8/14/2019 June 2008 Quarterly Newsletter

1/4

Inside this issue:

Hot Summer Nights 1

Updated API Scores(5/21/08)

2

The Silver Lining 2

My New Website -

realtornickfrench.com

2

(cont) The Silver Lining 3

Client Testimonial

John Ying & Junjing Yan

3

Updated Neighborhood

Statistics

4

Nicks Updates 4

Share The Newsletter 4

Money Saving Tip

ROBLOX.COM

3

June 1, 2008

Volume 3, Issue 2

Quarterly Review

N i c h o l a s F r e n c h , B r o k e r A s s o c i a t e , C R S

With summer just around the corner it is time to consider the activities, camps and events that will fill the

days and weekends. Im sure these months will include summer camps for the kids, sport activities and

possibly some weekend trips to Disneyland, the Zoo, and the beach. But do you take advantage of the

fantastic events in the community?

There is an event for almost every individual and family: from the Los Altos outdoor movie nights, to the

Santana Row Flavors of Jazz and Saratoga Shakespeare in the Park. You can fill practically every summerevening with a free outdoor community event; just bring your lawn chair, some picnic snacks and a light

jacket and of course bring your good conversation and smiles. There are even some weekend concerts

and festivals such as the Los Gatos Concert Series on Sunday afternoon. I can usually be found at Music in

the Park, Los Altos Movie Night and Shakespeare in the Park and I highly suggest all of them! Its is a great

way to get out and meet your neighbors, enjoy some good entertainment and take advantage of our

amazing summer weather.

I thought it would be helpful to compile a list of these activities, so I have put links to many of the commu-

nities on my website for your convenience. If you click the Community Info from

www.realtornickfrench.com, you will see the button for Summer Events. Below are some of the high-

lighted events:

Hot Summer Nights

Nicholas French

Broker Associate, CRS

4906 El Camino Real #2

Los Altos, CA 94022

650 773 8000 (cell)

650 961 2338 (office)

650 961 5238 (fax)

nfrench@cattonproperties.com

www.realtornickfrench.com

Location Event Day Time Dates

Campbell, Downtown Summer Concerts Thursday 6:30-8pm June 19 - Aug 14

Cupertino, Memorial Park

Summer Concert

Series Thursday 6:30-8pm June 5 - July 10

Los Altos, Main Street

Friday Night

Movie Nights Friday 8:30pm June 20 - Aug 29

Los Gatos, Downtown Music in the Park Sunday 5-7pm June 22 - Aug 31

Menlo Park, Fremont Park

Summer Concert

Series Wednesday 6:30-7:30pm June 25 - Aug 13

Mountain View, Cuesta

Park, Dwntn, Civic Plaza

Summer Concert

Series Thursday 6:30-8pm July 17 - Sept 4

Palo Alto, Various Parks

Twilight Concert

Series Tuesday 6:30-7:30pm June 17 - Aug 5San Jose Dwntwn, Cesar

Chavez Plaza Music in the Park Thursday 5:30-9pm July 10 - Sep 4

Santana Row Flavors of Jazz Tuesday 6:30-7:30pm July 1 - Aug 26

Saratoga, Sanborn Park

Shady Shake-

speare Fri-Sun 7pm Aug 7 - Sep 14

Sunnyvale, Dwntwn Mur-

phy Ave

Summer Music

Series Wednesday 5-8pm June 25 - Aug 27

Willow Glen, Downtown

Dancin on the

Avenue Saturday 5-10pm June 14

8/14/2019 June 2008 Quarterly Newsletter

2/4

I would bet that in the past thirty days you been engaged in a conversation about the dismal real estate

market; encouraged by those with the dark cloud forever above them preaching real estate doomsday

and somehow surprised that property values do not continue through the clouds without correcting what a surprise. When loans were given out like Halloween candy and true home payment amounts ex-

ceeding one hundred percent of ones income, you can bet there were some rough roads ahead. The old

saying that when your garbage man is giving you stock tips and gardener speculative real estate advice it is

time to get out! I subscribe to the law of contrary public opinion... If everyone thinks one thing, then I

say, bet the other way... (Ricky Roma, Glengarry Glen Ross). Fortunately for many of us we did not suc-

cumb to the speculative purchases of the Inland Empire, or Las Vegas, Arizona, Florida, the list goes on.

There are definitely those that made a small fortune taking their chances on these sprawling communities;

if they took the gains and ran to the bank they most definitely have a permanent smile. If they chose to

let it ride you can bet they are singing the real estate blues about now. According to the latest statistics

the areas with the sharpest depreciation are Merced, Modesto and Stockton (OFHEO, May 22, 08), all

California and the Inland Empire. By now we know the cause and effect; hindsight tells the picture, but

what is the next step and where are the opportunities?

