Realtor.com reports that SAN JOSE, CA ranks #1 where Home Prices have fallen the most, in their findings, dated May 20, 2019. Most recently, the real estate market has experenced a shortage of available homes for sale to balance the demand of Buyer’s needs. Combined with super low interest rates, the results were that the Bay Area housing sales prices escalated at record-breaking speed from years 2011-2018. This year has delivered a “cooling-off” phase, in some areas, such as San Jose, CA as prices have softened and inventory has increased.
Houses priced right are still selling quickly, and some “over-asking.” The market is relatively balanced, and favorable for both Buyers and Sellers. The mortgage interest rates are low and there are more homes to choose from.
Curious how other cities were rated? Read the Realtor.com report HERE: https://www.realtor.com/news/trends/2019-where-home-prices-falling-the-most/ “Falling Stars: You Won’t Believe the 10 Cities Where Home Prices Are Down the Most” for more information.
Jeni Pfeiffer, Broker Associate Realtor
Courtesy Tony Guaraldi, VP of Mortgage Lending
Is the market too crazy? Should 1st time home buyers “rent for a while until the market slows down” and throw in the towel for now? Does it still make sense to pay these home prices or are they better off renting right now?
The answer as to whether or not they should buy a home vs. renting when you look at the numbers is resoundingly YES!!! Let’s take a look at this example in Campbell . . .
A current listing on the MLS today is 1360 Hoffman Ln Campbell, CA which is a 3 bed / 2 bath with 1,331 square feet for the bargain price of $949,000. The typical first time buyer starter home is now around 1M in Campbell. If we look at Craig’s List for a similar place to rent this morning you can find 1638 Ensenada Dr, Campbell which is also a 3 bed / 2 bath house that is 1,284 square feet that is listed for rent at 3,600 per month. Continue reading