THE STRICKER /TENBROECK REAL ESTATE TEAM

2008 Annual Real Estate Report

Including Commentary, Statistics, and Sales Information for the South Peninsula and Silicon Valley!

Dear Friends and South Peninsula/Silicon Valley Residents,

As a service to our clients and the residents of the communities we serve, we publish
analysis and sales statistics for each quarter, plus an annual report. Hopefully, this
information provides you with a clear understanding of current real estate trends and
typical home values in your community.

Please enjoy this report with our compliments. We invite you to call or email us with
your questions or if we can provide real estate assistance to you, your family, or friends.

Best regards,

Jeff Stricker Steve TenBroeck

Los A l t o s O f f i c e :
650.823.8057
jstricker@apr.com
JEFF STRICKER STEVE TENBROECK Palo A lto Offic e:
650.450.0160
BROKER , ATTORNEY BROKER , SRES stenbroeck@apr.com

www.JeffAndSteve.com
Specialists in Marketing Peninsula Real Estate Since 1987
“
The inventory of south

Peninsula homes for sale

will rise significantly in 2009
creating a greater imbalance
“
between supply and demand.
ANALYSIS
Our mid-year 2008 report noted that local real estate markets became more
balanced during Q2 and listed circumstances that could cause further market
weakening. Factors listed that would reduce buyer demand and/or increase
supply included higher mortgage interest rates, local job layoffs due to a
weakening U.S. economy, or any disruptive economic event. Little did we
know that all of these “shoes” would drop during Q3 and Q4, signaling the
end of the 2000-2008 real estate cycle. We measure a market cycle from
the peak of home prices before they correct. After the cycle peaks, prices
fall 20-25% on average over 1-3 years, stay flat for 1-3 years, then rise until
the next price peak. The cycle typically lasts 7-10 years.

Annual Sales Statistics by Community

ATHERTON
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 We would like to point
Sales Closed 117 95 75 76 96 108 103 102 80 63 out that most cities are
Inventory on 12/31 10 15 26 28 25 18 22 18 15 17 comprised of smaller
% of List Price Rec’d 101.5 108.0 90.0 96.6 94.7 97.1 97.4 97.1 96.2 95.4
communities which can
Median Sales Price ($m) 1.84 3.95 2.75 2.4 2.18 3.00 3.00 3.27 3.48 3.38
perform atypically during
PORTOL A VALLE Y the same time period.
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 For instance, sub-areas
Sales Closed 88 91 56 63 74 87 91 59 73 53 of a community served
Inventory on 12/31 0 0 0 28 17 15 20 15 15 20 by better schools may
% of List Price Rec’d 100.5 111.2 96.2 96.0 96.8 97.7 97.2 97.9 98.9 99.3
be appreciating while
Median Sales Price ($m) 1.24 1.61 1.69 1.39 1.53 1.70 1.86 1.81 1.93 2.10
home values in other
MENLO PARK areas of the same
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 community are flat or
Sales Closed 368 282 249 330 365 353 343 277 276 210 declining in value. If you
Inventory on 12/31 29 28 28 28 26 15 25 15 14 52 would like to understand
% of List Price Rec’d 103.5 112.2 96.1 100.0 99.4 101.8 103.0 100.6 101.1 99.8
the nuances of your
Median Sales Price ($m) .92 1.38 1.22 1.20 1.17 1.42 1.65 1.70 1.75 1.89
specific neighborhood,
PALO ALTO please give us a call
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 or send an email
Sales Closed 549 562 393 512 537 595 534 516 463 356 with your request to
Inventory on 12/31 17 35 74 76 44 27 38 29 20 62 JeffAndSteve@apr.com.
% of List Price Rec’d 104.1 110.5 97.2 99.5 98.1 103.8 104.8 102.0 103.7 100.6
Median Sales Price ($m) .72 .98 .86 .93 .90 1.15 1.30 1.35 1.56 1.55
Annual Sales Statistics by Community (cont’d)
LOS ALTOS
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Sales Closed 463 392 289 353 410 418 400 353 324 252
Inventory on 12/31 11 21 56 56 19 22 24 28 21 45 If you know
% of List Price Rec’d 102.2 114.2 96.2 97.4 97.4 101.8 101.8 99.5 102.1 99.3 of someone
Median Sales Price ($m) .91 1.40 1.11 1.19 1.17 1.38 1.60 1.62 1.75 1.80 considering buying
or selling a home,
LOS ALTOS HILLS please have them
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 contact us for a
Sales Closed 149 120 46 54 81 105 133 96 96 61 complimentary
Inventory on 12/31 9 12 25 32 29 45 41 37 35 32
consultation. They’ll
% of List Price Rec’d 100.7 108.7 92.1 92.9 92.8 96.8 97.4 95.4 96.5 95.1
want to have all
Median Sales Price ($m) 1.60 3.00 2.55 2.20 1.96 2.11 2.40 2.41 2.58 2.42
of the facts and
MOUNTAIN VIE W solid advice in this
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 challenging market.
Sales Closed 417 303 310 385 384 427 402 318 270 235 Also, please be sure
Inventory on 12/31 10 21 48 47 16 21 29 16 25 57 to visit our website:
% of List Price Rec’d 102.4 107.5 98.8 100.7 99.1 104.0 105.0 101.1 103.5 100.0 JeffAndSteve.com
Median Sales Price ($m) .53 .67 .67 .68 .68 .78 .88 .91 1.06 .98 for the latest info
on Market Trends
SUNNY VALE
and to follow market
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
updates on our Real
Sales Closed 870 800 591 754 861 985 917 620 619 546
Estate Blog.
Inventory on 12/31 32 42 89 153 77 36 40 58 103 123
% of List Price Rec’d 101.2 106.3 98.5 99.9 98.8 102.2 104.0 101.2 103.0 99.7
Median Sales Price ($m) .47 .62 .60 .62 .63 .69 .79 .84 .91 .87 JEFF STRICKER
BROKER , ATTORNEY
CUPERTINO Los A ltos Office:

