City Market Conditions
Average Sale Price
$10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0
Atherton
Los Altos
Los Altos Hills
Me nlo Park
Mountain Vie w
Palo Alto
Portola Valley Redwood City
San Carlos
Sunn yvale
Woodside
01/2020 - 12/2020
Average sale price for single-family homes from 01/2021 to 12/2021,
01/2021 - 12/2021
compared to the period from 01/2020 to 12/2020.
Price/Square Foot Ratio $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
Atherton
Los Altos
Los Altos Hills
Me nlo Park
Mountain View
Palo Alto
Portola Valley Redwood City
Price per square foot ratio for single-family homes from 01/2021 to 12/2021, compared to the period from 01/2020 to 12/2020.
San Carlos
Sunn yvale
Woodside
01/2020 - 12/2020
01/2021 - 12/2021
Source: MLSListings, Inc., as of January 18, 2022 Criteria: Single Family Residential
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THE DELEON INSIGHT
Z-MARKET CAP FOR ZILLOW DROPPED OVER $30 BILLION By Ken DeLeon
According to the Diamond Price Index, in December 2021 the average price for a diamond was $11,212.56 per carat. I found this interesting given that the average price per carat of diamonds has gone up significantly since the time I proposed to my lovely wife, Alex, in 2020. However, it would be a financial mistake for her to value her ring based on this simple calculation. There are many other nuances that go into the true value of a diamond, such as the cut, the quality, clarity, and the groom! I like to think that Alex views her ring as priceless. Zestimates are a useful tool for general market trends, and may even be helpful in subdivisions where the individual homes are somewhat fungible. However, a reliance upon Zestimates in Silicon Valley’s very specialized market is not much better than valuing a diamond based solely on weight. Unfortunately, it is looking like Zillow is learning this lesson the hard way and their sliding market capitalization may be a direct result. Perhaps Zillow’s recent market value drop from $46B to $13B could have been avoided if Zillow’s executive team had read my article nearly 5 years ago, entitled, “Zestimate or Zestimiss?”1 In my article, I discussed that experienced agents realize that Zillow’s Zestimate, an attempt to use an algorithm to value each home in vast metropolitan areas, is highly flawed in its reliance on incomplete analysis that ignores the nuances of each property. For example, a Zestimate will miss many intrinsic attributes, such as being on a quiet street with no heritage trees limiting redevelopment versus overvaluing homes on high-traffic, cut-through streets, or properties with lower redevelopment
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potential arising from flood zone, or single-story overlay impacts. Overall, I found that Zestimates tended to overvalue properties, ironically illustrated when the CEO of Zillow sold his home for merely 60% of the Zestimate’s value.2 In fact, class action lawsuits have been filed against the inaccuracy and resulting implications of Zillow’s Zestimate.3 Yet, even with the flaws in Zestimate’s valuation methodology pointed out in my article and others, Zillow was so confident in its pricing algorithm that it said early last year, “its Zestimates would serve as the initial offer price on eligible homes.” That did not last.4 In a related, albeit abrupt and embarrassing, about face, late last year Zillow’s entrance into the practicing of iBuying was dramatically halted.5 The “i” in iBuying stands for “instant,” wherein Zillow sends owners instant, all-cash offers at their Zestimate value. These Zestimates were so inflated that even with savings in transaction costs and the nationwide housing market strongly appreciating, Zillow was reselling the majority of their homes at a steep loss. With thousands of their property resales being below their purchase price, Zillow’s iBuyer division had a staggering loss of $422 million in the 3rd quarter. While a monumental number, this paled in comparison to the company shedding 25% of its workforce, or 2,000 employees, along with the majority of its market cap in 2021 as it ignominiously shuttered its plans to purchase tens of thousands of homes with its iBuyer methodology.6
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This implosion does not only underscore the value of a local expert for valuation analysis… it also calls into question any reliance upon Zillow’s Zestimate in particular, and in general the sustainability of online valuation models going forward. Zillow’s loss of two-thirds of its market cap was due not only to the failure of the iBuyer model, but the public relations fiasco that ensued, underscoring how inaccurate the Zestimate often is. In light of these great setbacks, many articles and experts further question the accuracy of the Zestimate tool. “It’s really a toy,”6 said Mike DelPrete, a real estate analyst who tracks the iBuying sector. “It’s meant to drive people’s interest in property.” However, this clearly does not reflect market value as evidenced by Zillow themselves losing so much money due to their reliance upon this flawed metric.
in its general operating losses of over $100M in the last quarter. Commentators believe that this weak performance will likely continue into the immediate future. The loss of faith in Zillow’s Zestimate is a cautionary tale illustrating that local expertise is required to analyze value in a market as sophisticated and distinct as Silicon Valley. To that end, for those considering the sale of their home, the listing team at DeLeon Realty is happy to provide a complimentary and accurate analysis rooted in localized, sound market data of the valuation of their property, a valuation enhanced by our on-staff licensed appraiser. And for those considering the purchase of a new home, the buyer team at DeLeon Realty is dedicated to employing an equally proven, data-driven approach to property valuation critical in today’s highly competitive Silicon Valley market.
While the iBuyer concept has been humbled, it could still succeed if better executed, and when applied to homogenous housing markets with a lot of tract housing. Silicon Valley, with its heterogenous housing, high variability in lot size and configuration, building codes varying per city, and with its high prices, poses significant and potentially insurmountable feasibility barriers for iBuying to become pervasive, unlike Phoenix where iBuyers own 13% of all homes on the market. While iBuyer companies like Opendoor have lost about 40% of their market cap in 2021, they generally employ better metrics in making their valuations than Zillow, and accordingly will likely survive. However, unless these models are constructed or adjusted at the local level, they will always struggle to achieve the accuracy of a very good local real estate agent, ideally with a qualified local appraiser on staff. It should also be noted that while Compass has lost over 65% of its value from its peak last year, this is not due to any significant iBuyer exposure. Rather, it’s due more to the market’s general disappointment with the company’s performance, which resulted
1 2 3
4 5 6
https://deleonrealty.com/2017/an-assessment-of-zillows-automated-valuationalgorithm/ https://www.geekwire.com/2016/zillow-ceo-spencer-rascoff-sold-home-40-lesszestimate-1-75-million/ https://www.washingtonpost.com/realestate/zillow-faces-lawsuit-over-zestimatetool-that-calculates-a-houses-worth/2017/05/09/b22d0318-3410-11e7-b4ee434b6d506b37_story.html https://finance.yahoo.com/news/ever-notice-zillow-house-price-201500446.html https://www.bloomberg.com/news/articles/2021-10-26/zillow-s-zeal-to-outbid-forhomes-backfires-in-flipping-fumble https://www.marketwatch.com/story/its-really-a-toy-zillow-closes-home-flippingbusiness-what-does-that-say-about-the-reliability-of-its-zestimate-home-valuationtool-11635947573
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THE DELEON INSIGHT
NEWLY ENACTED SB-9 AND SB-10 SEEK TO INCREASE HOUSING DENSITY, BUT AT WHAT COST? By Michael Repka, Esq.
