A very basic map of Santa Clara County in California (Photo credit: Wikipedia)
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 Sale!? They were still encourage the agents in the meeting that there are plenty of home owner without any equity in their properties. Was that true!? We wanted independent verification, so we conducted a search of ALL Short Sales that closed escrow last month in Santa Clara! The number is not impressive with only 30 Short Sales for the entire county.
During the Monday 7/22/2013-7/29/2013 only 30 Short Sales closed in Santa Clara County! The Average Sale price of these sales was $692,210 with an average of 88 days on the market.
| List Price | DOM | Sale Price | Bed | Baths | Yr Built | SQ Ft | Lot Size | Price/Sqft | |
|---|---|---|---|---|---|---|---|---|---|
| Min | $611,100 | 0 | $610,000 | 2 | 2 | 1950 | 1,687 | 4,316 | $197 |
| Max | $800,000 | 261 | $830,000 | 5 | 3 | 2005 | 3,306 | 40,510 | $484 |
| Avg | $692,210 | 88 | $703,100 | 4 | 3 | 1976 | 2,188 | 10,115 | $336 |
| Sum | $6,922,100 | $7,031,000 |
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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