Certainly not that prices are getting cheap around here. Nope--rest assured folks, even though home prices HAVE fallen nearly 13% in the San Jose area over the last year, the median price ($775,000) is still higher than in any metropolitan area in the United States.
San Jose has been spared some of the damage that racked Sacramento and parts of Southern California because of job growth. I've talked about this before in previous blog posts, but it can't be stressed enough when trying to understand the market in this area and how to predict its future. As long as the tech sector continues to produce jobs, the real estate market in San Jose has a steady foundation.
But even in those areas where prices have fallen significantly and potential sellers are trying to readjust to their new property values, there's still hope. Buyers are attracted to lower prices in previously unaffordable neighborhoods--there were 26% more sales in CA in the second quarter. The jump in sales and the renewed action in the market might hint at another sign of promise for the real estate market--that we've either already hit the bottom, or we're going to soon.
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