A house located in the 3700 block of Carlson Circle in Palo Alto has new owners. The 1,812-square-foot property, built in 1952, was sold on Oct. 31, 2023. The $3,400,000 purchase price works out to $1,876 per square foot. This single-story house has three bedrooms and three bathrooms. Inside, a fireplace enhances the ambiance of the living area. In addition, the house features a double carport.

These nearby houses have also recently been purchased:

• A 2,254-square-foot home on the 3700 block of Carlson Circle in Palo Alto sold in April 2023, for $3,090,000, a price per square foot of $1,371. The home has 3 bedrooms and 2 bathrooms.
• In October 2022, a 1,488-square-foot home on Redwood Circle in Palo Alto sold for $2,950,000, a price per square foot of $1,983. The home has 3 bedrooms and 2 bathrooms.
• On Roosevelt Circle, Palo Alto, in June 2023, a 1,474-square-foot home was sold for $2,820,000, a price per square foot of $1,913. The home has 4 bedrooms and 2 bathrooms.

Modera The Alameda, a 168-unit apartment building on The Alameda near the SAP Center and Diridon train station, is a step closer to transformation into an affordable housing complex following a unanimous vote by the San Jose City Council.

A $100 million package of tax-exempt bonds to finance the purchase of Modera The Alameda is the funding centerpiece of the affordable housing conversion.

The city’s decision paves the way for the anticipated future owner of the property to pursue the financing for the apartment complex at 787 The Alameda.

The $100 million financing package would be used for “the acquisition, rehabilitation, improvement, and equipping of 167 apartments and one manager’s unit to transition to an affordable housing development,” a city staff report states.

The California Municipal Finance Authority, an agency jointly established in 2004 by multiple government agencies, is slated to issue the bonds for the purchase of the Modera apartment complex.

“This will allow the Modera development to move forward with its current financing plan and create much-needed affordable housing,” the city staff report stated, referring to the financing package to convert Modera into affordable housing.

The California Municipal Finance Authority acts as a conduit for tax-exempt bonds to finance an array of projects to promote economic development.

“San Jose lacks a sufficient amount of affordable housing to meet residents’ needs,” the city staff report states.

The conversion proposal sketches out a plan whereby Catalyst Impact Fund, a nonprofit, would purchase Modera, the city documents show. Catalyst Impact would buy Modera the Alameda from current owner AEW Capital Management.

Once the apartments are converted to affordable housing, they would be set aside for very low-income and low-income individuals and families.

People who live in Modera typically pay monthly rents that range from a low of slightly more than $2,300 a month to nearly $4,600 a month, apartments.com reports.

“To avoid displacement of any current market-rate residents, units will transition to affordable upon move-out,” the city staff report states. “Existing residents who income-qualify will be offered affordable rates upon lease renewal.”

Of the 168 units, 34 units will be set aside for people at the 50% area median income level and the remaining 134 units will be restricted to people at the 80% area median income level, city officials say.

“The 2023 income limit for households with 50% area median income is $62,450 to $89,200 a year and the 80% area median income is $96,000 to $137,100 a year,” the city staff report stated.

Modera’s current assessed value is $101.7 million, county documents show.

The proposal would remove Modera from the property tax rolls — which means the complex would no longer generate property tax revenue once the new owner takes over.

About $1 million a year in property tax revenue would be wiped out as a result of conversion to affordable housing.

Despite the loss in property tax revenue, a conversion makes sense, in the view of Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.

“Existing units can be purchased for less than the exorbitant cost to build new affordable housing,” Staedler said.

Ryan Christopher, a San Jose resident, wrote an email to city staffers that raised questions about the wisdom of the conversion to affordable housing, especially if a significant hit to San Jose’s revenue from property taxes is in the offing.

“It appears to me that the 80% area median income rents are very similar to the current rents at the property,” Christopher wrote in a Nov. 14 email to the city. “As such, it seems questionable that there is a public benefit, and certainly questionable that we should forgo tax revenue to support this.”

“Numerology” tries to find reality within various measurements of economic and real estate trends.

Buzz: So, what might it take to get California homebuilders to ramp up their construction efforts?

Source: My trusty spreadsheet looked at California building permits for single-family homes dating back to 1990 and compared those patterns with home-selling data from the California Association of Realtors and some other economic stats.

Fuzzy math: It’s easy for the industry to blame explain a lethargic construction pace on bureaucratic difficulties in planning and executing homebuilding in the state. It’s not that their complaints aren’t true, but builders also can be picky about when they choose to build.

