Sell now or hold to sell the house in mission SJ area?

Asked by Msjfr, 94539 Sat Dec 27, 2008

I want to sell my home in Mission San Jose area. I talked to one agent who suggested that I should put my house in market ASAP as mission san jose market is expected to go further down in next two -three quarters and may take upto two years to recover to today's level.

I'm looking for 2nd opinion/advice.

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The Medford…, Agent, Fremont, CA
Sun Dec 28, 2008
BEST ANSWER
Msjfr

Due to the high school scores, home prices in the Mission San Jose area were holding their own until recently. It was not uncommon to see multiple offers on many properties. Unfortunately, market forces from a large number of REOs (foreclosed homes) have been driving the prices down, especially at the upper end of the spectrum.

Due to its overall high school scores, Fremont as a whole had been keeping its values higher than surrounding cities, but now it appears that Fremont prices are racing to catch up to the rest. Mission San Jose prices are following this direction.

The most important trend in the Mission San Jose is this: the lower priced properties are selling while higher priced homes are not. This is driving the median price down substantially. Owners of higher priced homes, in order to gain a sale, are now being forced to price their homes VERY aggressively compared to previous highs.

To give you an idea of what this looks like graphically, click the link below to go a post that demonstrates what is happening in the Mission San Jose area.

http://www.trulia.com/blog/carl_medford/2008/12/market_decli…

I would agree with the agent with whom you discussed the sale of your home. There does not appear to be an easing of the downward trend anytime in the near future for Mission San Jose. However, the type of home you have does factor into the equation. While single family homes and condos have seen sharp drops in prices, the townhouse market has been holding its own. It’s important to remember that the typical purchaser of a townhouse is a first-time, entry level buyer. It’s conceivable that townhouses are currently being viewed as the entry point to Mission San Jose without the high price tag. In fact, the average price of a 94539 townhouse is almost half the average price of a single family home.

Click below to see comprehensive data for 94539 area townhouses and condos.

http://www.trulia.com/blog/carl_medford/2008/12/townhouses_h…

While unfortunate that our data service does not distinguish between Mission San Jose, Weibel and Warm Springs, these numbers give a good idea of what is happening in the region.

Here are my conclusions:

1. If you own a single family home, you might want to consider selling now and staying out of the market for a while. Make sure you have a competent professional run the numbers for you and factor in income taxes as a part of the equation.

2. Some are suggesting that we will not see 2005 prices again until approximately 2014. There is another wave of REOs that will be hitting the market soon. I believe some areas are already low enough to sustain the onslaught without much more price deflection. I do not believe this is the case for the 94539 area.

Please let me know if you would like any additional information.
Web Reference:  http://www.carlmedford.com
1 vote
Barry Ripp, Agent, Fremont, CA
Wed Feb 11, 2009
Well,

That's a lot of advise. But I like to keep my answer simple. KEEP THE HOUSE. It will go back up. Homes in the better school areas do better than other areas. That's why prices in MSJ have not dropped as much as the rest of Fremont. And furthermore, I don't think they will drop a lot more in the next 12 months.

If you can afford to keep it, then keep it. And sell it when prices go up. It will take a few years. The home prices everywhere will stay flat for a while after we hit the bottom, so don't expect rising prices any time soon.

I believe in real estate as a good investment, if you do too, then keep it and rent it out if you must move. But another house this year while prices are low. If you can afford this, then you are on your way to future wealth.

I hope this helps.

~ Barry Ripp
Licensed since 1985
Real estate broker
Property Managment
510-386-5066
Web Reference:  http://www.barryripp.com
1 vote
Brian Ripp, Agent, Fremont, CA
Sun Dec 28, 2008
Hello and Happy Holidays,
The Mission San Jose has dropped in value over the past several years, however not as much as other parts of Fremont. The market in the Mission area is good, and should continue to do well. The real estate market is not expected to do much better in 2009. So, if you need to sell, yes now (January) would be a good time.

I would be happy to discuss the recent real estate activity in your neighborhood. And my custom marketing techniques to sell homes.


