Tag Archives: jumbo loans

Real Estate Update for Santa Clara County November 2011!


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!

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Real Estate Update for Santa Clara County October 2011!


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…

In a normal Real Estate Market for Santa Clara County the inventory would generally peak in September of that year, but for obvious reasons peaking in September or the word normal has not been used for a while.  This year we peaked in June, in 2010 it was September, and 2009 it was February.  So, you see the trend is much different year by year these days.  Todays current inventory of 2,396 is down↓ from August 2011 to September 2011 3.5%↓ and down 28.4%↓ from September 2011 over same month prior year September 2010.  At the same time pending properties have increased by 2.6%↑ from August 2011 to September 2011 and up 20.2%↑ from current month September 2011 over a year ago September 2010.   

What will be interesting to see is how the Santa Clara County Real Estate Market and the San Jose Real Estate area will be affected now that Fannie Mae, Freddie Mac, and FHA conforming loan limits that Congress failed to extend…the $729,750 loan limits and allowed them to expire Sept. 30.  This means the maximum loan amount that Fannie, Freddie, and FHA will buy or guarantee is $625,500, and anything above that amount will be non-conforming and will require a jumbo loan.  These loans typically carry a higher mortgage interest rate and require a higher down payment, increasing the monthly payment, which will particularly be hard on middle-class buyers and sellers.  The biggest hit will be buyers that only have 3.5% for a down payment and not the full 20% down.  Example, an FHA buyer with only 3.5% down could have bought a home listed up to $754,515 before October 1st.  Now, that same loan allows that same buyer to only buy up to $646,875 as an FHA buyer with 3.5% down.  The average sold price of a single family home in Santa Clara County as of September 30, 2011 is $722,000, so you can see it will affect the county in some way. 

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 2.7%↓ Aug. 11-Sept. 11 or .5%↓ for the year

EVERGREEN median price 13.1%↓ Aug.11-Sept.11 or 11.2%↓ for the year

 CAMPBELL mls area median price 3.3%↓ Aug.11-Sept.11 2.4%↑ for the year

City of SANTA CLARA median price 7%↓ Aug.11-Sept. 11 or 1.4%↓ for the year

LOS GATOS-Monte Sereno median 10.6%↓ Aug.-Sept.11 or 14.2%↑ for the year

BLOSSOM VALLEY median price 7.3%↑ Aug.11-Sept.11 or 5.9%↑ 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!