Much of California faces a dramatic housing shortage, most certainly including the Bay Area. It is truly tragic that so many people that work in this area, including teachers, nurses, civil servants, and a multitude of others that contribute immeasurably to the area’s quality of life, can’t afford to live locally. The California legislature’s goal of increasing the number of affordable housing units through reduced zoning restriction is undoubtedly well-intentioned and laudable, but this action may come with some unexpected consequences. This is especially true in areas with exceptionally high land values, such as prime Silicon Valley. These potential consequences range from the demonstrable, such as strain on the area’s infrastructure, school enrollment, and traffic congestion, to less palpable changes, like altering the “feel” of various neighborhoods. Ironically, despite the legislature’s best efforts to avoid this result, we may see an increase in the number of housing units, but these new units may be on the more expensive side of the spectrum. The basic premise of the two recently passed California laws relaxing property zoning rules (SB9 and SB-10) is that there are too few housing units for the given amount of land available for building. By significantly restricting single-family zoning throughout most of the state, this will permit multi-family units almost everywhere, with a resultant increase to the number of housing units statewide. In other words, homeowners in singlefamily neighborhoods would be able to replace their primary residence with a duplex (provided they
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continue to live in one of the units). Or, taken a step further, they may be able to subdivide their lot and build a duplex on each side of the formerly unitary lot.
California Senate Bill-9 (“SB-9”) The California Housing Opportunity and More Efficiency (HOME) Act, more commonly known as SB-9 or the “Duplex Bill,” which passed in September, 2021 and went into effect on January 1st of this year, is fairly straightforward in its objective and its approach. Boiled down to its essence, and somewhat simplified, SB-9 mandates that homeowners of lots previously zoned as singlefamily are allowed to rebuild a duplex on that lot and/or split the lot and build up to one duplex on each lot. Further, the newly enacted rules require automatic approval, without discretionary hearing or review. As a result, it is easy to see how neighborhoods previously populated by only single-family homes may find those same lots sprouting 2 to 4 units per lot. Thus, two affluent single family homeowners may find themselves straddling what was once one lot, but which now contains four smaller units. While it may seem like the impact of this legislative change could be dramatic, there are certain safeguards in place to prevent wide-scale application by developers or speculators. These restrictions include: •
The owner of the property must sign an affidavit stating that they intend to occupy one of the units for at least three (3) years;
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•
•
The lot split/development must not require demolition of any of the following: ○ Affordable housing units for families of moderate, low, or very low incomes; ○ Rent-controlled housing; ○ Housing that has been occupied by a tenant in the last three years. Other building restrictions generally still apply provided they don’t thwart the intent of this new legislation.
California Senate Bill-10 (“SB-10”) California Senate Bill-10, which Governor Gavin Newsom signed into law on September 16, 2021, is designed to allow for even more dense housing in areas near Transit Hubs or Urban Infill Sites. At the risk of oversimplification, this means lots that are located near major Transit Hubs, or in certain densely populated urban areas, can be significantly expanded. Provided that the parcel qualifies, the owner can develop up to 10 units on the site, not including up to two Accessory Dwelling Units (“ADUs”) or Junior Accessory Dwelling Units (“JADUs”). This new legislation also provides for streamlined environmental approval of the rezoning under California Environmental Quality Act (“CEQA”).
However, the actual project will likely still require approval under CEQA so this rezoning provision may be of limited utility to the owner.
The Possible Practical Impact The high cost of land in Silicon Valley may result in landowners developing luxury homes to fully amortize the high value of their underlying land. By way of example, someone living in a dated home on a valuable $6 million lot in Palo Alto may be contemplating a sale in 5 years. Rather than waiting to sell, they could split the lot and build a duplex on each lot and move into one. Given the high value of the lot, this homeowner may be encouraged to build four high-end units because they need to allocate approximately $1.5 million of land value to each of the units. Each of these units would have access to the fantastic local schools and neighborhood amenities, which would command high rents, thus further driving up the value of the land. Ironically, this scenario would result in four new units, but still be only attainable by the affluent. While it is not uncommon to find neighborhoods filled with a combination of stately mansions and luxury duplexes in other parts of the country, such as New Jersey, Virginia, and affluent parts of large cities in Texas, it would represent a significant change to many upscale Silicon Valley neighborhoods. DELEONREALT Y.C O M
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THE DELEON INSIGHT
IS THE CALIFORNIA EXODUS REAL? WHY DALLAS, SAN ANTONIO, AND JACKSON HOLE APPEAL TO CALIFORNIANS By Michael Repka
In our previous two issues of The DeLeon Insight, we looked at the myriad of reasons as to why people are leaving California, along with the pandemic’s impact on migration, and why Californians are moving to cities in Nevada, Arizona, New Mexico, and Texas. In this issue, we take a look at three more cities – Dallas, San Antonio, and Jackson Hole – that have attracted many Californians looking for a fresh start. My wife and I have had the pleasure of meeting with top real estate agents in all of these cities recently, and the appeal of these destinations for the soonto-be ex-Californians is quite easy to understand.
Why are Californians Moving to Dallas? As we discussed in the last issue, Texas has been the top state for Californian migration since 2017.1 Aside from the tax benefits, Texas’ key industries (e.g., biotechnology and life sciences, energy, information technology, and advanced manufacturing)2, cheaper cost of living (93.9 versus 149.9 with 100 representing the national average)3, and lower real estate prices (averaging $275,000 for a single-family home versus $758,990 in California)4 appeal to many Silicon Valley companies and their employees. In the Dallas area, the top industries include technology, defense, financial services, healthcare, and transportation.5 Companies with headquarters in Dallas include AT&T, ExxonMobil, Southwest Airlines, and Fossil. Dallas is ranked second by Forbes Magazine on its list of the “Best Places for Business and Careers” due to the ease and affordability the city provides to business owners to get their businesses up and running.6
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With a population of over 1.3 million, Dallas is a city with skyscrapers, shopping malls, and an active downtown filled with restaurants and nightlife. Food of all types, particularly barbeque, Tex-Mex, and Mexican can be found on almost every corner and will satisfy even the pickiest foodie’s requirements. Additionally, hundreds of food trucks can be seen buzzing around the city. Truth be told, my wife and I had one of the best Mexican meals and mixed drinks in Dallas. Dallas has a vibrant arts and culture scene, from the Dallas Arts District (where several museums offer free admission) and galleries in the Bishop Arts District, to street art in Deep Ellum, and performances and concerts in downtown. Basketball fans can enjoy watching the Dallas Mavericks, while the NFL’s Dallas Cowboys and their spectacular home stadium are a mere 30 minutes away in Arlington. Outdoor enthusiasts can find nearly 400 parks on over 20,000 acres of parkland nearby, with 158 miles of trails winding through parks and connecting the communities for hikers and bikers. Politically Dallas leans left, unlike much of Texas, with Dallas County voting 65.1% for the Democratic Party candidate in 2020.7 Like Austin, Dallas has seen an increase in its housing market. In the third quarter of 2021, the median price of residential homes in the DallasFort Worth-Arlington metro was $354,900, up 18.3% year-over-year.8 Total active listings declined by 28% year-over-year, while the number of days on the market decreased to 20 days.9 A few of the area’s
February/March 2022
top agents confirmed to us that housing prices have seen a big jump and that inventory is quite low in 2021. As an example, for a little under $600,000, you can get a home with 3 bedrooms, 4 baths, and 2,260 square feet of living space near a golf club, and just minutes from downtown, Trinity Groves, and Bishop Arts.
