Benford Real Estate, Silicon Valley, Santa Clara County

Last month in my market report, I demonstrated just how affordable it can be to own a condo or small house in San Jose, by creating two hypothetical situations and asking my readers to compare their mortgage payment as potential first-time home-buyers to what they’re paying now as renters.

The feedback was so strong I decided to do it again! Sales prices are falling at a slower pace now, but there are still lots of great buying opportunities. And interest rates are unbelievably low, having fallen remarkably since last month.

So let’s look again:

March 2009, median sales price among San Jose condominiums under 1200 square feet: $170,000
With 20% down, a 30-year fixed-rate mortgage at 4.87% costs $719.31 per month. Add property tax, insurance, and homeowners’ association dues, and it’s still possible to be a homeowner at close to $1250 per month. That’s less than the rent for most San Jose apartments. How does it compare to yours?

March 2009, median sales price among San Jose houses under 1500 square feet: $346,000
With 20% down, a 30-year fixed-rate mortgage at 4.87% costs $1464.01 per month. Add property tax and insurance and you could own a house in San Jose for just under $2000 per month. It’s hard to find a house to rent for that little in San Jose, so if you’ve got the means, why not buy one?

Want to run more scenarios? Check out our mortgage calculator (scroll to the top of this page and click on “Calculators”).

Statistically speaking, late spring/early summer is the most popular time to buy a home. Year after year, we see an increase in the number of sales beginning around March or April, and this year is no exception. This March there were 958 closed sales among houses and condominiums in Santa Clara County, nearly 20% more than in February. There was also a huge spike in pending sales: 1778 in March compared to 1174 in February. That means that many of those will translate into closed sales in April and May, giving a nice boost to Silicon Valley, which already is showing signs of recovery in many communities.

There are still plenty of great opportunities for home-buyers, especially first-timers!

Vital Signs:

Santa Clara County, Detached Houses and Condominiums/Townhomes, as of March 2009

Total Active Listings: 5,672
Average (Mean) On-Market Asking Price: $825,000
Average (Mean) Final Sales Price: $532,000
Average Sales Price-List Price Ratio (sold homes only): 97%
Average Market Time (not including re-lists): 66 days
Sales, year-to-date: 2,537
Expired listings, March: 476
1-year appreciation: -39%
Months of Supply, March: 5.9
Average 30-year fixed interest rate (week ending 4/9/2009, not including points or fees): 4.87%

What’s Hot and What’s Not in Silicon Valley, March 2009:

Numbers represent “months of inventory.” The lower the number, the more likely prices there will be rising (sellers’ market). The higher the number, the more likely prices there will be falling (buyers’ market).

Balanced Markets: Newark* (3.5); Milpitas (3.8); San Jose-Blossom Valley (3.8); South San Jose (3.9); San Jose-Santa Teresa (4.0); San Jose-Alum Rock (4.2); San Jose-Cambrian (4.9); Sunnyvale (5.1); Morgan Hill/San Martin/Gilroy (5.4); Campbell (5.7); Fremont* (5.7); Central San Jose (5.8)

Buyers’ Markets: San Jose-Berryessa (6.1); Palo Alto (6.8); Santa Clara (6.9); Mountain View (7.2); San Jose-Willow Glen (8.3); San Jose-Evergreen (8.5); Cupertino (8.8); Los Altos (9.4)

Significant Buyers’ Markets: Saratoga (12.4); San Jose-Almaden Valley (12.7); Los Gatos/Monte Sereno (17.3); Los Altos Hills (18.0); Los Gatos Mountains (33.0)

*Alameda County

Charts and Graphs:

From C.A.R.:
LOS ANGELES (April 2) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP) for first-time home buyers.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

“The Mortgage Protection Program was developed to help ease the anxiety of consumers who are concerned about potential job loss and its impact on their ability to pay their mortgage should they purchase a home,” said C.A.R. President James Liptak. “It also provides peace of mind to those buyers who are actively searching for a home.”

To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer – someone who has not owned a home in three or more years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed)
# To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.