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.
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. Itâ€™s important to remember that the typical purchaser of a townhouse is a first-time, entry level buyer. Itâ€™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.
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.