San Jose Home Value

San Jose Home Value

With the recent rise of interest rates, the Single Family housing market in San Jose increased by 20.3% Year-Over-Year in August 2013 !  That’s a great step towards recovery, but the impact of the recent increase in Mortgage rates are also showing up in the slow down of pending sales.

In August 2013, asking home prices rose 11.0 percent year-over-year (Y-o-Y) and 1.2 percent month-over-month (M-o-M). However, quarterly changes in Asking Home Prices reveals a downward trend.  In fact, Quarter-over-quarter (Q-o-Q), asking home prices rose 3.1 percent in August, down from 3.2 percent in July and 4.0 percent in April. This downward slope will likely continue as mortgage rates rise, inventory expands, and investor interest declines
On the other hand, Housing starts rose 0.9% in August 2013  pushed by a solid 7% increase in single-family starts.  Single-family increase was broad in all four regions of the country and increased by 17.5% in the Western States including California.
Single-family permits rose by 3% nationally but was unchanged in every region from the previous month.   August single-family permits at 627,000 are the highest since May 2008.

Single-family starts offers additional evidence of the slow but steady improvement in single-family owner-occupied construction that begin in earnest in early 2012. The seasonally-adjusted construction rate increased 36% since January 2012.  Even with the steady rise, single-family starts remain at less than half a normal rate of 1.4 to 1.5 million per year.   NAHB is forecasting 17% increase in single-family construction in 2013 over 2012 and a more robust 31% increase in 2014.

Locally, however,  Trulia Price Monitor reports that % Change in Asking price is only 0.8% in California.   According to this report Construction Permits in San Jose increase by 135% year to date which is a good sign of slow by steady recovery.

With all this good news, does this mean it’s a good time to sell your San Jose home and take some profits!?   Talk to a broker to find out if your home will fetch the highest possible price in the current market.   You can also order a Complimentary Home Value Report from our office.

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