Living in one of the best, most stable communities helped us maintain high home prices which appreciated immensely during the last 30 years. We did have some dips during that time but generally our homes appreciated about 5 times over, (milk, bread, fruit and vegetables hardly doubled in price). Very few homes get sold here. People prefer to stay put.
The easy access to shops, I-280 and I-85, the proximity to Cupertino, Los Altos or Palo Alto schools makes it ideal neighborhoods to live in. South Sunnyvale, Cupertino, Los Altos, Palo Alto and the good parts of Mountain View maintained high prices. A 3-bedroom ranch-style house in the South Sunnyvale, priced at $950K was reduced in price after a week to $908K and attracted 4 offers to raise the price to above $910k. Generally, in these desired areas the prices are about 20% lower than the peak time on March 2008. Back then, a 3 bedroom ranch style home was priced at $975K and after reviewing 11 offers sold for $1.109M. Invested funds lost many times more than 20%.
The banks’ new guidelines are very strict - they demand higher down payments and better credit. The new limit for Conforming loan starting January 2009 is $625,500. Buyers will have to pay a higher down payment or get a second loan. The underwriters who decide if you can get a loan and on what terms, expect a fully documented file. Stated income (in which you would state that you earn a certain amount without proving it) is gone. Many foreign families from overseas go back home to their native land. Most of them lived in rental homes so it didn’t affect the prices much. The banks are getting more organized and more in control of the situation but a new wave of layoffs is arriving and we all hope that the employment market stabilizes.

The turmoil in the economic market is not felt in the New Trader Joe’s in Cupertino. Just next to a new Starbucks and across from Home depot on the Corner of Bollinger and De Anza Blvd. It’s beautiful, new and so familiar. The courteous sales lady even gave me a new, sturdy Trader Joe’s grocery bag.

It was Saturday afternoon. The place was packed with shoppers, all cashier stations were open and people waited patiently for their turn to pay. Here you can find good wines, tasty cheese and beautiful flowers for a reasonable price.

Foothill Produce is swarming of shoppers, it’s becoming a habit to stop by Felipe’s place and buy all the fruit and vegetable and even milk and ethnic goodies before going to Trader Joe’s. The products are fresh and abundant, nicely displayed and the prices are so competitive. If you like the Milk Pail in San Antonio shopping center and Oakmont Market in Cupertino on Homestead & Blaney, you’ll love this place. Felipe, the manager and buyer for the produce in the Milk Pail for the past 15 years has just turned 45. A couple of years ago he helped his little brother Frederico open his very successful Oakmont market. Frederico is doing so well that he is opening another store in Campbell next month.

Felipe’s wife and his beautiful daughter Saira are helping him run the place. They are so happy to see him all day and work with him. Saira, a very smart and intelligent lady, a student in UCLA, has taken time off from school to help Felipe run his new grocery store. It’s a family operation. They all help and support each other. Felipe and Frederico go to the market every morning at dawn to buy the best products and get the best deals so they can pass it on to the most fastidious buyers. If you are looking for a product, a certain cheese, a rare fruit, a Mediterranean delicatessen, Greek yogurt or Russian dish, they’ll get it for you.

Felipe is always busy cutting and cleaning the fruit and vegetables

Felipe’s wife is so happy to spend the day with him and help him. Before he would be away for most of the day working for others.

You can see variety of milks and milk products for reasonable prices. Plenty of spices and products from Israel, like coffee, pickled cucumbers and olives, dried goods and sweets, and you can ask him if you want him to bring you a certain product from Israel, or Russia, or Greece.

The world economy is shaky; the Dow Jones Index lost 504 points in one day, and looking at the candidates to lead the most important country in the world is not encouraging. The papers predict a grim economic future; prices are dropping in most of the U.S. People are having a hard time getting loans and banks continue to ask for more proof of work verification and available funds to close the deal. It all sounds so depressing, so how come housing prices in our area are still holding strong? I still see multiple offers. So many people check the open homes during the weekend and show real interest. Two weeks ago a 3br 1525 s.f. house was sold in Sunnyvale, in the Santa Clara school district; just on the East side of Wolfe. It was sold for $82k over asking price. It was not significantly improved (an Ikea kitchen with Formicas counter tops and bathrooms with vinyl floors) but the sellers removed some walls and the yard was very pretty and spacious. A 3 br town house in Sunnyvale, just north of Fremont Ave near Mary Ave was sold with 4 offers over asking price and a similar one was sold for a higher price with 2 offers.
The prices in the Cupertino school district area have not increased since the crazier period in February-March this year when people offered 10-15% more than asking price. Now they either negotiate around asking price, or if there is competition (Yes, it still happens) they add 1-3%. If you compare today’s sold prices to what was sold in March 2008 the prices have decreased.
As of today there are 75 homes for sale in Palo Alto - the most expensive priced at $29,850,000, which has been on the market for 381 days. The cheapest house in Palo Alto is priced at $799,950.
Los Altos and Los Altos hills have 114 homes for sale in. The longest listing time on the market at that area is 405 days.
Mountain View has 63 homes for sale in - the most expensive is $4.4M for a small house on a huge lot (40,386 s.f.). The longest listing time in MV is 97 days.
Sunnyvale has122 homes for sale in, with one home at 216 days on the market. There are only 14 homes for sale in Sunnyvale in Cupertino school district.
Cupertino has 106 homes for sale with one home on the market for 390 days (the sellers surprisingly raised the asking price). Out of these homes 84 homes belong to the Cupertino school District.
Saratoga has 128 homes for sale, the most expensive priced at $12M. One home has been on the market for 763 days, asking $6.6M.
The inventory is growing very slowly these days, as it does every autumn. September is the beginning of fall and most sellers prefer to sell in the spring. However, people still have to move or need to sell.
This graph represents the whole Santa Clara County. It shows how the inventory slows down and more homes get into contracts. Many foreclosures, short sales and REO are selling faster. Investors and home owners use the opportunity to own homes with relatively low prices. Please feel free to ask me if you are not familiar with any of the terms I used. I am always happy to hear from you.