This year the answer is not really a simple one.

San Jose REO properties are not going anywhere anytime soon as even more are expected in 2010 than in 2009. San Jose Real Estate is in a different real estate climate so don’t expect any drop bottom pricing and auction properties in the Silicon Valley. I have seen some condos last year get to the really low range of $120k or $140k but my clients were never able to win the bidding wars over these supposed low price San Jose condos. I also don’t feel that properties of any kind will drop below the $100k mark in the Silicon Valley as some had been predicting.

Foreclosures will increase in the near term, as many homeowners do not receive permanent mortgage modifications. With more foreclosures expeced to hit the marketplace we could see recent price increases drop back to early 2009 prices through 2010. I have a neighbor that has tried for the last 6 months to get a loan modification on his home and the banks seem to continue giving him the run around. First thing that he was told was that they could not help him till his loan was in default, why?

Prices have declined about 30% from their peak a few years ago and are expected to decline an additional 7% but the the worst declines should be over. Within 2009 Silicon Valley Single Family Homes saw a decline of 20.9% from the year before. Most of this decline was seen early on in the year with Oct. through Dec. of 2009 seeing an increase of 9.8% from 2008 average sale prices.

San Jose condos saw an even larger decline from 2008 prices at 22.8%. With a moderate increase of 2.6% in the last quarter of 2009 from the same quarter in 2008. Condos an average sold for 101.1% more than the listing price during this quarter meaning there was still a high enough demand to offer over asking to secure a condo transaction.

Stabalization in the San Jose housing market should be visable by the mid to end of the year with no significant gains expected till 2011.

Today, many more first-time home buyers are calling the Blossom Valley area home after this last summer. Many were able to take advantage of the government incentives to get into a Blossom Valley condo as well. This has helped the area tremendously as we see that the areas prices are starting to level off.

Over the summer homes for sale in Blossom Valley area were experiencing multiple offers. Not something new to this area but certainly new for the last 2 years. A trend this does not make as the summer buying season is about to end and many potential buyers get a “wait and see” attitude towards a home purchase. Who really wants to move homes during Thanksgiving or Christmas? And, many family’s have enrolled their kids in their old schools with their old friends. 

At this time the area is experiencing just a flat line in home pricing even though this is typically the time that home prices would increase. We expect to not see an increase in values for a little while but it would be great if the area could keep the values through out the holidays.

This week prices in this zip code bumped up a bit but the trend of recent weeks is generally downward. A pickup in demand will be reflected in the Market Action Index, so watch that chart each week by signing up to get the weekly report for the Blossom Valley Zip Code 95123. 

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(SACRAMENTO) – Assemblymember Ted Lieu (D-Torrance) announced the California Foreclosure Prevention Act, ABX2 7 (Lieu), takes effect June 15, 2009.  Beginning today, a foreclosure moratorium will give distressed homeowners an additional 90 days unless the lender implements a comprehensive and systematic loan modification program designed to keep people in their homes.

“We must put a stop to the unending tidal wave of foreclosures that has crippled our economy,” said Assemblymember Ted Lieu.  “This law will help people stay in their homes by giving lenders a serious incentive to modify loans.”

“We’re seeing signs that the economy may be stabilizing and I’m hopeful AB X2 7 can get more homeowners to the light at the end of the tunnel,” said Speaker Karen Bass. “This important bill by Assemblymember Lieu will keep more Californians in their homes and stabilize neighborhoods, which is a necessary step for economic recovery.”

The California Foreclosure Prevention Act is designed to force Wall Street to help the citizens of “Main Street.”  The Act will give lenders a choice:  either enact a systematic and comprehensive loan modification program or face an additional 90 day foreclosure delay on all of your loans.

In order to avoid the foreclosure moratorium, a lender’s comprehensive loan modification program would have to be based, in part, on criteria set forth by the Federal Deposit Insurance Corporation.  Additionally, loans could only be modified in a couple ways, including interest rate reductions, extension of the loan term, or principal reduction.

Homeowners in California continue to experience record foreclosures, a direct result of irresponsible lending. According to RealtyTrac, in April 2009, California posted the highest foreclosure rate in the nation, with one in every 138 housing units receiving a foreclosure filing during the month.  Total foreclosure activity was up 42% from April of last year.

The California Foreclosure Prevention Act is the first law in the nation to impose a foreclosure moratorium and encourage quality loan modifications.

If you decided to look into a crystal ball for predictions about the real estate market this next year you will probably see a “back in 12 months” sign. Predicting what is going to happen next is really hard to say. The best we can do is look to the last few years of stats for a better understanding of were we are at this point and some small idea of where we might be heading.

For example last year 95123 or Blossom Valley had shown to be a stronger market than other areas in losing only $100k in price from May of last year till today. It’s not too bad considering that all San  Jose lost more than $130k in the same time frame. The inventory has also started to level out and spring and summer have typically been buying times of the year. This should help to stabilize the Blossom Valley market for the next 4 to 6 months.

This chart shows the median sales prices of the highest and lowest priced homes in Blossom Valley. When the time comes to list your property be sure to look to these stats. If your listed in the high median sale price your home should be one of the best kept properties in the neighborhood along with having the highly desired extra square footage. If your home is well kept and you in the lower price range you can still expect to get multiple offers.