We are truly fortunate to live and work in what seems like a beacon of light. Silicon Valley's housing market continues to improve and stand alone vs. the rest of the nation. Our current level of housing inventory is at an all-time low and it seems buyer demand is only increasing, putting continued upward pressure on prices. Residential rents continue to rise substantially, and have skyrocketed up +12.6% in Q2. Looking ahead into Fall, we expect housing demand to continue due to record-low mortgage rates, employment hiring, investing and relocating to beautiful Silicon Valley.

We are starting to see the lowest days on market for housing inventories in areas like Palo Alto and Cupertino than we have in the last three years. Currently, we have 1.6 months supply of inventory in Cupertino with 18 days on market, and a fairly competitive pricing landscape.  A property in prime Cupertino just listed last week with 4 bedrooms, 3 bathrooms, 2,100sf and nicely re-modeled for $1,378,000 sold the weekend it came on with 5 offers and slightly over asking price. This was of course a matter of the property itself, and was most closely tied to pricing and perceived value for the buyers.

• February 2009: 1,022 or 11.2% of Total Properties UC
• February 2010: 1,173 or 16.7%
• February 2011: 1,631 or 25%
  • In Palo Alto, 24% of all properties are UC with 1.4 Month's supply and 34 DOM
  • In Los Altos, 20.% of all properties are UC with 2.2 MSI and 69 DOM
  • In Mountain View, 22% of all properties are UC with 1.7 MSI and 31 DOM
  • In Cupertino, 28% of all properties are UC with 1.6 MSI and 18 DOM    
      

• February 2009: 321 or 11% of Total Properties UC
• February 2010: 364 or 14%
• February 2011: 549 or 21%  

An Enchanted Setting in Los Altos Hills - 10696 Mora Drive

In light of the recent disaster and tragic events in Japan, we have created a helpful Earthquake Preparedness Checklist which we strongly encourage you to review and put together for yourself and your family if you haven't already. 

Our hearts and thoughts go out to all of those affected by the devastation.

• January 2009: 977 or 10.4% of Total Properties UC
• January 2010: 1,007 or 16.6%
• January 2011: 1,585 or 26.7%
  • In Palo Alto, 33.8% of all properties are UC with 1.7 Month's supply and 45 DOM
  • In Los Altos, 20.7% of all properties are UC with 3.5 MSI and 56 DOM
  • In Mountain View, 26% of all properties are UC with 2.3 MSI and 42 DOM  
      

• January 2009: 312 or 11.2% of Total Properties UC
• January 2010: 367 or 16.6%
• January 2011: 483 or 20.5%
   

Los Altos

Every month we will begin to feature a neighborhood snapshot and highlights from around the Peninsula and Silicon Valley. This month we have an eye on Los Altos and the deep-rooted history that makes it such a beautiful place to live. Since incorporation in 1952, then-encompassing apricot and plum orchards, Los Altos has grown to a community of mostly single-family homes and tree-lined streets, with 7-square miles located in between Mountain View and Los Altos Hills. Known for it's excellent schools and neighborhoods, Los Altos supports seven commercial areas developed with small businesses, schools, libraries and churches, and close to 30,000 residents.

Old Los Altos, as the neighborhood is appropriately called because it was the original town, is defined by El Monte and Edith Avenue, Foothill Expressway, and what is now Los Altos Hills. A relatively small neighborhood, most of the lot-sizes are one-quarter acre, with houses built in diverse architectural styles dating as far back as the early 1900's. Prices in this neighborhood have remained stable over the past year: from 2009-2010 prices varied +/- 5% with the average home selling for $1.86M. There are currently 2 active properties on the market in Old Los Altos and no pending sales. In 2010, 8 homes sold in this neighborhood, the same number as in 2009. This sought after neighborhood is highly desirable because of the history, proximity to downtown, local parks and schools in the area.

On February 11, the Obama Administration released its plan for reforming America's Housing Finance Market. The proposal, which offers three options for handling the secondary mortgage market participants Fannie Mae and Freddie Mac (full privatization, a guarantee mechanism during crisis, and catastrophic re-insurance), also

proposes criteria that would foster increased down payments to 10%, lowering GSE and FHA loan limits, and raise the GSE's guarantee fees (g-fees) and FHA premiums significantly, in an effort to level the playing field and bring back the private sector. The National Association of Realtors recognizes that the existing system failed and that changes are needed to protect taxpayers from an open-ended bailout; however, they also believe that there must be a certain level of government participation to provide middle-class families access to afforable mortgages at all times and in all markets. To read the administration's report, please visit Realtor Government Affairs