San Jose home prices show huge year-over-year gains
Home prices have been rising in many metros across the country throughout the fall, which has led many experts to feel confident about the housing market going forward. In fact, recent data from Lender Processing Services suggests that September was a particularly strong month, especially in regions in the western part of the country. Some cities that were hit particularly hard during the recession of the late 2000s saw strong rebounds during September, including Las Vegas and Detroit. People considering buying one of the homes for sale in San Jose will be happy to know that this city posted some of the most substantial year-over-year gains during September.
According to The Wall Street Journal, home prices in San Jose rose 11.3 percent between September 2011 and September 2012, which made the metro home to some of the fastest-appreciating houses in the country. The improving confidence among buyers is one of the major contributors to this uptick in home values, though it is not the only one.
According to the source, rising rents in growing cities like San Jose have spurred many ambivalent buyers to get off the fence and enter the housing market. As the recovery began to take hold, many intrepid investors began buying properties that they could convert into rental units. Cities with relatively strong employment and attractive amenities, like San Jose and other metros in the Bay Area, contributed to the success of this tactic, as many residents resigned themselves to renting until the market improved.
Now that the market has returned to pre-recession levels and home values show no signs of reversing course, many fence-sitters are beginning to ditch their rented apartments for homeownership, the source reports.
Disappearing distressed properties
Another factor in the continued rise of property values in cities like San Jose is the incremental disappearance of distressed properties. As recently as the spring of 2012, foreclosed homes and other distressed properties clogged the market, weighed down sales prices and prevented homes toward the top of the price spectrum from selling. As the market has sloughed off these properties, though, many buyers have once again turned their attentions toward higher-end homes. Ultimately, this has allowed the median home price in San Jose to climb back to its pre-recession peak.
With rents remaining high and distressed properties mostly cleared from the market, now may be the ideal time to find your dream home in San Jose.