City Market Conditions $10,000,000
Average Sale Price
$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
Menlo Park
Mountain View
Palo Alto
Portola Valley Redwood City
San Carlos
Sunnyvale
Woodside
06/2019 - 05/2020
Average sale price for single-family homes from 06/2020 to 05/2021,
06/2020 - 05/2021
compared to the period from 06/2019 to 05/2020.
$1,800
Price/Square Foot Ratio
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
Atherton
Los Altos
Los Altos Hills
Menlo Park
Mountain View
Palo Alto
Portola Valley Redwood City
Price per square foot ratio for single-family homes from 06/2020 to 05/2021, compared to the period from 06/2019 to 05/2020.
San Carlos
Sunnyvale
Woodside
06/2019 - 05/2020
06/2020 - 05/2021
Data gathered from the Multiple Listing Service on 06/08/2021
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Table of Contents 04.
Palo Alto Historic Homes
09.
Is California Exodus Real? Why Las Vegas, Austin, and Santa Fe Appeal to Californians
By Michael Repka, Esq.
14.
OU R OFFICES A RE LO CAT ED AT : 1717 Embarcadero Road, Palo Alto, CA 94303 650. 543. 8500 www.DELEON REALT Y.co m DRE #0190 3 2 2 4 Man agin g Bro ker: M i c h a e l Re pka DRE #018 5 48 8 0 Founder — Ken DeLeon CEO & General Counsel — Michael Repka Corporate Counsel — Colette Thomason CONTRIBUTORS: Ken DeLeon, Michael Repka, Alex Wilbur DeLeon, Matt Griffis, Audrey Sun, Alexander J. Lewicki, Jenny Yin, Stephanie Sham, Colette Thomason Contact Ken DeLeon for exceptional buying opportunities at 650.543.8501 DRE #01342140 To learn about our Platinum packages and incredible listing services for sellers, contact Michael Repka at 650.900.7000 DRE #01854880
A Specific Example: The Danger of Accepting a Pre-emptive Offer By Michael Repka, Esq.
20.
DELEON INSIGHT
The Changing Demand for Silicon Valley Real Estate from Chinese Buyers By Audrey Sun
16.
THE
By Alex Wilbur DeLeon
How to Get a Below Market Purchase in An Overheated Market
By Ken DeLeon, Esq.
22.
July 1 Update: California’s Home Hardening and Fire Hazard Zone Disclosure Requirements By Alexander J. Lewicki, Esq.
26.
Selecting the Right Architect, Builder, and Building Location
By Matt Griffis
30.
The DeLeon Spotlight
36.
High-End Appliances and Resale Value of Homes
By Colette Thomason, Esq.
By Stephanie Sham
38.
Water Efficient Landscaping
42.
Fundamentals of Holding Title with Multiple Owners
46.
By Jenny Yin
By Alexander J. Lewicki, Esq.
Coffee Corner with Corporate Counsel Colette By Colette Thomason, Esq.
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R E A L E S TAT E D E S I G N
PALO ALTO HISTORIC HOMES By Alex Wilbur DeLeon
Growing up in Palo Alto, I have always admired the distinct architectural styles of homes throughout the various neighborhoods. In my younger days, I grew up in Community Center in a French-inspired 1940s home. I later moved to Professorville and lived in a historic Craftsman, and finally to a Barron Park 1980s Adobeinspired home. Established in 1894, the city of Palo Alto’s rich and storied history is reflected in our architecture. Traveling through Palo Alto, you will notice the distinguishable difference between each neighborhood as the city was essentially built from North to South. For instance, many wonder why Barron Park is so unique and bucolic in contrast to the rest of the city. This is because it was actually annexed to Palo Alto as late as 1975! Comparing neighborhood architectural styles, you will notice a particular distinction among Crescent Park’s Spanish Colonial Revival Birge Clark-designed homes, Professorville’s Craftsman and Queen Anne Victorian style homes, and neighborhoods like Midtown and South Palo Alto, which were originally predominantly post-war built tract housing including tracts built by Joseph Eichler.
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Historic Categories In order to preserve our history, the City of Palo Alto has established categories for historic homes, which are labeled as Category 1 through 4 in the Palo Alto Historic Inventory list. A description of these categories along with a property inventory list can be found on the Palo Alto Stanford Heritage website (www. pastheritage.org). Category 1 and Category 2 homes, per the definition provided by Palo Alto Stanford Heritage, are considered to be “Exceptional Buildings” and “Major Buildings” respectively, meaning that they hold national, statewide, or regional significance. These homes are often designed by famous architects, or were occupied by well-known persons, and they are a good representation of national, state or regional architecture and have typically retained their original character with slight modifications. Perhaps the most famous example of a Category 1 home in Palo Alto would be 367 Addison Avenue in Professorville, which is where Hewlett Packard was founded. This home is also on the National Register of Historic Places (NRHP).
July 2021
As an example of a Category 2 home, we currently have 1550 Cowper Street on the market. This beautiful historic revival architecture was designed by Pedro de Lemos, a very famous local architect.
1550 Cowper Street, Palo Alto
Category 3 and Category 4 homes are considered “Contributing Buildings” as they demonstrate a good example of the architectural style of a neighborhood; however, these homes have occasionally undergone extensive modifications relative to their original design. Many examples of Category 3 and Category 4 homes can be found throughout Professorville. It should be noted that homes built by famous architects such as Julia Morgan, Birge Clark, Pedro de Lemos, Charles Hodges, Gustav Laumeister, Marcus Stedman, as well as many others, are often categorized as historic. Historic Districts Beyond historical homes which are categorized, there are also districts and neighborhoods with historic preservation guidelines including the Professorville Historic District and neighborhoods with Eichlerdesigned residences. Professorville, which gets its moniker from initially housing many Stanford University professors, has some of the earliest and most striking architecture that is historically significant in Palo Alto. The City of Palo Alto has design guidelines for both Professorville and for Eichler-built homes in neighborhoods, such as Fairmeadow and Greenmeadow.
