Bay Area features strong residential gains in the third quarter of 2012
The housing market in the Bay Area is posting positive numbers. According to expert testimony and new real estate numbers, housing prices are rising, inventory levels are steadying and mortgage rates are remaining affordable. The homes for sale in San Jose are giving residents access to a stabilizing local economy, which could positively impact an individual's financial stability.
The Bay Area market is returning to normalcy
According to real estate news and custom data provider DataQuick, there were 7,296 new and resale homes sold in the Bay Area in November 2012 - down 6.4 percent from 7,795 in October 2012. However, home sales were still up in a year-over-year comparison by 15.5 percent from 6,317 in November 2011.
Experts remain positive about the state of the market despite the drop in home sales from October to November because such a decrease is typical for the season.
The median price paid for a home in the Bay Area was $438,000 in November 2012 - up 5.3 percent from $416,000 in October and up a whopping 20.5 percent compared to the same month one year earlier. DataQuick claims that November 2012's median sales price was the highest the local market has seen since August 2008.
The Bay Area city of San Jose has been featuring positive housing figures. According to ALTOS Research, the median single-family home price in the city was $530,013 as of December 21, 2012. The median real estate price in the metro has hovered around that figure for about a month, which indicates a stable housing market.
"Current trends are likely to stay with us well into spring, at least. One of the variables that could really impact the market would be supply - how many homes are put up for sale. With the mismatch between supply and demand, there’s upward pressure on prices," said John Walsh, DataQuick president.
Consumers are showing interest in home buying
The housing market is steadily improving, which has prompted potential homebuyers to pay more attention to the performance of local real estate.
"The tide has changed," real estate expert Ivy Zelman told The Wall Street Journal. "People feel it's OK to go back into residential real estate - it's no longer taboo - and that change in sentiment could have a very powerful effect."
Rising home prices and a decline in the number of available properties have created the perfect storm for increasing demand. However, these are not the only characteristics giving potential homebuyers positive feelings regarding the market. The Wall Street Journal reports that banks are now offering current homeowners that hit a patch of financial difficulty a number of new options, including modifying loans or approving short sales.
Millions of potential homebuyers are eyeing the improving market and doing their research to determine if they can afford to buy a house. Real estate in San Jose offers an individual the opportunity to live in an improving metro, with a strengthening economy, decreased unemployment rate, diverse culture and high-quality school system. The city offers something to anyone and everyone looking to own a home in a California metro.