Home prices have been tilting for the past couple of months. What does this mean? Well, it can only mean 3 things.
One, it can mean absolutely nothing given the fact that there is still much demand for homes in the area of Milpitas. This demand is due in part of the growing number of jobs that have been held steady for the past couple of years, most coming from the high tech companies. With new jobs or job relocation some people have found that it makes more sense to buy a home then to rent a home given that the payment for one or the other is very much similar, but buying the home is a much better investment for most people.
Two, it could mean that we are finally adjusting from a highly competitive Milpitas real estate market. Within the past few years starting in 2011 the Milpitas real estate market became an investors dream and at the same time the Milpitas Real estate market was an opportunity for many first time home buyers. Because there were many distressed properties and the interest rates were low both investors and first time home buyers clashed driving the home prices higher and higher each year until recently.
Three, it could possibly mean that we are at the tip of the market shift and we are now seeing the scales tilt towards home prices dropping. Home prices will eventually drop, but this time when they do it will not be like the previous crisis we faced back in 2007 and 2008. This time it will be a gradually. Currently the homes in Milpitas have been maintaining their value, most sellers usually get the price towards what they are asking for their home. For most of last year sellers were receiving at least 3% over the asking price. Now we are seeing that the list price is not the same as the sold price which according to recent sales most sellers are getting 99.1% of the asking price. This is a difference of 3.9%.
Find out what the value of your home is today
So Are home prices falling in Milpitas? I'll let you decide. See the charts above for yourself. This shows the average days that a home stays on the market as well as the sale price to list price ratio. Currently the average days on the market is 62 days, that's almost double compared to last years days on the market of 36. The current ratio of list to sale price is 99% this is compared to last years 104%
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