Santa Teresa

San Jose, CA

Neighborhood Market Analysis

Q3 2025 Report
$1,400,000 (as of Dec 2024)
Median Home Price
55–65 (car-dependent but improving, with pockets of walkability near shopping centers)
Walkability Score
Public schools are rated above average and continue to improve, contributing to increased demand from families.[1][4]
School Rating

Location Overview

Neighborhood Boundaries

Generally bounded by Santa Teresa Blvd to the west, Bernal Road to the north, Coyote Creek to the east, and the southern edge of San Jose city limits.

Zip Codes

951199513895139

Market Data Summary

Price Range$1.1M–$1.7M for single-family homes; $800K–$1.1M for townhomes/condos
Price per Sq Ft$860 (June 2025)
Inventory LevelsExtremely low; 8–12 days of inventory, with slight increases in pending and closed sales.[4]

Property Characteristics

Home Types & Architecture

Home Types

Single-family homesTownhomesCondos

Architectural Styles

RanchContemporarySpanish RevivalMid-century modern

Property Details

Typical Lot Sizes5,000–7,500 sqft for single-family homes
Home Age RangeBuilt 1960s–1980s, with some newer infill and remodeled properties
Construction QualityGenerally well-maintained; many homes updated with modern finishes, but some original-condition homes remain.

Community Profile

Demographics & Lifestyle

Demographics

Diverse, with a mix of young professionals, families, and long-term residents. Increasing number of tech workers due to proximity to Silicon Valley.[1]

Community Vibe

Suburban, quiet, with a strong sense of community and neighborhood pride.

Typical Residents

  • Tech professionals
  • Families with children
  • Retirees
  • Move-up buyers

Family Friendly

Highly rated for families; good schools, parks, and community events.

Amenities & Lifestyle

Parks & Recreation

  • Santa Teresa County Park
  • Raleigh Linear Green
  • Los Paseos Park

Dining Options

  • Local taquerias
  • Asian cuisine
  • Family restaurants
  • Chain eateries at Bernal Plaza

Shopping Centers

  • Bernal Plaza
  • Santa Teresa Village Shopping Center

Local Businesses

  • Santa Teresa Golf Club
  • Bernal Plaza shops
  • Local cafes and fitness studios

Education & Schools

Public schools are rated above average and continue to improve, contributing to increased demand from families.[1][4]
Overall School Rating

Elementary Schools

  • Los Paseos Elementary
  • Santa Teresa Elementary

Middle Schools

  • Bernal Intermediate

High Schools

  • Santa Teresa High School

Private Schools

  • Holy Spirit School
  • Stratford School (nearby)

Transportation & Accessibility

Transit & Roads

Public Transit

  • VTA Light Rail (Santa Teresa Station)
  • VTA bus routes

Major Roads

  • Santa Teresa Blvd
  • Bernal Road
  • Highway 85

Commute & Walkability

Commute Times20–35 minutes to downtown San Jose; 30–45 minutes to major Silicon Valley employers (Google, Apple, Cisco) depending on traffic.
WalkabilityModerate; most errands require a car, but some areas near shopping centers are walkable.
ParkingAmple street and driveway parking; some congestion near schools during peak hours.

Marketing Intelligence

Target Buyer Types

  • Tech professionals
  • Young families
  • Move-up buyers
  • Investors

Key Selling Points

  • Affordability relative to other San Jose neighborhoods
  • Excellent schools
  • Access to parks and open space
  • Strong community vibe

Pricing Considerations

Price competitively to attract multiple offers; updated homes can command a premium.

Common Objections & Response Strategies

Objection: Older homes may need updates.

Response Strategy:

Highlight recent renovations in comparable sales; provide cost estimates for common upgrades.

Objection: Low walkability in some areas.

Response Strategy:

Emphasize proximity to parks, shopping centers, and light rail; note ongoing improvements in local infrastructure.

Objection: Rising prices and competition.

Response Strategy:

Discuss long-term appreciation trends and potential for equity growth; advise on strategies for competitive offers.

Investment Insights

Investment Potential

Appreciation Potential

Strong; 10% YoY price growth in 2024, with continued upward trend expected due to demand and limited supply.[1]

Rental Demand

High, especially for updated homes and townhomes; driven by tech workers and families.

Buyer Competition

Intense; multiple offers common, especially for turnkey properties.[1][4]

Best For

  • Move-up buyers
  • Tech professionals
  • Families seeking good schools
  • Long-term investors

Potential Concerns

  • Rising prices may limit affordability
  • Low inventory can frustrate buyers
  • Some older homes may require updates

Professional Recommendations

1

Educate buyers on the speed and competitiveness of the market; set expectations for multiple-offer scenarios.

2

Leverage recent sales data to justify pricing and offer strategies.

3

Highlight school quality, parks, and community events in marketing materials.

4

Advise sellers to invest in minor updates and staging for maximum return.

5

Stay informed on upcoming infrastructure and retail developments to address buyer questions.

Competitive Analysis

Comparable Markets

  • Blossom Valley
  • Evergreen
  • Almaden Valley

Market Positioning

Santa Teresa is positioned as an affordable, family-friendly alternative to pricier Silicon Valley neighborhoods, with strong schools and community amenities.

Competitive Advantages

  • More affordable than Almaden Valley
  • Better schools and community amenities than Blossom Valley
  • Less dense and quieter than Evergreen

Price Comparison

Santa Teresa homes are 10–20% less expensive than Almaden Valley, but offer better value and appreciation than Blossom Valley.

Investment Metrics

3.5%–4.2% for single-family rentals (2025)
Cap Rates
3.2%–3.8% gross yield
Rental Yields
22–25
Price-to-Rent
Neutral to slightly positive for well-priced homes with 20%+ down payment; best for long-term appreciation.
Cash Flow
6%–8% annual growth projected through 2026, barring major economic shifts.[1]
Appreciation

Buyer Journey Insights

First-Time Buyers

May face affordability challenges; best options are condos/townhomes. Need to act quickly and be prepared for competition.

Move-Up Buyers

Strong opportunity to leverage equity from previous home; can secure larger homes with good schools.

Downsizers

Limited single-level options, but some ranch homes and condos are suitable.

Investors

High rental demand and appreciation, but cash flow is tight unless significant down payment is made.

Relocators

Popular for tech workers relocating to Silicon Valley; proximity to employers and amenities is a major draw.

This neighborhood analysis was generated using hyperlocal data and AI intelligence.

Neighborhood conditions change - consult with local real estate professionals for the most current information.

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