A Look at the Housing Market in San Jose

Craftsman House
Creative Commons License photo credit: roarofthefour

San Jose is the third largest city in the state of California. Therefore the real estate market in this city is important to the states real estate health on the whole. The median home price for homes in this city was over half a million dollars at the end of April, 2010. There are several homes in the 75th percentile that are very close to a million dollars. In the first quarter of the year the sales price in relation to the homes list price has been over 100%. This is a very good indicator when it comes to what home buyers are willing to pay for their homes in San Jose.

In the month of March homes sales were up 40% from the previous month. The market truly seems to be stabilizing at the very least in San Jose. Many home buyers who have funds for high end real estate will find incredible values at this time. There has been a problem for home buyers obtaining the needed loans to purchase homes; however this is not unique to San Jose. The city has also experienced some very low appraisals for its? homes on the market.

For the month of May, the state of California is offering a tax credit for new homes purchased by first time home buyers. The credit will be 5% of the purchase price or $10k; whichever is the least amount, after calculating all sales figures. This could boost sales of homes in the region significantly as the credit will stay in effect for any closings done before January of 2011.

You may want to consult with a qualified Realtor purchasing in San Jose, as its? a city of neighborhoods. Some of the distressed properties are not selling as fast as Realtors would like. There are some high tech companies in the area that are a draw for those seeking jobs. It?s also significant to note that the city lies near the San Adreas Fault, which is the source of possible earthquakes. When buying real estate in San Jose, earth quake insurance must be considered. A knowledgeable real estate agent will be able to give even further information about the nations 10th largest city: San Jose, CA.