I 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.
The 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.