Monthly Archives: July 2013

Palo Alto’s New Homes, July 26

With August coming, fewer properties hit the market this week than in previous weeks. This is not unusual, as the real estate market usually has a decline in inventory up until September. For the next month, expect to see fewer properties hit the market. This is due to the fact that many families are in transition this month, as they go on one last vacation or prepare for the upcoming school year. Nonetheless, we had a few new properties this week. See below for this week’s new homes;

2680 Waverley Street – 3 Bedrooms | 2 Bathrooms | 1,517 SF House | 8,308 SF Lot | $1,798,000. A nice property to remodel or build new. Some of the features of the home have been well updated (namely the appliances), but many of the features are outdated. The bathrooms felt small, and the third bedroom felt more like an office than a bedroom. The floor plan has a decent flow to it. Given the lot size, I think the buyer for this home will probably expand. The driveway is very long and that space could cover up some of the floorplan’s eccentricities if it were built out.

298 E Charleston Road – 3 Bedrooms | 2 Bathrooms | 1,295 SF House | 7,200 SF Lot | $1,399,000. Standard 3 bedroom, two bathroom Eichler configuration. Since the floorplan is standard, I’ll focus more on the details. The remodel seemed fairly cursory. The main features of the home, like the kitchen countertops and appliances were not updated, but smaller items like the paint was new. Staging aside, the home has not seen much work. The main selling point for this home is the lot size, but given the size of the home (I’m not counting the bonus room in the garage, but rather the assessor’s square footage), the price feels big to me.

2456 Indian Drive – 3 Bedrooms | 2 Bathrooms | 1,400 SF House | 6,000 SF Lot | $1,198,000. Clean and bright Mackay home in South Palo Alto. Similar to Eichlers in that the home has large windows and lots of light, Mackay homes are interesting properties. This particular home has not seen many updates since its construction in 1954. Located close to Oregon Expressway, the street noise was definitely noticeable. The bedrooms are well sized, and the bathrooms were not as claustrophobic as Eichler bathrooms tend to be. With this style of home, a careful read through the disclosures is especially important.

953 Roble Ridge Road – 5 Bedrooms | 3.5 Bathrooms | 5,538 SF House | 71,441 SF Lot | $8,200,000. Quite an estate in Barron Park. On well over an acre, this enormous Palo Alto home is a very neat house to see. The drive up Roble Ridge is an interesting experience, but the home itself looks great. Matadero Creek separates sections of the properties, so the building potential, and backyard spaces are somewhat limited for the total lot size. There are some older details to the home which could be updated, and at times the floor plan felt like it was meandering from one section to another. Nonetheless, for a large family home, this is an impressive property.

4013 Amaranta Avenue – 3 Bedrooms | 2.5 Bathrooms | 1,687 SF House | 7,910 SF Lot | $1,798,000. This home shows the power of new paint and staging. Although the home needs updating throughout, it looks livable due to the excellent staging. The backyard is sizable and inviting. The living room was very spacious, and the bedrooms weren’t small, which is a nice change from most of this week’s tour. Of this week’s properties, I would say that this would be the best purchase.

Palo Alto’s New Homes, July 19

It’s officially tear down special week for North Palo Alto. More than 20% of the homes this week were tear down properties in Palo Alto. Given that we’re nearing the August lull in new properties, expect things to slow down after next week. As for this week, there are a few good purchase options. See below for this week’s new homes:

1525 El Camino Real – 2 Bedrooms | 2 Bathrooms | 1,458 SF House | 5,250 SF Lot | $1,279,000. Nicely sized and surprisingly tucked away home in Southgate. I couldn’t believe how tucked away this home was for being located on El Camino. Another big surprise of this home was the how well sized it is. Although it only has two bedrooms, they are both very well sized. The layout is also generous and makes the property feel like a bigger home than it is. The major downside to this home is the lot size. The backyard is all decking and garage, which is a bummer. The house itself would make a nice starter home for a young family.

1486 Dana Avenue – 3 Bedrooms | 2 Bathrooms | 1,782 SF House | 11,160 SF Lot | $3,198,000. Tear-down property. This property displays the power of photography for making homes look good. Take a look and you’ll see what I mean. Not an altogether bad option if you’re looking to build, as the location/lot are both solid.

