San Fran and Oakland are deep into a DOOM LOOP. Now we see that to the south of them San Jose is about to join them.
“San Jose, California, saw new listings rise nearly 50 percent in June compared to a year ago, a signal that property owners in the city are increasingly looking to sell their homes in one of the more expensive housing markets in the country.
Read more: How Much Is My House Worth? How to Determine Your Home’s Value
Along with a high number of listings, the city saw pending sales—a forward-looking indicator of home purchases—jump 18 percent last month from a year ago, according to data from Redfin.
They are getting out while they can—and at a good price. They can work anywhere in the U.S.—so why live in a dying city and State.
California City Sees Flood of Homeowners Trying to Sell Houses
By Omar Mohammed, Newsweek, 7/9/24 https://www.newsweek.com/www-newsweek-com-california-city-sees-flood-homeowners-trying-sell-houses-1922505
San Jose, California, saw new listings rise nearly 50 percent in June compared to a year ago, a signal that property owners in the city are increasingly looking to sell their homes in one of the more expensive housing markets in the country.
Read more: How Much Is My House Worth? How to Determine Your Home’s Value
Along with a high number of listings, the city saw pending sales—a forward-looking indicator of home purchases—jump 18 percent last month from a year ago, according to data from Redfin.
Other cities that experienced a jump in listings included Seattle at nearly 29 percent, Miami at 25 percent, and Boston at 24 percent, while Montgomery County in Pennsylvania saw a 22 percent increase.
The increase in options of homes to buy in San Jose has been accompanied by soaring prices. The median sale price of a home jumped nearly 15 percent in the year through May, to $1.5 million, according to Redfin. Despite the high costs, May saw 660 properties sold, a 19 percent rise from the same time last year.
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“Most homes get multiple offers, often with waived contingencies,” Redfin’s analysis points out. “The average homes sell for about 8 [percent] above list price and go pending in around 9 days.”
Nearly 80 percent of homes sell above the listing price, according to the Redfin study.
The housing market in San Jose appears to bucking national trends, where high mortgage rates and expensive prices are keeping buyers away from purchasing a home.
Mortgage rates were up over the last week to 7.13 percent on 30-year fixed rate loan. The cost of high home loans has depressed activity in the market at a time in the summer when the housing sector is generally at its peak. Mortgage applications were down 3 percent for the week ending June 28, and were 12 lower than at the same time a year ago, according to data from lenders.
Demand has also waned. Redfin’s Homebuyer Demand Index, which tracks requests for tours and other homebuying services from the company’s agents, plunged 17 compared to the same time a year ago, though was unchanged from the prior week.
But in San Jose, a quick glance at recent sales in the city reveals that a 4-bedroom, 2 1/2-bathroom home of about 2,000 square feet sold for $2.5 million from an offer of $1.5 million. Another property with 3 bedrooms and 2 1/2 bathrooms sold for $1.25 million, 26 percent above the list price.
When your income gets threatened or lost, it is time to pull your funny money out of the real estate you own in the bay area but can no longer afford to live in because of high property taxes, rising utility rates, high insurance rates, and in general the increase cost of living.