A Decade of Eichler Homes Sales

Volume XII, Number 2 Summer 2004

Part 2 of An interesting look at homes that have sold more than once

The last issue of this newsletter generated some interesting comments and questions
regarding its subject, and most of them centered on the rhetorical question, “Will
these past increases in home valuation continue at those rates?” “How can those
increases in the price of homes continue?” And most of my new home buyer clients,
echo the same sentiments – “But that can’t continue, can it?”

It goes without saying that no one can predict the future in home prices or anything
else, but I think these past 10 years of sales data, coupled with the prior 40 odd years
of Eichler sales in our area can provide some reasonable views or projections into the
future.

As I often tell my home buying clients ,”— if you were to ask virtually all of
the Eichler owners who bought their homes – whenever they did – did you think it would be
worth that much today?” They would overwhelmingly say , “No – no way –
but thank goodness!” Folks that bought their homes in the late 50’s for $20,000+
couldn’t believe it when they sold in the late 60’s for almost $40 thousand, and
those folks that purchased at that time for $40K, when they sold in the late 70’s for
values in excess of $100K couldn’t believe it either. Will that kind of percentage
appreciation continue? Who knows, but just look at the valuations today! We are all
fortunate to live in one of the most incredible areas of the planet, and perhaps that is
why our real estate and home valuation continues to be so highly valued.

OK – on with the look at the decade- – –

In Redwood City, a home on Lyons that sold for $275,000in May of 1994, sold 3
years later in May of 1997 for $307,500 – a 12 % increase in that period of time.

In one of the 5 Eichler areas of San Jose, a home on Mossbrook Ave. that sold in
June of 1995 for $265,000, sold in February of 2000 – at the height of the
“bubble” for $550,000; it sold once again in May of 2003 for $599,000. All in
all, during the highs and lows, a 126% increase in 8 years. A home on Hudson Dr. that sold
in June of 1995 for $245,000, sold in November of 1999 for $390,000 – a 59% increase in
4+years. A home on Fairglen that sold in August of 1996 for $265,000, sold for $359,000 in
December 1998 – a 35% increase in 2+years. A home on Comstock the sold for $266,000
in October 1996, sold for $516,000 in September of 2002 – a 94% increase in 6 years.

In another area or enclave of San Jose, a home on Menker Ave. that sold for
$290,000 in March of 1999, sold in May of 2001 for $420,000 – a 45% increase in 2+
years. A home on Richmond Ave. that sold in November of 1999 for $325,000, sold in October
of 2002 for $425,000 – a 31% increase in slightly less than 2 years. – in and
out of the “bubble.”

In San Mateo, a home on Celeste Drive that sold in February, 1994 for $190,000,
sold in June of that year – a obvious investment “makeover” – for
$$296,000, a 56% increase in about 4 months. A home on Eleanor Drive that sold for
$277,000 in April of 1994, sold in June of 1998 for $305,000 – a 10% increase in 4
years. A home on Joanne Drive that sold for $280,000 in May of 1997, sold in June of 1999
for $392,000 – a 40% increase in about 2 years. A home that sold on Vanessa Drive for
$365,000 in May 1998, sold in September 1999 – 16 months later – for $424,500, a
16% increase. And lastly, for San Mateo, a home that sold on Celeste Drive for
$390,000 in August of 1999, sold in August, 2003 – during and after the
“bubble” – for $524,270, a 34% in that 4 year period of time.

