The sky is falling, the sky is falling. At least that’s what the media would like you to think is happening to the housing market. OK, maybe the sky really is falling in certain pockets of California (Hello, Sacramento and Riverside. Anyone out there? Anyone???) and around the nation. But here in the heart of Silicon Valley, San Jose is holding strong. According to Matt Woolsey of Forbes Magazine (November 21, 2007), San Jose ranked third nationally for best performing housing markets. The third quarter (2007) median home sales price in San Jose was $852,500; this is up 9.4% for the same period last year for San Jose.

Ahead of San Jose were Salt Lake City, UT ($246,700;+14.1%) and Charlotte, NC ($220,000;+11%). San Jose even outpaced its neighbor to the north as San Francisco ranked fourth on Forbes’ list with a median sales price of $825,400, which is up 8.6% from the previous year.

On the opposite end of the scale, Sacramento, CA was the worst performing housing market for Q3 2007. Sacramento’s median sale price of $335,700 was down 10.5% from 2006. Riverside/San Bernadino ($377,000;-7.6%) wasn’t far behind as the third worst performing housing market nationally.

While all the prognosticators claim doom and gloom for the housing market, that doesn’t appear to be the case for San Jose. This is not to say that all is good for real estate in San Jose, clearly there are areas within that are struggling. But maybe it really isn’t as bad as everything that’s said in the media.

For the full Forbes Magazine article, click here. Read the Realtor Magazine Online synopsis here.

Last Saturday, I was able to take a hard hat tour to the top floors of the new Axis development in downtown San Jose. The views from the penthouse levels were spectacular, as advertised by Axis. Although it was a bit overcast that day, I still had great views of the East Foothills, City Hall, HP Pavilion, and the Los Gatos Mountains. I’m sure that on a clear day, the views would have been that much better. You also get views of San Jose Airport and Highway 87 if you want to check on traffic.

It’s too bad the San Jose Grand Prix is no longer around. Upper floor units facing the south side of the complex would have had a fantastic view of the cars racing up and down Almaden into the hairpin turn. I’m sure the view of the fireworks on the 4th of July will be incredible from the upper floors.

I have included a few photos on the Axis page so feel free to check out the views from up top. If you’ve ever wondered what the views from the penthouses look like, then you definitely have to see these pics.

Mark Twain popularized the phrase, “There are three kinds of lies: lies, damned lies, and statistics.” Well, we’ve got plenty of statistics to mull over as we approach the holiday season. The housing market will continue to be slow through the Thanksgiving and Christmas/New Year period, which is traditionally a slow period. Here’s how October shook out. The following statistics represent Central San Jose’s (Area 9 includes downtown San Jose) condos, townhomes, and lofts.

2007 . . . . . . . Inventory . . . . . Closed Sales . . . Median Sales $ . . . . Total Sales Volume

September . . . . 162 . . . . . . . . . . 12 . . . . . . . . . $490,000 . . . . . . . . . $5,986,500

October . . . . . 172 . . . . . . . . . . 12 . . . . . . . . . $430,000 . . . . . . . . . $5,943,700

While there was a dramatic drop from August to September in the number of transactions and the total sales volume, October seems to indicate a leveling out of sorts. The number of closed transactions and the total sales volume in October was very close to the September numbers. Inventory is up which means people still need to sell their homes (otherwise, why would they sell in this market?!?!).

One important note that definitely needs mentioning when we discuss these statistics is that these numbers are reported by the local multiple listing service (MLS), which in this case is MLSListings, Inc. Only properties listed on the MLS are reflected in the stats discussed here. New construction, condo conversions, and for-sale-by-owner (FSBO) properties are generally NOT listed on the MLS and, therefore, not part of these numbers. For example, if City Heights closed escrow on five new condos in October, those five condos would not be reflected in the number of closed transactions we just cited. Lies, damned lies, and statistics.

*These statistics are generated using information from the MLSListings, Inc. (formerly RE InfoLink) MLS, but have not been verified and are not guaranteed. MLSListings, Inc. disclaims any resposibility for the accuracy and reliability of these statistics. This information should not be relied upon for real estate transaction decisions.

The Axis sales presentation center opened this weekend with a festive VIP event on Friday night complete with fancy appetizers, drinks, and hardhat tours. San Jose Mayor Chuck Reed and Councilmember Sam Liccardo were amongst the many people on hand to celebrate the opening of downtown San Jose’s newest luxury high rise residential complex. While the event was a bit chaotic and disorganized, most seemed to revel in being the first to preview Axis’ model units.

So let’s talk about Axis’ units which is really what we’re interested in talking about, right? Most of the feedback and comments that I heard over the course of that Friday night and the first weekend the sales office was open went something like this: Unit sizes were decent but could’ve been bigger, loved the floor to ceiling windows, finishes were pretty nice, and wished the closets were bigger. Overall, most of the feedback was very positive and everyone seemed fairly excited about the Axis project.

As for the pricing of the Axis units? The price range on a 2 bedroom, 2 bathroom unit at Axis ranged from $720,000 to $920,000 for a unit between 1,097 and 1,500 square feet. Looking at those numbers, for a 2 bed/2 bath unit, you are somewhere in the neighborhood of $480 - $838 per square foot. Axis does feature a variety of different floor plans starting with studios all the way up to 3 bedroom + den units.

If you’ve been over to the Axis sales office and have seen the models, we (and our loyal readers) would love to hear what you think about Axis. Send us your comments, thoughts, and opinions by clicking on the comments button above.

