Trulia San J…, Home Buyer in San Jose, CA

Have San Jose real estate values risen due to the Silicon Valley tech boom?

Asked by Trulia San Jose, San Jose, CA Mon Mar 19, 2012

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13
Flavio Tejada, MBA,Realtor/Own’s answer
Hi,
the general consensus is YES. Buy now while prices and interest rates are still relatively low. Good luck

Buyer 50%-60% Cash Rebate / Seller 50% Commission Discount
Quality Full Service! Work directly with the Broker.
Flavio Tejada, Owner/Broker, Realtor, MBA-Finance
(415)305-2958
1 vote Thank Flag Link Tue Mar 20, 2012
I am also encountering for my buyers more multiple offer situations coupled with offer deadlines. Real estate values rise in periods of consumer confidence due to their employment situation coupled with supply and demand. Another fuel to the rising prices are the low interest rates which make purchasing property more affordable. More buyers can qualify to purchase property and for the same payment receive more home for their dollar. The supply level is lower than a year ago of entry level and moderately priced homes. The demand is up seasonally coupled with favorable interest rates.
Therefore, in general, buyers in multiple offer situations will most likely pay full price or slightly above for the lower priced properties. This in turn will reflect in the pricing of the properties coming on the market.

Diane Riel, Broker
Realty World - The Sterling Group
408-718-8485
http://www.realtyworldsterling.com
CRS, SRES, SFR, CDPE
4 votes Thank Flag Link Mon Mar 19, 2012
I agree with the other agents, it is becoming a bit of a sellers market as everything I have had my buyers look at has had multiple offers on them. I would say yes the values have risen since Jan. The average sales price for a single family home in Santa Clara county in Jan was $642K, in Feb it was $731K in march so far it is $811K so there you go.
I hope this helps, feel free to contact me with any questions.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
2 votes Thank Flag Link Mon Mar 19, 2012
Values have risen slightly. What we are experiencing is an increase in demand. Inventory is very low coupled with low interest rates and easing of loan restrictions have created more buyers competing for the limited inventory of homes. We are also seeing several all cash offers, this can be from local and foreign dollars.

In my opinion consumer confidence is getting stronger because more jobs are being offered, plus the banks are working through the short sales and bank owned properties.

The side bar is rental properties are hard to come by as well so renters are considering that if may be a good time to lock in their monthly "nut" and buy vs continue to rent. Investors are also considering the demand of rental properties because of those who have lost their homes will now have to rent for a while.
Web Reference: http://www.TerriVellios.com
2 votes Thank Flag Link Mon Mar 19, 2012
Yes. With the small number of listings in the valley, businesses going IPO, consumer confidence rising prices are going up. Multiple offers are getting to be the norm, especially the low end priced homes and homes going up the penisula.

Pat Chadwell, broker
Realty World - Residential Specialists
408-927-6565 x 11
http://www.patchadwell.com

CRS, SRES, CDPE, CIAS, ePro, SFR
2 votes Thank Flag Link Mon Mar 19, 2012
We've definitely seem an increase in both rental prices and home values throughout the peninsula.
1 vote Thank Flag Link Mon Mar 19, 2012
The values have not risen much due to nature of these sales. Take 95136 neighborhood for example, both short sale and reo sale comprise of 52% of total sales. They are left over distressed property inventory. Sellers goal is making the schedule avoid foreclosure date, price is secondary. What shows up is a fairly impressive STEADY PRICE as before.

Last 30 days in San Jose there were 396 sfh on the market, 1 year prior 675, 2 years ago 792...
With a DOM of only 20 days for both SFH and TH/condo there is much competion with what is left
on the market. The inventory is just ~2 months. Recalling we had 14 months of inventory not long ago while buyer would still fight over some desireable homes with many many many offers in the midest of a worst recession.

To find more listings there got to be more sellers. With a notice of default dropped ~40% from last quarter 2011 now only at 1.1%. One will not expect any quantity of foreclosed homes. There will still be short sales. As for those under water, I expect more will unload them as loss. Expecting home ownership is like owning a used car. It depreciates. Silicon Valley used to be like so in the 1960s after owning home for 5 years my parents made $1K profit. Selling homes these days many take a loss and stop bragging. Last year 33% of San Jose home owners sold at loss, and 14% home owners are still under water.
1 vote Thank Flag Link Mon Mar 19, 2012
Buy Low, Sell High! It's definitely a Sellers market. For how long? Stand in line and take a number! Even with rumored interest rates going up in the near coming months it shouldn't slow down demand a bit. Prices are creeping up faster then the left behind Buyers who are still asking the same indecisive question, "have we hit rock bottom?" Expect multiple offers to continue a strong upward trend as cash Investors are driving up prices driven by pure profit in conjunction with move up buyers who have 30 percent plus down payment buying purely on emotion going $30 to $60k over asking in various price ranges. Above current market value? You betcha! Just wait til Facebook goes IPO. There's gonna be a lot of raised eyebrows looking up at Silicon Valley because we're 1-2 years ahead of the curve in comparison to Sacramento, San Joaquin Valley, and so forth in the recovering process.

Dan Do,
Coldwell Banker
(408) 712-5192
Dre # 01766120
1 vote Thank Flag Link Mon Mar 19, 2012
The IPO for Facebook is exciting in Palo Alto, and the ripple of this seems to be reverberating valley-wide. I'm seeing wild flurries of purchases in Cupertino, possibly buyers want to get in before the Facebook IPO money moves our area values up further.
1 vote Thank Flag Link Mon Mar 19, 2012
The healthy employment enviroment is certainly helping our current real estate market making a strong rebound. More so is the lack of inventory we are facing in many of the most desireable areas in the county. Remember the good old "supply and demand" rule? That is the driving force behind multiple offers and homes selling for more than the asking price in many cases. Inventory in some areas is the lowest it's been since 2005! We are also looking at some of the lowest prices for single family homes and condos/townhomes that we've seen in years. And of course let's not forget about some of the lowest interest rates in fifty years. When an article is published about the state of the real estate market typically it's a national overview. We are in our own bubble here in the Bay Area. Honestly, our market changes on a dime. One day it's moving along at a snail's pace, you go to bed, wake up and find the market changed overnight! There is no rhyme or reason, it's just the Bay Area Real Estate Market.
1 vote Thank Flag Link Mon Mar 19, 2012
Inventory in down and pending sales are significant higher than homes that are available. Now is a sellers market. Although the home must be priced right, fees need to be optimal and the sellers should provide incentives to the buyers. Prices are up...

Jim Mauldwin
Intero Real Estate
408-863-3020
Web Reference: http://jimmauldwin.com
1 vote Thank Flag Link Mon Mar 19, 2012
Thank you for your question:

My answer is definitely yes:

Real Estate prices are certainly rising in San Jose and all over the Silicon Valley. The employment situation certainly has improved. I am seeing a number of people who were out of work now have jobs again.

Also, many of my clients who had been hesitating last year to make offers on homes because they were feaful that they might be next to lose their jobs are no longer fearful of losing their jobs and want to get homes as soon as possible. Many other Real Estate Brokers that I talk to report similar situations for their clients as well.

The result is that there is now an enormous amount of demand for Real Estate resulting in multiple offers and overbids.

In fact within the last few months it seems that every offer that I write, I am up against multiple offers, overbids and demands from the listing agent that the buyer that I represent be willing and financially able to make up the difference in cash if the property does not appraise.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
1 vote Thank Flag Link Mon Mar 19, 2012
It seems that buyer market is changing to seller market.
0 votes Thank Flag Link Mon Mar 19, 2012
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