Topline

When you review 34 years of real estate activity by slicing the months into thirds based on 12-month changes in California permits, you find construction plans grew annually at an average 27% pace in building booms (the top third) and declined 25% annually in construction busts (the bottom third).

Or, looking at those periods in terms of month average permits: 6,150 permits in booms vs. 5,030 in busts – that’s 1,120 extra plans for new residences or 22% more.

Details

How do those California booms and busts compare with other yardsticks gauging real estate and the broader economy?

Well, it seems builders like overall homebuying momentum.

Sales of California’s existing single-family homes grew 6% a year on average in homebuilding booms vs. dropping at a 5% pace in construction busts.

And those old homes go swiftly. Days on the market, a metric of selling speed, dropped 15% a year during booms vs. expanding by 21% in busts.

Like any seller, appreciation is appreciated by builders. California’s median selling prices of those single-family houses rose annually at an 11% clip in booms while dropping 3% in busts.

Limited competition also appears to be appealing. Inventory of California’s single-family homes for sale dropped 16% annually on average in booms vs. growing 24% in busts.

Builders also appreciate good vibes. Consider two national confidence yardsticks from the Conference Board.

Of course, builders also seek steady, growing paychecks.

California job growth averages 1.6% in booms vs. 0.2% in busts. And the statewide unemployment rate typically falls by 0.4 percentage points in booms vs. rising 0.7 points in busts.

Curiously, financing costs don’t seem to be a factor. Since 1990, mortgage rates dropped by tiny amounts in both booms and busts.

Bottom line

Builders don’t want to get stuck with gobs of unsold inventory – as was the case in the early 1990s and mid-2000s.

So increasingly, they’ll build swiftly only when economic conditions are nearly perfect.

On one hand, that’s understandable as they’re profit-seeking entities.

On the other hand, that thriftiness doesn’t help shrink the state’s housing shortage.

Jonathan Lansner is business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

The property located in the 2400 block of Lansford Avenue in San Jose was sold on Oct. 25, 2023. The $1,500,000 purchase price works out to $927 per square foot. The house, built in 1949, has an interior space of 1,618 square feet. The layout of this single-story home includes three bedrooms and one bath. Outside, the home presents roofing composed of composition shingles materials. Inside, a fireplace enhances the ambiance of the living area. Additionally, the house provides a one-car garage, offering a designated parking space and extra storage capacity.

Additional houses that have recently been purchased close by include:

• On Westgate Avenue, San Jose, in July 2022, a 1,791-square-foot home was sold for $4,150,000, a price per square foot of $2,317. The home has 3 bedrooms and 3 bathrooms.
• A 2,172-square-foot home on the 2300 block of Lansford Avenue in San Jose sold in July 2023, for $2,372,500, a price per square foot of $1,092. The home has 3 bedrooms and 3 bathrooms.
• In September 2023, a 3,049-square-foot home on Cherry Avenue in San Jose sold for $2,522,000, a price per square foot of $827. The home has 4 bedrooms and 4 bathrooms.

A 1,760-square-foot house built in 1976 has changed hands. The property located in the 2900 block of Saint Denis Drive in San Ramon was sold on Oct. 30, 2023. The $1,628,000 purchase price works out to $925 per square foot. The layout of this single-story house consists of three bedrooms and two baths. In addition, the house includes an attached two-car garage, ensuring ample room for parking and storage.

These nearby houses have also recently been purchased:

• On Weymouth Court, San Ramon, in August 2023, a 1,979-square-foot home was sold for $1,700,000, a price per square foot of $859. The home has 4 bedrooms and 2 bathrooms.
• In March 2023, a 2,103-square-foot home on Marlboro Way in San Ramon sold for $1,485,000, a price per square foot of $706. The home has 4 bedrooms and 2 bathrooms.
• A 2,231-square-foot home on the 200 block of Saint Denis Court in San Ramon sold in August 2022, for $1,680,000, a price per square foot of $753. The home has 4 bedrooms and 3 bathrooms.

In total, eight residential real estate sales were recorded in the area during the past week, with an average price of $1.4 million. The average price per square foot ended up at $960.

The prices in the list below concern real estate sales where the title was recorded during the week of Nov. 6 even if the property may have been sold earlier.

8. $930K, condominium in the 1400 block of Nightshade Road

The property in the 1400 block of Nightshade Road in Milpitas has new owners. The price was $930,000. The condominium was built in 2018 and has a living area of 1,111 square feet. The price per square foot is $837. The condominium features two bedrooms and two bathrooms.