What does “eligible for NRHP and/or CRHR in 1998” Mean? NRHP stands for the National Register of Historic Places while CRHR stands for California Register of Historical Resources. In 1998, Palo Alto Stanford Heritage assisted in expanding Palo Alto’s historic homes inventory list, but due to lack of funding, they were unable to complete the project. For those thinking of rebuilding an older home that is listed as potentially historic, your home may need to undergo a Historic Resource Evaluation (HRE) before it can be rebuilt. Can Changes be Made to Historic Properties? According to the City of Palo Alto’s Historic Resource Project Review: “historic preservation is not meant to prevent change, but rather to guide it.” If you own or are interested in a historic home, you should determine under which category or historic district the property may exist. For a historic Category 1 home for instance, you may not be able to make any alterations to the façade of the home. However, for a Category 4 residence, there is much more leniency in terms of what you can do to the property as these homes have often been altered previously. According to the Historical Resource Project handout, there are typically restrictions on what can be done to the outside of a historic home and alterations will need review. The historic review process does not typically take interior work or landscaping into account unless the home is within Professorville. The preservation of our historic homes and neighborhoods has created the unique character of Palo Alto as we know it today. However, it is important to understand the circumstances under which modifications can be made to historic properties. Should you decide to modify a historic residence, you will have to have your project reviewed by the City's Historic Resources Board or evaluated by a historic preservation consultant. The positive side of historic homes is the City tries to work with owners and be accommodating of their requests as the City believes the preservation of our historic homes adds to the unique beauty of Palo Alto. D ELEONREALT Y.COM
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THE DELEON INSIGHT
1512 Champion Hills Lane, Las Vegas (Tournament Hills)
53 Painted Feather Way, Las Vegas (The Ridges)
Sold price: $2.675M List price: $2.7M Sold date: 01/25/21 5 beds/7 baths 7,471 sqft/0.53ac 4-car garage Year built: 1997 DOM: 26
Sold price: $4.95M List price: $5.275M Sold date: 07/09/20 7 beds/9 baths 11,361 sqft/0.65 ac 4-car garage Year built: 2009 DOM: 189
The other affluent neighborhood is Henderson, located 18 miles southeast of the Las Vegas Strip and consisting of numerous master-planned communities. Henderson has a suburban feel, with 64 parks, a 180-mile trail system, a large recreational facility (the Multigenerational Facility at Liberty Pointe), open grassland and playgrounds, and scenic Bird Viewing Preserve. There are also shopping malls, fine dining, movie theater complexes, and casino resorts. Examples of exclusive gated communities include MacDonald Highlands, Anthem Country Club, and Southern Highlands. Homes in these communities can range from several hundred thousand dollars to nearly $20 million.
11 Chenal Pass, Henderson (Anthem Country Club)
1485 Foothills Village Drive, Henderson (MacDonald Highlands)
Sold price: $1.7M List price: $1.55M Sold date: 11/12/2010 6 beds/7 baths 5,756 sqft/19,602 sqft 3-car garage Year built: 2004 DOM: 62
Sold price: $5.95M List price: $6.25M Sold date: 12/28/20 5 beds/8 baths 9,508 sqft/0.64 ac 6-car garage Year built: 2019 DOM: 103 Relisted on 4/26/2021 for $6.75M and currently under contract.
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Both communities enjoy easy access to smaller airports perfect for private jets, with Henderson Airport and North Las Vegas Airport laying in close proximity to Henderson and Summerlin, respectively. Also, Las Vegas McCarran International Airport offers direct flights to many places around the country and the world. The local agents in Las Vegas have noticed that the influx of buyers from California has caused these communities to expand rapidly. High-rises are in the works and will be built in the Las Vegas areas, such as Henderson, in the coming years. Why do Californians Move to Texas? Since 2017, Texas has been the top state for Californian migration, with over 231,000 Californians moving there from 2017-2019, with many choosing to settle in cities such as Austin.5 Texas, the largest state in the contiguous U.S. and the second most populous state in the nation, holds tremendous appeal to Californians. First and foremost, the tax benefits Texas offers its residents are extremely tempting. Texas has no state income tax, no estate or inheritance tax, although the county and city property taxes are sometimes high compared to a similarly price home in Silicon Valley. Second, the key industries of Texas include aerospace, aviation and defense, biotechnology and life sciences, energy, information technology, and advanced manufacturing.6 Texas is also home to numerous high-tech companies with large branches, including Samsung, Texas Instruments, Cisco, and Microsoft; automobile companies such as GM and Toyota; and other top-tier companies including Johnson & Johnson, ExxonMobil, and Fujitsu – just to name a few.7 Joining these companies are recent transplants from California, such as Oracle and HP Inc., while even Elon Musk left California for Texas last year. Third, those on the political right who may feel under-represented in California may prefer the rightleaning political climate in Texas, where 52.1% of voters went for Trump in the 2020 Presidential race.8
THE DELEON INSIGHT
With the influx of companies moving or opening offices in Austin, this city will continue to see an increase in population, and we anticipate the real estate prices in Austin will continue to appreciate in the coming years. Why do Californians Move to New Mexico? Although New Mexico is not in the top tier of states where Californians have migrated, there were over 20,000 Californians who left California for New Mexico between 2017 and 2019.18 According to Hire-A-Helper, New Mexico saw an increase of 11.3% people moving into the state in 2020.19 In fact, a few of my clients decided to relocate to Santa Fe, so in early April, I decided to fly there to check out the city myself and meet some top agents. And I fell in love with Santa Fe. Founded in 1610, Santa Fe is a colorful, artistic city rich in history and is the oldest capital city in the United States; in fact, nearly 20% of the city is classified as a historic district. This city is a blending of Hispanic, Native American, and Anglo cultures, and this is reflected in the art, buildings, food, and people. This cultural uniqueness, along with the gorgeous landscape, have lured many artists and writers to the area over the years, such as Georgia O’Keeffe, Patrick Oliphant, Robert Henri, Gustave Baumann, and Cormac McCarthy. Santa Fe is the third largest art market in the nation, behind New
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York and Los Angeles, and boasts over 250 art galleries and studios showcasing an array of art, including traditional and contemporary painting, photography, sculpture, pottery, and textiles. The richness of the culture is also seen in the festivals and food. There are countless festivals that the locals celebrate, such as Zozobra (festival to burn away “doom and gloom”), Pueblo Feast Days, Harvest Festival, Christmas at the Palace & Las Posadas, and New Year’s Eve Celebration on the Plaza. The food in Santa Fe reflects colorful cultures, with many dishes featuring the local staple, chiles. With such a large artist colony, tourism, government, and small businesses play a large part in Santa Fe’s economy. Looking at New Mexico as a whole, its key industries include aerospace and defense, biosciences, cybersecurity, film and television, global trade, intelligent manufacturing, sustainable and green energy, and sustainable and valueadded agriculture.20 Some of the top companies with a presence in New Mexico include Intel, Honeywell, General Mills, Jabil, Medlin Ramps, and Tempur-Pedic.21 The political climate in New Mexico leans left, with 54.3% of voters voting for Biden in 2020.22 Santa Fe County is even more liberal, with 76% voting for Biden.23
THE DELEON INSIGHT
THE CHANGING DEMAND FOR SILICON VALLEY REAL ESTATE FROM CHINESE BUYERS By Audrey Sun
In recent years, Chinese buyers have represented, and continue to represent, a strong and important part of the Silicon Valley buyer pool. Although certain regulatory, financial, and logistical factors have changed some of the characteristics of these buyers’ focus, there is no denying that it would be a fool’s errand to ignore this important segment of potential bidders. Given that the DeLeon Team is the top marketer of Silicon Valley real estate to the Chinese community, and as someone who was born in China before immigrating to the U.S. to attend school at Valley Christian and U.C. Irvine, I enjoy a great vantage point from which to evaluate some emerging trends. Like many immigrants, I have experienced the American dream and truly appreciate the diversity and welcoming spirit of this great nation. Direct Purchases by People Living in China Until about five years ago, we saw a very strong demand for Silicon Valley real estate from people living in Mainland China. This was due to a confluence of different factors, such as the: 1. Stability of Silicon Valley real estate market; 2. Appeal of great schools;
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3. Overall desirability of this area and its weather; 4. Economic opportunities associated with Silicon Valley’s striving economy; and 5. Restrictions by the Chinese Central Government on the purchase of multiple investment properties in Tier-1 cities in Mainland China. This demand was so strong that Michael and I, along with other members of the DeLeon Listing Team, made multiple trips to China over the past few years to meet with various real estate agents, potential investors, government officials, and buyers. For several years, The DeLeon Team even had an office in Beijing. However, over the past five years, President Xi’s actions have significantly restricted currency migration from China to the United States. More precisely, these measures have resulted in more strenuous enforcement of laws that were already on the books. These factors, paired with the recent pandemic, have resulted in a reduction in direct investment by Chinese nationals living abroad.
