Home sales in Santa Clara County, California rose by 17 percent last month and San Jose foreclosed homes for sale are credited for this positive trend. According to industry experts, the 17 percent increase in home sales activity in September compared to the same month a year ago, is attributed to first time buyers who take advantage of the $8,000 federal tax credit and cheap foreclosure homes.
The rise in home sales in the area is reflected in some places across the country. The recent activity in the housing market is helped by first time homebuyers and cash-rich investors who find bargain-priced foreclosure homes good investments.
Meanwhile, the median home price dropped by almost 2 percent in September compared with figures in August. Industry analysts said that the decline could mean that the housing market is nearing the bottom.
Santa Clara posted home sales of 1,307 last month, an increase from the same month last year’s 1,116.
Similarly, year-to-year data showed that the median home price declined by 8 percent to $506,000 from $550,000. But industry experts pointed out that the 2 percent decline in the August-September $515,000 median price was less serious compared with the 5 percent drop in the July-August period.
With market indicators fluctuating, the number of San Jose foreclosed homes for sale remained at a record high. Also, the number of non-owner occupied purchasing is above average. Industry experts said that the erratic numbers are indications of market trends.
On the other hand, foreclosure properties accounted for 27.2 percent of the total September sales of all residential homes and condominiums. The figures represented an increase from the 26.4 percent foreclosure sales in August.
Industry experts said that the numbers are still historically high. They pointed out that in September 2007, foreclosure properties accounted for 3.9 percent of the total home sales. Experts said that the foreclosure numbers remain at a record high because many homeowners are finding it difficult to modify their loans.
Also, a growing number of homeowners owe more on their mortgages than the value of their properties and majority of them just turned their backs and allow banks to foreclosed on their houses.
Yet, the abundance of low-priced foreclosure houses are attracting hordes of bargain-hunting homebuyers, resulting to home sales increases.
back to top
Comments on this entry are closed.