Santa Teresa Real Estate Market Update & The Impact of Short Sales and Bank Owned Properties on Home Values
Monday, September 14th, 2009The Santa Teresa area of San Jose is enjoying a hopping real estate market with the number of pending sales suddenly going through the roof! (Stat below care of Altos Research, to which I have a subscription. List prices are used.)
Homes in this part of south San Jose are often selling over list price as inventory drops. The days on market appears slow, but a lot of homes that have been “just sitting” on the market are now selling.
The great rush in Santa Teresa is, of course, in response to the list prices, which have been falling steadily in most areas – and making for incredible bargains.
Here are the August sales stats for our MLS “area 2″, Santa Teresa (per the REReport, also a subscription, which uses closed sales):
| Trends At a Glance | Aug 2009 | Previous Month | Year-over Year |
|---|---|---|---|
| Median Price | $540,000 | $500,000 (+8.0%) | $550,000 (-1.8%) |
| Average Price | $509,007 | $506,200 (+0.6%) | $565,476 (-10.0%) |
| No. of Sales | 15 | 17 (-11.8%) | 25 (-40.0%) |
| Pending Properties | 75 | 47 (+59.6%) | 35 (+114.3%) |
| Active | 17 | 34 (-50.0%) | 138 (-87.7%) |
| Sale vs. List Price | 100.5% | 101.4% (-0.9%) | 99.0% (+1.5%) |
| Days on Market | 73 | 60 (+21.6%) | 58 (+26.3%) |
With more pending sales than active ones, you can see that most houses are now selling and the pace is quickening. A major player in the market conditions of this part of San Jose is the situation with distressed properties: foreclosures, short sales or homes sold under pressure as they’ve got a notice of default on the property.
How big an impact does the REO or short sale label have on a home’s eventual sales price? How much more or less will a home sell for based on the situation as a “regular sale” or “bank owned” or “short sale”?
(more…)
