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 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. I hope you enjoy…
Well, even though you may think we are coming into the slower months of the year the month of October was tied with being #3 best month so far for homes that went into contract between a buyer and seller. I know most seem to think spring or summer, but here in Santa Clara County that’s not the case because of our great weather.
Santa Clara County inventory is down by 27.3%↓ compared to same time last October 2010 while pending properties are up 8.2% from Sept. 11-Oct.11. Giving us realtors only 2,222 single family homes to list throughout the County that has a population of 1.7 million people. It just goes to show that not everyone is reading the newspaper or 3rd party sites such as Zillow that seem to always say how bad the market is doing here in Santa Clara County, and because they have such a high readership…many fall into the trap and believe them rather than read the fine print like Zillow’s disclosure on how inaccurate they are.
Some more great news is late last night Congress reinstated the FHA conforming loan limits back to $729,750 for those 1st time buyers in the highest cost markets such as Santa Clara County. A big deal if your home is listed below $755,000 because that will enable buyers that ony have 3.5% down payment to possibly qualify for your home. As of yesterday that same buyer with 3.5% down could only purchase $646,000 as a FHA buyer. However, Congress chose not to apply the loan limits restoration to Fannie Mae and Freddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115 percent of local area median home prices up to $625,500. In other words if you did not want to use FHA at 3.5% because you have 20% down, any loan above $625,500 is considered a Jumbo Loan. That equates to about 3/8 of a percent more or a loan at $625,500 would have an interest only payment of $136 per month more. That is at $625,500 where as prior to Oct. 1st it was a loan above $729,750 and at this amount with a 3/8 of a percent more adds up. FHA buyers…you have until the end of 2013 or save up the 20% down. Of course the interest rates won’t be at 4% so why wait?
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.
ALMADEN VALLEY median price 30.8%↑ Sept.11-Oct.11
EVERGREEN median price 37.9↑ Sept. 11-Oct. 11 or 24%↑ for the year
CAMPBELL mls area median price 2.5%↑ Sept.11-Oct.11 2.9%↑ for the year
City of SANTA CLARA median price 2%↓ Sept.11-Oct.11 or 3.1%↓ for the year
LOS GATOS-Monte Sereno median 3.3%↓ Sept.11-Oct.11 or 8.1%↑ for the year
BLOSSOM VALLEY median price 3.5↓ Sept.11-Oct.11 or .7%↑ 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!