The new condo buildings are not generating much activity right now. This is definitely the slow season through mid February. I would suggest making multiple offers right now to see what can be negotiated. Also, consider some of the newer resales - there are some pre-foreclosures that may be very good deals.
I agree with "realty exec" , none of us have a crystal ball. Most agents are going to say "buy now" because interest rates are still fairly low (if you have good credit and a down payment) and prices have dropped over the last year anywhere from 2-10% depending on the area. I have clients in the downtown area who have decided to hold onto their condo and not sell because the competition from the new developers in the area is pretty tough. Developers have to rid themselves of inventory and that translates into incentives. There are also several new developments that are due to open in the beginning of 2008 and you can bet they will be competitively priced.
It is my crystal ball prediction that prices will continue to drop into 2008. How low per area is harder to predict. The areas that have higher rates of foreclosures will have the largest price drops. See the recent article in the Mercury News on where those areas are located. (http://www.mercurynews.com/realestatenews/ci_7724733)
Experts in the U.S. are predicting prices could drop to 1997 over the next year or two. They also predict a slow recovery to start in late 2009. Others predict the job market in Silicon Valley will offset the issues with foreclosures. I think that is somewhat true because when you look at the high tech, good school, professional neighborhoods like Cupertino and Mountain View, competition is still fierce. Prices have continued to rise even with a reduced sales volume. Some agents are still reporting multiple offers on homes in Cupertino.
In my humble opinion downtown prices will experience price pressure mostly from the new units being built. They may also offer the best deal for your money if you decide to purchase in 2008. Using a Realtor will guarantee your interest are best represented with a developer.
I think you are smart to ask the question. I will be interested to see how others reply. Contact me if you want to see more specific stats for downtown. I am happy to help. Thanks, CJ
my first question is are you renting in San Jose now?? If not than if you are not ready to buy now, than rent in San Jose, so you can get a better feel of the different areas. This way when you are ready to buy you will know what and where to look. Prices may or may not drop much farther. Unfortunately there are too many variables to look much past 3 months at most. My gut is that prices will not drop much farther.
There are tremendous new developments downtown san jose, and the developers are sweetening the deal to meet quota's but make sure with any new development that you use a realtor. You dont want to walk in a purchase alone.
email me if you have area specific quesions and good luck.
Let us know if you moved to San Jose and then buy.
Its been nearly 2 and a half years . Since then the market has been interesting.
Let me know if you are looking to buy now if you have not so far or sell.
You may have missed it, the question you responded to was asked in 2007. If you are considering selling your condo, there are several other venues to get it noticed. Best of Luck to you.
I would really re-think your decison to buy in downtown San Jose. You mention that you have a three year window on the unit and then you might either sell or rent it out. If you look at the near future for downtown construction, the city will add approximately 4000 new units. How do you think you'll fare as a resale unit in three years with that many new units coming online? Do you think you'll receive good rents (again with a huge amount of new units coming on as competition)? I would suggest buying in a different area where the level on new contruction won't kill any future appreciation.
If you see a property that you love to live in and call it home, BUY IT. I'm an optimist and I think prices will go up in 2008, however I cannot guarantee that. Since you're thinking to purchase a home to live in for a few years and then use it as rental, and your intention is long term, the difference in price of buying now or in eight months will be negligible down the line. So do what makes you happy right now!!
If you are renting now then you are wasting money by not buying and waiting only costs you more. If you own right now then it is a different story, wait a few months.
The new condo developments have great deals currently which will probably not last much beyond February. Once those deals are gone then the rest of the market will respond accordingly.
Incidentally, there are some great first time buyer programs offered in the San Jose area currently, up to 100% financing and at below market rates.