Property Sales Weak in August – San Jose, CA

September 10, 2007 by

Not Sold HouseI used to own a house in Santa Teresa which is a neighborhood in San Jose, CA. Ever since I sold my house in 2005 I’ve been watching the market to see if I made the right choice. When I did sell it, I received twelve offers all of which were over asking price. Now looking at some of the current economic real estate data, I’m very glad I sold when I did.

Sales of single-family, re-sale homes fell 10% from July and were off 39% year-over-year. Year-to-date, home sales are off 23.6% in San Jose,CA and are at their lowest level for the past ten years. The median price for homes fell 0.5% from the month before, but is up 6.1% compared to last August. The average price fell 3.2%, up 2.8% year-over-year.

San Jose Home SalesThe median price for condos rose 2.7% to $482,500, good for an annual gain of 0.5%. The average price rose 2.4% to $509,538, up 1.3% year-over-year. Condo sales fell 15.2% from July, and were off 35.8% year-over-year. Inventory continued to grow, with single-family homes up 10.3% from July and up 41.3% year-over-year. Condo inventory was up 10.4% month-over-month, and up 32.9% compared to last August. The sales price to list price ratio for single-family homes and condos stayed at 98.9%.

Our days of inventory indicator for homes rose 45 days to 245 days. The indicator for condos gained 51 days to 168. My advice? For buyers, having a loan in place before buying is of utmost importance in this market. Sellers aren’t going to tie up their homes with offers from buyers who don’t have their loan in place.

For sellers, pristine homes in the best neighborhoods are still getting multiple offers, but that is now the exception rather than the rule. Over-priced listings are not even getting offers. If you get an offer, a rarity in this market, work it. Do not reject any offers out of hand. You may not get another. The real estate market is very hard to generalize. It is a market made up of many micro markets.

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8 Responses to “Property Sales Weak in August – San Jose, CA”

  1. Michael on September 14th, 2007 12:59 pm

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  2. Melanie on September 18th, 2007 7:07 am

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  3. john harper on September 19th, 2007 7:10 pm

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  4. Real Estate Guru on September 19th, 2007 10:23 pm

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  5. Real Estate Trends on September 20th, 2007 1:14 am

    Thanks for the information on current economic real estate trends and these are especially very useful for the sellers and buyers of a property.

  6. Real Estate Attorney, Miami Beach on September 20th, 2007 8:09 am

    The number of real estate purchase/sales I complete now is much lower than in the past few years, and it is rare to see a deal where the parties are not just investors selling to one another. “Normal” buyers believe that if the property has been on the market for a long time, it will just go lower, despite what their Realtor may tell them.

  7. Veliko Turnovo Hills on October 4th, 2007 3:57 am

    : If you think you will stay in the house more than 6 years, it is worth paying points.

  8. Staten Island Real Estate Agent on July 30th, 2009 11:06 am

    The market has definitely balanced out now more then before. Sellers need to understand that they will not get someone to buy an over-priced home.

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