561 Lytton Avenue – 3 Bedrooms | 3 Bathrooms | 1,425 SF Unit | $97 per Month HOA | $1,735,000. Nice unit with a very modern look/feel. I liked that the property was able to fit three bedrooms and three bathrooms so close to downtown, and with dues that low, I’m sure this property will be popular. I did not like the layout of the master bedroom or other two bedrooms. The shape of the lot for these units made the bedrooms feel small and narrow. The downstairs is well set up, and the unit feels very trendy. I would have preferred a wider unit, as this unit and 563 Lytton both felt cramped at times.

563 Lytton Avenue – 3 Bedrooms | 3.5 Bathrooms | 1,425 SF Unit | $97 per Month HOA | $1,735,000. See 561 Lytton review.

4050 Verdosa Drive – 3 Bedrooms | 1 Bathroom | 1,132 SF House | 6,930 SF Lot | $1,199,000. What, another tear down? Yes, it’s true. This home could definitely be expanded for a new buyer, but it’s being priced and set up as a tear down house. There is a lot of land on this particular property, so there is the potential to build something very nice. Given how far back on Verdosa this property is, the price makes it an enticing option.

3657 Bryant Street – 3 Bedrooms | 2 Bathrooms | 1,755 SF House | 6,111 SF Lot | $1,495,000. One of several lot value homes this week. Fortunately, this one was cleaner than the others. You could remodel this Eichler home, but given that it’s been expanded, I would honestly tear down and build new.

3150 Greer Road – 3 Bedrooms | 2 Bathrooms | 1,458 SF House | 6,000 SF Lot | $1,399,000. Good family home on Greer Road. Yes, the home is on Greer and gets some road noise. However, the home itself is well suited for a small family. Proportionately sized rooms and living spaces are a big plus to this home. I liked the layout of this particular property, and the way the bedrooms are situated works really well for a family with young children. The remodel work on this home was well done (one of the best remodels from a home on tour). The backyard was the highlight of this home. There are some nice concrete spaces which would be nice for entertaining, but enough green space to make the backyard feel private and peaceful.

277 Bryant Street – 2 Bedrooms | 2.5 Bathrooms | 1,320 SF Unit | $484 per Month HOA | $995,000. After seeing the photos online, I couldn’t wait to tour this property. Perhaps my expectations were too high, but the property didn’t quite live up to the photos. The big positives to this unit are that the unit is located downtown, has some nice open spaces, and has been updated to feel modern. With that said, the kitchen needs new countertops and the laminate floors have a few bends in them already. The basement is a really neat feature of this unit, but the washer/dryer are there, which means carrying laundry up two floors. If you’re looking to live downtown and want a starter unit, this would be a fairly good choice. Expect it to sell for around $1.1M or slightly over that.

383 Maclane Street – 3 Bedrooms | 1 Bathroom | 1,050 SF House | 5,600 SF Lot | $1,188,000. Starter home on the edge of the Ventura Neighborhood. You can’t really go wrong with this home if you’re looking to buy your first property in Palo Alto. Although the home and lot are small, the three bedrooms and solid schools make it a nice option to start a family. Unfortunately, the layout on this particular home felt fairly disjointed for me, and the kitchen felt small and dining area was, well, claustrophobic. The upgrades throughout the home are a nice touch, and if you can overlook the small spaces, this could be a good purchase.

789 Encina Grande Drive – 5 Bedrooms | 3 Bathrooms | 2,691 SF House | 7,590 SF Lot | $2,438,000. Larger family home on one of Green Acres’ best streets. I love this particular street. Some call this section Barron Park (incorrectly) because there are no sidewalks. Debate aside, this particular home has some nice features. I liked the sizing of the bedrooms and the open feel to the kitchen. I would consider a remodel to most of the surfaces in the home, namely countertops, cabinets, and reworking the bathrooms (one more bathroom in this home would be a big value add). I loved the backyard, and with the larger lot on this property made the open spaces feel impressive. A really nice family home, in a solid family neighborhood.

440 Cesano Court #311 – 1 Bedroom | 1 Bathroom | 1,103 SF Unit | $445 per Month HOA | $549,000. What a difference living a bit further south in Palo Alto makes when looking at condos. This particular unit is a light remodel away from being something special. Although only a 1 bedroom, this unit has lots of space and a killer living room. I liked the set up the bedroom, and there is ample space for an office. Altogether, this home will make a fantastic purchase for a young individual or older couple.