I am very fimiliar with Fremont and the Fremont real estate market.
Born & raised in Fremont & Mission San Jose, and in real estate since 1985.
Sales & Property Management.

Feel free to contact me if you have any questions.
Good luck,
Brian Ripp, Broker
Realtor, CRS, GRI
Realty World-Viking Realty
Realtor since 1985 http://www.BrianRipp.com
510-794-9006 wk
510-710-4905 cell
1 vote
george, Both Buyer And Seller, 94539
Wed Mar 4, 2009
Sell and rent in Mission SJ house for next two years or longer. It will take lot longer to recover than 2 years. Most likely, we will go down for at least 2 years and would stay flat for another 2-5 years. See the world. The damage done by banks to the economy is still unknown. Eastern European economy is trouble along with Western European. Japan, Korea, Taiwan, and Thailand export is sufferinng due to Europe and the US. We still have 60 trillion dollar of CDS. AIG, FannieMae, Freddie, and other zombie banks over our head. The best we are going to expect is 500 billion deficit four(4) years from now. With SP500 at 1996 or 1997 level, nothing will be spared including Mission SJ. The economy is shedding over 500K job per month for four straight month and no end in sight. That is scary. Let's just hope Obama will pull us out of this slump.
0 votes
Charo Bhatt, Agent, Fremont, CA
Thu Jan 15, 2009
Hello Msjfr,

Well, I have some questions for you before the answer can justify your particular scenario

1. Why do you want to sell your home? Do you want to buy another bigger home, down sizing or moving
out of the area?
2. Do you have any mortgage on your property? What kind of loans do you have?
3. If you sell it today's market will this become a short sale or a regular sale?
4. Have put lots of money in upgrading your home lately that you may or may not get back in today’s
market?
5. What are the tax consequences? Are you making loss or gain or over 250 or 500K?

In my opinion, at any given market time, if you are able to benefit by selling one and buying another one
that’s the best thing to do.

Many of past clients are buying bigger home and selling the smaller home or a town home. It’s the market for first time home buyers, move up buyers and investors.

If you need any further information or a consultancy at no cost or obligation feel free to contact me.

Good luck on your endeavor.

Charo Bhatt
Cell: 510-381-2105
http://www.HomesByCharo.com
0 votes
Slewfoot, Home Buyer, Sacramento, CA
Sun Dec 28, 2008
Carl hits it pretty spot on, the Alt-A resets are beginning to come full swing and will smack the upper end Bay Area prices in a similar fashion as the subprime resets took out the low end areas.
0 votes
Ken Vasan, Agent, Fremonet, CA
Sun Dec 28, 2008
Mission market has not corrected much. Watch closely Treasury actions and it may have unintended consequences in places like Mission. I leave it to your imagaination what I mean by "unintended Consequences"
0 votes
NonRealtor, , 23456
Sun Dec 28, 2008
Sell now, or you'll be out priced forever. Don't chase the market--price it right if you really want to sell. Good Luck
0 votes
Jillian Mason, Agent, Monroe, NJ
Sun Dec 28, 2008
In the next few years, you are going to see double the amount of short sales. These short sales are going to significantly alter the value of your home. Depending on the reason you want to sell, now might be a good time for you. Remember, you can always receive offers and you don't have to accept them. However, I do not suggest floating your home on the market just to see what you can get. If you're going to sell, be serious, listen to the advice from your agent, and price correctly. Best of luck.
Web Reference:  http://www.jillianmason.com
0 votes
blaison samu…, Agent, Santa Clara, CA
Sat Dec 27, 2008
Msjfr,

No one can predict how long will this market be like this or when it will go up but the way it's going it will take couple of years to pick up the value. The real question is why do you want to sell at this time, check all the numbers whether it will be beneficial to you or not at this time. If you can hold for couple of years then hold it because you wont get the price as compared to last year but if you really need to sell then put it on the market.

If you are having financial difficulties and cannot afford monthly payment and you owe more than the property value then you need to list with an experienced short sale agent, not any other agent so that he can take care of all the paper works properly.

Blaison Samuel
Certified Short Sale Specialist
510-366-9405

Prudential California Realty
0 votes
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