Fortunately we live in an area with an amazingly robust market. As I wrote in the March 2007 edition,

compared to other markets our corrections are typically shorter-lived with less declining. I describe this

function by indicating our upswing starts first, has the longest swing and comes down last. So congratula-

tions on your choice of community! Even the top areas right now are experiencing what I see as a stag-

nant market. Los Altos, Saratoga, Palo Alto, and Menlo Park the properties that come to market are

selling quickly if a few parameters are met: good location, condition, and price. Price is key and dont kid

yourself to think that a house is selling under priced just because of the market. If it is priced low it gener-

ally gets multiple offers and sells at a reasonable range. Surprising to many some houses are even selling

significantly lower than their purchase less than twelve months ago in these top locations. I have seen

closing prices 7-15% less than their purchase price and this is even before closing expenses and carrying

costs. Is this a sign of how much the market dropped or just some crazy purchases? I argue that these

buyers purchased too much when they bought the properties. I remember each of these transactions and

thinking how they spent too much when they bought it. In this same period others are selling for their

original purchase price stagnant market. This just supports the fact that in any market there are good

and bad deals. There is no replacement for doing the homework, having strong representation and pre-

senting a powerful offer!

The over-priced and less desirable properties are sitting on the market waiting for a reasonable seller and

buyer. You may find a handful of emotional deals, but for the most part the irrational exuberance has

deflated the real question if for how long? I am seeing a build-up of inventory in our top areas because

(continued page 3)

The Silver Lining

Page 2

Quarterly Review

Updated API

Scores (5/21/08)

The highly anticipated

release of the

Academic

Performance Index

ratings have been

published (5/21/08).

No earth-shattering

results, but always

interesting to see the

inevitable ups and

downs in rankings.You can find the

ratings on my

website,

realtornickfrench.com

or at the following

link:

http://api.cde.ca.gov/reports/page2.asp?

subject=API&level=County&submit1=subm

it

I enjoy the lively

discussion that

typically follows these

ratings The coveted

lottery school

adjustments, school

trends or lower than

expected ratings.

Feel free to contact

me anytime to

discuss.

I am happy to announce the launch of my new website, www.realtornickfrench.com. I have been working

to add useful tools and resources for clients whether currently looking to buy or sell or already in a home.

My goal is that my site can be shared with family, friends and colleagues and have something for every-

one, whether looking for investment tips, current properties, neighborhood information or any other

value-add items. I am open to suggestions, so next time you are surfing the web stop by my site and en-

joy! I have all of my previous quarterly newsletters posted as a resource and for sharing as well as adhoc

and automatic property search tools. The Utility Contact List is most helpful to new homeowners and the

community section should be informative for just about everyone. I look forward to your feedback and as

always appreciate your support!

My New Website realtornickfrench.com

8/14/2019 June 2008 Quarterly Newsletter

3/4

the sellers are not being realistic. The greatest is when a seller had the property listed twelve months ago

for a price and couldnt sell it, then relists now for the same price or higher. I am seeing those too and it

typically paints the picture for the situation. This is very different from other areas as close as South SanJose. You may have a great list price, condition and good location, but the buyers just arent there. Is this

an opportunity? I think the signs are still pointing towards additional inventory and slowing in some areas.

Foreclosures and bank-owned properties are up and if you surf through the MLS there is an alarming

amount of short sale properties on the market; these short sales will most likely turn into foreclosures and

bank-owned properties in the near future. Generally the banks will then list the properties to sell with

aggressive reductions if they dont move. With these variables still playing out in the marketplace as well

as the volume of inventory, I do not see a silver lining in the foreseeable future.

Is it time to take advantage of these opportunities and purchase a rental property? Rents are up and

prices are down; music to the ears of an investor. It then turns into an investment question and at what

point do you make the move. With the price earnings ratio improving it is more a determination of the

income verses cost of owning. Previously people were buying out of the area because of the cash flow

and the decision of cash to growth. With higher rents and lower base costs to own I am starting to see a

swing into rental purchasing. But dont go out tomorrow and buy a rental property there is substantial

research that is needed, economic factors calculated and finding what will hopefully be the best bang for

the dollar. I am considering hedging my rental purchases since the bottom of the market is unknown. If

you spread out the purchases and make careful decisions you should lower your risk and increase your

smiles. There should be some great opportunities while others wont touch real estate. History tells us

that once we hit the bottom in these areas it is not a jolt the other direction; the process is slow giving us

good time to consider whether we are ready to become landlords. I am here to support you with your

questions, analysis and purchases. Feel free to contact me anytime and we will see if it is a good time for

you or if we should continue the waiting game.

It is a true pleasure getting to know Nick and have his professional help in buying our second home. He

has been helping us look for homes for three years... Yes, 3 years, what a home search! Really hard to

imagine...yet we made it with Nick!

He has the instinct, which is rare among most, to understand clients' taste, value system, and finance con-

dition from just a couple of house tourings. He magically blends all these elements along with the hous-

ing/finance market condition and makes the most suitable suggestions. He does not push with showing

homes or making offers, points out the drawbacks of each property from his professional view and pro-

tects us from making bad offers. He frequently shares his value and his understanding of the market and

we find this very helpful.