455 Oregon Avenue – 3 Bedrooms | 2 Bathrooms | 1,851 SF House | 7,150 SF Lot | $1,895,000. In my opinion, this home was the best of tour for today. Although the home is located near Oregon Expressway and does get a fair amount of street noise, the layout of the home and serene feel given off by the front landscaping make the home feel welcoming. Inside, the layout flows fairly well with a nice sitting area, dining room, and separate kitchen. The bedrooms are well sized, and the backyard feels very private. There is some potential to remodel, but the home is definitely turn-key. Located in Old Palo Alto, this home will make someone an excellent first home or family home.

365 Forest Avenue #3B – 3 Bedrooms | 2 Bathrooms | 1,695 SF Unit | $525 per Month HOA | $1,299,000. Neat complex with large, single level condominiums. This particular unit follows a similar floor plan to the others in the complex which means two oversized bedrooms, a smaller bedroom, and well sized living spaces. I liked the remodel work with this particular unit. The upgraded kitchen and well updated bathrooms make this unit a great choice for an individual or couple looking for downtown living and some elbow room.

1210 Newell Road – 3 Bedrooms | 1.5 Bathrooms | 1,176 SF House | 9,555 SF Lot | $1,998,000. It doesn’t seem that way from the initial photo, but this house is a major tear down. I’d wear gloves inside. Take a good look at the lot. It’s large but longest around Newell Road rather than Parkinson Avenue. This would mean a home would mostly be facing Newell, the busier street. Be careful walking in the backyard if you have flip flops on; I found a lot of nails, a sledgehammer, and a few pieces of broken glass.

Q2 Menlo Park East of El Camino Real Market Update

As a long-time resident and real estate agent specializing in Menlo Park properties, my neighbors often ask me, “How’s the market?”

This question can have vastly different answers according to the year, the season, and sometimes even the month in which it’s asked. I’m an optimist by nature and I always like to believe that the market is great. It’s wonderful to have the data to back me up.

For example, let’s look at the area of Menlo Park that’s east of El Camino Real, located between El Camino, Encinal Avenue, 101, and San Francisquito Creek. This area includes the following neighborhoods: Linfield Oaks, Felton Gables, Park Forest, Seminary/Vintage, Menlo Oaks, The Willows, Suburban Park, Flood Triangle, Lorelei Manor, and North Fair Oaks.

While the number of sales in this area remained about the same, in Q2 2013, the median price of a home rose to $1,250,000 compared to $1,025,000 in Q2 2010. That’s an 18% increase!

And while prices were rising, the number of days that a property stayed on the market has been cut in half—from 35 days in 2010 to 18 days in 2013. In the world of real estate with inspections, appraisals, loan approvals, and other steps involved before closing escrow, that is lightening fast!

Maybe most interesting is that although prices and demand are high, inventory is at its lowest point in three years with only 79 properties for sale during this time. In contrast, there were 102 properties on the market in Q2 of 2010.

As we enter the dog days of summer and interest rates start to creep up, we’ll most likely see a shift in the market. Things will start to slow down as buyers tire of the frenzy of the spring market and go on vacation.

If you’re a buyer, now might just be the perfect time to get serious and make a move while other buyers are lounging in the sun with a fruity drink. You’re likely to see less competition and fewer multiple offers on the house you want.

If you’re a seller, things are still in your favor. Inventory is low and demand is high. Although it might not be a bidding war bonanza, prices will stay stable and you’re still going to get a great price for your house.

Q2 West Menlo Park Market Update

For the third year in a row West Menlo Park has seen a phenomenal upswing in home valuations (West Menlo Park consists of the Central Menlo, Allied Arts/Downtown, Alpine Road, Sharon Heights and University Heights neighborhoods). The West Menlo markets median sales price has grown 29% from $1.8M in second quarter of 2012 to $2.4M in the second quarter of 2013. This is a $525,250 increase in the median sales price. The increase in prices is astounding, especially considering where our market was at the beginning of 2009. Yes, our market was not hit as hard as the rest of the country but we did feel the down turn.

