San Jose is considered as the third largest city in California. It is often referred to as Silicon Valley because this is where high technology companies are concentrated. It is also near the San Francisco Bay area, and has a growing population that continues to grow every day, despite the fact that standard cost of living in the area is quite high, including the home values. However, due to the existence of the big companies in the area, there is a wealth of working opportunities for different people to work in a wide array of industries, mostly in technology.
Realty Situation in San Jose, California
There are some things about California real estate that you need to consider before finding homes for sale in San Jose. There are particular price trends, demand trends, overall home inventory, as well as market conditions that you need to know about. This valuable information can help you in knowing when and where you purchase your home in the area.
As of October 2014, the median home value in the area is $724,500. Take note that when we say ‘median,’ it is completely different with the way we refer to ‘average.’ When talking about home values, medians are usually used rather than averages simply because some high-end homes may just significantly skew the numbers. By means of calculating the midpoint or the median, a more exact representation of the prices of the homes for sale in San Jose is determined.
The ‘inventory’ amount refers to the count of real estate properties in San Jose that is for sale. If the inventory is higher, then there is a huge supply to choose from among buyers. This can provide them with good chances of having a bigger say when it comes to price setting. Compared to last year, home values have increased to 10.8%, and is predicted (Zillow) to rise next year at 5.3%. The median price of homes for sale in San Jose is currently at $650,990. Median rent price is at $2,600.
The Cold Market
Marketing conditions in San Jose, California is quite heading steadily in a single direction. With the calculation of the median price, days on the market as well as inventory levels taken into consideration, it is also possible to determine the type of market that it currently has. As of the moment, the home values of the listed homes may last for some months while keeping a current sale rate. This is then called as a ‘cold market’, otherwise known as ‘buyer’s market’. In a market such as this, a cold market can mean the possibility of negotiating lower prices. Therefore, if you are looking at investing in California real estate, this is a good time to do so!