San Jose Housing Inventory and Real Estate Prices

366 houses for sale in San Jose 2-27-2013

San Jose housing inventory is critically low, and this is pushing real estate prices higher and higher.  Home buyers are finding that not only do they get outbid on pricing in this market, they are also out maneuvered on terms as others dare to write purchase contracts with no contingencies of any kind or bring 100% cash to the closing table.

Today we’re going to consider the realty market trends for houses (inventory, pricing and market momentum) in the city of San Jose courtesy of Altos Research, to which I have a subscription, and using some other tools as well.  This is helpful information for area home buyers or sellers to better understand the negotiating lay of the land.  (For newcomers: San Jose represents a little more than half of Santa Clara County and is often reflective of how the rest of the county is doing.)

Let’s start with inventory.  How many houses are for sale today in San Jose? Just turned to MLSListings.com and searched – as of right now, there are a measly 366 single family homes for sale in San Jose which are not under contract.

 

San Jose Housing Inventory 30 days

San Jose Housing Inventory the last 30 days

San Jose housing inventory for the last year

San Jose housing inventory for the last year

 

 

 

 

 

 

 

 

Now let’s look at the trends over the last three years – I marked each year’s peak with the green diamond to highlight the pattern.

 

San Jose inventory of houses for sale over the last 3 years

San Jose inventory of houses for sale over the last 3 years

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How is the Blossom Valley Real Estate Market? Months of inventory by sale type

How’s the Blossom Valley real estate market?  How hard is it to sell a house there now?  (Check the Almaden Valley real estate market here.)

About half the active listings of single family homes for sale in the Blossom Valley district of San Jose are either short sales or REOs.  For all of area 12 (our MLS name for this part of San Jose), as of right now there are 124 houses listed and 61 of them are either short sales or bank owned homes (REOs). (Blossom Valley is 2/3 95123 and 1/3 95136.)

Today we’ll look at the market generally and also see how the high end is faring there – most expensive homes being those listed at or over $550,000.

Months of inventory reflects the ratio between available homes (not under contract) with those which have sold/closed in the last month.  That’s the absorption rate, or how fast homes that go on the market are being absorbed by buyers.

 

 

How “hot” is the market in Blossom Valley? It depends. Bank owned homes are flying off the market – particularly the most expensive ones. (more…)

Ratio of Listings to Sales in Silicon Valley Real Estate

Today we’ll look at the ratio & relationship between real estate listings and sales of houses and duet homes in Silicon Valley over the last eighteen months. The goal is to get a sense of the market trends in terms of the overall absorption of homes for sale.  (We’ll give a glance at condo and townhome sales but the focus is on single family homes.) How hard is it to sell a home?  The answer has to do with supply and demand – the number of listings and the number of sales.

In the graphs below, the reddish brown line represents the number of pending sales.  The blue line indicates the number of listings or homes for sale. Put simply, the closer these two lines are together, the hotter the market – that is, the more of a seller’s market it is.  When they are far apart, it’s more cold, more of a buyer’s market.  If the lines cross, it is a wild frenzy (that does happen in one case, as you will see). Below please find the graph for the homes in Santa Clara County overall (all areas).

 

Santa Clara County listings to sales Jan 2009 to June 2010

 

You can see that these two lines pinch together in about December 2009 to January 2010.  Prices had dropped and investors were swooping in! The  market has cooled since then.

 

Santa Clara County condo & townhome listings to pending sales March 2008 to June 2010

Santa Clara County condo & townhome listings to pending sales Jan 2009 to June 2010

 

For condos and townhouses, all of Santa Clara County:Here the two lines  – or the market – were close together for about 3-4 months.  Buyers understood that condominiums in Silicon Valley were bargain priced, and they responded by buying.Now let’s look at various areas around the county.  We’ll take these in Alphabetical order, beginning with Almaden Valley.

 

Almaden Valley listings to pending sales Jan 2009 to June 2010

 

As you can see, the market improved but never got as “hot” as in the county generally.  This is because it’s a more expensive area, and most of what was selling in winter consisted of entry level housing.

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