Market analysis for investment properties in San Jose – 09/04/2008

month

no. of closing

avg. price

avg. pr/sq ft

min. price

max. price

Dec-07

2

$392,000

$373

$389,000

$395,000

Jan-08

7

$379,008

$320

$335,000

$400,000

Feb-08

19

$379,949

$319

$340,000

$400,000

Mar-08

21

$363,500

$298

$305,000

$400,000

Apr-08

38

$363,273

$313

$276,000

$400,000

May-08

59

$368,512

$295

$249,900

$400,000

Jun-08

57

$358,719

$301

$249,900

$400,000

This is to keep track the entry level SFR in San Jose area: min. 3 bedroom / 1 bath with 1000 sq ft and above. < $400,000

You can see from the data that the lenders let the flood gate open in May 2008.  The number of closing increased drastically from 38 in April to 59 in May.  The average price is also trending down gradually, however the average price / sq feet should be a more accurate reading.  I want to point out that there is a supporting level at $300,000, the price / sq feet number indicates that.  For the month of Apr, May and June, the lowest price SFR sold were all under $300,000, those properties are either very beat up or has fire damaged, which require lots of work, if those transactions are removed, the lowest price is very close to $300,000.

Any properties in decent conditions listed under $300,000 in San Jose always get multiple offers.

* There are 15 transactions under $300,000 from Dec 2007 to Aug 2008, the July and Aug data in the table are missing since there are still pending transactions in those months, those will be shown in up coming post.

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