These Bay Area homes were built to be affordable and now cost millions

LOS ALTOS — The Los Altos History Museum sits smack in the middle of a red-hot Silicon Valley neighborhood. The median sale price of a single family home in ZIP code 94022 is $3,525,000.

How ironic, then, that the museum’s latest exhibition focuses on a time when Santa Clara Valley land could be had for a relative pittance and a developer with a vision could build thousands of affordable, custom-designed homes. We are talking about Joseph Eichler, whose open and airy, light-filled houses sold half a century ago for around $40,000 and are the subject of “Eichler Homes: Modernism for the Masses,” which runs through Oct. 8.

“Eichler, he had a vision, he had an ideal, and he was able to execute on that ideal,” said Elisabeth Ward, the museum’s executive director.

“He was about more than `slap ‘em up, get ‘em done, move on,’” said Steven Eichler, the developer’s grandson, who lives in Menlo Park and curated the exhibit.

An accountant before he became a developer — he once worked for a butter-and-eggs wholesale firm in San Francisco, the exhibit points out — Joseph Eichler wanted to improve the quality of housing across the region. He built attractive homes and priced them right for middle-class families.

Alas, his egalitarian dreams have been upended.

One Eichler home in Los Altos — a tricked-out, five-bedroom version from the late ’60s, covering 3,100 square feet — recently sold for $3.5 million. Other Eichler homes, smaller ones, typically sell for $1.7 million or $1.8 million, which may fit the sweet spot of some buyers in today’s distorted market. Still, seeing his grandfather’s middle-class aesthetic upended is a “sad thing,” Steven Eichler said. “The definition of affordability has changed.”

The new exhibit explores that aesthetic and the period in which it emerged.

Between 1949 and 1974, Eichler Homes — first headquartered in Palo Alto, later in San Francisco — built 10,500 homes across the Bay Area, mostly concentrated in all-Eichler neighborhoods that still dot the region, from Concord in the East Bay to Willow Glen in San Jose.

Remarkably, Eichler engaged top-shelf architects to design his houses.

Three of those architects were Claude Oakland, A. Quincy Jones and Robert Anshen, who spun ingenious variations on what came to be known as the Eichler style. Inspired by architect Frank Lloyd Wright, it features clean-lined post-and-beam construction, vaulted ceilings, open floor plans where one room flows into the next — and entire walls of windows.

Walk through the front door of an Eichler home and one often sees clear through to the backyard. The design has a way of “bringing the outside in,” as Eichler homeowners like to say.

The museum’s 1,200-square-foot gallery — a bit smaller than a modest Eichler home — captures the spirit of its subject. It has a glass wall of windows looking out over a shady courtyard. Airy and bright, the gallery is painted in white, cream and apricot tones selected by Judi Eichler, Steven’s wife. She designed the exhibit, which is filled with furniture and artifacts that exude the flavor of the period.

Standing in front of a photo of his grandfather — “Steven, you have his chin,” Ward commented — Steven Eichler showed a visitor around.

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Steven Eichler, the grandson of developer Joseph Eichler, looks over the latest exhibition at the Los Altos History Museum: “Eichler Homes: Modernism for the Masses” at Los Altos History Museum in Los Altos, California, Tuesday, July 18, 2017. In foreground is an Eames chair that is in the family collection. (Patrick Tehan/Bay Area News Group) 

Mid-century modern furnishings dominate: a large reclining chair and Ottoman by designers Charles and Ray Eames, made in 1950; a pair of swoopy La Fonda armchairs by the same design team, from 1954. Over by the windows, there’s a children’s corner with play tables and tiny iron-frame chairs, including one with a blue seat that belonged to young Steven while growing up in an Eichler home in Atherton. Beneath it, an Atomic Age play rug is straight out of “The Jetsons,” adorned with images of spinning protons and electrons.

In the display cases, one finds more objects of the era: a martini decanter and glasses, which might have come off the set of “Mad Men”; a Danish fondue fork set; a Japanese geisha sculpture; a glazed cigarette box. There’s a box of Eichler Homes matches, an Eichler Homes stock certificate (the corporation was publicly traded for years) and architectural drawings from various Eichler models.

Steven Eichler, who manages design and construction projects in under-served neighborhoods, remembers his grandfather as an outspoken, cigar-smoking man — “a large presence in a room.” Active in the Democratic Party, Joseph Eichler had a way of turning dinner-table conversation toward politics and was famous for his anti-discrimination position on housing. He sold houses to anyone regardless of race or religion, and, in 1958, he resigned from the National Association of Home Builders when it failed to support a non-discrimination policy.

