San Jose Real Estate Trends | Market Update MARCH 2020

Are you looking for real data about
the San Jose real estate market? Are you wondering about local stats and
which direction the market is trending? Well, stay tuned as we
dive right into that. Hi, I’m Theresa Wellman,
your local San Jose, California realtor with homeowner, I strive to help my clients make wise decisions for themselves based
on real data and step-by-step guidance. So, today we’re going to cover real
market stats and go over some of the indicating metrics that’ll tell
you where the market is headed. So, let’s jump right into the computer
and look at the real charts. Okay, so here we are with a little bit
different view than I’ve done in the past. So, if you like this view, please comment
below. I’d appreciate your feedback, but this is a highlight of kind of
the market and where it’s headed. So, we’re comparing data to
last month. As you can see, the average price was
up 2.1% for San Jose, and the number of sales was up 11.5%
so great indication of the market increasing. So today’s market is a seller’s market
with days of inventory all the way down to 25 that means all single family homes
on the market will sell in 25 days at the current rate of sales.
So, that’s a really fast pace. Pending sales are up 48% while inventory
is only up 21% so we have an imbalanced there as you see, um, which is creating multiple offers and
a sales price to list price ratio on average of 105.7% so we’re
going to continue to see
the sellers market until we have a really huge increase of inventory
and it and a shift in that imbalance. Currently there is 226 active homes on
the market in San Jose with over 360 pending. So, that means 61% of the single family
homes available for sale are in contract. Wow, that’s a really hot moving market. So, now let’s jump over to the chart
just to give you an overview of the way things have been traveling and
going up and down seasonally. So, you can see here we are still at
extremely low inventory comparing to late 2017 early 2018 and we were seeing
a price increase because of that, which I expect that to continue again
until that supply and demand imbalances is fixed a little bit. The only potential unknown or thing
that could hold the market back would be this threat today of Corona virus
and we don’t have much in this area, but there are a lot of precautions
being put in place and definitely stock market has been all over the place as
well as consumer confidence is down. So, that is affecting some
of the buyer’s mentality. I have seen in the higher end that buyers
are pulling away because their money is fluctuating in the stock market or
just because they’re not sure of financial stability right now. And I don’t know
how much that’ll affect the market, have not seen that on the lower end
yet, but only time will tell of course. So, I do want to quickly look back at
the Santa Clara County data all the way back to 2003. Why 2003? Well, that was when SARS actually hit an April, 2003 in terms of curious to just compare
or to see what happened during that time. So, inventory dropped drastically
during that time. And I think again, maybe that was consumer confidence. The stock market then was not as uneasy
and you see sales actually continued and were healthy prices modestly
appreciated very modestly. So, um, I would say we had a
pretty healthy market. It actually spurred on maybe a little bit
more crazy of a healthy market because the inventory drops so much. Um, but today’s inventory levels are nowhere
near what we saw back in the early two thousands. We’ve been running really low inventory
because of all the jobs and high-tech care. And today with those
really low interest rates, we of course are seeing buyers jumping
in and the affordability being much better. So, take a look below in my comments
for links to unemployment and interest rates. Interest rates are 3.5%
for 30 year fixed or lower, and the unemployment
is still extremely low. So, we are in a very healthy market, so stay tuned to see how things shape
up this spring. Thanks for watching.

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