Housing market in San Jose improves

There was a time when many Americans once considered homeownership to be a rite of passage and assumed that it would happen for them sometime in their adulthood. However, the housing bust of the mid-2000s caused many people to begin doubting their ability to afford owning their own home. Nearly a decade after the crash, American adults are once again starting to think positively about purchasing a house in one of the many improving metros across the nation.

Potential homebuyers looking at California cities may want to consider San Jose. This metro is rapidly growing and features many positive qualities.

San Jose's strengthening economy
Before a potential homebuyer commits to living in a metro, he or she often researches the local economy. This person may find that San Jose features a steadily growing economy with many positive qualities.

The annual median household income in San Jose is $76,281. According to HomeInsight, the median household income reported by city residents has increased 63.57 percent since 1990.

Housing statistics continue positive growth
According to ALTOS Research, the median price of a single-family home in San Jose was $569,052, as of November 2, 2012. Broken down by price per square foot, a potential homebuyer can expect to spend about $336 for per 12 by 12 inch space.

Homes in this region have had a two to five year price gain of 9.28 percent, reports HomeInsight.

Available real estate in San Jose is plentiful. The source claims that as of November 2, 2012 there were approximately 1,186 properties listed as for sale in the greater area. In addition, it takes the average house in San Jose about 90 days to be purchased - significantly down from the beginning of the year when it took about 160 days for a homeowner to complete the closing process on an average property.

It appears that plenty of people are noticing the attractive qualities of living in San Jose. HomeInsight claims that the population of the California city is 926,799 – an increase of 13.76 percent since 1990.

Mortgage rates remain affordable
The results of the Freddie Mac Primary Mortgage Market Survey found that mortgage rates are remaining at historic lows. For the six weeks preceding the November 8, 2012, fixed mortgage rates have risen slightly, yet still remain affordable overall.

For the week ending November 8, 2012, the 30-year fixed-rate mortgage averaged 3.4 percent - up from 3.39 percent the previous week. However, this interest rate is still down in a year-over-year comparison from 3.99 percent. A 15-year fixed-rate mortgage averaged 2.69 percent - down from the previous week at 2.7 percent. For the same period in 2011 the mortgage interest rate averaged 3.3 percent.

"Mortgage rates remained near record lows following the employment report for October. The economy added 171,000 jobs, above the market consensus forecast, and the two prior months were revised up a combined 84,000. The Labor Department also reported that the unemployment rate ticked up to 7.9 percent and that average hourly wages were unchanged," said Frank Nothaft, vice president and chief economist, Freddie Mac.

The improving local economy and overall affordability of mortgage rates in San Jose make the metro a quality place to live. A potential homebuyer can check out the MLS listings in San Jose to see if there is a property he or she can call home in the future.