The exhibit includes testimonies from longtime Eichler homeowners — “Breaking up with your Eichler is hard to do,” is how one begins — and has become a magnet for the local Eichler crowd. Ward said the number of visitors to the museum has doubled since the exhibit opened a few weeks ago, and she is struck by their responses as they wander through the collection: “All you have to say is, `Have you ever lived in an Eichler?’ And all of a sudden, you start getting all these life stories.”

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A photo of developer Joseph Eichler is on display in the latest exhibition at the Los Altos History Museum: “Eichler Homes: Modernism for the Masses” at Los Altos History Museum in Los Altos, California, Tuesday, July 18, 2017. (Patrick Tehan/Bay Area News Group) 

The connection the visitors feel is in part explained by the fact that Eichler strove “to engineer a sense of community,” Ward continued. “I think he succeeded. You look at the neighborhoods that he built — the circular streets, the community center, the swimming pool. He was designing neighborhoods. The whole neighborhood has integrity to it, so the idea of tearing down an Eichler” — it has happened repeatedly on the Peninsula in recent years, creating angry divisions between neighbors — “is seen as detrimental to the vision of the whole neighborhood.”

Then, she addressed Eichler, the grandson: “Steven,” she said, “it seems to me your grandfather was more motivated by the aesthetics than by the business side of what he did.”

Steven Eichler wasn’t so sure: “Yes,” he said, hesitating, “but he really thought about the availability of materials … and about labor costs. He was an accountant by trade, so I have to think the numbers mattered.”

But then he mentioned his grandfather’s relationship with A. Quincy Jones, the architect. They worked together for years “and never had a contract. It was all done on a handshake,” he said. “It was a different era.”


“Eichler Homes: Modernism for the Masses”

Where: Los Altos History Museum, 51 S. San Antonio Rd., Los Altos

Hours: Thursday-Sunday, noon-4 p.m.

Admission to museum and exhibit: Free

Exhibit ends: Oct. 8


Article source: http://www.mercurynews.com/2017/07/23/these-bay-area-homes-were-built-to-be-affordable-and-now-cost-millions/

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‘Google Effect’ Could Raise Real Estate Prices In Downtown San Jose

SAN JOSE (CBS SF) — A new example of what might be called the “Google effect” is leading real estate speculators to drop big money on properties in downtown San Jose.

East coast investors just bought an $80 million office building near the Diridon Station, not far from where Google is set to build a huge new campus.

The building sits at the crossroads of Almaden and San Carlos streets.

But the sale of 303 Almaden also crosses a price line never seen in the downtown area.

“What’s significant about 303 Almaden is that it broke the $500 per square foot mark,” said Mark Ritchie of South Bay real estate agency Ritchie Commercial.

Commercial real estate expert Ritchie said it shattered the previous record by about $90 per square foot.

The deal may have already been in the works before Google announced plans to build an 8 million square foot transit and tech village near Diridon Station.

But it comes amid speculation of a “Google effect” that would be transformative for San Jose.

“I don’t think anyone yet has a handle on how significant that will be, said Ritchie. Because Google is effectively coming into downtown and building as much space as exists in the entire rest of downtown San Jose.”

Just blocks away, tech company Zoom Video Communications is just glad it just finalized a leasing deal for two more floors just blocks from 303 Almaden and the Google project.

“Timing is everything right?  So I’m glad we locked up some of the leasing already, especially with this new news,” said Zoom Video Communications spokesperson Greg Holmes.

The teleconferencing software company is on its own growth spurt, hiring 200 people in the last six months.

For Zoom, San Jose has been a bargain.

But as the downtown office market heats up, new startups may not have a place to grow.

“If you look around a lot of the companies are in their second stage as a startup, so it might make it more challenging for newer companies to get started here with the new pricing,” admitted Holmes.

One group that’s already benefitting are the people building it all. From high-rise condos to ground-floor sandwich shops.

Construction workers are building three new small businesses that will cater to the incoming tech crowd.

“We saw through the recession it was very slow to moderate. And now it’s just really tremendous,” said project manager Anthony Alamillo. “It’s booming.”

It will take years for the Google effect to fully take shape, but right now, it seems you can count on two things happening: high demand and high prices for just about anything in downtown San Jose.

Article source: http://sanfrancisco.cbslocal.com/2017/07/12/google-effect-could-raise-real-estate-prices-san-jose/

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Bay Area job market bounces back; South Bay, East Bay post strong gains

The Bay Area powered to strong job gains in June, a state labor report revealed Friday, easing fears that the region’s economy was tottering on the edge of a downturn.

