The median price for single-family, re-sale homes reached its highest level since August 2008: up 34.6% year-over-year to $632,450. The sales price to list price ratio, a good indicator of demand, for single-family, re-sale homes in Santa Clara County was 101% in April. This is the tenth month in a row the indicator has been over 100%. Home sales were up 4.1% from March, but down 1.4% year-over-year. Pending sales reached record levels in March with 2,519 homes under contract. This bodes well for sales in the next few months. Inventory also increased in April from March: up 8.2%, and it was up 0.2% compared to April 2009. This is the first time inventory has been higher than the year before since January 2009. Seems like home owners are beginning to feel more confident in the market. Of the 1,022 homes put on the market in April, only 85 were bank-owned.
So where are the buyers’ markets? The buyer markets are no longer on the East Side of San Jose (Berryessa, Alum Rock, Milpitas, Evergreen). Most of the deals under $500K have been scooped up in the last two years. Except, central San Jose. Downtown, areas around
Burbank (San Carlos Avenue) have some homes under $500K for sale. This may also be due to the many new condo complexes struggling to fill their units with residents. The deals are in the $700K-$1M range now. Areas where the average sales price tips about $700K show a buyer’s market. Affordability at play again. The ability to obtain a jumbo loan at play again. To meet the “conventional” loan which is secured on the secondary market, 20% is required. Better rates if you do not exceed the $729,000 limit on your loan. We are now looking at a buying pool that has over $100,000 to place as a down payment and more often, $200,000 is needed to secure a decent interest rate.
Note the graphs below to see the trends. RED is a seller’s market. Below the line GREY, is a buyer’s market. If you want more specific information about where the opportunities are for home purchases, contact me .
Downtown San Jose housing market trends:
Morgan Hill homes for sale
San Jose Willow Glen Homes for sale:
Almaden homes for sale:
Los Gatos Homes for sale: