This Mountain View listing located in the heart Silicon Valley brought together a lot of the expertise I’ve gained over the years, so we documented the entire process to show how I took the home from “gloom to bloom.”
Update 12/3/12: Classics at Station 361 announced last week that Phase I featuring 29 beautifully-appointed homes is sold out. With sales starting at the end of June, the sales absorption rate was just under 1.5 homes per week. Homebuyers started moving into their new homes in September, so Classics at Station 361 is starting to look like a neighborhood with residents enjoying the community amenities. Look for announcements regarding Phase 2 in the New Year. The 36 homes in Phase 2 are sure to be as popular with homebuyers as Phase 1. Be sure not to miss this great opportunity to own a new home close to downtown Mountain View.
Update 10/4/12: Of the 65 29 phase 1 homes that were made available at Classics at Station 361 only four properties are remaining on market as of October 4, 2012. You can view our Station 361 review on 1SiliconValley.com. Keep reading to learn more about each of the available remaining homes:
Single Family Home # 19 – Plan A Model Home - $50,000+ in Upgrades 2 Bedrooms + Den / 2 Bathrooms (view the floor plan) Approx. 1,074 sq. ft. Price: $910,900
Single Family Home # 23 – Plan B 4 Bedrooms / 3.5 Bathrooms (view the floor plan) Approx. 1,764 sq. ft. Price: $1,099,900
Single Family Home # 12 – Plan D Model Home - $60,000+ in Upgrades 3 Bedrooms / 3.5 Bathrooms (view the floor plan) Approx. 1,748 sq. ft. Price: $1,200,900
Single Family Home # 17 – Plan C Wrap-around balcony and parkside location 4 Bedrooms / 4 Bathrooms (view the floor plan) Approx. 1,744 sq. ft. Price: $1,249,900
Contact Alex H. Wang if you'd like more information and/or to set-up and showing.
Classics at Station 361 is the latest new home community in Mountain View. With models open for only two months and 13 of its 65 homes sold in just three sales releases, Classics at Station 361 has become an instant hit with homebuyers.
Classics at Station 361 has the three L’s going for it – location, location, location. Station 361 is centrally-located in Mountain View which, according to BusinessInsider.com, is one of The 15 Hottest American Cities of the Future – Mountain View will continue to lead as a tech city. Home to such big tech names as Google and Microsoft, Mountain View is sure to stay on the cutting edge of technology for years to come.
An analysis of the charts below reveals that Mountain View, though it is more volatile than some of the more expensive markets in the area, is consistently considered a seller’s market. Mountain View is quickly absorbing all of its homes for sale and currently has one of the lowest month’s supply of inventory (MSI) in the Bay Area at .5 months. Only time will tell how long this astoundingly low inventory supply will affect the other key statistics though it can only be assumed that days on market (DOM) will decrease while sales absorption (SA) rates and median prices will increase given historical data.
The chart shown above graphs Mountain View’s MSI as well as the DOM. Traditionally, DOM is cyclical in nature decreasing in the spring and summer, and increasing in the fall and winter, and the Mountain View market is no exception. For the most part, the level of inventory has been decreasing since May 2010. It is currently sitting at an astonishing low inventory level of .5 months.
As you can see by the chart above, the sales absorption rate in Mountain View has been steadily increasing from May 2010 through May 2012. In May 2012, the current sales absorption rate was 64.6% of properties under contract and 54.6% of properties sold.
Over the course of the last two years, Mountain View had a swing in median price of about $200,000 as shown in the above chart. The solid line showing average median price has been relatively stable with a slight dip in late 2011. Since February 2012, Mountain View has seen a stable median price just over $750,000.
There are several key statistics that are used to determine the health of any real estate market – average days on market, month’s supply of inventory, sales absorption rate, and the median sales price. Days on market (DOM) describes how long a home is active on the market before its status changes to pending. The average days on market is determined by adding each listing’s days on market in a month, then dividing by the number of active listings for sale at the end of that month.
Mountain View has been an example of what many buyers and sellers would hope to see in their local market after the housing bust. The city fell, but not as hard as its neighbors, and recovered immediately into a slow rise that continued throughout 2010.
Its weak points this quarter were in average days on market (still better compared to 2009, with 61 days) and a sales price to list price ratio that favors buyers. The median price rose in the fourth quarter, and aligns with the more popular spring and summer months, including besting the same period in 2009 by more than $10,000.
At the end of October, four of our real estate agents from Rainmaker Properties went on the Mountain View Whisman School District “Get on the bus tour” to learn more about what the local schools offer besides strong API (Academic Performance Index) scores. Homebuyers, along with real estate agents, tend to put a strong bias on high API scores, especially since good schools can translate into better priced homes. But in cities like Mountain View, where the majority of the school district is either at the state API goal of 800 or above, we can start to consider other factors in the makeup of a school to see if it is the best fit for a child.
Part of the advantages of Silicon Valley is that the housing market ride for the past few years has been less bumpy than what the nation has experienced. A good example of this calm is in the city Mountain View.
Even examined against our other comparison cities, Mountain View has been the most stable, especially in regard to the median sales price. It bumped up to $1,148,440 during the boon in 2007, but unlike everybody else in 2009, it bumped up instead of sliding. Since then the city median has floated at $900,000 for single-family homes.
Average days on market bumped up and closed sales fell compared to last quarter, but some of that is due to market cycles. The sales price to listing price ratio is at a healthy 99.94%, meaning a fair market for both buyers and sellers.
Part of the stability in Mountain View is due to the reasonable prices compared to Los Altos and Palo Alto. There will always be buyer demand at just under a million, especially since it shares the benefits of being a neighbor to prestigious cities, has good schools, and an ideal location in the Silicon Valley.
Mountain View serves as a good example in our four comparison cities to see that the strongest competition after the housing crisis is for entry- and mid-range homes.
The standout numbers this quarter for Mountain View are 102 closed sales, 121.7% more than last quarter and 50% more than 2008; and $98.5 million in total sales volume, 136.3% more than last quarter and 35.3% more than 2008.
Median sales prices and average days on market are creeping towards 2008 levels. The sales price to list price ratio is just above 100%, meaning seller and buyer perceptions are balanced, though slightly in favor of the seller.
Current Mountain View real estate market update for 2010. Looks at median sales price, days on market, and compares condo and townhouse market to Palo Alto and Los Altos.