Robust competition for many tech-related jobs, however, has prompted some temporary workers to pursue other vocations, and while the region turned around from recent weakness and added jobs last month, economists say the Bay Area’s tight housing market is still acting as a ceiling on job creation by making it harder for companies to recruit talented workers.

In June, Santa Clara County added 2,600 jobs, the East Bay gained 1,900, and the San Francisco-San Mateo region added 4,900 positions, according to the state Employment Development Department. All the numbers were adjusted for seasonal changes.

“This was a good bounce-back month for the Bay Area,” said Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy.

The Bay Area’s gains contrasted sharply with a weak employment result statewide: California lost 1,400 jobs in June.

In Santa Clara County, after suffering job losses in three of the first four months of 2017, the South Bay has enjoyed consecutive job gains the past two months.

Similarly, the Bay Area — after losing jobs during three of the first five months of 2017 — managed to bounce back with a gain of 11,100 jobs overall during June.

Nevertheless, the Bay Area and all three of its major urban centers endured a weaker economic performance during the first half of 2017 than in the same period in 2016.

The Bay Area gained 15,100 jobs in the first half of this year — far below the nine-county region’s addition of 54,400 jobs a year earlier, this publication’s analysis of the EDD figures shows.

“The Bay Area is growing significantly more slowly now than it was last year, which was slower than the prior years,” said Christopher Thornberg, principal economist and founding partner with Beacon Economics.

Santa Clara County lost 1,300 jobs in the first half of this year, versus a year-earlier gain of 11,700; the East Bay added 1,600 jobs, contrasting with a year-earlier gain of 13,500; and the San Francisco-San Mateo region added 12,500 jobs, well behind the 22,500 jobs gained in the first half of last year.

755f1 sjm bayjobs 0722 web Bay Area job market bounces back; South Bay, East Bay post strong gains“It’s not that companies don’t want workers; they want to hire,” Thornberg said. “The complaints that I’m hearing about is that companies just can’t find workers.”

The failure of many Bay Area cities to approve residential construction at a brisk enough pace to keep up with the expanding job market could increasingly crimp the region’s ability to add jobs. As a result, the area labor market continues to grow, but can’t do so at the torrid pace of recent years.

“Rising home prices and expensive apartments are driving people out of this market,” Thornberg said.

Some job seekers said that despite the generally healthy employment market, it’s not always easy to find work, even in the booming tech sector.

“Tech companies are being pretty picky in hiring people right now,” said Mark Phan, a Fremont resident who recently received a university degree in computer sciences. “I’m surprised that it’s been this difficult to find something.”

Robert Wood, a San Jose resident, has well over a decade of experience in tech and web graphics design, but his patience with a succession of tech jobs on a contract basis evaporated recently.

“I was a graphics designer for 15 years, and now I’m an apprentice plumber,” Wood said.

The Bay Area’s soaring cost of living was a major reason behind his decision to switch careers.

“Usually you get contract positions in tech and sometimes they turn into full-time jobs,” Wood said, “but it’s so competitive in tech that when employers post a job, they get 200 applicants in the first 30 minutes. I have bills to pay, so this time I couldn’t sit around and wait for a job to show up.”

Wood is optimistic about his new career path.

“I’m learning a skilled trade, and that’s where a lot of the openings are,” Wood said.

Despite some job seekers’ trepidation, the tech sector posted a robust performance in June, at least in the principal employment hubs for Silicon Valley, according to a Beacon Economics assessment of the EDD report.

Tech companies added 1,300 jobs in Santa Clara County and 1,200 in the San Francisco-San Mateo region.

Santa Clara County also added 800 health care positions and 600 retail jobs, but lost 300 construction jobs.

The East Bay’s strongest industry in June was administrative services, which added 2,100 jobs. That industry includes clerical and building support jobs as well as temporary staffing positions. The Alameda and Contra Costa counties area also added 600 hotel and restaurant jobs and 500 construction jobs. However, the East Bay also lost 700 jobs in the finance, insurance and real estate sector.

The San Francisco-San Mateo area’s strongest industry was hotels and restaurants, which gained 2,600 jobs, but that region also lost 1,000 health care jobs.

“The job market is still growing, and the expansion is far from over,” Levy said. “Big companies are still planning to expand, as we see with Google, Facebook and Apple. But we need housing, or this area just can’t keep growing the way it has been. The economy still looks good if we can get the housing for the workers.”