July 2021
Continued Strong Efficacy of Chinese Marketing Despite the reduction in buyers coming directly from China, we continue to see extremely strong results from our marketing of our listings to the Chinese community, which includes television commercials, radio commercials, newspaper ads, and social media marketing, all in Chinese and geared towards broadening the promotion of our listings. Naturally, this begs the question: why is this marketing still so effective in light of the significant restrictions on currency migration? The answer is simple: the very robust Chinese community that is already here is trading up or experiencing changing needs. Increasing Geographic Diversity Five to ten years ago it seemed that many buyers coming over from China focused on particular areas such as Palo Alto and Cupertino. Growing up in China, even well before I ever came to the United States, I had heard of these two cities. As strange as it sounds, I remember talking about these two almost mythical cities with my friends as we imagined streets paved in gold and multi-millionaires clad headto-toe in Louis Vuitton on every corner. Back then, Palo Alto was the most prestigious “name brand,” and my friends and I certainly loved designer labels. While real estate agents are appropriately prohibited from steering clients towards certain areas or cities because of their race, we did experience many people who came here with a preconceived notion of where they wanted to live. In some cases, they already had friends or family living in those cities, while in other cases, these were simply cities wellknown to their friends or family members in China. The buyers from China who bought homes in Silicon Valley over the last ten years are now more established, they understand the area much better, and are ready to begin to trade up from their current residences. Although Palo Alto is still a very popular place to purchase because of its great schools, convenient location, and strong sense of community,
a growing number are also considering neighboring cities that may not have been on their radar ten years ago. DeLeon’s Future Efforts in Chinese Marketing As a fixture on Chinese TV, host of a Chinese radio show, and one of the top Mandarin and Cantonesespeaking real estate agents in Silicon Valley, as well as being someone immersed in the community, I have noticed a particularly strong shift in Chinese buyers interested in purchasing homes in Los Altos, Menlo Park, and Atherton, among other areas. The increased interest in these communities should not be surprising. They all have fantastic schools, great communities, and they love and encourage diversity. For example, Menlo Atherton High School’s motto is “Strength in Diversity.” I am really proud to work at DeLeon Realty. Michael and Ken believe in diversity, inclusion and opportunity for all – just look at the makeup of our company’s leadership team and overall employees. This focus on inclusion extends to the way we market our listings. Rather than limit our marketing to the Chinese community to cities that “traditionally” (a dangerous word) attract Chinese buyers, we market all of our homes to these buyers and everyone else. Beyond being the right thing to do, it also attracts more competition and higher prices for our sellers.
Audrey Sun (Top Right) regularly appears on Chinese talk shows focused on Silicon Valley real estate. She is fluent in Mandarin and Cantonese, which helps present our properties to certain buyers more persuasively. D ELEONREALT Y.COM
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THE DELEON INSIGHT
A SPECIFIC EXAMPLE: THE DANGER OF ACCEPTING A PRE-EMPTIVE OFFER By Michael Repka, Esq.
Generally, the best way for a seller to garner the highest price for a Silicon Valley home is to: 1. Prepare the home for market by fixing the low or no-cost items that might deter potential buyers, many of which a good listing agent will have fixed for free; 2. Make cosmetic improvements to make sure the house looks fresh, again some of these may be covered by the listing agent; 3. Market the home aggressively, taking special note of buyers who may be looking outside of the area; and 4. Set an offer date so that buyers can compete, and sellers can consider all offers concurrently. Unfortunately, there are some very strong conflicts of interest present in the real estate industry that encourage agents to recommend a different path. Namely, (1) the desire for the agents (or the brokerages) to get commission from both “sides” of the transaction, and (2) the desire of the agent to attract buyers and engage them as their agent, with the promise of better deals through “off-market”
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transactions due to reduced competition. Obviously, this benefits the buyer, but at the direct expense of the seller who listed with that agent. Many sellers may be in even more peril than they realize because they rely upon their listing agent for advice while not fully appreciating the agent’s conflicts of interest. In the last edition of The DeLeon Insight, I wrote an article entitled, "Off-Market Sales Almost Always Cost Sellers Money, but Some May Think that Privacy is Worth the Price". I was pleasantly surprised by how much attention this article attracted and how well it was received. Shortly after that article was published, I spoke with two people who now realize that they may have left money on the table (in both instances, the buyer and seller were represented by the same brokerage). What surprised me was how many buyer’s agents shared their stories about the times that they had a client who would have paid substantially more than the price paid by the buyer of an off-market property.
27827 Via JFeliz uly 2021 Los Altos Hills Year Built: 1980 Home Sq. Ft.: 3,550 Price Per Sq. Ft.: $2,112 # of Offers: 10 List Price: $5,988,000 Sale Price: $7,500,000
The Sale of 27827 Via Feliz in Los Altos Hills A few weeks ago, I experienced a situation that is perfectly emblematic of the risk associated with accepting a pre-emptive offer. We took a listing of a Los Altos Hills property that the sellers purchased in 2019 for $4.6 million. The week before the offers were due, Zillow valued the home at $6,132,229. We listed the property for $5,988,000 with the hope that competitive bidding would push the price as high as possible. Based on an analysis of comparable properties, the home seemed to support a price in the $6.5 million to $6.7 million range, especially considering the beautiful designer touches made to the home. After fully prepping, staging, and marketing the property, we began showing it to interested agents and buyers. One of the first buyers to see the home loved it and put in an unsolicited “pre-emptive” offer of $7 million, which was over $1 million above the list price and well over the target range proffered by me and other agents who competed for the listing. Despite my belief that this pre-emptive offer was very strong, and the buyers were represented by a very good agent, I recommended that the sellers decline the offer in favor of waiting until the scheduled offer day. It seemed logical that a buyer who loved a home so much that they would put in an offer that strong would wait another week until offers were due.