3611 Milton St, Dallas List price: $5,500,00012 The five and six million dollars homes in Park Cities are just the mid-range. There are many homes in the area that are above $15 million, and some as high as $37 million.
1880 Stevens Bluff Ln, Dallas List price: $539,00010 For those looking for luxurious estates with excellent schools, Highland Park and University Park (dubbed “Park Cities”) are amongst Dallas’ most desirable neighborhoods to reside. Properties in Park Cities range from upscale high-rises to mansions, set amongst manicured lawns and tree-lined streets, with shopping, dining, and entertainment in downtown Dallas a few minutes away. Park Cities’ children attend Highland Park Independent School District, which is considered Texas’ best public school system.11 As an example, for $5.5 million, you can get a Jacobean Manor with 4 bedrooms, 7 bathrooms, and 7,297 square feet of living space in University Park.
The Allure of San Antonio Just over 270 miles southwest of Dallas is San Antonio, a city that reminds me of Santa Fe on a much larger scale. San Antonio is rich in history with vibrant culture and eclectic cuisines. Interspersed throughout the city are historical landmarks such as the Alamo, Mission San Jose, Mission Trail, Mission Concepción, Mission Espada, and San Fernando Cathedral, just to name a few. Of course, one cannot go to San Antonio without visiting the River Walk, the #1 attraction in Texas. The River Walk is a 15-mile urban waterway, tucked below street level and traversing the heart of downtown. The river can be explored via foot or river barge on guided tours. Both sides of the river have restaurants, shops, hotels, and condos, with frequent foot bridges to transverse the gap. We personally experienced the energy and excitement of the area by staying at the Mokara Hotel, which overlooks the River Walk,
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THE DELEON INSIGHT
Michael and Rachel Repka flew to Jackson Hole to visit former clients who had moved there from Los Altos Hills
and ate at various restaurants that line the river, while watching tourists and locals stroll by with shopping bags.
For those looking for more luxurious estates, $6.9 million can get you 5 bedrooms, 7 bathrooms, and 10,060 square feet of living space on almost an acre of land.
The political climate in Bexar County13 leans left, with 58.3% of voters choosing the Democrat Party candidate in 2020.14 In fact, Bexar County has voted Democratic in the four most recent Presidential elections.15 Real estate in San Antonio is much more affordable than in Silicon Valley, with the median home price in the third quarter of 2021 being $295,000, up 15.7% year-over-year.16 The active listings in that quarter were down 14.7%, while days on the market were about 26 days, less than in Q3 2020. As an example, for a little under $700,000, you can get a newly constructed home with 4 bedrooms, 4 bathrooms, and 2,895 square feet of living space.
9615 War Party Trl, San Antonio List price: $676,90017
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21 Crescent Park, San Antonio List price: $6,900,00018
Jackson Hole – Luxury, Sanctuary, and an Incredible Setting Although Wyoming is not among the top tier states to which Californians have migrated, for the ultrawealthy it does hold much allure. In fact, there were over 7,100 Californians who had moved to Wyoming between 2017 and 2019.19 Last year, we took a trip to Jackson Hole to visit our former clients who had moved there from Los Altos Hills. We have also spoken with many of the top local real estate agents in the area about the market, the impact of COVID-19, and the city’s neighborhoods.
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As we flew into the Jackson Hole Airport, we were astonished by the enchanting views of the snowcapped Teton Mountain Range with lush, grassy plains nestled in the valleys between the peaks. Along the drive from the airport to our hotel in Teton Village, we soaked in the alpine scenery teeming with lush green vegetation and towering canopies of trees, all set against the backdrop of a deep blue sky. Wildlife, such as bison, moose, and elk, could be seen grazing on the banks of the Snake River, which meanders through the valleys. Jackson Hole Town Square, a 20-minute drive from Jackson Hole Airport, is a vibrant town with a quaint, western feel. Officers on horseback, decked out in cowboy boots and hats, direct traffic and pedestrians along the streets. Stagecoach rides tour the historic downtown as people leisurely stroll in and out of shops that offer a number of different items, from boots and real furs (you’re not in California anymore) to Native American jewelry and artifacts. Rodeo events, including calf roping, bull riding, saddle bronc riding, bareback bronc riding, and barrel racing, all take place in the summer months. And to truly immerse visitors in the culture of the Old West, a Town Square shootout is reenacted Monday through Saturday evenings between Memorial and Labor Day.
Jackson Hole, considered one of the top ski destinations in the country, is filled with skiers who come to experience the vertical rise and rugged terrain during the winter months. With such appealing draws, it is no wonder that tourism and small businesses play important roles in Jackson Hole’s economy. Looking at Wyoming as a whole, its key industries include agra-tech and food products, data centers and IT, firearms manufacturing, wind energy, and outdoor recreation.20 The political climate in Wyoming is firmly right, as 70.4% of voters voted for the Republican Party in 2020.21 Contrarily, Teton County22 leans left, with 67.8% voting Democrat in the last election.23 Wyoming offers much more attractive tax benefits to its businesses and residents than California. In fact, Wyoming is generally considered the most taxpayer-friendly of all 50 states – it does not have corporate taxes, taxes on intangible assets, personal income taxes, inheritance or estate taxes.24 Residential property tax in Teton County is also quite low, and is derived from taking the assessed value and applying the mill levy rate.25 For example, for a house appraised at $500,000, the estimated property tax would be around $2,733.82.
DeLeon’s M600/SLS Aircraft piloted by Michael Repka, an instrument-rated, commercial, and aspiring acrobatic pilot
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THE DELEON INSIGHT
Michael Repka visiting the River Walk in San Antonio, TX
The cost of living in Wyoming is around 27% lower than in California.26 Gasoline in Wyoming is also cheaper, around $3.38 per gallon, versus $4.68 in California (as of 12/13/2021).27 A 1-bedroom apartment in the downtown area costs about $840 per month in Wyoming, while the same space in California would rent for $1,859 per month.28 On the whole, real estate in Wyoming is more affordable than in California. A typical home in Wyoming is around $290,304 (as of 12/1/2021)29, whereas a typical home in California is around $722,406 (as of 12/1/2021).30 In Teton County, however, real estate can be quite expensive. In November 2021, the average sale price for a single-family home in this sought after county was $7,042,925, while the median sale price was $3,450,000 with an average days on market of around 112.31 Similarly, Teton County condo/townhouses had an average sale price of $1,812,375, and a median sale price of $1,350,000 with an average of 88 days on the market.32 Interestingly, unlike Silicon Valley where most homes are on the MLS and the sale prices are published on the internet, over 31% of homes in Teton County are not on the MLS, and the sale prices
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are not published. Although I was told this was to protect the homeowners’ privacy, naturally there are potential conflicts of interests that could play into listing agents recommending this approach to potential sellers (e.g. increased likelihood of getting both sides of the commission; reduced marketing expense; and a faster receipt of the commission). On the other hand, buyers with a well-connected agent may benefit substantially from purchasing one of these “off-market” properties that sell for less money due to reduced competition. As an example, for around $3.6 million, you can get a newly constructed home with 3 bedrooms, 3 bathrooms, and 2,806 square feet on a half-acre lot.