Article source: http://www.mercurynews.com/2017/07/21/bay-area-job-market-bounces-back-south-bay-east-bay-post-strong-gains/

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Stephen Curry Lost Oodles of Cash Selling His Home—and You Won’t Believe Why

Stephen Curry isn’t used to losing—at least, on a basketball court. But in the realm of real estate, this Golden State Warriors point guard proved that not all he touches turns to gold when he recently sold his home in Walnut Creek, CA, at a loss.

So what’s the score exactly? In November 2015, Curry and his wife, Ayeshabought the 7,520-square-foot, five-bedroom, six-bath Mediterranean-style mansion for $3.2 million. Then the couple poured an additional half-million into renovations. A year later, they put it back on the market for $3.7 million. But apparently they’d set their sights too high, because it sat warming the bench with no takers.

Finally in July of this year, the home sold for the lowball sum of $3,195,000—more than a half-million less than what Curry was hoping for and less than what he paid for it almost two years earlier.

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Stephen Curry’s San Francisco Bay Area home

realtor.com

This defeat seems all the more resounding considering the fact that his home is situated near the San Francisco Bay Area, where prices are astronomical. Perhaps the Mercury News said it best in the headline to their recent article: “Steph Curry Did It. How Do You Lose Money in the Bay Area Real-Estate Market?” 

Good question. What did Curry do wrong?

A lot, actually. Here’s a rundown of his mistakes.

1. He bought the priciest house in the area

“This appears to be a classic example of violating the Real Estate Commandment ‘Thou shalt not buy the most expensive home in the neighborhood,’” says Dave Parsons, a Realtor® in Vermont.

The median listing price in Walnut Creek currently sits at $750,000. As such, “Curry’s property is four times more expensive than other properties,” says Shane Lee, a RentHop statistical data analyst. As such, “there is limited demand for properties like this in the area.”

Plus, home prices tend to lean toward the middle, which spells bad news for expensive homes.

“Real estate prices generally trend toward the mean of surrounding properties, so those priced above the local average will be weighed down by the lower-priced homes around them,” Parsons says.

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Aerial view

realtor.com

2. He bought at the top of the market

Although housing prices are sky-high in the Bay Area, the luxe market had begun to level off right when Curry made his purchase—and then move downward by the time he was ready to sell a year later.

“Curry paid top-of-market prices in 2015, as that’s when the market really peaked,” says Cara Ameer, a Realtor in Florida who often handles property for professional athletes. “It has taken a bit of a downward trend since then, and the luxury market has been more challenging to sell since some of the foreign money has dried up.”

3. Location, location, location

Fine, the house is close to the white-hot Bay area, but perhaps not close enough.

“The location of this home is especially troubling because the buyer pool for this type of property is already tiny,” says Washington, DC–based Realtor Cedric Stewart. “Being 50 miles away from where everyone wants to be shrinks that pool even more.”

Plus, “the property does not have any kind of view, and slopes down to a major thoroughfare,” points out Florida Realtor Eileen McNamara-Vecchio. “That’s a hard sell in any price range, even if it is Steph Curry’s property!”

4. He poured a half-million into home improvements

A half-million in home improvements could have been OK if they were the right renovations with universal appeal.

“When putting money into a home, you want to add it to the areas that have payback: kitchens and baths,” says David McLaughlin, a New Orleans, LA Realtor at Keller Williams. “From a design perspective, you don’t want to add anything too out of the box.”

While we’re not entirely sure of exactly what he added after moving in, let’s just say that if he’d installed an NBA-size basketball court (Michael Jordan did it), that type of amenity might not appeal to many buyers other than, well, another pro basketball player.

5. He sold too soon

In addition to buying at a bad time, Curry also sold a mere year after moving in—which many say is too soon to make a profit.

“When you buy a home in an inflated market and have a short holding period, you’re flirting with potential price softening,” says Greg McBride, chief financial analyst at Bankrate.com. “The financial benefits of homeownership accrue over the long term. Even if Steph Curry had sold the home for more than he purchased, by the time you factor in transaction costs, he likely would not have made a profit.”

In fact, one rule of thumb is that unless you plan to stay put for at least three to five years, you shouldn’t buy at all, and rent instead.

Bottom line: Before you buy a home, make sure to seriously ponder that day in the future when you sell.

All that said, “Curry may not have done all that bad,” McLaughlin points out. It was listed for $3.2 million and sold for $3,195,000 in a market where there is virtually zero demand for homes in that price point. I’d say he came out OK and could have done much worse.”