Moving up to “the Highlands’, a home in the San Mateo Highlands on
Lexington Avenue that sold for $300,000 in October 1994, sold for $805,000 in July of 2002
– a 268% increase in 8 years, 30+% per year. Upgrade – by all means! A home on
Ticonderoga Drive that sold in July 1997 for $350,000, sold in April of 1998 for $520,000,
a 49% increase in less than 2 years – another upgrade. A Monticello home that sold in
March 1994 for $335,000, sold in July of 2001 for $569,000 – a 70% increase in about
10 years. Another home on Ticonderoga Drive that sold in November 1995 for $360,000, sold
July of 2001 for $649,000 – an 80% increase in about 6 years. A home on Allegheny Way
that sold for $378,000 in March 1995, sold November of 2002 for $725,000 – a 92%
increase in about 7 years. A home on Brandywine Rd. that sold for $390,000 in August of
1996, sold in April of 2000 for $800,000 – a 105% increase in 3+ years – a
likely remodel, at the height of the “bubble.” A home on Newport St. that sold
for $400,000 in June 1997, sold for $435,000 in March of 1999 – a 9% increase in
almost 2 years. A home on Trenton Place sold for $400, 000 in May of 1995 – that
seems to be the approximate level at that time. It sold for $601,000 in April of 1999, and
then again for $745,000 in May of 2000 – an 86% increase in 5 years. (Remember that
annual percentage gain.) A home on Sheraton Place that sold for $385,000 in July, 1995
– sold for $858,000 in June of 2003 – a 123% increase in 8 years. A home on
Lexington Ave. that sold for $412,000 in October 1995 for $412,000, sold $850,000 in April
of 2001 – a

106% increase in 5+ years. Another home on Lexington Ave. that sold for $433,000 in
August 1995, sold in June of 2003 for $910,000 – a 110% increase in almost 8 years.
Another home on Lexington Ave. – a main thoroughfare – that sold for $450,000 in
January of 1997, sold in May of 1999 for $571,000 – a 27% increase in 2+ years. A
home on Bunker Hill Drive that sold for $502,000 of May 1998, sold for $705,000 in
February of 2002 – a 40% increase about 2 years. A home on Ticonderoga Drive that
sold for $750,000 in January of 2000 – the height of the “bubble”
essentially, sold for $870,000 in May of 2001 – a 16% increase in about one and
one/half years. During that same time frame, a home on Tarrytown St. that sold for
$849,000 in July of 2000, sold for $899,000 in February of 2001 – a 6% increase in 8
months. So goes the Highlands – typical of other Eichler areas.

A look at the Eichler condominiums in Santa Clara. A home on Pomeroy that sold
for $143,000 in September 1996, sold for $259,000 in October of 1999 – an 81%
increase in 3 years. Another home on Pomeroy that sold for $169,000 in January 1996, sold
in September 1997 – for $212,000, a 14% increase in 1+ years. In May of 1998, a Pomeroy
home that sold for $222,000, sold in February 1999 for $237,000 – a 6% increase in
about 9 months. A home on Benton St. that sold for $221,000 in May of 1998, sold in August
of 2000 for $400,000 – an 81% increase in 2+ years, during “the bubble.”
Another home on Pomeroy that sold for $286,335 in June of 1999, sold in May of 2003 for
$409,000 – a 43% increase in 4 years. And a home on Pomeroy that sold for $283,000 in
December 1998, sold for $424,000 in August of 2002 – a 50% increase in 3+ years.

In Saratoga , a home on De Havilland Drive that sold for $585,000 in 1994, sold
again in August of 2001 for $1,400,000, and then again in June of 2003 for $1,454,000
– a 149% increase in 9 years.

And finally in Sunnyvale. A home on Flamingo Way that sold in July 1995
for $353,000, sold in October 1997 for $415,000 – an 18% increase in 2+ years. A home
on Kingfisher Way that sold in September 1994 for $300,000, sold in September of 1995
– 5 years later for $470,000 – a 57% increase in 5 years. A home on Templeton
Ct. that sold for $305,000 in November 1995, sold in February of 2001 for $650,000 – a
115% increase in 6 years. A home on Hollenbeck Avenue that sold for $300,000 in November
1995, sold for $454,000 in February 1999 – a 51% increase in 3+ years. A Royal Ann
Ct. home selling for $335,000 in May 1995, sold in November 1997 for $$540,000 – a
61% increase in 2+ years. A Spinosa Drive home that sold for $337,000 in November 1995,
sold in April of 2003 for $687,000 – a 104% increase in 7+ years.

