Los Altos Real Estate Blog

Being on of the most expensive luxury markets in the country is a big torch to carry.  Los Altos Hills is often cited as the #3 real estate market in the country, which is often reflected in the lofty prices for single-family homes.  Last year was a big recovery year and it look like that is continuing in 2012.  The average sales price in March 2012 was $2,836,556 which is down from $3,025,000 in February.  However, nine homes sold last month compared to only 3 the month before.  It's actually well below the spike in prices we saw last year with the average went to $3,147,000 but that was a bit of a skewed statistic.

Two major changes in the market this month; the days on market is down to 146 from 181 last month and the inventory has dropped so there is only 4.8 months of inventory to meet demand.  That's down from 10 last month and shows a shift in buyer behavior.  While the high-end is still struggling, homes price in the $2.5-$4.0 million range are selling well and don't stay on the market long.  Sales started in March and continued into April 2012.

While the Los Altos Hills real estate market often sees significant fluctuations from month-to-month, the general trend in Q1 is up.  As long as buyers continue to snap up homes as they come on the market (as has happened recently) the overall price trend should continue.  There were several homes sold in March that will close in April that will reflect this strength.  One place that is still weak is the extreme high-end market.  Homes price over $5 million are still seeing downward pricing pressure.

You've been a homeowner in Los Altos Hills for a long time and now you want to downsize - sell your home and get something smaller nearby.  Perhaps you're retired or your current house is just too big.  No matter the reason, it's a daunting task, going through years of memories to leave a home you've known for something new.  You can do it!  You just need two things; a destination and a plan to sell your home.  The process I recommend is relatively simple.

1)  Find a destination

Before moving you need to know where you'll live next.  Downsizing is relative and what you want in a home will dictate where you live.  If you expect more than 2000sf of living space, you'll have limited options in condos and townhomes.  If you expect single story, that will further limit your choices.  Budget is also a significant factor.  As with any home purchase, decide what you really need and then you can work on finding a destination.

If you're interested in senior housing, there are many such communities in the area.  The critical difference is knowing what KIND of place to move to.  There are three kinds of senior homes you can downsize to:

• Smaller, independent living in a condo or townhouse
• Independent living with limited managed care or services
• Full managed care facility (with various specialties)

Not all senior communities are the same and the costs of services vary widely.  Decide what you need and then I can help narrow down where to look.

2)  Plan to sell your home

This takes time depending on how long you've lived in your home and what you want to take when you downsize.  Once you know where you're going, you should have a good idea of how much space you'll have.  Reducing the number of possessions you have may require an estate sale, donations, distributing to family, or other methods.  I can help make arrangements for many of these.

Timing the sale of your home may need to coincide with moving to your new location.  Many retirement communities have waiting lists so that's a consideration.  Otherwise, it's merely a matter of availability.  If you're downsizing into a regular home, condo, or townhouse, see if you can purchase the new home first before selling your existing home.  Many sellers in the area don't want to take a "contingent on sale" offer.

The major items to consider when downsizing and planning to sell your Los Altos Hills home include:

• Reducing posessions (furniture, etc)
• Estate planning (tax and trust implications)
• Marketing timing (coordinating the sale with new home purchase)

These are all preliminary to the typical plans of selling a home.  I can sit down and work with you on a comprehensive strategy to making the transition as smooth as possible.  The gradual process is especially important if you've been in your Los Altos Hills home for a long time.  Give me a call and let me help you downsize.

If you're looking for the best deal on land for sale in Los Altos Hills, CA, then look no further than 27300 Ursula Lane.  This 2.15 acre lot is priced at $1,999,000 and offers spectacular views of SF and the Bay.  The property has approved plans (that takes 2 years to get) for a 5,780sf home and construction can start immediately.

This is a rare opportunity for homeowners and investors alike.  The appeal for the owner/builder is they get a new construction home that can be completed this year.  That's a huge time savings compared to buying raw land and getting all the necessary plans and permits approved.

The appeal for investors is similar - much less time to finished product.  An investor can get this lot and have the home done and ready to market in the 2013 market year (finished home).  You can't beat that deal on new construction.  That cuts holding costs which means more profit.

Either way, this is a great deal.

If you're looking for other options in Los Altos Hills, I've got several off-market listings for lots in Los Altos Hills ranging from 1.25 to 5.5 acres and almost all with views.  Prices range from $1,700,000 to $2,500,000.  Give me a call and let's talk about your needs.

I'll be hosting an open house this afternoon at 26462 Purissima Road in Los Altos Hills from 1:30-4:30.  This is truly a gorgeous estate property with 2 acres of land with a palatial 10,000sf home and 1,000sf guest house.  The home is entirely new construction with generously sized rooms and stately appeal.  The grand foyer leads to a massive reception area and grand staircase.

This home represents an excellent opportunity to have a brand new, never lived-in home ready to customize to your personal tastes.  It's also perfect for entertaining with a huge kitchen, great "flow" for guests and catering, plenty of outdoor patio space, and lots of parking.  Stop by and take a look!

Well-priced at $7,188,000

Home sales in Los Altos Hills got so bad at one point that there were no sales at all for months.  As one of the top 3 luxury markets in the country, it was the perfect example of how escalating prices from the dotcom era resulted in a crash in values and sales.  The market actually got soft starting in 2007 but did well going into 2008.  However, after that prices drop substantially and sales were fairly low.