15415 S Wagon Rd, Jackson, WY 83001 List price: $3,650,00033
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River Walk is the #1 attraction in Texas
For those looking for coveted luxury estates, Teton County has homes that are well over $20 million.
6160 W Lazy H Rd, Wilson. List price: $22,500,000 4 bd, 5 bth, 10,242 sq ft, 48.89 acre lot
If you are interested in exploring these areas, and for vetted referrals to the areas’ top agents, please contact Michael at
650-488-7325
Officer on horseback directing traffic in Jackson Hole Town Square
1
https://www.census.gov/data/tables/time-series/demo/geographic-mobility/state-tostate-migration.html 2 https://gov.texas.gov/business/page/target-industries 3 https://www.bestplaces.net/cost_of_living/state/california 4 https://www.voanews.com/usa/why-some-americans-are-leaving-california-texas 5 https://realestate.usnews.com/places/texas/dallas-fort-worth/jobs 6 https://www.forbes.com/best-places-for-business/list/#tab:overall 7 https://www.nbcnews.com/politics/2020-elections/texas-president-results 8 https://www.texasrealestate.com/wp-content/uploads/2021_Q3_ QuarterlyHousingReport.pdf (2021 Q4 data had not been released as of the writing of this article.) 9 Id. 10 https://www.zillow.com/homedetails/1880-Stevens-Bluff-Ln-Dallas-TX-75208/244111415_ zpid/ 11 https://backgroundchecks.org/top-school-districts-in-texas.html 12 https://www.zillow.com/homedetails/3611-Milton-St-Dallas-TX-75205/2067436254_zpid/ 13 San Antonio belongs in Bexar County. 14 https://www.politico.com/2020-election/results/texas/ 15 https://www.bestplaces.net/voting/city/texas/san_antonio 16 https://www.texasrealestate.com/wp-content/uploads/2021_Q3_ QuarterlyHousingReport.pdf 17 https://www.zillow.com/homedetails/9615-War-Party-Trl-San-AntonioTX-78254/2067546321_zpid/ 18 https://www.zillow.com/homedetails/21-Crescent-Park-San-Antonio-TX-78257/65104567_ zpid/ 19 https://www.census.gov/data/tables/time-series/demo/geographic-mobility/state-tostate-migration.html 20 https://www.wyomingbusiness.org/content/industryprofiles 21 https://www.politico.com/2020-election/results/wyoming/ 22 Jackson Hole is in Teton County. 23 https://www.politico.com/2020-election/results/wyoming/ 24 https://www.wyregisteredagent.net/wyoming-company/taxes 25 http://www.tetonwyo.org/435/Property-Tax 26 https://www.mylifeelsewhere.com/cost-of-living/california-usa/wyoming-usa 27 https://gasprices.aaa.com/state-gas-price-averages/ 28 https://www.mylifeelsewhere.com/cost-of-living/california-usa/wyoming-usa 29 https://www.zillow.com/wy/home-values/ 30 https://www.zillow.com/ca/home-values/ 31 https://www.tbor.org/wp-content/uploads/2021/12/November-2021.pdf 32 Id. 33 https://www.zillow.com/homedetails/15415-S-Wagon-Rd-JacksonWY-83001/194360590_zpid/ 34 https://www.zillow.com/homedetails/6160-W-Lazy-H-Rd-Wilson-WY-83014/194362938_ zpid/
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THE DELEON INSIGHT
INTRODUCING DELEON REALTY NEW HOME BUILDING PROGRAM By Matt Griffis and Steve Milender
Over the years, the DeLeon Team has helped countless investors acquire buildable lots to develop new homes for speculation (“Spec”) and sell for a significant profit. As a result, these investors have made millions! However, building a home is not only an option for experienced developers seeking a profit; it is also a viable opportunity for families looking to create their dream home, or for successful business people looking to diversify into real estate development. While building a home from the ground up may seem like a daunting task, especially for those lacking prior experience, it is not that difficult with the right guidance. With that in mind, we are pleased to announce DeLeon Realty’s New Home Building Program, headed by Matt Griffis, a longtime executive at one of California’s very best builders, Pacific Peninsula Group. Additionally, Matt gained expertise while getting his master’s degree in Construction Engineering & Management at Stanford University. With Matt at the helm, we are confident that our experience, coupled with a unique suite of services, can make the new home of your dreams a reality.
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Although there is indubitably tremendous value to working with a top-notch, experienced real estate agent, such as Ken DeLeon, nothing can compare with the access to on-staff industry experts, hired to guide our clients through the complex, but rewarding, process of building a new home. Some of the most common questions from buyers contemplating new construction involve the advantages of building a custom home, especially in comparison to buying new construction or renovating an existing home. One of the most obvious benefits from building a custom home is cost savings. It is no secret that newly constructed homes come at a significant premium. Not only is the buyer paying for the cost of the land, architects, designers, materials, contractors, and laborers, but also they are paying a significant profit to the builder for the time and effort that they spent coordinating the project. When a buyer builds a custom home themselves, they are cutting out the middleman and paying only the true costs associated with constructing the home.
February/March 2022
For the builder/homeowner, another significant advantage to building their own custom home is that it can be completely tailored to fit their lifestyle and needs. Spec homes often lack the individualized charm, character, and quality that many people seek in their homes. Similarly, buying an older home brings with it the challenge of undergoing necessary upgrades and renovations – although we have people that can assist with that aspect as well. When one sets out to build a custom home, they are a part of every decision regarding their home and are able to make sure that each detail is perfect for them. Ken DeLeon, objectively the most successful real estate agent in Silicon Valley by a wide margin, is also available to help you consider resale value. Some people building their own home are tempted to make it "too" custom to their personal needs and tastes, which can have a profound impact on the ultimate resale value. As the only individual agent in Silicon Valley ever to be named the #1 Real Estate Agent in the entire United States, as announced in the RealTrends rankings published in the Wall Street Journal (June 2012), Ken has helped more buyers than just about anyone. He is skilled at suggesting floorplan alternatives that give his buyers the functionality they desire, while still keeping an eye towards resale value. Generally, when working with agents who are affiliated with traditional real estate brokerages, such as Coldwell Banker, RE/MAX, Compass, or Intero, the buyer is on their own during the construction process. It isn’t that these well-intentioned agents don’t want to help; it is just that most lack the experience, construction knowledge, and connections necessary to do so competently. Like most buyer’s agents, the vast majority of buyers also lack the knowledge and experience to negotiate the myriad of issues and choices that they encounter when building their first new home. Without guidance from a dedicated construction expert, clients may encounter a string of headaches, unforeseen delays and missteps. There is no hiding the fact that the logistics involved
in custom home building can be overwhelming for the average family. Luckily, the extraordinary resources of the DeLeon Team give us the financial wherewithal to hire full-time in-house personnel to provide this type of guidance. Simply put, Matt and Ken, as well as the other members of the DeLeon Design, Finance and Legal teams, will shepherd you through the entire home building process – from acquiring the perfect lot, such as 2.5 acres in the Circus Club area of Atherton, and arranging optimal financing, to overseeing the design and planning, and eventually permitting and constructing your home. We are also able to connect you with many of the Bay Area’s most prominent designers, architects, builders, and contractors. Plus, thanks to our market position, we can often influence more favorable prices than you would incur if you were working with a typical agent that only sells a handful of homes a year (or less). Without a well-crafted plan, and the knowledge necessary to execute it, the home building process can be a recipe for disaster. We encourage you to reach out to Ken DeLeon (650-543-8501) directly so that we can start the process and show you an effortless route to building the perfect home. Conversely, if you are thinking about selling a home that needs some work, reach out to Michael Repka (650-488-7325), Silicon Valley’s preeminent listing agent, to discuss ways to sell the property without having to invest in unnecessary repairs or improvements – leave that to the buyers! Thanks to our extensive resources and professional expertise, we can help buyers feel comfortable buying a home that needs an investment.
