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What areas in San Jose are likely to appreciate in the next 5 years?

Asked by Trulia, San Francisco, CA Fri Mar 9, 2012

What potential local factors could contribute to this appreciation?

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In the next 5 years, all areas will appreciate in San Jose.

We are deeming by "San Jose" homes ending with an address of San Jose.

The issue will be how much will be the Appreciation by the many individual areas in San Jose such
as Blossom Valley, Almaden, Cambrian, Alum Rock etc. etc.

Clearly with the economy improving, jobs rebounding, stocks higher, several IPOs, foreign investors with all cash, local investors with all cash or 40-50% down buying up multiple homes and last but not the least with the housing market having seen the bottom in Santa Clara County with low rates, we are on an uptrend.

The key issue will be each San Jose area will appreciate differently from each other based on schools,
and location to work.

Have a good day.
Perry
2 votes Thank Flag Link Sun Mar 11, 2012
Within San Jose, a city of nearly 1 million people, there are many neighborhoods and micro-neighborhoods. While it's estimated that overall Silicon Valley will appreciate only about 0-2% overall next year with similar predictions for the following 4 years, there's a huge variety.

Keep in mind the areas that have historically shown the least drops in value are one with the top schools, such as West San Jose with Cupertino Schools.
1 vote Thank Flag Link Mon Aug 20, 2012
All of San Jose will appreciate in the next 5 years.

Some of the most important local factors that contribute to that appreciation are as follows:

The areas that wil appreciate the most are the areas with the greatest appeal to people with high incomes.

Currently the people with the highest incomes are primarily people who are employed in the high tech industries such as Hewlett Packard, Apple, Google, Facebook and similar companies.

Currently, the number one goal of most people with high incomes is excellent schools for their children. Lynbrook High School in West San Jose is often ranked with Monta Vista High School in Cupertino and Saratoga High School in Saratoga as among the top 100 high schools in The United States of America.

Homes with Lynbrook High School in West San Jose, with the 95129 zip code are the most expensive homes in San Jose for a given size, age, and condition of the property. Lynbrook High School is an enormous factor driving that very high price. The demand for Lynbrook High School will continue to drive that very high price and will continue to drive price appreciation in that area.

Other areas of San Jose with very high prices are Willow Glen and the area near the Rose Garden. These are prestigious old neighborhoods of San Jose that are popular with professionals who earn very high incomes. These areas will continue to appreciate because of the demand for those locations. .

The strength of our local industries wil continue to draw large numbers of people to San Jose to work and live. . The amount of buildable land for new homes is very limited. That puts severe limits on the number of new homes that can be built. Essentially the increasing numbers of people who are drawn to San Jose to live and work and the very limited supply of new housing will keep prices rising in San Jose as the demand for homes increases and the supply of new homes remains essentially the same.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
1 vote Thank Flag Link Fri Mar 9, 2012
Thank you for your question:

To update my answer posted in March, we have seen dramatic amounts of appreciation here in West San Jose, Saratoga, Los Gatos and Cupertino.

Recently the next door neighbor to one of my clients that I represented on the purchase of his home this time last year, sold and closed his home for an amount that is approximately 29% more than my client paid for his home this time last year.

Both homes are the same model, built by the same builder at the same time. with the same square footage and floor plan and both are in similar condition.

That (29%) is an impressive amount of appreciation for one year.

Also Michelle Carr Crowe makes an excellent point that the homes with the best schools have the lowest amount of decline in market value when the market declines.

The demand for the best schools is always with us no matter what the market.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
0 votes Thank Flag Link Mon Aug 20, 2012
One of factors for appreciation would be good school.
Web Reference: http://www.homenet123.com
0 votes Thank Flag Link Fri Mar 9, 2012
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