ResalesSan Jose Housing Market Continues Slight Decline, Say Realtors
Over the past few months, the once white-hot San Jose market has cooled, but some price ranges are still selling quickly, say local Realtors, and activity is picking up.
"In areas with lower prices, homes sell rather quickly as there are two groups that purchase them -- first-time buyers and investment property buyers," suggests Realtor Thomas McEvoy. "However, areas that have more higher priced homes are experiencing longer times on the market and thus greater softness in pricing and increased buyer"s negotiating advantages. This market environment seems likely to continue.
"The San Jose market at the end of January 2003, showed inventory of 1845, increasing with slightly lower sales of 444, indicating months of sales in inventory of 4.2, an increase from last month. Median price was $482,500, down 3.5 percent in the past three months but up 4.9 percent from the same month a year ago. Number of days on market (DOM) trended higher to 65 with 1076 new listings. Sellers received 97.7 percent of list price on average this month, same as last month."
Says Realtor Chuck Culli, "The inventory of homes in Santa Clara Valley is up about 30 percent over last year at this time, while active escrows remain about the same. There is no doubt that this is a buyer"s market.
Advises Culli, "The big advantage for some sellers at this time is with current condo/townhouse owners wanting to move up to a single-family residence. Condominium values in some areas are holding stronger than are many larger single family homes. Combined with lower interest rates, this market is an opportune time for many planned unit development owner/residents to bridge the gap and move up to a house with your own back yard."
About Cambrian Park, Realtor Mary Pope Handy says, "Cambrian Park is a district of San Jose bordering Los Gatos, Campbell, Willow Glen, and Blossom Valley, a largely residential part of San Jose. The first homes were built in about 1948-1950 and were ranch style homes on large (10,000 sf) lots near the intersection of Camden and Union Avenues. Most of Cambrian consists of ranchettes on smaller, 6500 sf lots, and most of these were built in approximately 1960-1970. It is not monolithic though. Some areas are in the low foothills next to the town of Los Gatos - and offer views together with bigger homes and lots. Others are brand new mediterranean style homes on 2000 sf lots. Overall, the schools are quite good and the crime is quite low. Being close to Los Gatos, it is easy to find great entertainment without having to drive far (or to pay the price tag of Los Gatos!)."
Handy advises, "Activity is picking up dramatically in San Jose and in all of the valley, which typically does happen after Super Bowl Sunday. Our interest rates are at a 41-year low. Fear of war and fear of job loss remain the two causes why some buyers won"t grab this opportunity to purchase homes at incredible prices and with incredibly good loan rates. While prices continue to be soft, inventory is still fairly limited, making for an overall somewhat balanced market, leaning slightly (but not significantly) in the buyer"s favor."
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