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THE DELEON INSIGHT
REAL ESTATE METHOD ACTING By Ken DeLeon
“Ken, you are like the Daniel Day-Lewis of Real Estate Method Acting.” That’s how a client of mine reacted recently after I mentioned that I have owned multiple homes in Crescent Park and provided him with detailed information about that wonderful neighborhood gleamed over the years from personally living there. Hearing myself compared to one of the most esteemed actors in Hollywood caught my attention immediately. Upon reflection, I realized that this statement was more than just an ego boost, it summarized one of the fundamental reasons for my success in the industry. Method acting is when an actor aspires to fully inhabit a role in order to truly understand it and become that role. Method acting is an outstanding metaphor for my approach to real estate. I can serve my clients at a far deeper level than ordinary, independent contractor Realtors® at traditional brokerages because I understand what my clients are going through – I have been there many times myself. Having personally purchased and sold over 20 local homes, I have owned or lived in almost every town in which we sell properties. For example, I have lived in five different neighborhoods in Palo Alto alone, and have also lived in Atherton, Menlo Park, and Los Altos Hills. Additionally, I have “flipped” houses in other areas where we sell. This experience allows me to provide truly detailed insight into what it is like living or owning almost anywhere in prime Silicon Valley. My love of real estate has manifested itself in my moving every few years. I have moved a total of five times in the last nine years, each of the first four homes in distinct neighborhoods, and this has allowed me to be the “guinea pig” of sorts and personally experience these neighborhoods firsthand before my clients. Another perk of moving is taking advantage of the $500,000 capital gain exemption for married couples that is granted every two years
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for your primary home. I effectively “flip” my primary home because the tax advantages are much greater for your primary residence, and the available interest rates are materially more attractive, when compared to an investment property. While I will convey how to do this yourselves in future articles, the focus here is all of the insight I learn from moving so frequently. You never learn an area as well as when you, as a homeowner, walk it in your own shoes and can truly convey the unique pros and cons of a neighborhood or town. In fact, I find it is hard to give truly exceptional advice in life unless one has personally faced a hard decision and experienced everything that comes with it. Even then, the journey of enlightenment is only half completed as subsequently one must evaluate whether and why the decision was right or wrong, and how they might do it differently the next time. Once another asks you for your advice, you know exactly what to convey due to your own personal journey. My primary focus when buying and selling the properties I have owned was not to make the most money, but to take the most calculated risks; that way, if mistakes are made, I’ve made them myself and can learn from them before I help others with the same issues. While generally my investments have gone exceedingly well, some have stumbled and left me with innumerable lessons to pass on to others – along with several new grey hairs! Sadly, many agents are content to live in the same home for decades, and others do not even believe enough in what they sell to own a home. These agents will often make their clients the beta test gone wrong. Mistakes in California real estate are generally in the six-figure range and can often hit seven-figures, so choosing a great agent is essential. Ideally, you want somebody who does a lot of volume in the area, knows the local market, and can share the wisdom of their own personal experiences buying, selling, and living in prime Silicon Valley.
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®
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SELL YOUR HOME OFF-MARKET WITH NO PREP EXPENSES AND PAY ONLY 3% COMMISSION By Michael Repka
Generally, the best way for sellers to maximize the sales price of their home is by letting us strategically prepare their home, stage it, market it very aggressively and broadly, and invite maximum competition from all buyers and agents. However, some sellers prefer the convenience, privacy, and/ or the reduced expenses associated with selling off-market. Similarly, certain sellers prefer to limit their commission expense to only 3% by selling their home directly to buyers, without the added expense of paying a buyer’s agent commission. If you fall into either of these categories, we would be happy to promote your home to our buyers, and to buyers that contact us directly. Please contact Michael Repka at 650-488-7325. Under this program, your total commission would be only 3%! Conversely, if you would like to buy a home with less competition and, presumably, a resultant lower price, please contact Steve Milender, our Buyer’s Team Sales Manager, at 650-543-8532 for these offMLS opportunities.
3%
CO M MISSION D ELEO N LIST ING SIDE
While these homes will likely require more prep work for the buyers than one of our traditional listings, we can help the buyer find the right service providers to tailor the property to their taste and needs. See Introducing the DeLeon Realty New Home Building Program on page 22 of this magazine. While some other agents or teams encourage offmarket sales, they inexplicitly charge both sides of the commission! This begs the question: Why limit exposure unless you are, at least, saving commission? Although I am generally not a fan of off-market transactions, the DeLeon Team’s position as the market leader makes us best able to do them if that is really what the client wants. After all, no other agent or team has the market reach, or the discretion, of the DeLeon Team. Plus, saving 2.5% of the commission may make the economics work even if the seller could have achieved a higher price with more exposure.
DE LE ON LIS TING
3%
0%
COMMISSION DELEON B UYING S I DE
T OTA L CO MMISSIO N
(2.5% S AV INGS FOR SELLER) * *NOTE: Commissions vary from agent to agent and should be negotiated based on the level of marketing and service provided by the agent.
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THE DELEON INSIGHT
WHAT TO DO IN THE EVENT OF A REAL ESTATE DISPUTE DURING ESCROW? By Michael Repka, Esq.
There’s no question that COVID, along with proposed state and federal tax changes, have created some uncertainty in the real estate market. Understandably, some buyers get cold feet after entering into a real estate contract – especially after the price gets pushed up in a fervent bidding war.
something goes wrong. Naturally, this commitment should be memorialized in writing in the listing agreement before it is signed and long before the need arises. Any limitations on the agent’s obligation to reimburse you for your legal expenses should also be noted in the listing agreement.
In the most common scenario, the buyer may fear that they overpaid for that property after increasing their bid. In fact, by the time the bidding ends, they may have paid significantly more than other homes on the market.
Conflicts of Interest This is yet another area where real estate agents often encounter a conflict of interest. At most brokerages, with the notable exception of DeLeon Realty, agents only get paid if the deal closes. Therefore, they have a vested interest in getting the deal to close – even if the terms are not in the best interest of their client. While this can create a conflict on both sides of the transaction, it is particularly problematic for the buyer. If the buyer really wants to get out of the transaction, the agent would be going against their own interest in helping the buyer do it properly.
