Status of the housing market of San José and its surroundings
San José and the surrounding areas are in demand, making it a sellers’ market.
– Sharad Gupta
SAN JOSE, California, United States, September 21, 2021 /EINPresswire.com/ – As the world slowly heals from the disastrous impact of the COVID-19 pandemic and life begins to adjust to the new normal , it is essential to assess the economic conditions. consequences of the events of the past year and a half. The first case of the novel coronavirus pandemic was not detected until January 2020 in Wuhan, China, although the spread began in December 2019. Fast forward so far, and massive improvements have been made in terms of vaccine development and mass immunization programs being rolled out.
Now that we are on the verge of a change and the stability doesn’t seem overdone, it seems like the best time to start looking for a home and investing in real estate is now. Currently, San José and the surrounding areas are in demand, making it a sellers’ market.
San José-An Introduction
San José is the largest city in the Silicon Valley region and the third largest in the state of California. With a population of 1,009,340 in 2020, San José is among the ten largest cities in the United States. The breathtaking city offers incomparable views and an exciting nightlife. Vertiginous palm trees juxtapose the concrete skyscrapers, creating the perfect balance between nature and man.
A booming demand
San José has a score of 87 out of 100 on the Redfin Compete Score, making the city a very competitive market. Demand for properties in and around San José is high and the market has become hotter since the COVID-19 restrictions were lifted.
Homes in very good areas and in high demand receive multiple offers and buyers are willing to forgo financial contingencies to close the deal. This shows how much the market in San José and the surrounding area is focused on vendors. On average, each home sells for 8% above the listed price, typically staying on the market for 10 days. Highly sought-after homes perform even better by fetching prices 15% above the advertised price after being on the market for as little as 7 days.
In the same vein as San José, housing markets in neighboring areas are also in high demand. The Sunnyvale property market has a Redfin score of 89, while the Dublin property market has an incredible 93.
The source of the demand
While there are several reasons for the current high demand in the market, the main one is the demand that has built up over the past year and a half. Due to strict quarantine regulations, people could not buy or sell the property. Movement was limited, and a moratorium on foreclosures meant people were allowed to maintain existing living conditions even when they ran out of mortgage payments.
With the lifting of restrictions and the expiration of the moratorium on foreclosures, more and more people are starting to execute their plans to buy and lease properties.
Based on existing and forecast demand figures, it is reasonable to conclude that inventory levels in San José and surrounding areas are low. This means that the number of properties available is barely sufficient to meet the demands of buyers. On average, a listed house in San José sells within 11 days of being placed on the market.
Compared to last year, the number of homes sold in San José is 879 in August 2021, which is an increase of over 30% for the same period in 2020 when 674 homes were sold in the same month. . The surrounding market exhibits a similar trend with many more homes sold for the same time period and a tight inventory.
Price trends in San José and surrounding areas
The high demand and low stocks are reflected in the price trends for the city as well as the surrounding areas. The median price of a home in San José is $ 1,270,000. This is a 17.6% increase from the median price last year. This corresponds to prices in the surrounding area, such as Sunnyvale, where the median price is $ 1,700,000, Dublin, where the median price is $ 1,175,000. While the median price in Sunnyvale shows an increase of only 3.7%, for Dublin it is over 30%. All other areas around San José present a similar picture, with an increase in median prices and an increase in the number of homes sold for the same period as the previous year.
Housing market trends for 2021
Housing market trends present a consistent picture across countries. On the sales side, the market appears very tight, with houses available for sale rising from 3.9% to 3.1% from 2019 to 2020. In addition, the rental property market also appears to be slightly stifled. This is mainly due to restrictions on in-person house visits and sellers waiting for the market to improve as the economy improves afterward.
Price trend for the sale of new and existing homes
Current market conditions are the nest they have ever been in the past two decades for sellers and buyers. For sellers, competitive market conditions mean they can earn a premium on the properties they own. On the flip side, since the price trend is on an uptrend, it makes sense to invest in a home now to avoid paying the price when the market has peaked. Given that economic indicators are only expected to improve in the future, it will not be surprising that house prices across the United States are rising even more.
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