What is driving this price trend? Lack of inventory, historically low interest rates and demand, the answer is yes to all the above. Year after year, the number of homes for sale in West Menlo Park has declined 15%; we have seen an 11% decline in homes sold and an 18% decline in homes under contract. Demand, however is through the roof. So, the market has only one direction to go and that’s up. The real estate world on the Peninsula did not follow the downward spiral felt in other parts of the country. The Peninsula’s outlook remains bright, thanks to continued low interest rates, the boom of healthy technology companies, the influx of new jobs, and a steady increase in the stock market. I anticipate this price trend will continue into the next quarter and beyond.

Q2 Palo Alto Market Update

Palo Alto sellers continued to benefit from low inventory levels during the second quarter.

The supply of homes on the market in North Palo Alto was down 26% from the same period in 2012 and up a bit from Q1. Median prices rose substantially, but these numbers must be looked at carefully. With very low volume, the “mix” has a huge impact on the median. Look at Professorville, for example – there was only one sale of a $5.5 million dollar home, skewing the median to that number. Likewise, the days on market was adversely affected in Palo Alto Hills and Community Center by 3 homes that had been on the market for extended periods. In the Hills, there were only 3 sales with DOM’s of 2, 7, and 180 days. The 66 day average is not necessarily a representation of the marketplace.

Homes in the $3 million plus range are selling more slowly, giving buyers in this price range a window of opportunity this summer. It is unlikely to continue, though, unless fundamentals change (interest rates go up significantly or the economic recovery stumbles) or substantially more homeowners realize that this is a terrific time to sell.

Most of the neighborhoods south of Oregon Expressway also rose substantially. In Barron Park, the median was up 31% and DOM was a quick 15 days. There were large numbers of offers on properties under $2 million. Time on the market was an amazing 11 days, down from an average of 17 days on market over the previous year. Buyers are clearly still in the market and making decisions quickly!

June 2013 Market Update Videos

Check out our market update videos. Our market videos are updated every month for 50 Mid Peninsula cities and neighborhoods with the latest inventory and sales trends.

Q2 Woodside Market Update

The numbers:

The market run of 2013 continued through Q2 in Woodside, with the median price up 21% ($1,800,000 vs. $2,175,000 in Q2 2012) as a result of continuing buyer demand and low inventory, much as we have seen across Silicon Valley.

Looking at Woodside overall, the number of days to sell fell slightly compared to a year ago at 40 vs. 45.

The number of homes for sale were down 13% compared to last year (90 vs. 103), but pending sales (+18.5%) and sold homes (32.3%) were up relative to Q2 2012.

*** Note: This is data based on MLS transactions. About 30% of sales in Woodside happen without the home being listed on the MLS (like mine), especially for the more expensive homes (not like mine). This data is good for spotting trends, especially in the “mainstream” market under $10M, but isn’t all inclusive.

Definitions:

Woodside is really six markets (my nomenclature and descriptions):

The Glens is a neighborhood off of Canada Road about ½ mile north of downtown that was originally vacation cottages and housing for the workers at the surrounding estates. A neighborhood of 185 homes, The Glens has its own MLS area (which makes market tracking easy) and homes are on 6000sf – .75 acre parcels, and sell for $1.2M – $2.5M. As the entry neighborhood for Woodside, and in the Woodside Elementary School District, The Glens has had a huge run up in prices over 2012 and 2013, some 20% over the last two years. Those are Palo Alto numbers!

Central Woodside is the rest of the flat area surrounding downtown from Portola Road in the south up to Olive Hill Road on the north side. While part of this area goes to Portola Valley schools, the properties are generally 2 – 10 acres, pretty usable, mostly zoned for horses, and supply and demand is pretty consistent across this broad area, with great variations for individual properties.

Emerald Hills is an unincorporated area of Woodside north of The Glens overlooking Canada Road and with views of the Santa Cruz Mountains. This neighborhood is in the Woodside Elementary district and is characterized by narrow winding roads and a very rural feel. Prices range between $1.5M and $3.5M

Woodside Heights is east of 280 and south of Woodside Road. The homes here go to Las Lomitas schools in Menlo Park and are generally on acre parcels. Prices range from $2M for an original condition ranch home to $10M (asking) for the Buck Estate.

