According to an article in Forbes, San Jose and San Francisco top the list of best cities for home sellers.
Both cities have some of the most expensive houses on the market and sellers in San Jose have the benefit of a relatively good economy because tech money and venture capital money keep it afloat. It's difficult to overbuild in San Jose, so new construction drops while job availability grows. This makes for the tightest market in the country--home vacancies are at .8%, the national bottom. San Jose is number one on the Forbes list.
Number two is San Francisco. There the conforming loan limit rose from $417,000 to the max $729,750. For the city's home buyers, this makes getting credit much easier. A construction cut has pushed vacancy rates down, and the new Fannie Mae and Freddie Mac limits provide increased exposure to credit.
This affects the surrounding areas as well-- In Santa Clara and San Mateo counties, conditions are the same for sellers. Conforming loan limits are higher, and the markets are just as tight as in San Jose.
From the article--
San Jose and San Francisco came out on top because they fit the profile of a sellers' market-- low inventory rates that were still shrinking, good job creation, a large scale cutback in new home construction and a boost in the credit market from the new Fannie and Freddie loan limits.
The areas surrounding San Jose and San Francisco have equally great sellers' markets, for exactly the same reasons---low vacancy rates and availability, high demand for jobs, and cutbacks in construction. Mix in the boost to the credit market and Santa Clara and San Mateo counties are great places to sell, compared to the rest of the country.
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