As it turned out, I was right: those buyers did resubmit the same $7 million offer on offer day, along with quite a few other bidders, and the competition ultimately pushed the price up to $7.5 million! This staggering price was over $2,100 per square foot in a neighborhood that normally commands an average of less than $1,500 per square foot. The sellers would have been thrilled to accept the $7 million offer, and they never would have known that they left $500,000 on the table. I am human. It would have been tempting to encourage a seller to accept an offer and close a quick sale, especially if I were going to pocket an extra $175,000 in commission by representing both the buyer and the seller. Our sincere desire to eliminate conflicts of interest in the real estate industry is precisely why DeLeon Realty is the only major Silicon Valley brokerage that never takes commission from both sides of any transaction. Thus, we don’t have the temptation to encourage our sellers to let us show our listings to DeLeon buyers first. Simply put, careful preparation, aggressive marketing, and maximum competition are the recipe for great results for our sellers. Just ask the former owners of the beautiful home on Via Feliz.
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July 2021
will likely recover and those who purchase now will likely have 10% equity or more built in when housing preferences return to pre-pandemic norms. Land is an excellent investment in this market For anyone considering purchasing land for a tear down and rebuild, this is a great time to be purchasing a property. The pandemic has created an urgency for finished housing, and turn-key homes that are nicely presented are in high demand. The dearth in supply of luxury homes is most pronounced in Atherton, where every home that is within a year of completion has been pre-sold. This pandemic demand for larger luxury homes has pushed demand up so high that I was recently involved in a bidding war for a $22M home in Atherton that received 5 offers and sold for more than a million above list price. Similarly, Michael Repka, the head of the DeLeon Listing Team, has sold two eight-figure homes with multiple offers over the past 6 months and he has informed me that he has three more coming.
While all families want and will pay top dollar for a finished home, construction has fallen out of favor and consequently land values have underperformed. This is due to two pandemic trends, the first being that buyers want their home immediately and will not wait the two to three years to build their dream home. Additionally, COVID really hindered construction, and time delays and cost increases that came about made this one of the worst construction cycles ever. Furthermore, prices for items like lumber are up 3 to 5 times what they were two years ago, so the cost of construction has also gone up. Most of my experienced builder clients feel that the
supply chain disruptions and spike in commodity prices will subside (but not return to previous levels) from their current peaks, so building in the future will likely be a bit less expensive than now while the finished home will enjoy strong demand for years to come. We are already seeing loggers dramatically increasing production of lumber, and this trend is likely to continue. Seller mistakes can be capitalized upon The 2021 market is a strong one, but not a forgiving one. That is, if a mistake is made by the seller or listing agent in poorly presenting the home, overpricing it, not marketing it well, or giving an opportunity for select agents to show it to our buyers before permitting full competition (i.e., “off market sales”) etc. – then a buyer can definitely get a good value. I am directing my clients away from the homes that are well presented and well-priced, for these homes create an auction dynamic and are jumping to above-market values. Ironically, it is those homes that are priced above market value that in the end sell for below market value. I have gotten some great outcomes for clients – more than a million dollars below list price – by choosing the most motivated seller to negotiate against. It is much better to come in alone and negotiate down than to fight amongst a dozen other offers. Additionally, it is only in the last three months that the housing market jumped in appreciation. If you can get a home that came on the market before April, that home did not get the jump that new homes received from the appreciating market. Focusing on homes that are lingering effectively brings you back to 2020 market conditions, where prices were 7-10% lower and where I am directing the majority of my value-oriented buyers. Reach out to me at ken@deleonrealty.com or 650-543-8501 so I can let you know about the latest best values or winning strategies to help you get a home below market value regardless of strong market conditions.
D ELEONREALT Y.COM
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JULY 1 UPDATE: CALIFORNIA’S HOME HARDENING AND FIRE HAZARD ZONE DISCLOSURE REQUIREMENTS By Alexander J. Lewicki, Esq.
Plagued with a history of destructive wildfires during the summer months, the California Director of Forestry and Fire Protection has long worked in tandem with local agencies to designate areas of California as high or very high fire hazard severity zones. More than 2,000,000 California households are located in these designated hazard zones; roughly one in four residential homes statewide. In response to a devastating string of wildfire seasons throughout California in 2017 and 2018, the state legislature passed Assembly Bill No. 38 on October 2, 2019. The Bill added Sections 1102.6f and 1102.19 to the California Civil Code, implementing a statewide plan to mitigate wildfire damage by encouraging cost-effective structure hardening and retrofitting, as well as facilitating vegetation management through “defensible space” requirements. The new laws roll out several requirements over the course of the next four years, and are applicable to any sale of real property located in high or very high fire severity zones.
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As of January 1, 2021, sellers in the designated areas are required to provide the buyer with a prescribed disclosure notice along with information about costefficient hardening improvements that can be made to the property. Sellers are also required to disclose specific features that may make the home vulnerable to wildfires. Effective July 1, 2021, sellers in these zones will be required to obtain and provide buyers with a final inspection report from state or local fire authorities indicating compliance with Section 4291 of the Public Resources Code, or any applicable local ordinance that may similarly apply. The report itself must document compliance within the time prescribed by local ordinance, should one exist, or within the preceding six months from the date of the transaction. Alternatively, buyers are permitted to agree in writing that they will obtain the required report themselves within the time specified by local ordinance, should one exist, or within one year from the close of escrow.
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In order to pass the inspection required after July 1, 2021, homeowners need to maintain an area of “defensible space” extending 100 feet from any building. Simply put, defensible space is an area surrounding your home where vegetation has been removed and/or maintained so as to prevent a wildfire from spreading. Cal Fire has provided guidance on maintaining defensible space by breaking up the 100 feet into two zones. The first zone is the immediate 30 feet surrounding the home and can be maintained by (1) removing all dead plants, grass, and weeds; (2) removing dead or dry leaves and pine needles from your yard, roof, and rain gutters; (3) trimming tree branches to keep them 10 feet away from your roof, chimney, stovepipe outlet, and other trees; (4) relocating wood piles to zone two; (5) pruning flammable plants near windows; and (6) removing vegetation from around and under structures. The second zone makes up the remainder of the 100 feet, and can be maintained by (1) mowing grass down to a maximum of 4 inches; (2) creating horizontal spacing between shrubs and trees; (3) creating vertical spacing between grass, shrubs, and trees; and (4) removing fallen leaves, twigs, and small branches. While trees generally do not have to be removed, they must be well-pruned and the plants beneath them removed in order to prevent a “fire ladder.”
