Mitap -

Blossom Valley and Santa Teresa have faced some serious challenges in the last year. Prices were quick to fall from 2006, more so than in other "suburban" neighborhoods around San Jose. The East side of San Jose were hit hardest but then came the South side. There is a lot of inventory on the market which makes price pressure significant. As far as a town homes, Communication Hill is probably the best bet for a newer home, a reasonable price, and future value.

You have asked specifically about locality and resale values. Since this area was one of the top 3 in San Jose to fall, it will most likely be the one of the last to recover. Especially, if the inventory is bought up by investors who rent the homes. The more a neighborhood becomes a rental market the more likely the pride of ownership will be less and therefore value will decrease.

Locality, really comes down to commute and schools. Hwy 85 has certainly helped ease the commute into Silicon Valley, as well the extension of light rail, but the travel time from the South to central areas in Silicon Valley can be 30-45 minutes at peak time. There is the alternative of taking Cal Train which helps a great deal. Schools are not the highest ranked schools but there are some great private alternatives.

I have lived in the South Bay for nearly 20 years. I have owned two homes and one rental property in the area. It has been painful to watch how this last year has affected this local real estate market. There are some great deals and I do think there are opportunities to find the best home in these neighborhoods and avoid the generalizations I have offered above. It will take studying the area and working with a knowledgeable agent. This is one of the best affordable areas going right now. As long as you are not planning to resale in the next 5 years, I still believe in the area as a strong suburban area.

CJ

Hi Mitap,
This is allyson, this is an excellent area with a variety of price ranges and ages. As I have purchased many of them in Blossom Valley over the years just make sure the agent you chose to represent you understands HOA documents and what to look for to ensure you are not hit with any unexpected surprises.
If you need assistance just email me at Allyson@homesbyallyson.com or call me at 408-705-6578
Sincerely,
Allyson

Mitap,
Excellent time to buy in the area, Blossom Valley is one of the areas where there are plenty of properties available. Santa Teresa is also a good area. Property values are down at this time, but it can allow you to buy a home now. As money of us who have been in the real estate business for a long time or homeowners for a longtime, we all would agree that there is no better longterm investment than your home! Some simple rules for buying your first home. Number one find a realtor that is familiar with the area that you want to move into. Second have your realtor help you find a lender that will pre-approve you for a loan. If you are working with a bank that you are satisfied with check on the loan rates that they offer and see what they would pre-approve you for. The reson for a pre-approval is, that you will know what you can actually afford to purchase and there is nothing more heartbreaking to find a home that you love and not have an offer accepted because you don't have this letter. There is a process to buying a home, so let a realtor help you to understand this process.

Best of Luck and Happy Home Buying!

Charles Coachman
Keller Williams Realty
San Jose, CA
ccoachman@kwsv.com

I like blossom valley in San Jose for one big reason - I see buyer support of prices there. This gives strength to the arguement that we may be at or nearing a bottom in price decline in that area. Now, this is with single family homes that are listing at $500,000 or below. The fully loaded townhomes will mirror the small single family homes too. By fully loaded - I mean at least 3 bedrooms, 2 baths, 2 car garage and a patio or backyard. There are other adjacent areas that I have not seen the bottom price support yet and it may make better sense to wait on those neighborhoods.

Mitap,
I would first look at everything your budget can afford. There are many nice townhouse communities in Blossom Valley, but there are also opportunities for single family homes as well. If you can afford it, houses have historically appreciated at a better rate than townhouses.
Location-wise, Blossom Valley has many very nice neighborhoods with solid schools. If you purchase a townhouse, make sure you review the HOA docs very carefully, understanding the financial condition of the community. This is one of the services I offer my clients, in order to protect their future financial interests.
This is a great time to buy, with low interest rates and home prices coming down.
Happy House Hunting!

Linda Baker

Mitap, You can get a great buy on a townhome in that area. The area is nice with decent schools. Centrally located near malls, freeways etc..... Good luck.