Benford Real Estate, Silicon Valley, Santa Clara County

A monthly report showing what it might have taken, hypothetically, for a renter to become a first-time home buyer in Silicon Valley

In October 2009:

Median sales price among San Jose condominiums under 1200 square feet: $195,000
Monthly payment, assuming 20% down, a 4.98% 30-year fixed-rate mortgage, and estimated taxes, insurance, and HOA dues: $1403.67

Median sales price among San Jose houses under 1500 square feet: $377,000
Monthly payment, assuming 20% down, a 4.98% 30-year fixed-rate mortgage, and estimated taxes and insurance: $2133.75

From the California Association of REALTORS®:

Home Buyers Win Big with Extension and Expansion of Federal Tax Credit

LOS ANGELES (Nov. 5) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today commended Congress and the Senate for its swift actions in extending and expanding the provisions of the Federal Tax Credit for First-time Home Buyers. The U.S. House of Representatives earlier today voted 403 to 12 for passage, as did the U.S. Senate late yesterday. The legislation now goes to President Obama for signature.

“Over the past several months, C.A.R., the NATIONAL ASSOCIATION OF REALTORS® (NAR), and our more than 1.2 million members have repeatedly urged congressional representatives to extend and expand this crucial piece of legislation,” said C.A.R. President James Liptak. “Today’s victory for home buyers also is testament to the role REALTORS® can play when they unite for a worthy goal.

“Although ideally the legislation sent to President Obama would have applied to all home buyers, C.A.R. applauds our federal representatives for realizing the benefits of the federal tax credit and the role it has played in the ongoing economic recovery,” Liptak said. “More than 1.4 million first-time home buyers nationwide were eligible for the initial credit. We expect that number to increase dramatically in the months ahead once this new legislation is in place.”

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 167,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Remember the headlines in October 2008? Some members of the media were predicting a depression. What a terrible time to buy a house, right? Well, that’s what a lot of people believed. But some people in Santa Clara County bought homes anyway. And now, one year later, those opportunistic few are enjoying an average of 2.6% increase in value since their purchase. Yes, it’s a fact: the average sales price in Santa Clara County, for houses, townhomes, and condos, in October 2009, was $630,000 – that’s 2.6% higher than in October 2008, when it was $614,000. That may not knock your socks off, but for anyone who could afford it, October 2008 was a great time to buy a house. And now’s not such a bad time, either.

Vital Signs: (Santa Clara County house, condos, and townhouses, as of October 2009)

Total Active Listings: 2,923
Average asking price of unsold homes: $1,052,000
Average sales price of sold homes: $630,000
Average sales price to asking price ratio of sold homes: 99%
Average market time: 52 days
Sales, year-to-date: 12,371
Expired listings, October: 289
1-year average appreciation: 2.6%
Months of supply, end of October: 2.1 (sellers’ market)
Average 30-year fixed interest rate (as of November 5, 2009): 4.98%, fees not included

What’s Hot and What’s Not in Silicon Valley: October 2009

“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).

Strong Sellers’ Market: San Jose-Santa Teresa (0.9)

Sellers’ Markets: San Jose-South (1.3); Newark* (1.3); San Jose-Alum Rock (1.4); San Jose-Blossom Valley (1.4); Milpitas (1.6); Santa Clara (1.6); San Jose-Berryessa (1.7); Campbell (1.7); Sunnyvale (1.7); Mountain View (1.7); Fremont* (1.8); San Jose-Cambrian (1.8); San Jose-Evergreen (1.9); San Jose-Almaden Valley (2.1); Morgan Hill/Gilroy (2.3); Cupertino (2.5); Palo Alto (2.6); San Jose-Central (2.8)

Balanced Markets: Los Altos (3.2); San Jose-Willow Glen (3.3); Saratoga (4.6); Los Altos Hills (5.0); Los Gatos/Monte Sereno (5.3)

Buyers’ Market: Los Gatos Mountains (8.7)

*denotes Alameda County