A US News article covers the 10 best places to live in San Jose. I remember growing up in South San Jose (Santa Teresa Area) when IBM was the big company in the area and on the weekends it was off to Oakridge Mall to see a movie. Funny thing is that some areas have not changed much. San Jose is still a great city to raise a family.
“With 9 square miles of green spaces, 300 days of sunshine a year, and four different professional sports franchises to follow, San Jose, Calif., has everything you need for a happy childhood. At just over 1 million residents, San Jose considers itself the capital of Silicon Valley, but it doesn’t take a computer scientist to understand the city’s appeal to kids. San Jose is the country’s safest big city, and although it’s certainly expensive—the median home price is $449,000—the city offers all sorts of great activities for children. Rather than chasing its skateboarders away, San Jose has embraced them by opening six public skateboarding parks, including Lake Cunningham Regional Skate Park, the largest one in the state. And at the Children’s Discovery Museum of San Jose, children can experience everything from theater to gardening.”
Read entire Article Here
Months Supply of Inventory
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July’s Market data shows a huge drought in available San Jose inventory complicated by the less than two months inventory we are currently experiencing. While there continues to be rumors of an influx of foreclosed homes my feeling is that investors holding the inventory will release it at a measured pace to maximize net profit.
Supply vs Demand
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Another chart showing the shrinking inventory compared to the up swing in sales activity.
Pending Home Sales
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A year ago the amount of inventory was evident but since then the introduction of FHA loans and low interest rates have obviously fueled pending sales activity. Furthermore the low affordable home prices are contributing to the frenzy and cash investors taking advantage of cash flow positive opportunities.
Median Sales Price
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Affordable homes prices between $250,000 and $350,000 are generating twice as many sales thus impacting the median sales price. This is not an indication that home prices are sliding, it shows the huge pool of affordable homes have been moving over the last 90 days.
New Listing Activity
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while we continue to see foreclosure activity and short sales driving the San Jose market more and more sellers are opting to wait out the volatility of the economy before considering trading up to another home. Remember that any seller may have to take consider taking a haircut in price ultimately preventing some sellers from entering the market.
Summary
Affordability continues to be the name of the game. The sweet spot for our market are properties under $500,000. Buyers considering purchasing a home should prepare themselves for a sellers market. Average months of inventory under six months are considered sellers markets. We are currently under two months of inventory.
Santa Clara County has programs to put first time home buyers into homes specifically in the unincorporated areas including the Burbank area near Santana Row. The program is run by the Housing Trust and relies on grants and is available at various times of the year depending on the availability of government funds.
Timing is Everything
Programs like these are available until the pot of money runs out making it a challenge for some and perfect timing for others. Buyers considering this type of program should check with the Housing Trust before counting on it’s assistance.
Housing Trust Programs for First Time Home buyers
The three programs comprise of the following:
Closing cost assistance – $6,500 to help with buyers closing costs
Down Payment Assistance - $15,000 low interest loan deferred for 60 months
Mortgage Assistance – Applications available September 8th 2009
Income Limits are the Catch
Generally any government funded programs like this are meant for buyers who need that extra help to get the over the top and into a home. Here are the income limit requirements for 2009.
Broker’s Advice
Use this resource of funds to help structure your offer, this will help you write a stronger offer. Especially if you are not having to ask a seller to credit you for closing costs and if you can show that you have a larger pool of funds to close because you qualify for one or more of these programs.
For more information click on the following:
Housing Trust Website link here
Kids Eat Free at iHop for the Next Month
“The battered restaurant industry is about to go wide on a risky tactic to nudge cash-strapped parents to take the family out for grub: Kids eat free.
Monday, IHOP will unveil plans to offer free kids meals seven nights a week for the next month.” ~ USA Today
One of the positive aspects of this economy is that businesses are coming up with creative ways to generate revenue. As a parent I am always looking for any opportunity to do more on a tight budget. This promotion is good for the next month and only at participating IHOP restaurants. Call ahead and confirm before you order the entire menu.
Read USA Today Article Here
10 day approval? Yes that’s what I said and for those homeowners lucky enough to have a Wachovia loan( aka World Savings) a short sale approval is possible within a few weeks time. Wachovia is able to do this mainly because they own the loans vs having to service them for investors.
What makes this more incredible is that each county has a short sale negotiator who is proactive in the approval process. Wachovia makes its decisions on a case by case hardship a homeowner is facing. The goal is to offer a fast track process to the homeowner once it has been determined that all other options have been exhausted including the possibility of a loan modification.
Requirements for a Wachovia Short Sale Approval
- Homeowner must have a true hardship (loss of income, job loss, medical, family, etc….). Provide required documentation to support your hardship. Taxes, bank statements, and pay stubs must be submitted to the negotiator.
- Communication is key! Most homeowners in this situation are embarrassed at the possibility of facing foreclosure that they stop answering the phone or opening mail. You must be willing to communicate with the lender to help yourself with this situation.
- Work with a REALTOR who knows how the Wachovia process works. This will help the homeowner reach a timely agreement with Wachovia and help facilitate an open channel of communication with the short sale negotiator.
Wachovia’s short sale fast track is incredibly fast in comparison to the other banks and servicers who can take up to 90 days to approve a short sale. Talk to a Loss Mitigation Representative to find out more and to explore your options.
(866) 642-8608
8:00 am-5:30 pm Monday-Thursday 8:30 am-4:00 pm Friday.
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