Buying and selling property is always a difficult and delicate task. How is the housing market? When is the best time to sell? Are there houses available to move into?
In some cities, the current housing market is booming. Keep reading to discover if it would be an opportune time for you to sell your home.
New Listings in San Jose
This past June, San Jose, California, saw an increase of new listings rise nearly 50% when compared to June of 2023.
San Jose is one of the most expensive housing markets in the United States. This surprising trend of new listings means that San Jose locals are looking to sell.
Pending Sales
Not only are a lot of people looking to sell their house, but there are also many who want to buy. Pending sales data is one way to see if homes are being successfully purchased.
According to data from Redfin, San Jose saw pending sales increase 18% more when compared to June of 2023.
Soaring Prices
There is lots of supply and lots of demand in the San Jose housing market. Therefore, realtors can get away with an increase in home prices.
The sale price of a San Jose home is 1.5 million. Compared to January to May of 2023, this is 15% higher than last year!
Despite the Prices, People are Still Buying!
Even though the prices of homes have been inflated—just compared to last year, even—people are still buying them.
In May of 2024, 660 homes were sold in San Jose. This is 19% higher than May of 2023!
Multiple Offers and Selling Above Listing Price
In San Jose, “Most homes get multiple offers, often with waived contingencies,” Redfin’s analysts point out. “The average homes sell for about 8 [percent] above list price and go pending in around 9 days.”
Recently, almost 80% of San Jose houses have been sold for more than their list price.
Recent San Jose Sales
All in all, San Jose residents who want to sell their homes are finding much success. A 2,000 square foot home with 4 bedrooms and 2-and-a-half bathrooms was listed for $1.5 million. It sold for $2.5 million.
Another house, this one with 3 bedrooms and 2-and-a-half bathrooms, sold for $1.25 million. This was 26% higher than the listing price of about $925,000.
Other Cities with Lots of Listings
San Jose, California is not the only city experiencing a competitive housing market.
Compared to last year, these major cities had an intense jump in listings: Seattle at almost 29%, Miami at 25%, and Boston at 24%. Montgomery County, Pennsylvania—near Philadelphia—saw a 22% increase, too.
The Housing Market isn’t Hot Everywhere
Unfortunately for most, San Jose (and the other mentioned cities) are not following nation-wide housing market trends.
Between expensive properties and high mortgage rates, people are staying in their houses even if they wish to move.
Increasing Mortgage Rates
Usually, the housing market is at its peak during the summer. Unfortunately, mortgage rates have been high, which dissuades people from buying and selling. In early July, mortgage rates were up 7.13% on 30-year fixed rate loans.
Also, mortgage applications have been down nation-wide. In the week ending June 28th, applications were down 3%. This is 12% lower than the number of applications a year ago.
Low Demand
According to Redfin, the demand for moving houses is also low. Redfin’s Homebuyer Demand Index tracks requests for house tours and home buying services.
In June of 2024, the Homebuyer Demand Index was down 17% when compared to the same time in 2023. This means that even if you want to sell your house, there won’t be many houses available to move into.
Is it Time to Sell Your Home?
Well, is it time to sell your house? If you are living in San Jose, then it certainly seems so! If you are in Seattle, Miami, Boston, or the Philadelphia suburbs of Montgomery County and want to sell, it would be a good time for you, too.
However, most of the country is experiencing high mortgage rates and few houses up for sale. If you don’t live in the mentioned cities, it would probably be best for you to wait.