Woodside Hills is on the east side of 280 and north of Woodside Road. Very similar to Woodside Heights feeling cut off from town by the freeway and Redwood City schools. There are a number of large homes in this neighborhood and it does offer views of the Bay. Noise from 280 and Woodside Road are persistent challenges.

The Mountains is everything west of Woodside Road west of town going up to and including the Skywood Acres and Skylonda neighborhoods near Woodside Road and Skyline. These neighborhoods are great for people who don’t mind an extra 15 min commute to live away from the hustle and bustle of city life and have larger properties, with the potential for towering redwoods and panoramic views. You get a lot for your money up there as most suburbanites often consider it too remote, but you can get to go to your vacation cabin in the mountains every day.

Properties are on 6000sf to 20 acre parcels and can go from a neighborhood to a “off the grid” cabin on a private road in the woods. Wells, septic tanks, water reservoirs for fire fighting and backup generators are par for the course up there. The occasional wild boar or other wildlife sighting should be expected too. Compared to the flats of Woodside, market times are longer, often 6 months, and prices range from $800,000 for a cottage in the woods on a small plot to $10M+ for larger retreats surrounded by open space.

What happened:

Because of the variety and where most people are interested, I’ll focus my comments on the flats of Woodside, so The Glens, Central Woodside and Emerald Hills. If you are interested in information on other areas, send me an email or call.

We saw a number of larger sales in Woodside during Q2, including several homes that were on the market in 2012 that didn’t sell, that sold this year as the rising market came to them. With the run on real estate values over the last two years across all of Silicon Valley, even perennial laggards Portola Valley and Woodside are seeing rising prices as a limited inventory of homes is met with increasing demand.

More buyers who traditionally would have focused on Menlo Park or Palo Alto have been expanding their searches to Portola Valley and Woodside as prices have soared in closer in markets, the larger homes and more land available for similar prices in Portola Valley and Woodside have become relative deals. The numbers are a bit skewed as the price range of Woodside is huge. The least expensive home in Woodside sold for $888,000 and the most expensive $117M.

The Crystal Ball/What’s Next:

Expect that the number of homes for sale will remain low keeping steady to upward pressure on prices especially in the entry level neighborhoods of The Glens and Emerald Hills. The median price of a home in Woodside being over $3M, rising interest rates won’t have much of an impact on seller motivation or prices. Half (49.5%) of the sales in Woodside in 2012 and 2013 were cash deals. Wow……

Woodside is a small town and what I call a “destination city”, generally you move there and don’t leave. With only about 1200 homes, and a turnover rate of less than 3%, that’s about 40 homes a year. Sort by location and price range and you don’t have a lot of options. It took us two years to find a home in Woodside as detailed in my series A Realtor Buys a House, and we are planning to stay until we are carried out.

Q2 Redwood City Market Update

The Redwood City housing market has taken off, trailing just on the heels of its neighbors in the Peninsula. The city where buyers used to come for “bargains” has emerged from its cocoon as a beautiful and difficult to catch housing market. Buyers from neighboring cities apparently didn’t get the memo that the downtown in Redwood City is flourishing, and the entire city seems to be buzzing with a younger, more tech-savvy group who focus on its current attributes and future potential. As a direct result, buyer demand is driving this housing market to mimic historical trends of neighboring cities.

The second quarter of 2013 has exploded, leaving the similar time period from last year in the dust. Inventory is still down. The homes that do appear on the MLS disappear as sold listings just as quickly. Significant gains in median price, substantial overbidding, and extremely rapid sales are driving Redwood City as one of the newest highly-competitive markets in the Peninsula.

Redwood City, as a Whole

Throughout the city, we have seen the median home price jump 19% from Q2 2012, rising from $777,500 to $926,000. The average days on market for these sales has dropped more than 50% from an average of 41 days on the market to only 20 days. Significant overbidding has returned to the county seat, with sales prices averaging 6.3% over the list price, compared with only 1.5% overbidding in Q2 2012.

Old Redwood City*

Drilling down to a neighborhood view, Old Redwood City was even more competitive. Q2 comparison of median home price between 2012 and 2013 showed an increase of 15%, with median sales price rising from $1,100,000 in 2012 to $1,265,000 in 2013. Buyers were even more eager to get into this neighborhood, and the average days on the market plummeted by 50% from 60 days to 30 days. Buyer competition for the second quarter is still fierce in Old Redwood City, with significant overbidding on homes at 8.0% over the list price, compared to 1.6% over list in 2012.

