San Jose, 95123 Summary
The median sales price for homes in ZIP code 95123 for Dec 11 to Feb 12 was $341,900. This represents a decline of 11.2%, or $43,100, compared to the prior quarter and a decrease of 7% compared to the prior year. Sales prices have depreciated 41.1% over the last 5 years in 95123, San Jose. The median sales price of $341,900 for 95123 is 8.83% lower than the median sales price for San Jose CA. Average listing price for homes on Trulia in ZIP code 95123 was $410,974 for the week ending Mar 28, which represents an increase of 12.4%, or $45,192 compared to the prior week and an increase of 16.4%, or $57,937, compared to the week ending Mar 07. Average price per square foot for homes in 95123 was $236 in the most recent quarter, which is 16.01% lower than the average price per square foot for homes in San Jose.
30-year mortgage rates are still averaging a rock-bottom 4%. The applications to purchase homes rose after Thanksgiving to the highest level in four months.
With Freddie Mac’s weekly report on home lender offerings released Thursday it showed the typical rate for a 30-yearloan at 3.99%, the sixth straight week at or slightly below 4%. Last year at this time, the 30-year fixed loan averaged 4.61%.
Fifteen-year fixed-rate home loans, a popular option for people refinancing homes, averaged 3.27%, down from last week’s 3.3%. A year ago, the 15-year loan averaged 3.96% according to Freddie Mac.
The typical mortgage rate for larger “jumbo” loans are running about a third of a percentage point higher, according toanother report this week from the Mortgage Bankers Assn. Jumbo loans are priced higher because lenders can’t sell them to Freddie Mac and Fannie Mae These other big government-sponsored mortgage buyer.
Offering a bit of hope for housing at a time when foreclosures are drawing angry protests and government investigations, the mortgage bankers said applications for loans to buy houses reached the highest level since early August.
Refinances still made up about three-quarters of all applications for home loans, however.
A closely watched survey reported Tuesday that U.S. single-family home prices declined in September. This report highlight’s the fragility of a market as it struggles to get back on its feet.
As reported by The S&P/Case Shiller composite index, 20 metropolitan areas fell 0.6 percent from August on a seasonally adjusted basis.
Prices in August were also revised to show a decline of 0.3 percent after originally being reported as unchanged.
The broader trend here is that it appears that home prices over the last few months continue to get weaker.
This ties in with the current consumer attitude that has gotten a lot of more negative, particularly when it comes to making a long-term commitment, such as buying a home.
The index has leveled off in recent months and analysts are hoping the market is at least stabilizing.
Also over the last year home prices in most cities drifted lower, but the plunging collapse of prices seen in 2007-2009 appears to be behind us. Any chance for a sustained recovery will probably need a stronger economy.
The report also pointed out that third quarter prices were down 1.2 percent from the previous quarter on a seasonally adjusted basis and were down 3.9 percent from the third quarter a year ago.
Compared to a year ago, price declines in the 20 cities continued to improve in September and were down 3.6 percent after a year over year decline of 3.8 percent the month before.
Could the besieged housing market have even further to fall before home prices really hit rock bottom?
A new report by Fiserv, a financial analytics company, states that home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.
There are several factors working against the housing market in the upcoming months, including an increase in foreclosure activity and sustained high unemployment.
If home values meet Fiserv’s expectations, it would make it the third trough for home prices since the housing bubble burst. The first post-bubble bottom was hit in 2009, when prices fell to 31% below peak. While the First Time Home Buyer Credit helped raise prices by mid-2010, prices fell again once the credit expired.
During the second dip, which was reached last winter, prices were down about 33%. We did have a mild rally that was artificially spurred as banks slowed the processing of foreclosures following the robo-signing scandal, which found that loan servicers were rapidly signing foreclosures without properly vetting them.
With the scandal mostly resolved the lenders are speeding more cases through the foreclosure pipeline and back onto the market, weighing on home prices even further.
Earlier this month, RealtyTrac reported the first quarterly increase in foreclosure filings in three quarters. Even more discouraging: new default notices were up 14%. There is also a shadow inventory of homes that will be hitting the market when the banks release them for sale. This may also put pressure on the market and prices.
