The housing market in Santa Clara continues to rebound
Real estate in Santa Clara is gaining in value, according to the latest industry reports. As such, potential homebuyers may want to consider purchasing a property in this California metro.
The Silicon Valley/San Jose Business Journal reports that late 2012 home prices are now about the same as they were in 2005, and only 2006 and 2007 had higher average prices. The average cost of a single-family home in the metro was $883,185 in November 2012 - that is 15.9 percent higher than the average recorded cost in November 2011 of $762,007.
According to experts, this increase in home prices stems from the decrease in available inventory in the region, which could mean competition for homebuyers. The desirability of the housing situation in Santa Clara may result in a bidding war between interested buyers.
November's inventory of single-family homes was 1,617 - 49.85 percent of what was listed for sale in November 2011. The demand for condos and townhouses was strong in November 2012 as well, which could drive up demand for single-family houses. The Silicon Valley/San Jose Business Journal reports that inventory levels for these smaller properties was at 554 in November 2012 - 40.82 percent of the 1,357 available in November 2011.
Economists predict housing recovery to continue into 2013
The U.S. housing recovery seen in 2012 is expected to continue into 2013, according to economists. The Washington Post reports that a panel of 100 professional forecasters predicted that home prices will rise 3.1 percent in 2013 after already increasing 4.6 percent in 2012.
According to these experts, the rise in home values will be the result of increased consumer confidence, changes to the mortgage interest deduction and decreased inventory levels.
"An organic recovery in the housing market really took hold in the latter half of 2012, and this improvement is echoed in some of the most optimistic price projections we've seen in years from this group," economist Stan Humphries told the news source. "Record levels of affordability and an improving overall economic picture have really helped buoy the market and have us well positioned for continued growth, albeit slightly slower, in 2013 and beyond."
As the real estate market continues to gradually improve across the country, property values in high-quality metros like Santa Clara will rise. Potential homebuyers looking to purchase an affordable home in the California metro may want to consider doing so in the near future.