Zillow predicts metro San Jose’s 10 hottest neighborhoods for 2017

Zillow has just busted out the San Jose metro’s 10 hottest neighborhoods for 2017, and they’re not necessarily the ones you would have predicted.

Yes, three are in Palo Alto: the Old Palo Alto, University South and Duveneck-St. Francis neighborhoods, all with homes valued in the millions.

But the rest are in Sunnyvale and San Jose, in neighborhoods known for modest homes that can still be had for $1 million or less — sometimes substantially less. These are the places where prices are going to grow the fastest in 2017, Zillow predicts.

“This is a theme we’ve been seeing in many neighborhoods around the country,” said Svenja Gudell, Zillow’s chief economist. “Neighborhoods that are slightly less expensive but still close to other, more desirable neighborhoods are starting to get a spillover effect… They still have a lot of head-room to grow, value-wise.”

For this definition of “hotness,” she said, Zillow “simply focused on the price point and how far values are expected to grow. A different definition of hotness might include crime statistics, school ratings, parks, amenities, walkability — all these other factors. But that’s not what we’re doing here.”

Here’s a shocker: After years of rapid appreciation, home prices in the San Jose metro are poised to grow by just 0.4 percent in the coming year, Gudell said.

And now, the Top 10:

The No. 1 position is held by Sunnyvale’s East Murphy neighborhood, where the median home value   is $964,000. Prices are expected to rise by 2.79 percent in 2017.

No. 2: Sunnyvale’s Lakewood Village. Median home: $959,100. Projected rise in prices: 2.09 percent.

No. 3: Old Palo Alto. Median home: $4,632,000. Projected rise: 1.48 percent.

No. 4: Palo Alto’s University South. Median home: $2,191,200. Projected rise: 1.32 percent.

No. 5: Sunnyvale’s West Murphy neighborhood. Median home: $1,000,800. Projected rise: 1.23 percent.

No. 6: Palo Alto’s Duveneck-St. Francis neighborhood. Median home: $2,742,700. Projected rise: 1.17 percent.

No. 7: San Jose’s Fairgrounds neighborhood. Median home: $614,100. Projected rise: 1.14 percent.

No. 8: Palo Alto’s Jordan Jr. High School neighborhood. Median home: $3,806,300. Projected rise: 1.0 percent.

No. 9: San Jose’s North Valley neighborhood. Median home: $762,200. Projected rise: 0.97 percent.

No. 10: San Jose’s Edenvale-Seven Trees. Median home: $628,500. Projected rise for 2017: 0.84 percent.

Photo: A home for sale in Palo Alto. (Paul Sakuma/AP)

 

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  • hoapres

    You aren’t going to find a house in Sunnyvale or a decent house in San Jose for under a million.

    Those days are LONG GONE.

    • Mark

      Too many Indian-American landlord “families” pac-manning houses on credit to rent to the H-1Bs. A good credit flush will fix things good.

  • hoapres

    This is what happens when you let the tech companies trash America.

 
 
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