The California Association of Realtors reported that the median sold prices of existing homes in the San Francisco Bay area for October 2017 is $892,720. Last year the median sold price was $803,190. This represents a yearly price increase of 11.1% year over year.
In Santa Clara County the median sold prices of existing homes was $1,242,500 for October 2017. Last year the median price was $1,047,500. This means that the median home price went up 18.6% from last year.
According to the Nov 14, 2017 article by HSH.com titled “The salary you must earn to buy a home in the 50 largest metros,” you must earn a household income of $216,181 to buy a median priced home in San Jose. The study has the median home price in San Jose at $1,165,000 and the interest rate at 4.12% with a 20% down payment and the PITI monthly payment (Principle, Interest, Taxes, Insurance) at $5,044.23.
Lawrence Yun, the chief economist for the National Association of Realtors says, “Affordability pressures are frustratingly occurring in places where jobs are plentiful and incomes are rising. Without a significant boost in new and existing inventory to alleviate price growth, job creation could slow in high-cost areas in upcoming years if residents begin exiling to more affordable parts of the country.”
The number of homes on the market in San Jose, CA as of November 23, 2017 is 171 sfh and 41 condo/town homes. The number of pending homes on the market are 454 sfh and 177 condo/town homes. There are close to 3 “pending” single family homes for each available “active” home for sale in San Jose. There are more than 4 condos/town homes that are “pending” status for every one “active” condo/town home on the mls. The sfh and c/th ratio are: 1:3 and 1:4 respectively. Bottom line is that there are not enough homes for sale to feed the strong buyer demand.