By Alicia Lanier, REALTOR
Traditionally, Silicon Valley home buyers have preferred having at least a bit of land with their homes. In other words, their dream home nearly always looked like a single-family home on a grassy plot of land (usually fenced) that offers privacy from neighbors.
This vision began changing three decades or so ago. Today, with its pricey properties and diverse population of families from countries with higher-density homes, our Silicon Valley home buyer frequently opts for a condomium or townhome instead of a single-single family home.
For many – like empty nesters, career couples, singles, or investors - the attraction of buying a condo is having someone else handle the landscaping, maintenance and perhaps the security. Even with a monthly homeowner association fee, the savvy buyer tallies the services covered each year for the condo home and understands that maintaining a single-family home also would carry an annual price tag, usually at least one percent or more of a home’s fair market value.
For other buyers, the condo or townhome is the smartest choice for personal finances … especially since the median selling price for a condo or townhome in Santa Clara County is well under that of a single-family home.
Does the Silicon Valley condo or townhome grow in market value at the same rate as a single-family home? Not usually. And, as with a single-family home, home value appreciation still depends on a home’s location, age and condition. And … no surprise … the SV cities with more new construction tended to have higher appreciation in the past five years.
For the record, here are the median selling prices of condomium/townhomes in Santa Clara County cities for August, 2007, as compared with August, 2003:
Campbell: $420,000 median in 2003; $524,00 median in 2007 ($555,000 in 2006)
Cupertino: $452,500 in 2003; $775,000 in 2007
Gilroy: $279,000 in 2003; $438,500 in 2007
Los Altos: $570,000 in 2003; $950,000 in 2007
Los Gatos: $459,000 in 2003; $852,500 in 2007
Milpitas: $326,250 in 2003; $552,500 in 2007
Morgan Hill: $378,750 in 2003; $475,00 in 2007 ($527,000 in 2006)
Mountain View: $399,000 in 2003; $659,750 in 2007
Palo Alto: $434,000 in 2003; $910,000 in 2007
San Jose: $339,000 in 2003; $482,500 in 2007
Santa Clara: $315,000 in 2003; $455,000 in 2007 ($470,000 in 2006)
Saratoga: $575,500 in 2003; $624,975 in 2007 ($650,000 in 2006)
Sunnyvale: $398,000 in 2003; $600,000 in 2007
Alicia Lanier is a REALTOR and member of the Coldwell Banker Diamond Society – Top 8% of Agents Internationally www.AliciaLanier.com 408-491-1634
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