I applaude with the San Jose Redevelopment agency is doing and has done with Story Rd. Having said that, I dont see these recent developments having a great impact value wise on the houses in the area. It will no doubt create jobs, and make the area look a whole lot better.
The main reason i dont see an immediate positive impact in the Alum Rock and East San Jose Area is more due to the huge reliability that the area has and had on Subprime Loans, As well as 100% Financing. These factors have created a substantial increase in inventory, foreclosures, and short sales.
This can be seen in recent statistics in the Alum Rock Area 4.
For the 3rd qtr in 2007. There was a current inventory of 672 listings, with 69 closed sales. These selling at a bit over 98% of listing price, and averaging 66 days on the market.
Compare that to one year ago.
3rd qtr 2006. Inventory was at 338 and closed transactions of 195. Selling at close to 101% of listed price with an average days on the market of 37.
statistics taken from mls.
If you own in the area, the market is adjusting and the new developments will make it a nice place to live. In my opinion it will not increase the homes values because of the current inventory. That being said i think there is tremendous oppurtunity to buy in the area with improvements being done and the large inventory there is a nice selection of affordable homes in the area for first time home buyers. Its a buyers market and especially in an area like this.