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List prices are actually up 9% from the previous quarter, while sales prices are up 5.7%. Bottom line, itâ€™s an increasing market. The average list price is approximately $891,000 while average sale price is $921,000. The median sold price is $950,000, up 17.3% from this time last year.
We currently have 1 month of inventory and the average DOM (days on the market) is currently 19 days.
Bottom line: going up.
You have received excellent responses from Carl Medford, Terri Velios and Roger.
Yes prices are going up rapidly all over San Jose. Multiple offers and overbids over the most recent closed comparable sales are the norm.
As Terri Vellios pointed out we now have very low inventory and large numbers of well qualified buyers competing for the few remaining houses.
As far as how long it will continue: The economy here in the Silicon Valley is rebounding. Many people are now confident they will have jobs that are sufficiently stable that they now feel comfortable buying a home. As long as the economy continues to improve, I expect that trend will continue.
There are far more well qualified people who want to buy homes than there are homes available here in the Silicon Valley.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (4080509-6218
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Overall the current trend is still up. by 1%-5% or more means e.g. if a home is 500K, it may get sold between 500K-525K unless there is some issue, which can be a location or anything of that kind but there are always exceptions... Recently I have seen below asking price offers than before...
There are several factors play the role when it comes to price, selling, and desirability: This is especially true for the Entire Bay Area. i.e. Location, Schools, and Commute. Every person has their own criteria.
If your price range is up to $400K, there are more eligible buyers, hence more competition and leads to multiple offer situation, doesn't matter the condition of the home. Most of them are First home buyers and investors... The inventory of these types of homes is too low....
If your price range is from 401K-650K, there are lesser buyers compare to 400K range but then the criteria adds Town Home and Single Family as well. And since we are in Bay Area, there are several buyers in that range.
If your Price is higher than 650K then the equation changes, though the homes in general are selling higher, however, I have got good deals to people in that range.
As per my analysis, this trend will continue to be going up due to the fact that interest rate is too low and the prices are still reasonable than what they used to be.. It fetches more money compare to higher interest rate back in late 90s and early 2000s.
Location is always a factor, particularly the zip code you mentioned... 95135 and for that sake 94539 (Fremont), 94582 (San Ramon), 94087 (Sunnyvale) , Cupertino, Palo Alto, Los Gatos (High End Homes) etc etc... Homes are getting multiple offers.
Not sure how far this trend will go... Rest god knows how intelligently our policy makers add things to keep it consistent or better.
I hope I answered all your doubts and questions...
Timothy Crofton Real Estate