In 2009, the market took it's biggest hit with sales actually up about 10% but prices dropping nearly 10%.  The super high-end homes were almost not selling at all and buyers were constantly looking for bargains.  Other nearby luxury markets such as Atherton and Saratoga also took hits on average sales prices.  The bottom occurred in 2010 when the average selling price dropped to $2,590,417, down from the high in 2008 of $2,889,133.  The real story is that there were almost zero high-end sales.  Most of what was selling was heavily discounted homes.  In fact, I sold a new construction home with over 5000sf for $2.65 million that year that had dropped in price from close to $5 million.  Buyers assumed discounts were 20-30% in Los Altos Hills.  Until late 2010...

In the late Fall of 2010, the market suddenly perked up.  Homes priced at the high-end started getting activity and sales, which had languished for much of the year, were really moving.  Well priced, well located homes would come on the market and sell relatively quickly.  A total of 81 homes sold in 2010 - many in Q4.  This continued into 2011 with 100 sales of single-family homes and the market snapping back about 5%.  The declining trend had halted and was definitely on the upswing.  More importantly, the ultra high-end market was strong.  With a $100 million home sold and many others in the $5-10 million range selling, demand was high.

As we continue into 2012, the market is still strong with demand for new homes as good as we've seen in years.  Many buyers are looking for land to build on and homes up to $5 million have several buyers interested.  Anything priced under $3 million in a good location will sell.  While total sales are a bit light, sales prices are up and I expect this trend to continue for the next several months.  Based on what properties are pending and what has already sold, it's very realistic to project average selling prices to return to their 2008 highs and possibly go beyond.

This exceptional opportunity is perfect for the buyer who wants new construction in Los Altos Hills with the ability to fully customize the home to suit their taste.  Breaking ground in April 2012, the home will feature a total of 4 bedrooms all with en-suite bathrooms.  Two master suites, one upstairs and one downstairs, offer flexible living options.  The main floor has a formal living room, formal dining room, den, and gourmet kitchen with adjoining family room.  The second floor has living quarters, a theater, and gym.

For a private showing of the property and meeting with the builder to discuss options, please call me.  The list price is $4,200,000. All finishes can be customized, subject to allowances. 

I'll be holding open this wonderful estate property again this Satuday, February 25th, 2012 from 1-4PM.  If you haven't been to this fine estate home before, stop by tomorrow and take a look.  Even if you've seen it in the past, come again because the owner/builder has made some significant improvements and additions.  This is a completel "turn key" estate, brand new, and NEVER LIVED IN!  No other luxury listing in Los Altos Hills offers the ability to move in immediately.

When you're here, take the time to walk the grounds and enjoy the landscaping.  This is a very private estate with very little direct visual access to neighbors.  If you want to truly get away from the world, this a great place to be.  One of the newest changes is the completely landscaped front yard.  Lots of grass with a fountain and small creek makes this a grand and pleasant oasis.

The asking price is $7,188,000. 

Zillow just published their annual list of the most expensive small towns in America and, as usual, Los Altos Hills came in at #3.  It's nice to see our local markets represented in this list but I've learned that the method of calculating the values is flawed.

Zillow takes the median sales price in each town from the month of December (in this case December 2011).  From a statistical standpoint, this is full of flaws.  For one thing, when you look at Los Altos Hills there are only a few homes sold and the median is rarely an accurate reflection of what is selling.  There were very few sales in December and that's a time when bargains are typically sold.  Seasonal slowness combined with reduced prices gives a flawed impression of the market.

When you look at the AVERAGE SELLING PRICE (ASP) you get a different perspective, even when looking at an individual month like December.  The average selling price in Los Altos Hills was much higher in 2011 overall than the Zillow report.  The ASP is a more accurate representation of values when there are fewer data points.

Anyway, congratulations to Los Altos Hills, CA for once again being one of the most expensive places to live in the United States.  With the growth in the market, I'm certain we'll see continued price appreciation in 2012.

This is a spectacular house!  Not only is it on two flat acres but it has brilliant landscaping, a circular driveway by the house (after a long drive past the entry gate), and it's fully staged. There have been quite a few improvements since it was last on the market.  In my opinion, this home is not only gorgeous but also an excellent value. 

This grand estate has a 10,000 sq. ft. main home and 1000 sq. ft. guest house.  The home and guest house has 6 bedrooms, and 7+ bathrooms with a master suite, a pool, chefs kitchen, large wet bar, 4 car garage, and more.

This luxury home is located in one of the best areas of Los Altos Hills with many of the finest estate homes nearby.  Conveniently located on over 2 acres of flat land, this is truly an estate property.  Of the many features in this home, There is plenty of room for entertaining and living.  One of my favorite features is the lounge with a full wet bar and additional bar seating.

The guest house is ideal for long-term visitors because it has 2 separate bedroom suites, a full kitchen, and separate living room area.  Depending on who is staying, one suite could be used as an office, gym, or family room.  There's lots of flexibility.

The rest of the estate has excellent flow on the grounds and in the house for entertaining.  There's plenty of parking space, easy access for catering, and a natural flow that could have guests going into the home or the patio.  There is also more space to add a tennis or sport court, stables, and other luxury features upon approval of the Town of Los Altos Hills.  There is nothing else on the market that offers this much at this price.