7. $1.1 million, condominium in the 600 block of Mente Linda Loop

The 1,371 square-foot condominium in the 600 block of Mente Linda Loop in Milpitas has been sold. The transfer of ownership was settled in November and the total purchase price was $1,085,000, $791 per square foot. The condominium was built in 2007. The condominium features two bedrooms and two bathrooms.

6. $1.3 million, condominium in the 300 block of Wild Rose Way

A sale has been finalized for the condominium in the 300 block of Wild Rose Way in Milpitas. The price was $1,250,000 and the new owners took over the condominium in October. The condo was built in 2018 and the living area totals 1,687 square feet. The price per square foot ended up at $741. The condominium features three bedrooms and four bathrooms.

5. $1.3 million, single-family home in the 1100 block of Park Brook Court

The property in the 1100 block of Park Brook Court in Milpitas has new owners. The price was $1,325,000. The house was built in 1962 and has a living area of 1,398 square feet. The price per square foot is $948. The house features three bedrooms and two bathrooms.

4. $1.3 million, detached house in the 1300 block of Mount Shasta Ave.

The sale of the detached house in the 1300 block of Mount Shasta Ave., Milpitas, has been finalized. The price was $1,340,000, and the new owners took over the house in November. The house was built in 1981 and has a living area of 1,219 square feet. The price per square foot was $1,099. The house features two bedrooms and two bathrooms.

3. $1.4 million, single-family residence in the 200 block of Uvas Street

The sale of the single family residence in the 200 block of Uvas Street in Milpitas has been finalized. The price was $1,420,000, and the new owners took over the house in October. The house was built in 1962 and has a living area of 988 square feet. The price per square foot was $1,437. The house features three bedrooms and one bathrooms.

2. $1.5 million, condominium in the 2200 block of Cuesta Drive

The 1,528 square-foot condominium in the 2200 block of Cuesta Drive, Milpitas, has been sold. The transfer of ownership was settled in October and the total purchase price was $1,510,000, $988 per square foot. The condominium was built in 1993. The condominium features two bedrooms and three bathrooms.

1. $2.5 million, single-family house in the 1000 block of Crescent Terrace

The sale of the single family residence in the 1000 block of Crescent Terrace in Milpitas has been finalized. The price was $2,525,000, and the new owners took over the house in November. The house was built in 1988 and has a living area of 2,549 square feet. The price per square foot was $991. The house features four bedrooms and three bathrooms.

A 1,579-square-foot house built in 1961 has changed hands. The property located in the 200 block of Mary Alice Drive in Los Gatos was sold on Nov. 3, 2023, for $2,280,000, or $1,444 per square foot. This single-story home provides a generous living space with its four bedrooms and three bathrooms. Inside, a fireplace adds character to the home. Additionally, the house includes a two-car garage, offering generous space for vehicles and storage requirements.

Additional houses have recently changed hands nearby:

• A 1,598-square-foot home on the 200 block of Jo Drive in Los Gatos sold in May 2023, for $2,111,000, a price per square foot of $1,321. The home has 3 bedrooms and 2 bathrooms.
• In March 2023, a 1,357-square-foot home on National Avenue in Los Gatos sold for $1,700,000, a price per square foot of $1,253. The home has 3 bedrooms and 2 bathrooms.
• On National Avenue, Los Gatos, in November 2022, a 2,386-square-foot home was sold for $2,600,000, a price per square foot of $1,090. The home has 4 bedrooms and 3 bathrooms.

A 1,637-square-foot house built in 1937 has changed hands. The property located in the 1900 block of Melvin Road in Oakland was sold on Oct. 6, 2023. The $1,550,000 purchase price works out to $947 per square foot. The layout of this two-story house includes two bedrooms and one bath. Inside, a fireplace enhances the ambiance of the living area. Additionally, the home features a garage.

Additional houses have recently been sold nearby:

• A 2,060-square-foot home on the 1900 block of Oak Crest Drive in Oakland sold in August 2023, for $1,855,000, a price per square foot of $900. The home has 4 bedrooms and 2 bathrooms.
• In June 2022, a 1,328-square-foot home on Oak Crest Drive in Oakland sold for $1,710,000, a price per square foot of $1,288. The home has 2 bedrooms and 2 bathrooms.
• On Oakview Drive, Oakland, in July 2023, a 3,027-square-foot home was sold for $1,425,000, a price per square foot of $471. The home has 4 bedrooms and 5 bathrooms.