The current two-zone scheme will be expanded to include a third “ember resistant zone” by January 1, 2023. While not currently required under the inspection criteria, this ember resistant zone located in the first five feet from a structure is recommended to be additionally maintained by (1) avoiding combustible hardscape or mulch and opting for gravel, pavers, or other materials instead; (2) limiting plants in the area to low growing, properly maintained plants; (3) limiting combustible items on decks; and (4) replacing combustible fencing and gates. Lastly, beginning on July 1, 2025, sellers will be required to include a list of low-cost retrofits developed by the Department of Forestry and Fire Protection, and disclose which of the retrofits, if any, have been completed during the time the seller has owned the property. The safety of our communities is something we feel strongly about here at DeLeon Realty. The DeLeon Team is prepared for the new requirements taking effect on July 1, 2021, and we are confident in our ability to bring a seamless transition to anyone who chooses to sell or buy their home with us.
D ELEONREALT Y.COM
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THE DELEON INSIGHT
SELECTING THE RIGHT ARCHITECT, BUILDER, AND BUILDING LOCATION By Matt Griffis, DeLeon Realty Construction Specialist
Whether for speculation, rental investment, or personal use, building a home can be one of the most significant endeavors any of us will ever take on. Identifying the right property to remodel or build new, and assembling the right team with which to do so, is critical to success. These challenges are further exacerbated in our current market where competition for prime properties is strong. Plus, gaining the attention and interest of the best architects and builders is an art in itself, especially when their current and future work production pipelines are full. A hallmark of DeLeon Realty is having a truly clientcentric model in which teamwork is paramount to ensuring clients have the guidance they deserve in making these critical decisions, as well as the interest and attention of the best architects, builders, and consultants that might otherwise be unavailable if it were not for deep longstanding relationships with our company; in fact, I joined DeLeon Realty for this very reason. Here, I am able to lend my over eight years of executive experience with one of the most renowned high-end builders in Silicon Valley, the Pacific Peninsula Group (“PPG”), to our clients
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and guide them through options using personal experiences from having acquired, rebuilt, and sold several homes on my own over the past 20+ years. Which Came First, the Chicken or the Egg? I am often asked which one is more important: finding the right property, or having the right architect and builder team relationship ready to go. I have found that the answer is, simply, “Yes.” Both are critical to success. Selecting the right building site is vital, as location is that one thing we cannot change once it has been decided. Sure, you can add landscape screening to an unsightly lot next door, or install backyard water features to temper the sounds of a busy street running behind a lot, but the best architecture and construction cannot change the school districts, convenience and commuting logistics, solar orientation, and proximity to amenities that may be very important to an end user. Conversely, we have all been through a home that made us scratch our heads and wonder why a floorplan was laid out the way it was, or why the
R E A L E S TAT E TA X
window placement and orientation makes the home dark throughout the day, or why a brand new floor creeks or feels spongy as you walk across a room. Knowing the right architect and builder is key to not only obtaining invaluable insights during the process of determining whether a property can meet your development goals, but also in ensuring that the ideal property is put to its highest and best use in the design and execution of the project.
knows the ropes of both the over-the-counter and public design review and entitlement processes, and a builder with an established relationship and trust with building inspectors, are worth their weights in gold. Time saved on a project can more than pay for itself financially in reduced carrying costs, and it can help temper the emotional cost of a project by, for example, completing the work before school starts for the kids.
Identifying the right property and having the right architect and builder relationship established go hand in hand, as these professionals provide critical insight on a property’s feasibility for a buyer’s goals before an offer is even drafted.
Administrative factors to consider when vetting these professionals include contract structure, proper licensure and insurance, markups and fees, budgeting and cost estimation, how change orders or added scope are handled, and scheduling availability and commitment. Staffing size, which work is performed in-house versus via consultants or subcontractors, and how (and by whom in the firm) will your project be managed are also important factors to compare. As for firm size and “brand name recognition,” a well-recommended but lesser-known independent designer and a general contractor who personally works on one project at a time may be a perfect fit for a kitchen or bathroom remodel, whereas an established designbuild firm or well-known architect and builder team with deep in-house expertise is likely the better fit for a large estate in Atherton or Woodside.
The Right Tools for the Job – Selecting the Right Architect and Builder We are fortunate to have a wide range of talented architects and builders in Silicon Valley, with a plethora of vast experience available for the most minor of remodels to the grandest of estates. Finding “the right tool for the job” is therefore key. Experience on project size, scope, and style is an obvious tangible factor in selecting the right team, as well as cost, availability, and perhaps most importantly, experience working with the planning and building departments in the municipality in which the ultimate project site is located. An architect who
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July 2021
Selecting the Right Architect, Builder, and Building Location
If I had to pick one factor above all others in selecting the right architect and builder, I would go with chemistry. The design and construction process is akin to a marriage: there will be good and not-asgood days, costs and money will enter the picture, and you don’t want to have to wonder whether you are getting the attention you deserve. Trust, respect, and chemistry are critical, regardless of the size of the project. Invest the time to contact references, ask what issues arose and how they were resolved, and leverage the time-tested strategic referral relationships of Silicon Valley real estate leaders like DeLeon Realty. Location, Location, Location As mentioned, location is the one thing even the best design and construction cannot change. Some otherwise “ideal” locations may not be compatible with the needs of every buyer; for example, some jurisdictions include basements in allowable square footage while others do not, while properties located in flood zones do not allow basements altogether. Similarly, what matters for one buyer in terms of needing a specific school district may not matter for another buyer who intends to send their children to private schools. These would be critical things to
consider for a family looking for maximum buildable area for a new home or remodel. Subjectively, the site must resonate with you when you see it. Neighborhood feel, being near friends and family, and schools are prime examples of meeting this criteria. Objectively, the site needs to work with your intended goals for the property, such as enabling the size and style of home you need through zoning that guides everything from what trees can be removed, to how much buildable area can be developed on a lot, to whether a specific street or area may only allow certain architectural styles that fit the characteristics of existing homes nearby. Just as the right property is key to a project that ultimately meets your needs, having an architect and builder in your corner is key to ensuring the property can do the same. A good agent’s knowledge of current market trends and future outlook for neighborhood appreciation, coupled with their insights on a prospective property from having physically walked the site and gathering insights from the city’s planning department, collectively provide prudent due diligence information that facilitates the triangulation on property value, fit, and feasibility.
