Good afternoon everyone and welcome to Raymond’s Real Estate Update for Santa Clara County and San Jose Real Estate 2011! I always like to start this out by telling everyone that I always state real numbers whether they are good or bad. Something I wish the media would do. Should you want detail information for a certain zip code as I have done for a few neighborhoods below feel free to email me and if I have numbers for that particular area I will supply them.
!st off, I had to include a graph I put together that illustrates the inventory peaking at 5,500+ homes in 2008 to show how low our inventory really is these days. I think the #1 question asked, “how is the market and it seems like homes are sitting longer with prices dropping?” So here you go…
Today, single family homes available on the mls peaked in June this year to 2,680 single family and now have fallen to 2,490 as of August 24th. From peak of 2008 to peak in 2011 that is a drop of 53%. Now, inventory down 53% yet pending properties continue to increase each month…June over July up 20% this year. If i were to average out the last 8 years excluding 2008 the inventory hovers around 2,542 in the month of July. That would mean we are pretty normal right now. In 2008 when those numbers were 2 times higher, the pending properties were at 977 for that month April 2008. Today in July 2011 it was at 1,310. Back in 2008 we had 8.1 months of inventory based on sales. Today we only have 3 months. Yes, the median price has dropped from 2008 when it was $750,000 to today sitting at $619,000, but that has also increased from a low of $525,000 at the beginning of this year, and up 29% since we bottomed in 2009 at $442,000. In other words homes are selling. As a matter of fact homes are getting an average of 97% of the original list price to sold price. In some areas like South San Jose they are getting an average 101% of the original list price over sold price. Many renters are getting their rent increased to a point it only makes sense to own vs. rent these days.
Take a look at some graphs below showing actual numbers for San Jose Real Estate, Almaden Valley Real Estate, Santa Clara Real Estate, Evergreen Real Estate, Campbell Real Estate, Blossom Valley, and Los Gatos Real Estate. Even though the median price declined by 1% from June to July last month, you can see just from the 6 areas that I pulled how good it is actually doing throughout the Santa Clara County. I didn’t even show Los Altos or Saratoga that are doing phenomenal right now.
ALMADEN VALLEY median price 6.5%↑ June 11-July 11 or 11%↑ for the year
EVERGREEN mls area median price 5.5%↑ June -July 11 or 6%↑ for the year
CAMPBELL mls area median price 10.3%↑ June-July 11 or 8.9%↑ for the year
City of SANTA CLARA median price 3.3%↓ June-July 11 or 1.6%↑ for the year
LOS GATOS-Monte Sereno median 5.5%↓ June-July 11 or 21%↑ for the year
BLOSSOM VALLEY mls area median price 7.8%↓ June-July or 2%↓for the year
Thanks for reading Raymond Chavez Real Estate Blog! In the mean time don’t forget to visit www.raymondchavez.com to connect with me on LinkedIn or Facebook!