Bay area homes sales are up - strengthening the housing industry in San Jose
The housing market in San Jose is quickly being recognized as one of the stronger ones by industry experts. Regional housing figures are painting a pretty picture of increasing home sales, decreased vacancy rates and improved property values. As the local economy continues to improve, more potential homebuyers will consider purchasing one of the houses for sale in San Jose.
Housing news and analytics firm DataQuick claims that the number of homes sold in the Bay Area increased in a year-over-year comparison for the 16th month in a row in October 2012. Not only did the volume of properties purchased during this time period improve, but the median price paid for homes rose for the sixth consecutive month.
In San Jose, the median price of a home is $519,989, according to HomeInsight. The average property has a home price gain of 9.28 percent over the course of two to five years. The median price of a San Jose home is significantly higher than the median cost of a Bay Area house. DataQuick claims that median price of a property in the Bay Area was $416,000 in October 2012, though still up from $350,000 in October 2011.
The housing market in San Jose is indicating that the local economy is steadily recovering from the bust of the mid-2000s - despite some difficulties potential homebuyers may be facing.
"We're still watching the market regain the ground it lost after 2007. It's unclear exactly much of today's apparent price increase reflects actual growth, and how much reflects a change in market characteristics. The two factors obviously play into each other. We're definitely seeing less distress and foreclosure activity, and more mid- to up-market sales. Supply is limited, and getting through the mortgage process is still rough," said John Walsh, president of DataQuick.
In addition to improving home prices and purchase volumes, real estate experts claim that San Jose also has the nation's lowest housing vacancy rate. The Silicon Valley/San Jose Business Journal reports that more than 95 percent of all housing units in the region are occupied.
The U.S. Census Bureau has found that the San Jose-Sunnyvale-Santa Clara area has a 4.3 percent vacancy rate – leaving only 650,700 housing units available. The decrease in inventory helps boost demand, which can have a positive impact on a city's housing market.