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Most competitive ‘hoods in the state

Most competitive ‘hoods in the state

By Ron Trujillo / ron@calhomenews.com

Three of the nation’s 10 most competitive neighborhoods were in California – and Silicon Valley – in 2017, according to real estate firm Redfin.

And four of the top 25 neighborhoods were in the Golden State, with the San Jose-area leading the way and shutting out Southern California.

However, the Seattle metro area dominated with 20 of the 25 most competitive markets, including the top six spots.

Redfin based the most competitive markets on a number of factors, including price growth during the past year, average sale-to-list price ratio, homes sold above asking price and the median days on the market.

Ortega/Panama Park in Sunnyvale, a suburb of San Jose, was the hottest neighborhood in California and seventh nationwide. It had an annual price increase of 28.7% to $1.67 million. The average home in the neighborhood sold for 114% more than the listing price and 93% sold for more than the listed price. Homebuyers in Ortega/Panama Park had to be comfortable paying a lot of money and moving fast – the average home entered escrow in eight days.

Santa Clara/North Central was the second-hottest market in the state (and eighth nationwide). The neighborhood enjoyed a 22.4% boost in prices to $1.18 million, and 89% of homes sold for more than the listing price.

Palo Alto boasts the highest average selling price – $2.62 million – on the national list, a hefty 32.5% increase from a year ago.  More than two of every three homes on the market (69.1%) sold for more than the listing price. Palo Alto finished at No. 9 nationwide.

Finally, West Campbell in Campbell – another suburb of San Jose – finished at No. 23 on the national most competitive list, according to Redfin. The average home sold for $1.32 million, a nifty 23.5% increase from 2016. Almost 84% of homes sold for more than the listed price in West Campbell.

All four neighborhoods had homes moving in nine days or less.

You can check out the complete list of the most competitive neighborhoods here.

Feature photo of Palo Alto house by Hank Shiffman/Shutterstock. Santa Clara mission photo by Mariusz S. Jurgielewicz/Shutterstock.

Prime purchasing power

Looking to buy in one of these super-competitive, fast-moving neighborhoods (story, left)?

You will need a big down payment and an impressive credit score. In fact, many consumers will need to be so-called “prime credit borrowers,” with a credit score of 700-plus.

Fortunately for many homebuyers, the Golden State means hefty paychecks for some industries that often makes purchasing a high-priced home much easier.

LendingTree reports California has four of the nation’s five prime credit score markets:

San Jose (No. 1)

  • Buyers with prime credit: 64%
  • Avg. down payment: 19%

San Francisco (No. 2)

  • Buyers with prime credit: 63%
  • Avg. down payment: 18%

San Diego (No. 4)

  • Buyers with prime credit: 57%
  • Avg. down payment: 16%

Ventura (No. 5)

  • Buyers with prime credit: 57%
  • Avg. down payment: 16%

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