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 650.823.8057
jstricker@apr.com
Sales Closed 502 454 296 405 481 566 479 384 413 291
Inventory on 12/31 18 34 80 91 41 23 44 46 31 56
% of List Price Rec’d 99.9 106.6 97.0 98.0 97.1 100.7 102.1 100.2 101.3 99.5 STEVE TENBROECK
Median Sales Price ($m) .63 .87 .82 .82 .78 .89 1.04 1.10 1.20 1.19 BROKER , SRES
Palo A lto Office:
650.450.0160
stenbroeck@apr.com

Home Values Up or Down?

Lastly, we present a chart of current and historic median sales
prices. Please note that the 2008 median sales prices for
these areas are basically flat or down from 2007. The turmoil in
the financial markets and economy is clearly having a negative
impact on local real estate. >>

www.JeffAndSteve.com
Home Values Up or Down (cont’d)
Increase/ Increase/ Increase/
Advice for Real Estate
Median Sales
Price 2008 Decrease
since ’07
Decrease
since ’03
Decrease
since ’00 Buyers and Sellers
Atherton ................ $3.38m............-3% ........... 55%........... -14% For Home Sellers: Prices have peaked for
Portola Valley ......... $2.10m............. 9% ........... 37%.............30% this market cycle and will fall during 2009,
Menlo Park ............ $1.89m............. 8% ........... 62%.............37% due to the events listed inside. If you intend
Palo Alto ................ $1.55m............. 0% ........... 72%.............58%
to sell in the near term, do so as soon as
Los Altos ................ $1.80m............. 3% ........... 54%.............29%
possible. Typically it takes a minimum of 3-5
Los Altos Hills ........ $2.42m............-6% ........... 23%........... -19%
Mountain View ......... $.98m............-8% ........... 44%.............46% years for prices to recover after a decline.
Sunnyvale ................ $.87m............-4% ........... 38%.............40% For Home Buyers: We recommend
Cupertino ............... $1.19m............. 0% ........... 53%.............37%
purchasing a home in the best areas (and
Statistical information provided by MLSlistings.com
in the best location within those areas) that
Would you like to receive our real estate reports via email? you can afford. Well-located homes seem
To be added to our e-report distribution list, expensive, but they decline the least during
please email us at JeffAndSteve@apr.com. down markets and appreciate the most
Thank you and we wish you a great 2009! during rising markets. Buying now allows
you to take advantage of home loan interest
JEFF STRICKER STEVE TENBROECK rates that are currently at 45-year lows! Cash
BROKER , ATTORNEY BROKER , SRES
buyers who aren’t affected by interest rates
Los A l t o s O f f i c e : P a lo Alto Of f ice :
can wait until mid-year to take advantage of
650.823.8057 650.450.0160
jstricker@apr.com stenbroeck@apr.com declining values.

Southern San Francisco Peninsula Market

2008 2009
RECAP FORECAST
The balance of supply and demand The inventory of south Peninsula homes
that existed during the first half of for sale will rise significantly in 2009
2008 (see our mid-year report at creating a greater imbalance between
www.JeffAndSteve.com) came to an supply and demand. As a result, home
abrupt end during the second half of the values will decline 10-20% on average
year. Plummeting consumer confidence depending on location and price range.
resulting from the financial crisis caused Higher priced homes and those with
demand for all “big ticket” items to fall in negative issues (noise, traffic, etc.) will
Q3. During Q4 the Silicon Valley economy decline in value the most. Entry level
slowed to zero growth, job layoff notices priced homes may not decline at all.
were issued, and the number of home
sales and home values began to fall.

Information deemed reliable, but not guaranteed. © Marketing Designs, Inc. 650.802.0888 • marketingdesigns.net