Overall, the San Jose real estate market continues the trend from February. In March, the most significant number to note for the entire county of Santa Clara is total active listing inventory is alarmingly low at 1641 (1284 for single family homes and 357 for condos and townhomes) Compared this to around same time last year (April 2011) at 3333 combined inventory - that is almost 50% less!
Let's take a look at the local San Jose statistics for the month of March:
1. Number of New Listings - total 941 (single family homes 690 - condos/town homes - 251)
Number of closed (sold) homes - total 1185 (single family homes - 782 condos/town homes - 376)
* Analysis: homes are selling at faster rate than the rate that new homes are coming on the market.
2. Number of Bank Owned Sales, new listings and closed (sold) sales
New listing 119; closed sales 169
3. Number of short sales, new listings and closed (sold) sales
New listing 241; closed sales 505
* Distressed (bank owned and short sales combined) new listings account for about 38% of the market; distressed closed sales account for about 56% of the market. The discrepancy is explained by the delayed response from the short sale banks.
4. Sales price and listing price median:continued trending upward
5. Sale price to list price and months of inventory
SP/LP ratio: 100.0% month of inventory: 3.2
Analysis:
1. With limited inventory, there are more buyers per number of homes available to purchase. For buyers, it's important to understand that most listings are getting multiple offers and it's common to see 10+ offers. Because of excess demand & multiple offers, homes are getting at least FULL LIST PRICE, and in many cases 2-3% over asking price with a good conditioned home located in good neighborhood.
2. As we enter the prime spring selling season, the market isn't turning up the usual supply of homes. Some of it can be explained with the homeowner desires to wait until the prices trend up to where they don't have so much loss. Another explanation is the short sale factor. With the economy at the way it is, a large group of home owners continue to experience financial hardships. Sellers who are contemplating short sales generally take longer to decide to sell because it is emotionally difficult to let go of the home they love.
Conclusion:
For buyers/investors: work with an experienced agent will save you both time and money. In this competitive market, having the right strategy in place to win in multiple offer situation is key to getting the home you love.
For sellers: work with an experienced agent with the right marketing plan that takes advantage of the large motivated & qualified buyer is key to success in getting you top dollars for your home.
For more information, please get in touch with me for an obligation-free consultation.
*All information are deemed reliable but not guaranteed. Statistics are done by MLS and are current as of March 30, 2012*
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