I think helping his clients find the most suitable and comfortable home is what he really enjoys!

Picky and tough clients like us we are really lucky and blessed to have Nick finding us a perfect home in

Los Altos and continue to enjoy his professional help whenever possible.

Nick's easygoing and super patient personality, great, great people skills, and a level of outstanding pro-

fessionalism distinguish him from others. From him, I get to know what a full service real estate agent

really is.... Finally I'd like to share a quote I use so often among my circle of friends: "You will never go

wrong with Nick when buying a home in Los Altos"

Client TestimonialJohn Ying & Junjing Yan

Page 3

Volume 3, Issue 2

The Silver Lining (cont. Page 2) Money Saving Tip

An Alternative to

the Expensive

Computer, XBOX,

and other Console

GamesROBLOX

Explore your

creativity by

creating your own

game! - invent,

design, invite and

play a game that

you design and it is

FREE! - I created

an account to try

out the service andwas impressed!

Something to think

about before

purchasing the

next video game.

Check it out at

www.roblox.com

Send me your

money saving tips

for upcoming

newsletters

8/14/2019 June 2008 Quarterly Newsletter

4/4

Updated Neighborhood Statistics

If you know someone who would like to receive this newsletter I would like to send it to them.

Please either have them contact me or provide me their information and I will make contact.

My goal is to have this newsletter add value and be an information source for my clients, family

and friends. Please do not hesitate to contact me if I can help you with any real estate ques-

tions, strategies or if you are seeking quality representation.

Please Send This Newsletter to My Family and Friends

Nicks Updates

I am pleased to

announce that my

Realtor Leadership has

been going well. I am

supporting over 500

local Los Altos Realtors,

conducting strong

meetings and receiving

positive feedback,

which benefits my

clients when bidding on

homes. All this while

maintaining my

business and clients

I have had the privilege

of support-writing

several Town Crier,

Daily and Voice articles

as well as be a main

story for a real estate

journal discussing thecurrent rental market. I

was also given the

opportunity to have my

clients in a New York

Times main story with

full picture!

Good times!!

City Year Qtr

No. of Closed

Sales

% of List

Price Med Price Avg Price

Avg

DOM

Cupertino 2008 Q1 52 100.34 $ 1,185,000 $ 1,271,490 45

Cupertino 2007 Q4 80 100.98 $ 1,155,000 $ 1,192,545 45

Cupertino 2007 Q3 106 100.57 $ 1,267,500 $ 1,389,440 31

Los Altos 2008 Q1 46 100.11 $ 1,892,500 $ 2,020,065 31

Los Altos 2007 Q4 63 100.13 $ 1,750,000 $ 1,938,176 40

Los Altos 2007 Q3 78 104.32 $ 1,785,500 $ 1,897,392 32

Los Altos Hills 2008 Q1 11 95.90 $ 2,900,000 $ 2,924,909 112

Los Altos Hills 2007 Q4 12 96.61 $ 2,462,500 $ 2,694,916 63

Los Altos Hills 2007 Q3 20 96.03 $ 2,448,000 $ 2,769,977 74

Los Gatos 2008 Q1 51 97.83 $ 1,595,000 $ 1,651,725 82

Los Gatos 2007 Q4 48 98.0 $ 1,450,000 $ 1,662,901 75

Los Gatos 2007 Q3 77 98.11 $ 1,470,000 $ 1,590,200 53

Menlo Park 2008 Q1 55 99.67 $ 1,535,000 $ 1,787,681 48

Menlo Park 2007 Q4 72 98.47 $ 1,255,000 $ 1,435,278 40

Menlo Park 2007 Q3 99 100.93 $ 1,207,000 $ 1,330,007 36

Monte Sereno 2008 Q1 7 97.06 $ 1,820,000 $ 2,039,285 141

Monte Sereno 2007 Q4 8 96.24 $ 2,125,000 $ 2,459,375 147

Monte Sereno 2007 Q3 9 96.62 $ 2,050,000 $ 2,458,055 46

Palo Alto 2008 Q1 65 100.13 $ 1,617,500 $ 1,977,301 20Palo Alto 2007 Q4 88 104.06 $ 1,583,500 $ 1,861,633 24

Palo Alto 2007 Q3 113 104.15 $ 1,638,000 $ 1,912,255 23

Saratoga 2008 Q1 61 98.43 $ 1,565,000 $ 1,674,203 67

Saratoga 2007 Q4 71 98.29 $ 1,550,000 $ 1,754,963 54

Saratoga 2007 Q3 86 98.40 $ 1,666,500 $ 1,887,618 80

Sunnyvale 2008 Q1 94 100.36 $ 893,133 $ 893,744 52

Sunnyvale 2007 Q4 109 101.43 $ 900,000 $ 898,608 34

Sunnyvale 2007 Q3 172 102.76 $ 930,000 $ 956,583 19