Market condition in San Jose, CA.
Current inventory level for min. 3 bedroom / 1 bath, 1000 sq ft, Max. price $400k SFR in San Jose, CA is around 23. 8 months. It seems to be a lot but what was it a few months ago? 60 months.
The inventory level has dropped drastically, which is an indicator that lots of buying is going on.
What’s the reason behind this? Typcial rent for these SFR in San Jose ranges from $1,800 ~ $2,400. For people who can afford the down payment, buying a $350k SFR is cheaper or same as paying rent, so what would they do?
On the other hand, for investors with lots of cash who can afford 20~30% down payment, it is also an attractive investment, since it would cash flow.