Easy commute. 2 miles away from San Jose downtown and you can reach around sunnyvale/milpitas/santaclara within 10 min. 101 is nearby for easy commute. Dont delay.
The outer limits and downtown are changing as more development takes place and people move in. We do not know with certainty how the market will be in 5 years. Economist are predicting slow growth starting next year, and by slow that is less than 3.5% appreciation per year. I expect growth to be conservative due to our current high unemployment. However, our population should be increasing by about 1% per year which put demands on housing.
Location is always the number 1 factor in appreciation and resale. If that is your main concern, you may want to change your expectations of size, bedrooms and age and look into other neighborhoods which have proven track records. Otherwise, align yourself with a knowledgeable professional who will assist you in comparing your options.