“While most people would cringe at the thought of losing a few hundred thousand on renovations and price drops in such a short time, you have to remember that Steph Curry makes more than $11 million a year,” adds New York real estate agent Emile L’Eplattenier. “Not to mention the fact that he recently sold a home in Orinda for a tidy $755,000 profit.”

In other words, you win some, you lose some.

Article source: http://www.realtor.com/news/celebrity-real-estate/steph-curry-sells-his-home-at-a-loss/

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One suburb dominates the Bay Area’s list of ‘best value’ neighborhoods

http://www.sfgate.com/realestate/article/One-suburb-dominates-the-Bay-Area-s-list-of-best-11285977.php


Updated 1:11 pm, Thursday, July 20, 2017

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Tied at No. 8: Farm Hill. The average home price in this Redwood City neighborhood is $1.6 million. This 3 bedroom, 2 bathroom house is on the market for $1.45 million. Click forward to see maps and homes from each of the top nine Bay Area neighborhoods. 

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Photo: Janice Woods, Alain Pinel Realtors

Farm Hill received a high commute score, since it provides accessibility to jobs north in San Francisco along with Google, Facebook, and other companies on the Peninsula. 

Farm Hill received a high commute score, since it provides accessibility to jobs north in San Francisco along with Google, Facebook, and other companies on the Peninsula. 


Photo: Google Maps


Have you ever considered a move to Redwood City? 

That mini metropolis that kisses the bay about 30 miles south of San Francisco?

If you’re house-hunting in the Bay Area and looking for value, this might be a place to start your search, according to a new report from real estate site Trulia on best value neighborhoods.

Burlingame, just a little north toward the city, would be another spot to start browsing open houses. 

In the high-priced Bay Area real estate market, buying a home can be an overwhelming, perplexing experience.

When you finally find a house you can afford, you might realize it’s located in a neighborhood with high-crime. When you decide on a location because the schools are great, you might find home prices you can’t possibly afford.  

Trulia sifted through its mountains of data to identify those Bay Area neighborhoods where you get the most bang for your buck and created a list based on real estate affordability, the quality of schools, crime rate, the commute and accessibility to shopping, restaurants and other amenities. 

The researchers identified only nine Bay Area neighborhoods — all on the Peninsula — that met the criteria.

Trulia spokesperson Debbi Baratz says, “Only nine met the requirements for affordability.”

Redwood City neighborhoods dominated the list with Palm Park, Roosevelt, Redwood Oaks and Woodside Plaza as the top four (in that order) and Farm Hill tying with San Mateo’s Sugarloaf for the No. 8 best-value neighborhood.


Three Burlingame enclaves—Lyon Hoag, Burlingame Village and Burlingame Terrace—all claimed the title of the No. 6 best value neighborhood.

In the gallery above, we reveal why these neighborhoods made the list, provide median home prices and examples of homes on the market or homes that recently sold.

How does this list stack up with realtors on the Peninsula?

Celeste Johnson of Keller Williams agrees Redwood City offers great livability and for reasons beyond affordability, safety and schools. She adds that the weather is good, the location is ideal as it’s halfway between San Francisco and the Silicon Valley, and the downtown is bustling with restaurants, shops and events.

“The downtown is walkable and it’s vibrant,” she says. “The downtown has been completely overhauled in recent years.”

John Marshall of Coldwell Banker concurs that homebuyers are looking to Redwood City for value.

“One of the things that have kept Redwood City prices down over the years is the schools,” says Marshall, who has been helping clients buy and sell on the Peninsula for more than 15 years. “The school scores were lower than Atherton, Woodside and Menlo Park. But the attitude has changed, and people are asking, ‘Why would I go to Menlo Park and pay $4 to $5 million when I can be in Redwood City for $2 million or less than that. And the schools are slowly getting better.”

Marshall was happy to see Redwood City’s Woodside Plaza on the list. It’s where he lives and he says it’s the type of community where neighbors look out for one another. It also has Henry Ford Elementary School, with a Great Schools rating of 7 out of 10.

He was surprised to not see Redwood City’s Mount Carmel among the best value neighborhoods as it’s popular with clients. The houses go for a premium in this neighborhood, he says, and higher prices are likely why it didn’t make the value cut.

And what about Burlingame and San Mateo, which also made a splash on the Trulia list?

Marshall says the schools are more consistently high-performing than in Redwood City, and the access to San Francisco is better with a BART station nearby, but the homes are more expensive. 

“A lot of the houses for $2 million and under are older and haven’t been updated and they’re a little on the small side,” Marshall says. 

Article source: http://www.sfgate.com/realestate/article/One-suburb-dominates-the-Bay-Area-s-list-of-best-11285977.php

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