Unfortunately, some of these buyers occasionally decide not to put the deposit into escrow, or they refuse to close the transaction. Many of these buyers make these decisions, and implement their strategy, without speaking with a qualified residential real estate attorney. Either they go forward based on their own intuition, or, sometimes even worse, rely upon the advice of a real estate agent or office manager with no legal training. On the flipside, like buyers, many sellers respond without the advice of counsel. Again, the sellers may end up prejudicing their case by making certain arguments that do not hold water. Oftentimes, emotion gets in the way of sound legal reasoning.
The First Step Whenever there is a significant butting of heads, both parties would be well advised to speak to a knowledgeable residential real estate attorney. Even if the real estate agent refuses to pay for an attorney for their client, the client should consider making this investment themselves. As an aside, sellers should ask listing agents how many hours of attorney time they will provide free of charge if
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Although more subtle, there are similar conflicts on the listing side. I once had dinner with a top agent at one of the area’s largest brokerages. During dinner, she told me that her manager said the seller should always release the entire deposit and cancel the deal if the buyer is “unequivocal.” In fact, based on her training, she thought that was the requirement. This very experienced agent seemed genuinely surprised when I explained that brokerages would rather let a breaching buyer off the hook and sell the property to someone else, even if it’s significantly less money, because it is expeditious. Additionally, brokerages know that the real estate agent and the brokerage usually get pulled in if there is a legal dispute so it is in their best interest to get these types of matters to go away quietly, irrespective of the cost to their clients.
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Pushing Back on Breaching Buyers Colette Thomason, an attorney in our office, and I have encountered buyers who refused to go forward with non-contingent transactions several times. After thoroughly reviewing the file and the disclosures, we respond comprehensively. It is surprising how often buyers decide to go forward with the transaction when they realize that they risk losing their entire deposit or, potentially, even more than double their deposit. On multiple occasions, we have also been effective in compelling the breaching buyers to put their deposit into escrow, even after they had breached the contract with no money in escrow. Another area where there seems to be a lot of misconception in the real estate industry is liquidated damages. I have heard scores of agents explain that a seller is still required to prove damages under the liquidated damage clause. Although this is simply a misunderstanding of the allocation of legal burden, it does result in agents giving clients bad advice.
What to do First and foremost, buyers should work with a very experienced buyer’s agent who has the integrity to stop the buyer from overpaying for a house. This is a big task given that most agents are paid entirely on commission, and they do not sell that many homes per year. In fact, this conflict was one of the reasons why Ken and I decided to pay DeLeon agents a salary. When selling a house, it is important to make sure that all disclosures are comprehensive, complete, and accurate. In the unlikely event that there is a dispute, the seller needs to get legal advice from an attorney who is very experienced in this area. Again, this is why we have a real estate attorney review all of our sellers’ disclosures in advance of dissemination, which is a practice generally not yet followed by traditional brokerages. Nevertheless, I remain hopeful that other brokerages will adopt this policy to protect their clients and improve the quality of disclosures.
DeLeon Realty maintains a five-person legal team to help our sellers as part of our standard listing agreement. Naturally, we never charge our clients for our attorneys’ time.
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THE DELEON INSIGHT
UNIQUE ADVANTAGES OF PURCHASING A DELEON LISTING By Audrey Sun
During my 8 years at DeLeon Realty, I have come to notice that many buyers prefer our listings over comparable ones listed by different brokerages. This results in sales prices far higher than expected. The question is: Why? I believe one of the main reasons is our eye for design – thanks to the talent of our world-class interior designers.
Beautifully Staged with the Extra Touches by Our In-House Designers Not only are we unique in having experienced interior designers on staff, but we have also forged strong partnerships with many of the leading luxury stagers, such as Da Lusso Designs, Meridith Baer, and Coy & Company (formerly known as Arthur McLaughlin & Associates) to enhance the appeal and attractiveness of our listings. Further, due to DeLeon Realty’s willingness to pay for all staging costs, we do not have to convince our sellers to invest in the very best staging – we just pay for it ourselves. With their years of industry experience, our in-house interior designers know which stager is the best fit for designing and decorating our homes, allowing a level of customization in the staging process that is unmatched in the industry. Most stagers have a single decorative style, based on their staging inventory, but our interior designers can implement multiple styles based on the aesthetics of the home. In fact, we have even purchased a warehouse full of additional staging pieces, including an extensive collection of outdoor furniture and art, to assist with the creative needs of our designers.
How can we find similar items? Would your stager sell us the furniture?” Sadly, stagers rarely sell their inventory, as it is financially unfeasible to do so. As such, selling to an individual buyer is unlikely. Nevertheless, we have developed a solution that can get the deal done at a great price. Our CEO, Michael Repka, along with one of our Chinese-speaking interior designers, went to China to attend one of the world’s largest furniture and accessory expos. While there, they purchased many specific pieces to enhance the look of our listings far beyond what one would find in a typical stager’s inventory. In particular, they focused on outdoor furniture, artwork, and high-quality area rugs. Similarly, several members of our DeLeon Design Team make regular trips to other domestic interior design shows to maintain a fresh look for all of our listings. This has led DeLeon Realty to create what I believe is the most valuable and unique aspect of our listings which no one in the industry can match. Once you’ve purchased a DeLeon home, we continue to provide interior design help (even if you are not represented by a DeLeon buyer’s agent). This provides our customers with design tips, suggestions for buying furniture similar to the pieces used in our staging,
Getting Designer Discounts on Furniture As a member of the DeLeon Listing team, I often get the same questions from potential buyers: “Where did you get the furniture, rugs, and artwork?
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Audrey Sun (L) speaking with a colleague about some staging elements. D E L E O N R E A LT Y.CO M
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and, most importantly, giving you access to DeLeon discounts at furniture stores throughout the Bay Area. Oftentimes, our customers save up to 60% from the DeLeon designer discount at places like San Francisco Design Center. In fact, the last time our Listing Team and our interior designers took a trip up to the Design Center, I was amazed to see stunning $10,000 design pieces selling for $6,000 after our designer discount! DeLeon’s unique success has allowed our customers to benefit from our vast network of relationships and partnerships with the most luxurious design studios throughout the Bay Area, which we gladly provide to our clients after the purchase process.
This is just one of our many differentiators that make us unique in this very competitive industry. Our scale, experience, and financial resources allow us to provide a more holistic and complete service to our sellers and buyers. Not only does this result in higher sales prices, it also leaves everyone with a more pleasant experience. It should be noted that DeLeon Realty covers the entire cost of all of our sellers’ staging, even when we purchase specific pieces for that property.
Before
After An upcoming DeLeon Realty listing in Atherton DELEONREALT Y.C O M
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Our people simply love what they do. Rather than having one real estate agent trying to do everything, we work collaboratively so that everyone is doing the part of the transaction that fuels their passion. Our interior designers are overseeing the preparation of our listings, but they are not attempting to interpret contractual provisions, explain tax consequences, or touch up damaged wood. Similarly, our attorneys are not selecting stagers, writing Chinese radio advertisements, or posting our listings on social media. Our in-house contractors and handymen are working to beautify our listings (at no additional cost to our clients), not host open houses or proofread newsletter articles. It is easy to see why we have such a dynamic and fun office environment – everyone gets to do what they love.