The City to Watch

Keep an eye on Redwood City as the downtown develops further, more buyers are priced out of other cities, and the city’s schools catch up with the demand for top performing schools. We have seen the beginning of this trend, but can expect that future home prices will more closely rival those of the surrounding cities.

*Old Redwood City is defined by the area between James St. & Edgewood Rd., and Alameda de las Pulgas & El Camino Real.

Palo Alto’s New Homes, July 12

After a week off for the 4th of July, the Palo Alto’s tour sheet provided quite a few new properties. Most of the properties this week happened to be spanish style homes, so you’ll be seeing a lot of terra cotta roofs and tile floors. See below for this week’s new homes:

765 Frenchmans Road – 6 Bedroom | 3.5 Bathrooms | 3,480 SF House | 47,166 SF Lot | $2,725,000. AVAILABLE TO STANFORD FACULTY AND STAFF ONLY. Older home in need of some remodeling. The home presents itself well, but definitely needs a remodel. Feeling more like a large cabin than a modern home, this property also features a nice guest house. There is a lot of usable land on the property, but this home will be a reasonable project for someone who has some time on their hands. Double check the new purchasing rules with Stanford to make sure you qualify.

1127 High Street – 4 Bedrooms | 2.5 Bathrooms | 2,890 SF House | 8,000 SF Lot | $2,648,000. Recently remodeled home in the Professorville neighborhood. I liked the layout of this property. Although there are not a ton of open spaces in the home, the flow from room to room is well thought out. The bedrooms are also a nice size. I would have liked one more bathroom in this house, and the one car garage is not ideal. Given the proximity to Alma and Embarcadero, expect some road noise.

1550 Middlefield Road – 5 Bedrooms | 3 Bathrooms | 2,827 SF House | 7,280 SF Lot | $1,998,000. Older home on a large lot. The home appears to have had a quick update with granite countertops in the kitchen, but the rest of the home seems to be well maintained, original condition. I would have liked to see a bigger backyard on this property. It is likely that the owner will also need to do some larger updates to the home. Although one could move in and be fine in this property, most of the fixtures need updating. Also, the proximity to Embarcadero and location on Middlefield means that there will be significant road noise, as that intersection gets lots of traffic.

1323 Hopkins Avenue – 4 Bedrooms | 3 Bathrooms | 2,087 SF House | 6,975 SF Lot | $1,995,000. Remodeled, but small feeling home near Rinconada Park. I thought the photos of this property did not do it justice. The spaces, although very square and often small feeling, provide the home with plenty of space for a growing family. The lot itself is on the larger side, allowing for a reasonable backyard. I did think that the house felt a bit sprawling at times, since the rooms are fairly small. I really liked the location of this home, and think it would make an excellent family home.

737 Center Drive – 4 Bedrooms | 3.5 Bathrooms | 3,370 SF House | 6,300 SF Lot | $3,500,000. I definitely was not expecting this home to be so vibrant on the inside. Tucked away from the street, this home has undergone a pretty loud and modern remodel as of recent. I thought that some of the touches were a bit much, and some more standard paint colors would have helped the home’s presentation. If you look past that, you’ll find that the first floor is nice and spacious, with some rooms that feel angular. The upstairs is nice, but nothing dramatic. I liked the guest suite, and although I thought the master bathroom was well done, I wouldn’t call it “award winning”. The home is located on the end of T intersection, so that may affect the overall sale price.

419 Palm Street – 2 Bedrooms | 3 Bathrooms | 1,496 SF House | 14,102 SF Lot | $1,595,000. Neat family home off of University Avenue. If you can get past University Avenue nearby, this home is very cool. The home itself is nice, but could use light remodeling. The stairway to the second floor is a bit precarious, but could work for a younger couple. I really liked the backyard feel, and the separate cottage seemed like a neat escape for Palo Alto. Altogether, this was my favorite home from tour.