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THE DELEON INSIGHT
HIGH-END APPLIANCES AND RESALE VALUE OF HOMES By Stephanie Sham, DeLeon Realty Interior Designer
The resale value of a home is influenced by a number of factors, including location, square footage, and the condition of the property, just to name a few. Another important factor that can have a noticeable impact on resale value is the perceived quality of the home’s construction. Given that many of the very successful buyers in Silicon Valley did not grow up in particularly opulent surroundings, they may not be familiar with each and every facet of quality construction. Nevertheless, most of these buyers are familiar with luxury appliances. Therefore, many buyers, and even some real estate agents, look at the quality of the appliances and then assume that the entire home is built to this standard. This is particularly true with new construction. When it comes to appliances, the extent to which the high-end brands can increase a home’s value depends on a buyer’s expectations of whether a home in a particular neighborhood and price range
36 | D E LEO N RE A LT Y.CO M
“should” have high-end appliances. For example, it would not be unusual for buyers in the market for luxury homes in Atherton, Menlo Park, or Los Altos Hills to expect to see high-end appliances in a home, whereas a buyer in the market for a starter home in a less upscale neighborhood may be perfectly satisfied with something mid-range. In that case, any high-end appliances would simply be a bonus, but it may go unnoticed by buyers unfamiliar with the brand. In other words, there are times when the right appliances can make or break a deal. However, appliances can be quite expensive so the seller should make sure that they will make a difference. For example, if all the comparable homes have highend appliances and yours does not, your home may be in a disadvantageous position, and upgrading your appliances could result in a nice return on investment.
July 2021
In terms of particular brands of appliances, high-end buyers may expect to see luxury brands, such as Wolf, Sub-Zero, Gaggenau, Miele, Viking, Thermador, and La Cornue. DeLeon Realty is unique in providing our seller clients with free access to an in-house design team to help make the right choices. Our listing team has intimate understanding of what buyers in different neighborhoods in Silicon Valley like and dislike, having represented hundreds of clients every year. Additionally, our marketing team will ensure that such appointments are highlighted in our marketing materials so that they are not overlooked by potential buyers. If you are interested in upgrading your appliances but are not prepared to invest a significant amount of money to do so, a simple upgrade of the kitchen range could be a wise decision. It is one of the most-used appliances in a home and is sure to be noticed at open houses and in marketing materials. Investing in an all-in-one, pro-style range, such as a Wolf 6-burner, could be an excellent investment that is sure to make a positive impact. Buyers know quality when they see it. When they see it in your kitchen, psychologically, they may extrapolate that standard to the rest of your home, even if the home may not be thoroughly updated. Another way to update your appliances without overspending is to install a suite of them from the same brand, usually consisting of the refrigerator, range, vent hood, and dishwasher. This is typically seen as a plus in the eyes of buyers, as your home will appear to have been thoughtfully planned, cohesive, and complete. Deciding whether to upgrade your appliances before listing your home is a delicate balancing act. We help our sellers with the various factors that can influence resale value. To do this, we put ourselves into the shoes of a prospective buyer and imagine what they may be looking for in a home. We also work with our in-house contractor to consider other factors, such as the ease of installation.
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THE DELEON INSIGHT
WATER-EFFICIENT LANDSCAPING By Jenny Yin, DeLeon Realty Interior Designer
Many homeowners would love to have their houses encircled by lush lawn, towering trees, and colorful flowers. With so many people working from home recently, having a nice garden has become even more desirable, since it could serve as an extension of a home office. Plus, it adds more value to your property.
• Santa Barbara Ceanothus - Prefers sun to partial sun exposure, requires infrequent to no summer watering • Scarlet Bugler - Prefers hot and dry summer, is drought tolerant • Deergrass - Stays evergreen even without watering
In order to maintain the garden, typical houses would need to spend more than 50% of their water usage on landscaping. However, with Governor Newsom recently declaring a drought emergency in 41 counties1, Californians now need to use water more efficiently and wisely. This does not mean you have to give up your garden though; rather, there are several alternatives to reduce water on landscaping and still create and maintain a charming garden.
Mulch is Important to the Garden Another way of reducing water on landscaping is to retain moisture in the soil. Moisture is lost through evaporation, especially during hot and windy days. To prevent the garden soil from evaporation and direct exposure from sunlight, placing mulch on top of the soil is most effective.
Landscape Using Low-Water Native Plants/Trees Landscaping your garden with low-water native plants and trees has a great impact on water conservation. Native plants have already adapted to your local environment, and over time, will require less care. California native plants are a great option because they are water-efficient, come in a variety of colors, and provide biological diversity. Here are some of the California plants that will help your low-water garden stay pretty: • Golden Yarrow - Prefers sun exposure, has clusters of yellow flowers, is attractive to butterflies
38 | D E LEO N RE A LT Y.CO M
Because mulch has the ability to maintain moisture in the soil, it will reduce the need of watering your plants. It also acts as an insulator that keeps the roots of the plants at a constant temperature and cooler in the summer. Another benefit of mulch is to provide nutrients and improve the quality of the soil as it breaks up the clay and allows water and air movement through the soil. The recommended method is applying 2 to 4 inches of mulch on planting beds, especially the area around the trees. Replacing the grass with mulch will lower the competition for water and nutrients. Besides the benefit of conserving soil moisture, aesthetically, mulch looks great and blends well naturally with the surrounding landscape. It mimics the elements that you will find in the natural environment, such as plant branches and soil.
Use Drip Irrigation to Reduce Water Drip irrigation has enjoyed a recent rise in popularity. Not only does it help with water conservation but it also saves time and money. Drip irrigation uses almost 50% less water than an overhead irrigation system. It delivers water slowly to the plants at ground level rather than elevated level. That way, the water will be delivered directly to the roots of the plants. It prevents overwatering because it places the exact amount of water to a specific area that is needed. The water coming from the drip irrigation system comes out of emitter tubes that are attached to a long tube of water. Each emitter tube is programmed to target a dedicated area. Because of the precise location of the watering method, it also eliminates weeding, thus saving time on maintenance.