Company Culture of Collaboration and Appreciation Our remarkable company culture didn’t just happen, it was designed. We fully understand the importance of strong, collaborative teamwork. That is why we also invest a significant amount of time and money in creating a company culture that is a lot of fun. It feels like working at a startup, and all expenses are paid by the company! This ranges from three different week-long cruises for all of our employees and their spouses to places such as the Mexican Riviera and a Crystal Cruise from Miami to Belize, to ski trips up in Lake Tahoe, wine country tours in Napa, dirt bike lessons in Hollister, and more specialized trips to trade shows in China and India. Naturally, these types of trips are great for bonding, but also they are a nice way for us to show our hard-working people how much we appreciate their contributions.
Company trip on Crystal Cruises from Miami to Belize
In fact, next January, we are going on a company cruise from San Francisco to the Mexican Riviera. This time, we are even inviting clients! If you sell a home with us that closes between February 1, 2022 and April 1, 2022, we would love to invite you and your loved one to join us with a free cruise cabin. In addition to our trips, we also have frequent events at our office in Palo Alto. These include Diwali celebrations, Holiday tree lighting, Thanksgiving potluck lunches, Lunar New Year parties and, of course, a big company party to celebrate the holidays, and another big party to celebrate Ken’s birthday every July. We are all fortunate for Ken’s incredible generosity. However, this generosity also pays dividends in the form of a company culture that fosters collaboration, teamwork, and a true desire to give every client the best possible experience. The old adage about working hard and playing hard certainly applies to DeLeon Realty.
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DeLeon Realty Employees on the Mexican Riviera
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Employee Ski & Snowmobile Getaway to Lake Tahoe
DESIGNING FOR LIS TINGS The DeLeon Design Team will help you enhance your home by identifying which features are appealing to potential buyers, and focusing on low-cost improvements or repairs that will make a difference in the sale process.
Before
After
“... transformed our house so that we fell in love with it all over again, and apparently so did potential buyers!” - Jackie L.
Before
Contact us today to learn how we can transform your home for the best results!
650.900.7000 | DELEONREALTY.COM
After
THE DELEON INSIGHT
BUY NOW, OR WAIT? By Steve Milender
The question often asked in a strong market, like now, is: “Am I better off buying now, or waiting for the market to cool down?” The answer to this perplexing question is generally to buy now unless you believe that the overall trend of appreciation is suddenly going to reverse. Generally, strong markets, such as Silicon Valley, see prices gain momentum due to buyers’ reliance upon Comparative Market Analysis ("CMA" or “Comp”). When a buyer loses out in a multiple offer situation, that high “winning” offer becomes the new Comp for the next property offered for sale. Most pundits believe that inventories of singlefamily homes, townhomes, and condominiums will continue to be insufficient to meet the area’s high demand. As a result, we can expect prices to remain strong throughout 2022. To provide some
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perspective, the median home prices in Santa Clara County increased by 22.4%, and the median price in San Mateo County increased 34.7% through November 2021. Thus, in part due to the lack of supply, we are in a “seller’s market,” whereby it is advantageous to a seller to capitalize on this strong market. For buyers, this is a frustrating time to be purchasing a home, though real estate is generally an excellent hedge against inflation. The impact of increasing interest rates should be tempered in Silicon Valley due to the amount of wealth that has been created. These momentous financial events have provided a large number of ready, willing, and qualified home buyers that are often less interest rate sensitive. However, for buyers that do want to obtain a mortgage, now is an opportunity to lock in low interest rates, which
February/March 2022
are currently in the 2.75-3.0% range. Although these rates have already started to come up from their lows, they are still well below historic norms. Moreover, this will allow you to lock in your price early in 2022, before we experience even greater inflationary prices as we approach the summer. As we move into the second half of 2022, buyers may be required to increase their down payments slightly, and will carry larger principal and interest payments. Nevertheless, without enough homes to meet the demand, buyers will likely continue to write multiple offers for good properties, in good locations, causing an inflationary increase in prices. Many buyers, especially those less familiar with Silicon Valley, believe that the list price is the price at which a given property may potentially sell. In 2021, DeLeon Realty, as well as other brokerages, sold several listings $500,000 − $2 million+ over list price. On the other hand, some homes were dramatically overpriced and sold hundreds of thousands or millions of dollars below the original list price. As a result, do not assume the list price is the “right”
price. Please consult with your qualified DeLeon Agent, so we can assist you in making a better and more well-informed decision. The takeaway for our Silicon Valley buyers is to get approved by a qualified lender so you are prepared to act when the right property hits the market. With over 10 years of lending experience in private banking, I help DeLeon buyers to choose the lender best suited for their goals. We have a team of buyer specialists available to assist you with identifying that “right” home, and we would welcome the opportunity to assist. We expect 2022 to be a challenging year, with limited inventory, and multiple offers for good properties. This should result in continued upward pressure on prices. Therefore, you want to seek out a DeLeon Realty buyer specialist to represent you in your transaction. They will understand the market, and can estimate the potential sale price for a “winning” bid. If you are considering buying or selling a home in 2022, we look forward to being of service, and assisting you in your real estate needs.
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THE DELEON INSIGHT
A TOUR OF LAUREL STREET By Francis Lopez
While a lot of people know about Palo Alto’s University Avenue, Menlo Park’s Santa Cruz Avenue, and Mountain View’s Castro Street, San Carlos’ Laurel Street is one of the Peninsula’s hidden gems which locals keep hush-hush. Located a block off of El Camino Real, Laurel Street is “downtown” San Carlos. A charming and lively area, Laurel Street boasts a wide variety of cuisines with something for everyone to enjoy. My wife and I often spend our date nights and host our clients’ closing dinners at these restaurants. If it is a special occasion, you will very likely find us at Town San Carlos, starting the night with a cocktail off their rotating drinks menu, partaking in the juicy signatures steaks, and wrapping up the meal with warm bread pudding. If we are not topping off our meal with dessert at Town, we will stroll down the street to Gelataio for fresh, handcrafted gelato.
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As you travel south down Laurel Street, you will run into another two of our favorite restaurants, The Refuge and Noelani’s Island Grill. The Refuge has opened up new locations along the Peninsula, but there is nothing like having the pastrami from their original location in San Carlos. With occasional live music, Noelani’s transports guests to the Hawaiian Islands with its delicious island food and drinks. Along with its wide array of cuisine, Laurel Street is also home to the annual San Carlos Art & Wine Faire, held on the second weekend of October. At this event, artists and vendors showcase and sell their work while kids enjoy various arts and crafts activities. Adults can be seen strolling with a glass of wine or beer while live music plays on multiple stages. San Carlos is a tightknit community, and its delightful downtown area of Laurel Street is a reflection of that culture. I notice that home buyers who stumble upon Laurel Street often fall in love with the city, and begin expanding their search for homes in San Carlos.
