hort sales may be San Jose’s sweet spot for prospective buyers, representing nearly half of homes on the market but immune to the area’s recent price increases
SUNNYVALE, Calif., Oct. 2, 2012 – All eyes are on the San Francisco Bay Area home market -- low inventory numbers are pushing double-digit increases in median price, and stories of bidding wars across Santa Clara County have agents cautiously optimistic for better days ahead. With the area’s heavyweight San Jose homes accounting for more than half the County’s total residential activity, MLSListings Inc took a look at the single family home market, uncovering what’s selling, and the significant opportunity short sales offer – for now.
Short sale prices remain low while rest of market increases
The price of a San Jose short sale remained virtually unchanged, from $388,500 in Aug. 2011 to $390,000 in Aug. 2012. Comparatively, the median price of San Jose real estate for single family homes increased 17.5 percent from Aug. 2011, to $575,000 in Aug. 2012.
Short sales command broader share of homes on market
In Aug. 2011, 621 San Jose homes listed as short sales represented 36.5 percent of all properties on the market, but the 886 listed in Aug. 2012 shows an increase to nearly half of San Jose inventory. In comparison, the overall number of San Jose homes on the market increased just under 10 percent in Aug., year over year.
Despite inventory growth, number of actual sales for short sale market decrease
The number of San Jose short sales fell 26 percent year over year, to 117 in Aug. 2012. Comparatively, the number of overall sales in San Jose dropped just two percent year over year.
"The short term pattern seems to indicate more inventory coming on the San Jose short sale market,” said James Harrison, RCE, CAE, president and CEO, MLSListings Inc. “Fewer homes leaving the market could provide opportunity for short sale buyers in the months ahead.”
About MLSListings Inc
MLSListings Inc is the premier multiple listing service (MLS) for real estate listings in northern California, representing more than 16,000 MLS subscribers and facilitating more than $70 billion in annual real estate transactions. The company maintains a public real estate search for homes for sale at www.mlslistings.com.