A home on Quince Avenue that sold for $390,000 in November 1997, sold again in July
1999 – 1+ years later – for $500,000, a 28% increase as the bubble began to take off.
Another home on Quince Avenue that sold for $364,500 in August 1995, sold for $489,000 in
January 1999 – a 34% increase in 3+ years. A home on Kingfisher Drive that sold for
$370,000 in October 1997, sold again in April of 2001 for $640,000 – a 73% increase
in 3+ years. A Ticonderoga Eichler that sold for $375,000 in January 1995, sold again in
July 2003 for $790,000 – a 111% increase in 8+ years. A Trenton Drive home that sold
in August 1995 for $386,500, sold in July 1999 for $642,000 – a 66% increase in
almost 4 years. A home on Pomegranate Ct. that sold for $395,000 in July 1995 sold in June
of 2000 for $735,000 – an 86% increase in 5 years.

A home on Vanderbilt Drive that sold for $470,000 in July 1997, sold in May of 2002 for
$843,000 – in and out of the “bubble” – a 79% increase in about 4
years. A Pear Avenue home that sold in July 1997 for $450,000, sold in July of 2002 –
again, in and out of the “bubble” for $770,000 – a 71% increase in 5 years.
A home on Brookline Dr. that sold for $474,999 in July ’96, sold in August ’97
for $560,000 – an 18% increase in about a year. Another Brookline home that sold for
$484,900 in August ’96, sold in June ’98 for $585,000 – a 21% increase in
about 2 years. A Cornwall Ct. home that sold for $510,000 in May ’99, sold in
September ’01 for $617,500 – a 21% increase in about 1 ½ years. A Ticonderoga Dr.
home that sold for $490,000 in June ’97, sold in May of ’03 for $901,000 –
an 84% increase in 6 years. A Tangerine Way home that sold for $492,000 in July ’98,
sold for $633,000 in May ’03 – a 29% increase in 5 years. A Laurentian Way home
that sold for $500,000 in June ’97, sold in March 2000 for $1,051,000 – a 110%
increase 3 years – benefiting from a complete upgrading, and “the bubble.”

A Lorne Ave. home that sold for $569,000 in August ’99, sold for $750,000 in July
’02 – a 32% increase in 3 years. A Trenton Ave. home selling for $640,000 in
June ’99, sold for $800,000 in March ’03 – a 25% increase in about 4 years. A
home on Sage Ct. that sold in August 2000 for $705,000, sold in May of ’03 for
$775,000 – a 10% increase in 2+ years – as the “bubble” deflated. And,
a home on Sesame Ct. that sold for $804,000 in February ’02, sold again in May of
that year for $858,000. A very, very quick turn-around – but hopefully expenses were
covered.

So — I hope reading this has not been boring or tedious because of the repetitions.
It is simply intended to demonstrate actual, real estate values over time in our area. As
you know if you read my weekly website summaries, newspaper articles on this subject may
tend to confuse, for they are often based on national or state activity, not our local
Silicon Valley real estate activity, which has often, and for a very long time
out-performed virtually all or certainly most markets in the nation.

What conclusions can be drawn from these statistics? It seems quite reasonable to say
that the average Eichler homeowner in our area has enjoyed a 10 to 15% per year
appreciation in their homes value, if they have lived in their home for 5 to 7 years.
Perhaps more, if the home has been nicely upgraded, perhaps less if not much had been
done. Will that continue? Again, as mentioned earlier, many homebuyers over the years have
asked the same question. I hope that this rather unique view of prior sales of the same
homes will provide some insight to an answer – an Eichler Insight!

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Eichler Insights was conceived and introduced
    as a  service to the Eichler homeowner and enthusiasts by Jerry Ditto in the summer
    of 1992.  He is the editor and publisher, and often writes articles devoted to
    historical, architectural, and visual aspects of the Eichler home.  The newsletter
    was widely acclaimed from the first date of its publication, and as Jerry notes, was
    actually the genesis of his conceiving the book, Eichler
    Homes – Design for Living.

Now published several times a year, it is sent to a large segment of Eichler owners and
    enthusiasts – in particular those living in the market area of Eichler Homes Realty.
    Given its real estate orientation, each issue lists the recorded sales price of Eichler
    homes in the various communities.

   

Contact Jerry Ditto for a complementary copy of a recent issue. 
   

Categories: Eichler Insights

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