R E A L E S TAT E M A R K E T P U L S E
ATHERTON Atherton Median Sales Price & Price/Sq. Ft. Ratio
$1,500 $1,000
Sale Price, Median
5 0
n21
$0
10
Ja
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
Apr-21
May-21
Mar-21
Feb-21
$500
15
O ct -2 1 N ov -2 1 D ec -2 1
$2,000
20
Ju l-2 1 A ug -2 1 Se p21
$2,500
Fe b21 M ar -2 1 A pr -2 1 M ay -2 1 Ju n21
$3,000
Jan-21
$18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0
Atherton Inventory # of New Listings
Price/SqFt Ratio
LOS ALTOS Los Altos Median Sales Price & Price/Sq. Ft. Ratio
Los Altos Inventory # of New Listings $2,000
$4,000,000
$1,500
$3,000,000
$1,000
$2,000,000
$500
Sale Price, Median
40 30 20 10 0 n21
$0
50
Ja
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-21
$0
Jan-21
$1,000,000
60
Fe b21 M ar -2 1 A pr -2 1 M ay -2 1 Ju n21 Ju l-2 1 A ug -2 1 Se p21 O ct -2 1 N ov -2 1 D ec -2 1
$5,000,000
Price/SqFt Ratio
LOS ALTOS HILLS Los Altos Hills Inventory # of New Listings
$5,000,000 $4,000,000 $3,000,000 $2,000,000
Sale Price, Median
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-21
$0
Jan-21
$1,000,000
$2,000
20
$1,500
15
$1,000
10
$500
5
$0
0 n21
$6,000,000
Ja
$7,000,000
Fe b21 M ar -2 1 A pr -2 1 M ay -2 1 Ju n21 Ju l-2 1 A ug -2 1 Se p21 O ct -2 1 N ov -2 1 D ec -2 1
Los Altos Hills Median Sales Price & Price/Sq. Ft. Ratio
Price/SqFt Ratio
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MENLO PARK
Sale Price, Median
Menlo Park Inventory # of New Listings $2,000
80
$1,500
60
$1,000
40
$500
20 0
$0
Ja n21 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1 Ju n21 Ju l-2 1 A ug -2 1 Se p21 O ct -2 1 N ov -2 1 D ec -2 1
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-21
$4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
Jan-21
Menlo Park Median Sales Price & Price/Sq. Ft. Ratio
Price/SqFt Ratio
MOUNTAIN VIEW Mountain View Median Sales Price & Price/Sq. Ft. Ratio
Mountain View Inventory # of New Listings $2,000
$2,500,000
$1,500
$2,000,000
$1,000
$1,500,000 $1,000,000
$500
Sale Price, Median
50 40 30 20 10 0 n21
$0
Ja
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-21
$0
Jan-21
$500,000
60
Fe b21 M ar -2 1 A pr -2 1 M ay -2 1 Ju n21 Ju l-2 1 A ug -2 1 Se p21 O ct -2 1 N ov -2 1 D ec -2 1
$3,000,000
Price/SqFt Ratio
PALO ALTO Palo Alto Median Sales Price & Price/Sq. Ft. Ratio
Palo Alto Inventory # of New Listings
Sale Price, Median
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Price/SqFt Ratio
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Fe b21 M ar -2 1 A pr -2 1 M ay -2 1 Ju n21 Ju l-2 1 A ug -2 1 Se p21 O ct -2 1 N ov -2 1 D ec -2 1
n21
$0
80 70 60 50 40 30 20 10 0 Ja
Dec-21
Nov-21
Oct-21
$0
Sep-21
$500 Aug-21
$1,000,000 Jul-21
$1,000
Jun-21
$2,000,000
May-21
$1,500
Apr-21
$3,000,000
Mar-21
$2,000
Feb-21
$2,500
$4,000,000
Jan-21
$5,000,000
R E A L E S TAT E M A R K E T P U L S E
PORTOLA VALLEY Portola Valley Inventory # of New Listings
$5,000,000 $4,000,000 $3,000,000 $2,000,000
Sale Price, Median
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-21
$0
Jan-21
$1,000,000
$2,000
20
$1,500
15
$1,000
10
$500
5
$0
0 n21
$6,000,000
Ja
$7,000,000
Fe b21 M ar -2 1 A pr -2 1 M ay -2 1 Ju n21 Ju l-2 1 A ug -2 1 Se p21 O ct -2 1 N ov -2 1 D ec -2 1
Portola Valley Median Sales Price & Price/Sq. Ft. Ratio
Price/SqFt Ratio
REDWOOD CITY Redwood City Median Sales Price & Price/Sq. Ft. Ratio
Redwood City Inventory # of New Listings $1,400 $1,200
$2,000,000
$1,000 $800
$1,500,000
$600 $400
Sale Price, Median
$200 $0
60 40 20 0 n21
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-21
$0
Jan-21
$500,000
80
Ja
$1,000,000
100
Fe b21 M ar -2 1 Ap r-2 1 M ay -2 1 Ju n21 Ju l-2 1 Au g21 Se p21 O ct -2 1 N ov -2 1 De c21
$2,500,000
Price/SqFt Ratio
SAN CARLOS San Carlos Median Sales Price & Price/Sq. Ft. Ratio
San Carlos Inventory # of New Listings
$1,000
$1,500,000 $1,000,000
$500
Sale Price, Median
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-21
$0
Jan-21
$500,000 $0
40 30 20 10 0 Fe b21 M ar -2 1 Ap r-2 1 M ay -2 1 Ju n21 Ju l-2 1 Au g21 Se p21 O ct -2 1 N ov -2 1 De c21
$2,000,000
50
n21
$1,500
$2,500,000
Ja
$3,000,000
Price/SqFt Ratio
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R E A L E S TAT E M A R K E T P U L S E
SUNNYVALE Sunnyvale Median Sales Price & Price/Sq. Ft. Ratio
Sunnyvale Inventory # of New Listings
$2,500,000 $2,000,000 $1,500,000 $1,000,000
Sale Price, Median
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Jan-21
$0
Feb-21
$500,000
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
100 80 60 40 20 0 Ja n21 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1 Ju n21 Ju l-2 1 A ug -2 1 Se p21 O ct -2 1 N ov -2 1 D ec -2 1
$3,000,000
Price/SqFt Ratio
WOODSIDE Woodside Median Sales Price & Price/Sq. Ft. Ratio
Woodside Inventory # of New Listings
$3,000,000
$1,500
20
$1,000
$2,000,000
Sale Price, Median
Dec-21
Nov-21
Oct-21
Sep-21
Aug-21
Jul-21
Jun-21
May-21
Apr-21
Mar-21
Feb-21
Jan-21
$1,000,000 $0
25 15 10
$500
5
$0
0 Ju l-2 1 Au g21 Se p21 O ct -2 1 N ov -2 1 De c21
$4,000,000
$2,000
n21 Fe b21 M ar -2 1 Ap r-2 1 M ay -2 1 Ju n21
$5,000,000
Ja
$6,000,000
Price/SqFt Ratio
DISCLAIMER: As prominent members of the real estate community, we respect all pre-existing listing agreements. If your home is currently under a listing contract, please do not construe this publication as a solicitation of that listing. On the other hand, if you have not yet selected an agent, we urge you to consider our team's resources and design acumen, as demonstrated in this proprietary publication, which was created completely in-house by our talented marketing team. Advertising. All rights reserved. DeLeon Realty is not a law firm and the publication of this information does not create an attorney-client relationship with this brokerage or any of its members. Likewise, the material in this publication does not constitute a solicitation and is not intended to provide legal advice. The content in this publication is informational only and may not reflect current legal developments. This publication should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. DeLeon Realty expressly disclaims all liability with respect to actions taken or not taken based on any or all the contents of this publication. See also deleonrealty.com for additional disclaimers.
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