500 Fulton Street #204 – 2 Bedrooms | 1.5 Bathrooms | 1,100 SF Unit | $500 per Month HOA | $950,000. Large and mostly original unit near University. The layout on this particular unit is nice. I liked the large living room and reasonable dining area. I wish the kitchen were a bit larger. Given the size of the unit, a lot of attention was paid to making the bedrooms as large as necessary, but not extravagant. Some remodeling work will likely be done to the countertops and bathroom. As always, check with the HOA about remodel work. Lastly, the dues seem fair for the size of unit, location and development size.

778 University Avenue – 2 Bedrooms | 2 Bathrooms | 1,258 SF Unit | $442 per Month HOA | $849,000. Small/medium sized complex on University avenue. This particular unit is larger than the one on Fulton, but the exchange is a slightly higher amount of noise. Strangely enough, the bathrooms have seen some minor remodeling, but the kitchens need a remodel. The unit is large, but does not feel quite as spacious as Fulton. The hardwood floors are a nice touch, and the location is also very nice. Between Fulton and University, I would pick University.

3370 Park Boulevard – 4 Bedrooms | 2.5 Bathrooms | 1,870 SF House | 5,684 SF Lot | $1,780,000. Essentially a new home in the Ventura neighborhood on Park Boulevard. New construction like this is always popular, and the layout/feel of this home are definitely well thought out. The 3rd and 4th bedrooms felt small to me, and I would have liked an additional bathroom on the house. The kitchen is stunning. This will be an interesting property to watch, as the list price is really tough to swallow for the lot size, proximity to the tracks, and Ventura neighborhood.

4044 Park Boulevard – 3 Bedrooms | 1 Bathroom | 1,050 SF House | 5,250 SF Lot | $950,000. Starter house on Park Boulevard in the nicer section of the neighborhood. The home and lot size are small, but this section of Ventura is quaint. Although some light remodeling has been done, expect to do some more to this home. The flow of the home is fairly standard to these older homes in that there is a decent living area/kitchen, smaller bedrooms, and one bathroom at the end of the hallways. Given the price of the property, expect it to move quickly.

3481 South Court – 4 Bedrooms | 3 Bathrooms | 2,377 SF House | 6,250 SF Lot | $2,398,000. Very well remodeled home in Midtown. It’s easy to see that the home has a lot going for it when you walk in. High end flooring, a well set-up kitchen and some excellent open spaces when you first walk in make the home a winner. The only points against the home are the bathrooms, which felt fairly small, and some small areas of dead space on the first floor. The backyard has a nice feel to it, and although not traditional, its layout is great for entertaining.

4248 Noble Street – 4 Bedrooms | 3.5 Bathrooms | 2,368 SF House | $202 per Month HOA | $1,695,000. Recently built, these town homes feel more like separate houses than town homes. Given the age of the unit, the interior spaces are well set up to keep a fair amount of open spaces. One thing to note is the amount of stairs in this unit. It will keep you in shape, but is not ideal for an older family or family with small children. Other than that, this unit has a lot to offer, is spacious, and is located in a nice area.

178 Ely Place – 4 Bedrooms | 2 Bathrooms | 1,878 SF House | 8,000 SF Lot | $1,678,000. Rancher style home south of Charleston. In a neighborhood with many Eichlers, this home stands apart. Priced to move and mostly original condition, the layout of this home feels standard for Ranchers. One positive is that these homes have large living rooms and a nice dining area. This kitchen on this property felt small, even with the updating. I liked the master bedroom, but the 4th bedroom felt small as well. The large lot makes for a nice backyard.

759 Gailen Avenue – 4 Bedrooms | 2 Bathrooms | 1,780 SF House | 8,400 SF Lot | $1,450,000. Lightly remodeled Eichler home in Charleston Terrace. New paint, kitchen, flooring and some track lighting give this home a modern feel at first glance, but the outdated bathrooms and backyard provide a counter to the remodel. I would have liked to see the bathrooms remodeled since the rest was done. Anyhow, the floor plan is the same as other Eichlers with the master suite and small hallway bathroom between the bedrooms. The kitchen has been opened up, which is a common (and smart) remodel choice. The backyard needs some help, but altogether this is a nice property for a starter home.

3116 Morris Drive – 3 Bedrooms | 2 Bathrooms | 1,598 SF House | 7,722 SF Lot | $1,275,000. There’s a good chance this home will be picked up by a builder or family looking to build. The home is in mostly original condition, and given the size of the lot, a lot could be done here. The interior spaces could be remodeled, but the best use for this home is to tear it down and build new.

