So far this month, 350 single-family homes have closed escrow in San Jose at an average price of $779,000 – that’s 56 percent higher than the $500,000 they were selling for at the bottom of the market in January 2012. We’ve come a long way in a very short time, baby!
Now for the gnat in your Pinot – which, by the way, is the perfect wine to pair with your Thanksgiving turkey: These home price gains continue to be built largely on a foundation of extremely (almost historically) low inventory, and not necessarily accompanied by any great demand.
More underwater homeowners popped above the surface during the third quarter than at any time since the real-estate recovery began, according to a new report from Zillow.com.
The report bring perhaps the most encouraging news yet for both the U.S. and San Jose real-estate markets, which has seen rapidly rising prices year-over-year – but a dearth of inventory leading to fewer sales.
The median price paid for a California home in October was $357,000, up over 25 percent from a year ago, according to real-estate numbers cruncher DataQuick. It marked the 20th straight month of annual price gains and the 11th month in which those gains exceeded 20 percent.
Much of that gain can be attributed to an ongoing dearth of inventory. A big cause for that supply shrinkage is in the distressed-sale category. Just 6.6 percent of California homes sold in October were foreclosures, the lowest level since 2007, according to the California Association of Realtors. READ MORE …