San Jose CA Real Estate Market | Trends Update October 2019

Are you wanting to know a little bit
about the San Jose area market and how it’s looking as we head into the fall? Well stay tuned as I cover all those topics. Hi there, I’m Theresa Wellman with
homeowner, a local San Jose California realtor. Thank you so
much for tuning in to my channel. If you’re new here, hit that subscribe
button or the bell to be notified of each new video on Tuesday. So let’s get
right into the data and go over straight to the computer. We’re gonna jump right
into my charts for San Jose single-family homes. And let’s bring our
attention over here to the yellow area on the right hand side, that is 2019, all
the way data through September 2019. So we’re first gonna look at the inventory
chart line; that is this yellow line that’s going up and down. It’s cyclical.
There is usually lower inventory in the winter and it peaks sometime mid summer. You can see here, this year in 2019, we peaked in June at 678 homes and we ended September at 559 homes on the market. Now the sales is this green line. Sales were
much lower as you can see in September and they ended up at 364. So pretty low,
but it’s fairly consistent for the fall time, maybe a little bit early. Now the
prices as you can see had really softened at the end of 201,8 which you’re
probably aware of, and started to increase in 2019. They flattened out this
summer and then have started to decrease. So we did have a little recovery on that,
but as you can tell, we are definitely holding around maybe 2017 numbers. Let’s go ahead and look at the next slide which has some lines showing this. So if
we draw the line straight from the median price here of $1,077,500,
demand really drove over bidding and multiple offers to an extreme, so we have
a pretty healthy market. But yes we did experience a slight bubble due to supply
and demand in 2017-2018. But there’s several factors to consider: sales,
inventory…you can tell our inventory is even much lower than what we had in 2013 to 2016. Our sales though also are a little bit lower as you see on this yellow line, but again a very
healthy market. Let’s jump over to my website where we’ve got stats to
specifically draw your attention. You go to market stats at, drop down to San Jose, California stats, you’ll get to this page. I want to
draw your attention to days of inventory. That is up 15 percent from last month!
But, days of inventory, when we hit 90- we’re crossing over into the buyers
market range. As we get close to 90 maybe in the 60-70 range, we’re definitely
seeing sellers losing a lot of negotiation power. So we are heading that
way…definitely, different than what we saw last year, but still technically a
seller’s market. Very healthy. Homes are selling over list price on average still,
and in 34 days or less. I’ll tell you those properties that are ready to move
right in are selling quite a bit faster. So let’s look at the other two factors
that really determine whether we’re having a great economy and a great
market. That’s interest rates, just see the link up here, and unemployment rate.
So let’s jump over to the interest rates. This is a Fannie Freddie survey that’s
taken every week. Currently they’re saying we’re at 3.65% with about half or 0.6 percent fees. And as you can see, interest rates
have slowly declined throughout this year and last fall and so it is a very
great buying opportunity, cheap money to buy. And then if you consider those
softened prices, that we’ve seen, great time for buyers to jump in. Now let’s
look at the unemployment rate in Santa Clara County. Again also peaked in 2009
and it just continued to drop. We’ve had a little bit of ups and downs here, but
in August the number came in at 2.6%, extremely healthy unemployment, so we have a very good local economy, a STRONG
real estate market. We jump back to these charts again, you see that inventory is
continuing to decrease and in the fall there’s definitely less competition for
sellers to go up against. If you’re considering selling, fall is still a
great time to do that. Thank you so much for watching. Again, I’m Theresa Wellman
with Feel free to leave a comment or a question
below. And I’d be happy to get back to you right away.

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