611 Barron Avenue – 3 Bedrooms | 1 Bathroom | 1,040 SF House | 5,350 SF Lot | $1,198,000. Lightly remodeled starter home in Barron Park. The layout makes the most of the 3 bedroom floor plan. This home felt a lot like 4044 Park Boulevard, but in a nicer neighborhood and with more remodeling. Although the lot is small, the positioning of the home on the lot made for a nice backyard and spacious feel to the outside. A great starter home, this property has all the upgrades you’d need to feel comfortable while still allowing for some remodeling.

631 Georgia Avenue – 3 Bedrooms | 2 Bathrooms | 2,204 SF House | 10,080 SF Lot | $1,899,000. If you don’t mind a hefty remodel, this could be a great purchase option. The large, pie shaped lot has a heft backyard. The home could use another bedroom and bathroom. There’s a fair amount of seemingly wasted space on the first floor for sitting rooms, but there is potential. With the right designed and some spending money for a remodel, this home could be something special.

Q2 Portola Valley Market Update

The numbers:

The market run of 2013 continued through Q2 in Portola Valley, with the median price up 27% ($2,950,000 vs. $2,325,000 in Q2 2012) as a result of continuing buyer demand and low inventory, much as we have seen across Silicon Valley.

Looking at Portola Valley overall, the number of days to sell rose slightly compared to a year ago at 44 vs. 40.

The number of homes for sale were flat compared to last year at 60, but pending sales and sold homes were up relative to Q2 2012.

Definitions:

Portola Valley is really four markets (my nomenclature and descriptions):

The Ranches includes the Corte Madera neighborhood and Portola Valley Ranch. Homes are on half to one acre parcels and generally sell between $1.5M and $2.5M.

Central Portola Valley is the triangle of Westridge, Alpine and Portola Road. Homes here are on acre to 5 acre parcels (the Westridge community is mostly 2.5 acres), and sell between $2.5M for a sloping lot to $8M for a newer home with views, usable land and a quiet location. There are outliers like 1260 Westridge which is three lots totally 22 acres with a large house that was originally listed for $25M, reduced to $16M. Lew Platt’s house is in this neighborhood and is currently listed for $24.5M.

Los Trancos Woods includes the pie shaped area of homes south of Alpine Road extending up to the end of Vista Verde Way. Homes here range from cottages on 6000sf lots to large mountain properties on 5 acres or more. 495 Old Spanish Trail is the outlier in this market sitting on 22 acres with big views of the Bay and San Francisco. Currently listed at $15,900,000.

Ladera Ranch is the neighborhood surrounding the Ladera shopping center on Alpine Road near 280. Homes here are on 6000 – 10,000sf lots and sell between $1.5M and $2.5M. Ladera is in unincorporated San Mateo County, but is almost Portola Valley and the mailing address is Portola Valley, so I’ll include it here as opposed to Menlo Park. Ladera had a huge run on prices in 2012, with an overall jump of 10-15% for the better homes, blowing through the $2M price ceiling. Now the better homes sell for $2.2M – $2.5M. Wow.

What happened:

We saw a number of larger sales in Portola Valley during Q2, including several homes that were on the market in 2012 that didn’t sell, but sold this year as the rising market came to them. With the run on real estate values over the last two years across all of Silicon Valley, even perennial laggards Portola Valley and Woodside are seeing rising prices as a limited inventory of homes is met with increasing demand. Another factor is more buyers who traditionally would have focused on Menlo Park or Palo Alto have been expanding their searches to Portola Valley and Woodside. As prices have soared in closer in markets, the larger homes and more land available for similar prices in Portola Valley and Woodside have become relative deals.

The Crystal Ball/What’s Next:

Expect that the number of homes for sale will remain low keeping steady to upward pressure on prices. With nearly half of the homes in Portola Valley, and the majority of Central PV, being over $3M, rising interest rates won’t have much of an impact on seller motivation or prices.

Portola Valley is a small town and what I call a “destination city”, generally you move there and don’t leave. With only about 1700 homes and another 500 in Ladera Ranch, and a turnover of about 3%, that’s about 75 homes a year. Sort by location and price range and you don’t have a lot of options.