,395,000    $1,359,500

793 Berry               2              2             15             $1,149,000    $1,158,000

1235 S Springer     3              2            110            $1,125,000    $1,090,000

934 Loraine            2              2            396              $997,000    $1,000,000

1175 Peninsular     2              1             12                $998,000        $965,000

1474 Topar             3              3             36            $2,088,000   not reported

       Averages   Values             50           $1,840,600   $1,819,149

The price per square foot averaged out to be  $823.29/ft.

The average length of escrow was 25 days.

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Building Homes And Making Dreams Come True!

November 7th, 2008-- by Dave Blockhus, Los Altos CA Real Estate Specialist, Coldwell Banker · No Comments

Habitat for Humanity, transforms families and strengthens communities by partnering with volunteers, the community and qualified families with low incomes, by building decent, affordable housing for long-tern home ownership.

Yesterday, I was one of the volunteers helping build one of six homes in Santa Clara.  It was a great day.  Upon arriving we were given an introduction about Habitat for Humanity and the family who will eventually buy the home.  I write eventually because each participant family must put in a minimum of 500 hours in sweat equity before they can receive their home.

habitat for humanity

Our assignment was to frame one of the home’s.  Our supervisor, Brent, patiently walked us through the process.  We measured and cut wood for the header’s and wall joists and then assembled them to make the wall.  The highlight was when the entire group of volunteers lifted up the wall and nailed it into place.

habitat for humanity job site

Habitat’s Santa Clara job site.

Habitat for humanity saw boy

Cutting 4 x 4’s for the header supports.

habitat-for-humanity-group.jpg

Our volunteer group (Coldwell Banker Los Altos offices)

habitat for humanity donut time!

It’s break time!

If you ever have the time and want to do something that is worthwhile, I strongly recommend going for a day to do a Habitat for Humanity build.  You’ll get much more out of it than you think.

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