A condominium located in the 2200 block of Cuesta Drive in Milpitas has new owners. The 1,528-square-foot property, built in 1993, was sold on Oct. 27, 2023, for $1,510,000, or $988 per square foot. This apartment features two bedrooms and three baths. In addition, the condo includes a two-car garage, ensuring ample room for parking and storage.

Additional units that have recently been sold close by include:

• On Monte Drive, Milpitas, in October 2022, a 1,528-square-foot unit was sold for $1,440,000, a price per square foot of $942. The unit has 3 bedrooms and 3 bathrooms.
• In September 2022, a 2,082-square-foot unit on Terra Alta Drive in Milpitas sold for $1,520,000, a price per square foot of $730. The unit has 3 bedrooms and 3 bathrooms.
• A 1,165-square-foot unit on the 1300 block of Lowland Court in Milpitas sold in January 2023, for $600,000, a price per square foot of $515. The unit has 3 bedrooms and 2 bathrooms.

In total, 21 residential real estate sales were recorded in the area during the past week, with an average price of $2.2 million, $737 per square foot.

The prices in the list below concern real estate sales where the title was recorded during the week of Nov. 6 even if the property may have been sold earlier.

10. $2.2 million, single-family home in the 700 block of Liquidamber Place

The property in the 700 block of Liquidamber Place in Danville has new owners. The price was $2,200,000. The house was built in 1985 and has a living area of 2,922 square feet. The price per square foot is $753. The house features three bedrooms and three bathrooms.

9. $2.2 million, single-family residence in the first block of Woodside Drive

The sale of the detached house in the first block of Woodside Drive, Danville, has been finalized. The price was $2,200,000, and the new owners took over the house in October. The house was built in 1997 and has a living area of 2,560 square feet. The price per square foot was $859. The house features three bedrooms and four bathrooms.

8. $2.3 million, detached house in the 6100 block of Ledgewood Terrace

The 3,820 square-foot single-family home in the 6100 block of Ledgewood Terrace in Dublin has been sold. The transfer of ownership was settled in October and the total purchase price was $2,250,000, $589 per square foot. The house was built in 2002. The house features five bedrooms and five bathrooms.

7. $2.4 million, single-family house in the 200 block of Murcia Court

The 3,460 square-foot single-family house in the 200 block of Murcia Court, Danville, has been sold. The transfer of ownership was settled in November and the total purchase price was $2,375,000, $686 per square foot. The house was built in 1995. The house features four bedrooms and four bathrooms.

6. $2.5 million, single-family residence in the 2400 block of White Oak Place

The property in the 2400 block of White Oak Place in Danville has new owners. The price was $2,500,000. The house was built in 1978 and has a living area of 2,756 square feet. The price per square foot is $907. The house features four bedrooms and two bathrooms.

5. $2.6 million, single-family house in the 4000 block of Sugar Maple Drive

A sale has been finalized for the single-family house in the 4000 block of Sugar Maple Drive in Danville. The price was $2,550,000 and the new owners took over the house in October. The house was built in 1986 and the living area totals 3,238 square feet. The price per square foot ended up at $788. The house features four bedrooms and three bathrooms.

4. $2.6 million, detached house in the 2100 block of Laguna Creek Lane

The sale of the single family residence in the 2100 block of Laguna Creek Lane in Pleasanton has been finalized. The price was $2,585,000, and the new owners took over the house in October. The house was built in 2004 and has a living area of 3,721 square feet. The price per square foot was $695. The house features five bedrooms and four bathrooms.

3. $2.6 million, single-family home in the first block of Puri Court

The 3,862 square-foot single-family home in the first block of Puri Court, Pleasanton, has been sold. The transfer of ownership was settled in October and the total purchase price was $2,613,000, $677 per square foot. The house was built in 1989. The house features five bedrooms and three bathrooms.

2. $2.7 million, single-family residence in the 100 block of Gerald Drive

The 2,690 square-foot single-family house in the 100 block of Gerald Drive in Danville has been sold. The transfer of ownership was settled in November and the total purchase price was $2,710,000, $1,007 per square foot. The house was built in 1980. The house features four bedrooms and three bathrooms.

1. $3.9 million, single-family home in the 5300 block of Cypress Hawk Court

The property in the 5300 block of Cypress Hawk Court in San Ramon has new owners. The price was $3,900,000. The house was built in 2002 and has a living area of 8,216 square feet. The price per square foot is $475. The house features five bedrooms and six bathrooms.