News flash: San Jose is the hottest real estate market in the country right now. Yesterday, the San Jose Mercury News ran another front page story about local residential real estate being off-the-charts-hot. That isn’t much of a surprise, as skyrocketing home prices has created a gripping drama here, and thus frequently appears as a page 1 story, whether it’s for renters, buyers, investors, or folks just priced out of the market and moving away.
What is interesting, though, is that San Jose is now said to be the #1 hottest real estate market in the U.S., according to Zillow. The whole San Francisco Bay Area is a strong seller’s market, of course, particularly the South Bay, Peninsula, East Bay, and San Francisco.
What does that mean for you that San Jose is the hottest real estate market in the country?
What can you expect in the hottest realty market in the country? Here are a few things that we are likely to experience in the next few months because of these extreme conditions:
- continued excessively low inventory that will rise, but not enough for demand (just 387 single family homes for sale in Santa Clara County two days ago, and 397 this moment)
- multiple offers on homes which:
- are moderately priced for its area (not the top tier of pricing, but mid to low ) – esp $800,000 to about $1,300,000 in most areas
- offer a good commute, good public schools, or both without being necessarily in the luxury tier – having both will be “red hot” market (Cupertino is a good example)
- provide a full battery of pre-sale inspections and disclosures from quality inspectors
- provide thorough seller disclosures
- are nicely staged and presented
- include quality professional photography
- are offered with an appropriate list price – not higher than the likely sale price, and usually lower to attract more buyers
- get strong marketing, including being on the open MLS and having the listing syndicated for maximum exposure
- with those offers, many will come with no contingencies of any kind, may include free rent backs, and of course will be As Is sales
- move down buyers and those armed with stock money will be competing in the mix and will have all cash (about 20% seem to be all cash, no loans now)
In other words, for most home owners, it will be relatively easy to sell since San Jose is the hottest real estate market. Many are inclined not to do so right now because they are afraid that if they do sell, they will not be able to purchase something else!
Winners in this market
For those wishing to relocate out of the San Jose or Silicon Valley area, this is an ideal real estate climate, since no where else is quite as overheated as Santa Clara County at the moment. (more…)