Unlike Santa Ana, where last week we learned there is strong demand for attractively priced properties, Sunnyvale has seen sales volume decrease over the past 3 months. This is concerning, particularly as other, distressed areas experience pops in sales activity and the broader economy continues to weaken. Sunnyvale is in the heart of Silicon Valley which has been relatively immune to the downturn in the economy…so far. However, we see properties like this one experiencing significant value drops over the past few months.

Since the property did not sell in the last week, we are providing you with our value. Thanks to Lisa Friedrichs who is the only one who guessed (and got darn close by the way!!). The envelope please …

Address: 809 Muender Ave. Sunnyvale, CA 94086
List Date: 11/13/09
List Price: $509,900
Cirios Value: $390,000
List Price v. Cirios Value: 23.5% over-listed

The housing crisis has affected the entire country but certain markets have fallen faster earlier while others are only now seeing declines. The Sunnyvale market (and the Silicon Valley in general) has only experienced slight declines compared to some of the more distressed markets, which has a lot to do with the strong job market through the 3Q of 2008. As the job market has slowed down, the values of homes have begun to feel the pressure. The first homes to see declines are the ones that have a high level of negative obsolescence.

We believe a former “Old Fashioned Doll House” that is bank owned and backs up to a auto body shop is a prime example of a property that is going to see a significant decrease in value. This home sold for $605,000 in 2005 and to think it has only decreased in value by $95,100 or 16% since that time seems optimistic to us.

Beyond this property, we feel very strongly that properties like this one in formerly strong markets have severe downside risks associated with them. If you only take one thing away from this HOTW, it should be that “entry” level homes on the San Francisco Peninsula should not be viewed as properties that have very little risk.

As always, if you are looking for a property on the Peninsula and want to know what is the real value of the property, please do not hesitate to contact us.

Cirios Real Estate: Educating home buyers since 2008.

This week’s House of the Week comes to us from the suburban hamlet of Sunnyvale, a short 45 minute drive south from San Francisco. Sunnyvale is conveniently located near Silicon Valley job centers and also home to a Toys ‘R Us that’s allegedly haunted by a ghost named Johnny Johnson.

Address: 809 Muender Avenue, Sunnyvale, CA 94086
Status: LISTED
Bedrooms: 2; Bathrooms: 1
Living Space: 851 square feet
Lot Size: 4,000 square feet
List Date: 11/13/08 (90 days on market)
Original List Price: $549,000
Current List Price: $509,900
Elementary School API: 809 (High)
Zip Code Sales Last 3 Months (year-over-year): -22%
% Homes in Foreclosure in Zip: 0.3% (Low)
% Housing Inventory for Sale in Zip: 0.5% (Low)
Real Estate Agent Comment: Bank owned REO. This was once an Old Fashioned Doll House. It could be a Doll House again! Wonderful community in Sunnyvale. Priced to sell quickly.

WHAT WILL THIS HOME SELL FOR?
Post a comment below to guess!

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