R E A L E S TAT E TA X
Consider Installing Artificial Turf As the drought situation in California is getting more serious, the popularity of using artificial turf will increase very quickly. Replacing your lawns with artificial turf eliminates the need for watering and mowing while maintaining the vibrant grass color and great condition throughout the year. Fertilizer and pesticides are also not required for artificial turf. Therefore, you can save more time on maintaining the lawn. Please refer to the May 2021 issue of The DeLeon Insight, pages 26-27, for more information on the benefits of artificial turf. Hardscapes can Add Textural Variety while Saving Water An alternate method of replacing your lawns is to place large rocks and pebble stones around trees and native plants to beautify your garden. From a “look and feel” perspective, it adds tranquility to the garden and creates a nice contrast with the plants. Since hardscape does not require an irrigation system, it allows more flexibility to create interesting patterns and pathways. Given the unique texture and different shapes of the rocks and stones, they can be the focal points of the garden. Similar to artificial turf, hardscaping also has the benefit of eliminating water, fertilizer, and pesticides. Reduce Water Bill By applying some of these water-saving methods mentioned in this article, it will help reduce your water bill without sacrificing a beautiful garden. Even if we were not in a drought emergency, there are many advantages to water-efficient landscaping. 1
https://www.reuters.com/world/us/california-governor-declares-drought-emergency-41-counties-2021-0511/#:~:text=California%20Governor%20Gavin%20Newsom%20on,conditions%20for%20April%20and%20 May.&text=Newsom%20in%20April%20proclaimed%20a,in%20two%20Northern%20California%20counties.
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THE DELEON INSIGHT
FUNDAMENTALS OF HOLDING TITLE WITH MULTIPLE OWNERS By Alexander J. Lewicki, Esq.
A question that buyers often ask prior to a home purchase is, how should we hold title? Exploring the various forms of title can save your family time and money, making it worthwhile to become knowledgeable about the basics before you are in contract on your next home. Of course, there is much more to know about holding title than what is outlined below. Each family has a unique set of circumstances that will determine what method is most appropriate for them. California law recognizes several traditional ways to hold title among multiple owners. Property can be held as tenants in common, joint tenants, community property, community property with a right of survivorship, and through an entity, such as a corporation, Limited Liability Company (“LLC”) or partnership. Tenancy in common is the default method of co-ownership in California. To have a tenancy in common, all that is required is that all owners take an equal right of possession in the property. One of the primary benefits of a tenancy in common is that co-owners can possess unequal shares of interest in the property. Property held as tenants in common is also freely transferable among separate owners. Upon the death of one tenant in common, the ownership interest will be passed on to their heirs through probate. A joint tenancy is a method of co-ownership defined by the right of survivorship, whereby upon the death of one owner the property transfers to the surviving tenant while avoiding probate. To have a joint tenancy, all owners must take interest under the same title document, at the same time, possess ownership in undivided equal shares, and have an equal right to possess the whole property. An absence of one
42 | DE LEO N RE A LT Y.CO M
of these unities (i.e., by one owner’s conveyance outside of death) automatically severs the joint tenancy and creates a tenancy in common. A joint tenancy is often favored where several people, or a non-married couple, want to take equal interest in a property while avoiding probate. Although community property with rights of survivorship (discussed below) offers significant tax advantages, some married couples may prefer tenancy in common due to the possibility of enhanced liability/ creditor protection. Community property is a method of holding title restricted to married couples and registered domestic partners. In California, property acquired during a marriage is presumed community property and the interests of each spouse in such property are equal. While community property can only be transferred with consent of both spouses, each spouse is able to will away their ownership interest freely. Community property does not avoid probate upon the death of one spouse. A second, arguably more beneficial type of community property is community property with a right of survivorship. Community property with a right of survivorship combines many of the features of joint tenancy and community property. It avoids probate, creates a non-transferable equal interest in property, and garners certain tax benefits specific to community property (i.e., a full step-up in basis of the entire property value for the surviving spouse). Another method of co-ownership is via a partnership, defined as an association of two or more people conducting a business for profit. Property acquired by a partnership is property of the partnership and not of the partners individually. This method is generally considered the simplest manner of
July 2021
co-owning an investment property as the formalities imposed upon a corporation or LLC are not present. However, unlike a corporation or LLC, partners are generally liable for the debts of the partnership. In addition to the forms of holding title described herein, you can also opt to hold title as trustee(s) of a trust, or in the name of a corporation or LLC. While holding title in the name of a corporation or LLC can provide buyers with a layer of individual privacy and some liability protection, the formalities imposed upon these entities by California law make them best suited for more sophisticated investment or business endeavors. Alternatively, holding title as the trustee(s) of a trust can offer several benefits that are commonly taken advantage of by the residential real estate purchaser. A trust is a legal relationship whereby the trustee holds title to property for the benefit of a beneficiary. Property held in trust is flexible and only subject to the rules of the particular trust (assuming all provisions are otherwise legal). This allows for the
disposition of property to be efficient and tailored to fit the specific needs of your family. For example, holding property in a trust can be perfect for those wanting to designate different interests in the property among multiple beneficiaries, or for those wanting management of the property to be undertaken by someone other than the beneficiary. Like joint tenancy and community property with a right of survivorship, a trust allows for the avoidance of the probate process. One of the many perks of working with DeLeon Realty on your next home purchase is that you have access to an attorney to assist you with the various questions that you will encounter along the way. To the best of our knowledge, no other major local brokerage offers clients free access to confer with a real estate attorney to discuss matters like this. If you are looking to buy a home, I encourage you to reach out to me and the rest of the DeLeon Team so that we can provide you with all the information necessary to make an intelligent purchasing decision.
BELOW IS A QUICK SUMMARY OF THE TRADITIONAL METHODS OF HOLDING TITLE: Tenancy in Common
Joint Tenancy
Partnership
Community Property
Community Property With Right of Survivorship
Who Can Hold Title?
Any number of persons.
Any number of persons.
Only partners in a business for profit (Note: partnership itself holds assets).
Only spouses/ domestic partners.
Only spouses/ domestic partners.
Division of Interest
Equal or unequal.
Must be equal.
Interest is that of interest in partnership.
Equal.
Equal.
Right of Possession
Equal right of possession.
Equal right of possession.
Equal right of possession for partnership purposes only.
Equal right of possession.
Equal right of possession.
Right of Conveyance
Each owner may freely convey their interest.
Conveyance severs joint tenancy and creates a tenancy in common.
Partnership may dispose of property per terms of partnership agreement.
Requires consent of both spouses/ domestic partners.
Requires consent of both spouses/ domestic partners.
Status at Death
Passes to heirs. No survivorship right.
Title passes to surviving owner.
Property remains in partnership, but interest in partnership itself may be liquidated per partnership agreement.
One half belongs to surviving spouse, other half goes to decedent’s heirs.
Title passes to surviving spouse.
Avoids Probate?
No.
Yes, but only until death of last remaining owner.
Yes.
No.
