Los Altos Real Estate Blog

Saratoga has had a rough time since the real estate meltdown with steep declines in prices, particularly high-end homes, since the market started to crash in 2007.  In 2007 the market peaked with an average selling price of $1,852,777.  In 2008 that dropped to just over $1.8 million then to $1,550,000 in 2009.  While it appears that is a drop of less than 20%, the reality is that the high-end saw prices drop much more.  The trend for high-end homes was 30-40% discounts from their end-of-2007 highs.  Buyers were basically calling all the shots.

The number of closed sales dropped substantially as well while inventory continued to rise.  That's the key issue in the Saratoga market from 2008-2011, inventory was very high.  Where some luxury markets saw inventory taken off teh market, Saratoga had significant inventory for a long time.  This is because there was substantial speculative inventory and entry-level luxury buyers to extended themselves and couldn't hang onto their homes.  In 2008 there were 239 single-family homes sold.  That dropped to 230 in 2009 but rose nicely in 2010 to 288 homes sold.  Last year is was 275.

The average selling price has continued to rise or hold fairly steady since 2010.  That's when the general market recovery started.  However, the excessive inventory has been an ongoing issue.  With lots of choices, prices aren't rising as they are in other luxury markets like Los Altos Hills.  However, with inventory available and better overall value and price apprciation potential in other markets, the recovery is still slow in Saratoga.  The trend so far this year is for a decent number of homes sold and at slightly increasing sales prices.  Sales prices are already rising as buyers scramble for good homes in good locations.  The trend so far in 2012 is:

• Rising prices
• Fewer days on market
• Lower inventory

This Saturday, December 17th at 7:30PM, the Winchester Orchestra of San Jose will present a variety of classic Broadway musical tunes and Christmas music to celebrate the season.  Music comes from some well-known Broadway plays including South Pacific and Gypsy.  This event is also help on December 18th in San Jose.  See the Winchester Orchestra website for details. 

The Saratoga concert takes place at West Valley College located at:

14000 Fruitvale Ave

Saratoga, CA  95070

Tickets are either $10 or $20 and may be ordered by calling 408-866-5302 or visiting the Winchester Orchestra website.  There should be plenty of parking in Lot 7 and the website has directions depending on where you're driving from.  If you'd like to listen to something a little different and need a break from "The Nutcracker" then this is a good option.

There are quite a few place to get pumpkins in and around Saratoga, but none seem as popular as the Queen's Pumpkin Patch located on Saratoga Avenue close to Cox Avenue.  This place always seems full of families and folks just looking for some old-fashioned Halloween fun.

This pumpkin patch sets up in early October and stays open till Halloween.  The main draw is the huge collection of pumpkins layed out on the ground and stacked on hay bales that offer a variety of perfect opportunities for photos.  When I drive by on the weekend, I see many parents setting kids up in a variety of positions for pictures that will stand the test of time in a scrapbook.  As you can see from the pictures, it's got a lot of space.

They also offer a bouncy house for the kids to play in which keeps the busy while you complete your purchase.  They also have animals in a small "petting zoo" that the kids can play with.  All the animals appear friendly which is a nice bit of fun.  This place is one of the last dirt-lot, farm-style pumpkin patches in Silicon Valley.  Going here saves you the time and trouble of driving to Half Moon Bay or somewhere else far away.

The Queen's Pumpkin Patch is open from 9AM to 9PM, seven days a week. 

Good News!  Real estate recovery in Saratoga, California

Luxury real estate markets all over the San Francisco Bay Area, particularly Silicon Valley, all seemed to be immune to the economic crisis that started in 2006.  The town of Saratoga, my current town of residence, was a very appealing destination for buyers who wanted large lots and big homes are a more reasonable price than more expensive towns such as Los Altos Hills.  During the boom years the high-end market saw massive amounts of new construction along with remodeled homes being sold like hotcakes as the high-tech industry generated a lot of buyers.  In fact, a lot of homes built on speculation were completed right around the time real estate in surrounding markets was showing signs of weakness.

The Saratoga real estate market continued to climb in 2007 when it peaked with an average selling price of $1.854 million and 2008 was relatively flat.  That year, with 344 closed sales, relatively low inventory compared to earlier boom times, and strong demand Saratoga had a good chance of riding out the economic storm.  However, the economic disaster was overshadowing and overpowering.  The problems came in two forms; overbuilding of speculative homes (especially high-end) and a big drop in demand.  The slowdown hit downtown Saratoga hard as businesses folded over the years.  Construction of homes came to a grinding halt along with any improvements planned for downtown or nearby areas.  Saratoga, like many other high-end real estate markets, came to a crashing halt.

In 2009, Saratoga hit a very rocky bottom.  The high-end of the market stopped almost entirely while many new homes came on for sale.  With sales almost as good as 2008, buyers were left wondering what had happened.  The average sales price dropped to $1.557 million because none of the prestige properties were selling.  In addition, offers were well below asking prices at 94.31%.  Nobody was buying in Saratoga and anyone who was could basically set their price.

The real estate recovery for Saratoga started in 2010 and continues to today.  The market took a nice pop in the first half of 2010 but dropped a bit in the second half.  With improved news, lower interest rates, and a booming high-tech industry, we're seeing that trend continue the recovery in the first half of 2011.  With many fewer new listings, similar inventory levels, and nearly identical unit sales, Saratoga is experiencing renewed interest. The high-end listings are coming back on the market and a few are getting sold.  As with other high-end markets, there are only a handful of sales but the numbers are encouraging.  All it takes is a couple of homes sold at $5million or more and the market could really take off.

Overall, Saratoga is up about 8% from it's lows and resisting a push to go lower.  As long as inventory remains low and demand stays the same, the market should see continued appreciation and stay on the road to a fully recovery.