Buy the “neighborhood” not the house, unless…

I have posted about micro markets and micro climates in my blog before and here is the updated information for the week of July 16th, 2007. This percentage represents the amount of contracts in escrow currently for specific areas in San Jose and is provided to me by Sharon Hunter at Chicago Title.

I always recommend buyers to buy “neighborhoods” and not just houses. You can see below how neighborhoods with stronger school systems have an advantage in this changing market. With that said, I also tell my clients to look at the potential for appreciation and value when considering a home in a “transitional” area.

Other bloggers have tapped into statistics that demonstrate that the appreciation over time in changing neighborhoods are often higher than the appreciation in well established high-price neighborhoods. For first time buyers and investors – look toward South San Jose for deals. Be selective – look around before selecting a home because there is a lot of inventory. If you want me to help you narrow down the best deals , contact me.

Above 25% indicates a seller’s market
Below 25% indicates a buyer’s market

Overall – San Jose is 20.4% indicating a slight buyer’s market shift.

Percentages for some of the other areas
Area 2: Santa Teresa 15.9%   Buyer’s
Area 3: Evergreen 18.5%  Buyer’s
Area 8: Santa Clara 35.1%  Seller’s
Area 10: Willow Glen 31.8%  Seller’s
Area 11: South SJ 8.5%  Buyer’s !! (south of 680, East of Monterey Rd – along 101)
Area 12: Blossom Vly 20.1%   Buyer’s
Area 13: Almaden 27.8%  Seller’s
Area 14: Cambrian 27.0%  Seller’s
Area 15: Campbell 30.1%  Seller’s
Area 18: Cupertino 47.6%  Strong Seller’s