Palm Haven real estate snaps

Palm Haven real estate snaps!
Aug. 31, 2009 - www.palmhaven.info

Real estate activity in Palm Haven continues to buck regional trends and recently closed transactions illustrate the variety of options for buyers in this historic San Jose Residence Park. 656 Palm Haven Ave. recently closed for $1.3M while 838 Clintonia Ave. closed for $553,500 in a short sale bringing the 2009 median sales price to $914,250, a 16.5% increase over last year. Sales in 2008 were dominated by smaller homes and "fixer-uppers" in the $600k to $800k range but for 2009, the over $1M category is back and selling. Local real estate agent, Elaine Motekaitis says, "That's the charm of Palm Haven. People seeking property in the older areas of Willow Glen, Rose Garden, and parts of Palo Alto are more accepting of neighborhoods where homes worth over $1M may sit next door to others half the price."

Analysis of data collected on www.palmhaven.info from Santa Clara County records for property transactions in the Palm Haven area reveals some interesting results. While the median sales price may vary widely due to the diversity of homes and number of transactions closed in any given year, the median price per square foot (MPPSF) proves to be a much more stable and telling component of Palm Haven property value. Currently at $493, Palm Haven's MPPSF is the lowest it has been since 2004 after peaking in 2007 at $616. But compared to the MPPSF for greater Willow Glen currently at $404 after peaking in 2006 at $507, Palm Haven is now 22% more expensive per square foot.

Sandy Kasik lived in Palm Haven over 10 years ago but continues to sell real estate here and keeps a close eye on the local market. "Palm Haven's visibility has come up enormously since 1989. Back then it was considered more a part of downtown San Jose than Willow Glen." Many San Jose residents recall an empty and tattered downtown from decades ago. "But any time you have a home that is unique with character, you can always sell it." Analysis of transactions during those years reveals the steady turnover of homes from longtime residents to newer families. "Palm Haven has an excellent sense of community - it feels like its own little city."

In a 1997 San Jose Mercury News article, a member of the San Jose Real Estate Board noted the median price of homes in Palm Haven compared to Willow Glen: $384k to $343k respectively. That premium commanded by Palm Haven real estate, 12% over Willow Glen, shows up in MPPSF figures from the 1990s through 2005. But in the latter half of this decade, the premium has stretched from 20% to over 30%. Why the surge over Willow Glen in recent years?

"A lot of that has to do with the work of the Palm Haven Restoration Committee", says Sandy Kasik. The Palm Haven Restoration Committee (PHRC) formed in 2002 and started improving Palm Haven's public spaces in 2004. With the restoration of its historic pillars and creation of a "Streetscape Plan" to clean up visual clutter and improve the historic streetscape, it renovated original vintage streetlights and installed street signage to match. These improvements cascaded into the community with home improvements. The recently sold 656 Palm Haven Avenue home was significantly remodeled and expanded by a developer that said, "When I saw those pillars restored, I knew it was time to invest in this neighborhood." Even www.palmhaven.info can share in Palm Haven's renaissance. On-line in 2002 and continuously improved ever since, the web site tracked the highest price ever paid for a Palm Haven home ($1.4M for 636 Palm Haven Ave.) as purchased by the Topness family in 2006. "The (Palm Haven) web site was what made our minds up to purchase our Palm Haven home", said Chris Topness at the time.
But can Palm Haven hold on to its premium values into the next decade? "That's a really tough question." says local real estate agent Bill Lister. "Appraisers are beginning to tell people to ignore price per square foot." (A traditional standard used for house comparisons.) "Instead they are seeking like-for-like properties." This may be an important development for Palm Haven. Sandy Kasik has seen prices held down in Palm Haven by appraisers for years. "Palm Haven has always been a difficult area to get a fair appraisal because they keep trying to use nearby streets." Indeed, spot analysis of properties on any of the neighborhood streets near Palm Haven reveals prices significantly lower than Palm Haven and greater Willow Glen. Perhaps paying attention to the factors that excite buyers to look in Palm Haven will help appraisers do a better job matching "like-for-like" properties.

"Palm Haven has a name. It is a market in itself." says Bill Lister. "It has pillars and gates so you get the feeling that it has special character." Sam Alvarado, a former real estate agent and resident of Palm Haven since 1978 agrees. "Palm Haven is a community within a community. It is because of this unique atmosphere" that draws buyers. "Savvy buyers first look at craftsmanship. Its always a welcome surprise when you go inside a Palm Haven home." Sam's husband Don adds, "It is within walking distance to family-friendly Willow Glen, trails, transit, and many other local amenities." Sandy Kasik observes for the South bay area, "How many unique neighborhoods with an eclectic mix of charming bungalows exist? There aren't that many." Rosemarie Delson, also a longtime Palm Haven resident and real estate agent says, "If you are looking (to purchase) in Palm Haven, you will also be looking at other historic neighborhoods." It is these "like-for-like" factors that may prove to be a better fit for comparing unique real estate like that in Palm Haven.

Meanwhile, inside Palm Haven two houses are currently under contract for sale. With those transactions closing near their last asking prices, Palm Haven's MPPSF would remain in the upper $400 range - supporting the current premium commanded over nearby neighborhoods. Watching greater Willow Glen real estate prices fall 18.8% from levels one year ago and Santa Clara County falling more than 20%, Palm Haven's less than 2% drop in MPPSF should comfort residents and potential buyers alike. Elaine Motekaitis sums it up, "In Palm Haven, residents really like where they live."