Last week during our conversation with Bank of America and Wells Fargo loan officers were telling us that the recent hike in interest rates had cooled off the number refinance that they were doing! But what about the Short Sales!? They were still encourage the agents in the meeting that there are plenty of home owner without any equity in their properties. Are the number of Short Sales have crawled to a halt in San Jose!? We wanted independent verification, so we conducted a search of ALL Short Sales that closed escrow last month in San Jose. The number was only 23 Short Sales for the entire city of San Jose:
During the Monday 7/22/2013-7/29/2013 only 23 Short Sales closed in San Jose, California. The Average Sale price of these sales was $511,864 with an average of 115 days on the market.
| List Price | DOM | Sale Price | Bed | Baths | Yr Built | SQ Ft | Lot Size | Price/Sqft | |
|---|---|---|---|---|---|---|---|---|---|
| Min | $200,000 | 0 | $265,000 | 2 | 1 | 1950 | 1,006 | 435 | $197 |
| Max | $800,000 | 407 | $830,000 | 5 | 3 | 2005 | 3,306 | 13,662 | $482 |
| Avg | $511,864 | 115 | $522,833 | 3 | 2 | 1973 | 1,640 | 5,906 | $329 |
| Sum | $11,722,876 | $12,025,150 |
So, how much of the slow down will be seasonable and how much of it will be due to the rise in interest rates.
Despite the Cash for Short Sale and relocation incentives being offered by the major lenders such as Wells Fargo, Chase and Bank of America the inventory of Short Sale are declining due to huge rise of home prices.
Are you still looking to buy in San Jose?! Has the rise in interest rate slowed your search? What is your plan B!?
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