Yes, but only upon death of the first spouse. D ELEONREALT Y.COM
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July 2021
if your home does not sell for lack of marketing. You should also ask for samples of the agent’s videos, 3D tours, photography and brochures before you agree to list your home with them. agents when I wanted to sell Q. Imyinterviewed home, and I felt pressured to sign the listing agreement on the spot. If an agent pressured me to sign, can I get out of the listing agreement because they pressured me?
the vast majority of cases, no. Bargaining A. Inmisconduct could be a way to avoid a
contract, but can be hard to prove. You may be thinking of undue influence or duress if you had a weakness of mind met with excessive pressure from the agent that seriously impaired your free and competent exercise of judgment, but that too is a high bar to clear. In simple terms, your agent should not rush you to sign anything. They should instead allow you to review and consider the terms of the listing agreement. Better yet, if they were like DeLeon Realty, they would agree to reimburse you at closing for the cost (up to $1,500) of having the listing agreement reviewed by a qualified residential real estate attorney of your choice. At DeLeon Realty, you have the right to request that your own legal counsel review the agreement, with payment for your legal counsel coming out of our commission. It makes perfect sense, and we hope other brokerages follow our example.
If you have a question, we have an answer. Please don’t be shy – submit your questions to coffeecorner@deleonrealty.com for the next issue of The DeLeon Insight. Your question can be about virtually anything real estate or legal related, about the market, working at DeLeon Realty, fact-checking something you heard, and you may request an answer from Ken, Michael, or anyone at DeLeon Realty. Our clients hear this a lot: We are happy to help!
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D ELEONREALT Y.COM
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R E A L E S TAT E M A R K E T P U L S E
ATHERTON Atherton Inventory # of New Listings
5
$0
0
Sale Price, Median
Ju n20
$0
Ju l-2 0 A ug -2 0 Se p20
$500
May-21
$2,000,000
Apr-21
10
Mar-21
$1,000
Feb-21
$4,000,000
Jan-21
15
Dec-20
$1,500
Oct-20
$6,000,000
Nov-20
20
Sep-20
$2,000
Aug-20
25
$8,000,000
Jul-20
$2,500
Jun-20
$10,000,000
O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1
Atherton Median Sales Price & Price/Sq. Ft. Ratio
Price/SqFt Ratio
LOS ALTOS Los Altos Median Sales Price & Price/Sq. Ft. Ratio
Los Altos Inventory # of New Listings
$5,000,000
$2,000
$4,000,000
$1,500
$3,000,000
$1,000
$2,000,000
$500
Sale Price, Median
40 30 20 10 0 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1
$0
50
Ju n20
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
$0
Jun-20
$1,000,000
60
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
Price/SqFt Ratio
48 | D E LEO N RE A LT Y.CO M
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
$0
Jun-20
$1,000,000
$2,000
20
$1,500
15
$1,000
10
$500
5
$0
0 Ju n20
$6,000,000
Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1
Los Altos Hills Median Sales Price & Price/Sq. Ft. Ratio
R E A L E S TAT E M A R K E T P U L S E
MENLO PARK Menlo Park Median Sales Price & Price/Sq. Ft. Ratio
Menlo Park Inventory # of New Listings
$2,500,000 $2,000,000 $1,500,000 $1,000,000
Sale Price, Median
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
$0
Jun-20
$500,000
$2,000
80
$1,500
60
$1,000
40
$500
20
$0
0 Ju l-2 0 Au g20 Se p20 O ct -2 0 N ov -2 0 De c20 Ja n21 Fe b21 M ar -2 1 Ap r-2 1 M ay -2 1
$3,000,000
Ju n20
$3,500,000
Price/SqFt Ratio
MOUNTAIN VIEW Mountain View Median Sales Price & Price/Sq. Ft. Ratio
Mountain View Inventory # of New Listings
$2,000,000 $1,500,000 $1,000,000
Sale Price, Median
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
$0
Jun-20
$500,000
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
60 50 40 30 20 10 0 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1
$2,500,000
Ju n20
$3,000,000
Price/SqFt Ratio
PALO ALTO Palo Alto Median Sales Price & Price/Sq. Ft. Ratio
$1,000
Sale Price, Median
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
$500 $0
Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1
$1,500
80 70 60 50 40 30 20 10 0 Ju n20
$2,000
Jun-20
$4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
Palo Alto Inventory # of New Listings
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
PORTOLA VALLEY Portola Valley Median Sales Price & Price/Sq. Ft. Ratio
Portola Valley Inventory # of New Listings
Sale Price, Median
10 5 0 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
$0
Jun-20
$1,000,000
15
n21
$2,000,000
20
Ja
$3,000,000
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0
$4,000,000
Ju n20
$5,000,000
Price/SqFt Ratio
REDWOOD CITY Redwood City Median Sales Price & Price/Sq. Ft. Ratio
Redwood City Inventory # of New Listings
$1,500,000 $1,000,000
Sale Price, Median
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
$0
Jun-20
$500,000
$1,400 $1,200 $1,000 $800 $600 $400 $200 $0
100 80 60 40 20 0 Ju l-2 0 Au g20 Se p20 O ct -2 0 N ov -2 0 De c20 Ja n21 Fe b21 M ar -2 1 Ap r-2 1 M ay -2 1
$2,000,000
Ju n20
$2,500,000
Price/SqFt Ratio
SAN CARLOS San Carlos Median Sales Price & Price/Sq. Ft. Ratio
San Carlos Inventory # of New Listings
Sale Price, Median
Price/SqFt Ratio
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50 40 30 20 10 Ju l-2 0 Au g20 Se p20 O ct -2 0 N ov -2 0 De c20 Ja n21 Fe b21 M ar -2 1 Ap r-2 1 M ay -2 1
0 Ju n20
$1,000
May-21
$0
Apr-21
$1,050 Mar-21
$500,000 Feb-21
$1,100
Jan-21
$1,000,000
Dec-20
$1,150
Nov-20
$1,500,000
Oct-20
$1,200
Sep-20
$2,000,000
Aug-20
$1,250
Jul-20
$1,300
$2,500,000
Jun-20
$3,000,000
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
$1,500,000 $1,000,000
Sale Price, Median
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
$0
Jun-20
$500,000
100 80 60 40 20 0 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1 A pr -2 1 M ay -2 1
$2,000,000
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
Ju n20
$2,500,000
Price/SqFt Ratio
WOODSIDE Woodside Median Sales Price & Price/Sq. Ft. Ratio
Woodside Inventory # of New Listings
$4,000,000 $3,000,000
25
$1,500
20
$1,000
$2,000,000
$500
Sale Price, Median
May-21
Apr-21
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
$1,000,000 $0
$2,000
$0
15 10 5 0 Ju l-2 0 Au g20 Se p20 O ct -2 0 N ov -2 0 De c20 Ja n21 Fe b21 M ar -2 1 Ap r-2 1 M ay -2 1
$5,000,000
Ju n20
$6,000,000
Price/SqFt Ratio
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