Downtown San Jose will soon be able to boast the tallest residential building from San Francisco to Los Angeles with The 88 development adding the topping-off steel beam on the structure. San Jose Mayor Chuck Reed, Councilmember Sam Liccardo, and officials from the San Jose Redevelopment Agency will join developers from The 88 project in a ceremony celebrating the construction milestone on Thursday, November 8, at 10:30 am, at the project site. At 286 feet (just shy of 88 meters), The 88’s 22-story structure will consist of new housing, retail, and parking for downtown San Jose.

The 88, which is the first phase of two towers, will include 197 residential units, 32,000 square feet of retail, 338 public parking spaces on 6 levels, and 286 residential parking. Now dubbed The 88, the joint project between CIM Group, Wilson Meany Sullivan, Stockbridge Real Estate Fund and the San Jose Redevelopment Agency was formerly known as Tower 88 (or Tower 88 at Central Place). Prior to that moniker, the project was known as Central Place. The 88 is expected to open a sales center in early 2008.

The 88 Construction Milestone Event
88 E. San Fernando
Downtown San Jose
Thursday, November 8, 2007, 10:30 am

While The Globe has spun off its axis and is now leasing out its units, we are excited to hear that, Axis, downtown San Jose’s first high rise luxury condo complex is set to open a presentation center this weekend beginning on Saturday, November 10. Its not a “sales” center since Axis won’t actually be taking reservations until the first quarter of 2008, but brochures, floorplans, and a virtual tour will all be available at the Axis presentation center.

To date, Axis looks to be the very definition of luxury with its walls and walls of glass. Are you considering purchasing at Axis? With all of the new developments in the pipeline for downtown San Jose, including Tower 88, Three Sixty Residences, and One East Julian, to name a few, is Axis even the right place for you? And with a slow real estate market, when is the right time for you to buy? If Axis is the right place for you, which unit do you buy? The unit with view, of course! But what if you didn’t know that in a few years another high rise complex could block your incredible views? If you are considering purchasing in Axis or another downtown development, be sure to use a realtor who knows the area, and understands purchasing new construction and purchasing in a common interest development. It doesn’t cost you, as the buyer anything, anything but it does provide an extra pair of professional eyes looking out for your interests. And don’t forget, your agent must accompany on your FIRST visit to any new development, otherwise the developers won’t cooperate. Be sure to talk to an agent before you walk into a new development.

Axis is located at 38 Almaden Blvd. in downtown San Jose, adjacent to the DeAnza Hotel. Axis is being developed by KT Properties and Spring Capital Group. The architect is Ankrom Moisan Architects, and the builder is Webcor.

Several months after it shut down a temporary sales office, CIM’s downtown San Jose residential project, The Globe, is finally opening up but, to the disapointment of many, for lease. In an email sent out over the weekend, The Globe announced that it would be leasing out 32 units beginning November 10, 2007. It is unclear whether the remaining units would be for sale or leased out at a later time.

The Globe, located next to Zanotto’s Market, has been mired in delays for as long as this project has been in the works. At the beginning of this year, The Globe opened a sales trailer to the excitement of many hopeful downtown residents. Sales brochures were handed out by the sales team along with descriptions of floor plans, preliminary pricing, and estimated move-in dates. As construction forged ahead in the spring, The Globe’s momentum continued to grow. The sales trailer shut down and a permanent sales office within the structure was supposed to open shortly thereafter. We waited. And waited. And waited. Months later, a sales office still never opened. The tough part for many who have been long awaiting The Globe’s opening was the not-knowing part. Not knowing when it would open. Not knowing what the delays were. Not knowing why The Globe just sat there. Empty.

Now, atleast The Globe is opening up and leasing out units. Keep your fingers crossed though. I’m curious to see what will happen with the remaining units that will not be initially leased out. There are numerous theories as to why The Globe has been delayed for so long and maybe nobody but the developer really knows why. Maybe the developer will rent out the units for a a few years and then put them up for sale. This is what happened over in Santana Row. For now though, if you are looking to live in downtown San Jose and rent a luxury apartment . . .

The Globe
25 South 3rd Street
Downtown San Jose

One Bedroom Units: Starting at $1,584 per month
Two Bedroom Units: Starting at $1,868 per month

Tuesday night’s 5.6 earthquake reminded me of a brief conversation I had this past weekend. I was out with a client on Sunday afternoon viewing condos in the area when we ventured into one such unit that had an open house. The listing agent was at the open house so I asked him how much the HOA dues were and what those dues covered. He told me the number and then started rattling off what was included in those fees, such as common area maintenance, building insurance, and pool/spa. My followup question to the agent was whether those fees included earthquake insurance. After fumbling for an aswer his response was, “Yes, the fees include liability insurance for the building.” Now I don’t know whether that complex carries earthquake insurance or not, but I was a bit miffed by the listing agent’s answer. Obviously, he didn’t know whether the complex carried earthquake insurance. Moreover, he clearly didn’t understand the difference between liability insurance and earthquake insurance. Worse off, he was willing to make up an answer to this very important question.

Does your HOA carry earthquake insurance? Many HOA’s in the area do not carry earthquake insurance. Why? It’s simply cost prohibitive for the HOA to carry earthquake insurance, which is a cost that would be directly passed on to the individual homeowners. At a minimum, Tuesday night’s tremblor should remind you to make sure that you have the proper personal property insurance coverage protecting your personal contents within your unit. Contacting your insurance agent is a good first step. You may also want to ask your insurance agent to review the master policy for the complex to ensure you are fully protected.