In the past few weeks, there have been a few news reports and articles claiming that home sales have rebounded after months of record lows. The San Jose Mercury ran an article (May 21, 2008) stating that home sales were up 30% in April 2008 compared to the previous month in Silicon Valley. How did downtown San Jose fare relative to the rest of the Valley? Let’s take a look. As always, the following statistics represent resales of Central San Jose’s (MLS Area 9 which includes downtown San Jose) condos, townhomes, and lofts.

In the Central San Jose area, the number of closed sales actually dropped in April (16) from March (20) but then bounced back up in May (19). Historically, however, sales are still down compared to 2007 in the same months.

Even though it looks like sales are still down in the area, this may be a bit misleading. The statistics above only include resales of property in the area and do not include sales from new construction developments, which are generally not included in MLS stats. With the number of inventory available from new construction, its probably safe to say that there are a few sales from that category of real estate. The sales statistics also may be a bit skewed by new construction sales since many of these units will not close escrow until a later date. For example, a buyer may put down a reservation hold and enter into contract on a condo in Axis, but the close of escrow and move-in will not be until July. Therefore, the transaction will occur in July even though the “sale” occured months before. In addition, with the opening of The 88, many buyers that were waiting for this complex may now be taking action after seeing the models.

*These statistics are generated using information from the MLSListings, Inc. (formerly RE InfoLink) MLS, but have not been verified and are not guaranteed. MLSListings, Inc. disclaims any resposibility for the accuracy and reliability of these statistics. This information should not be relied upon for real estate transaction decisions.

Downtown San Jose’s newest luxury, high-rise condo, The 88, held its VIP Opening last Thursday evening showcasing its 12th floor models and 5th floor, resort-style common areas. The 22-story tower, developed by Wilson Meany Sullivan, LLC (San Francisco), is located in the core of downtown San Jose at San Fernando Street between Second and Third Streets. The event attracted an estimated over 400 attendees including numerous real estate agents, lenders, various city officials, and a number of guests interested in purchasing at The 88. The 12th floor models showcased the well-appointed condo homes at The 88 and the fantastic views available. The common areas located on the 5th floor of The 88 feature a social room complete with gourmet kitchen, pool, spa, and barbeque area. Also located on the 5th floor is the complex fitness facility.

The 88 is the latest in a series of high-rise condominium developments to open in downtown San Jose. City Heights was the first high-rise in downtown San Jose followed by Axis.

San Jose was recently ranked as the best city for home sellers by Forbes.com. In the “Best Cities for Home Sellers” article by Matt Woolsey, San Jose is ranked as the top city for home sellers out of the country’s 40 largest metro areas. San Jose earned the top spot based on its tough regulatory measures on new construction and job growth. New home construction in San Jose fell 63% in 2007 compared to 2006. The decline is attributed to the city’s strict regulations which limit overbuilding commonly found in many declining markets today. Home vacancy rates were also at a national low at 0.8%. On the job front, San Jose experienced a 1.2% increase in employment rates. Combine these factors with the new conforming loan limits and San Jose comes out as the #1 city to be a home seller.

San Jose edge out its neighbor to the north, San Francisco, for the top spot. San Francisco ranked second on the list of best cities for home sellers. Other notable city rankings include Salt Lake City #3, Denver #7, Seattle #10, and New York City #21.

To assess conditions for home sellers, the rankings were based on the following factors: unsold vacancy rates, construction projects started, and employment creation. The article also factored in the impact which new conforming loan limits would help each market’s lending.

Read the full Forbes.com article.

The real estate market, generally speaking, may still be slow but things are looking up a bit here in downtown San Jose. At least for the month of March things seemed to have picked up from the previous month. The number of closed transactions doubled in March ‘08 from February ‘08. Despite March ‘08 being down compared to the same time period in 2007, its still encouraging to see that sales have increased this year. Getting financing is now the tricky part for any potential buyer, but many buyers are sensing that this is a good time to purchase. The following statistics represent Central San Jose’s (MLS Area 9 which includes downtown San Jose) condos, townhomes, and lofts.

As I’ve mentioned in previous blog entries, the statistics may be a little misleading since they do not include sales transactions from new construction developments, which include City Heights and North Keystone. Furthermore, units at Axis and Three Sixty Residences have also been selling but have not began closing transactions yet. This also skews the statistics since most of this new construction wasn’t available at this time last year.

*These statistics are generated using information from the MLSListings, Inc. (formerly RE InfoLink) MLS, but have not been verified and are not guaranteed. MLSListings, Inc. disclaims any resposibility for the accuracy and reliability of these statistics. This information should not be relied upon for real estate transaction decisions.

The big news in downtown San Jose real estate is that Centex Corporation has sold its Plant 51 development for $161 million to a joint venture led by Dallas-based RSF Partners Inc. Plant 51 is the 265-unit loft and condo project which involved converting the former Del Monte cannery into homes. According to a Centex representative, Plant 51 is currently only 70 percent completed. Purchasers who had placed a deposit for a unit at Plant 51 recently began receiving phone calls from Plant 51 sales representatives informing them of the sale of the complex. It is unknown at this time whether the joint venture group will continue to sell the units or convert the project into rental apartments.

The sale by Centex was part of a portfolio sale which included 8,500 lots in 11 states. The total value of the portfolio sale was $455 million. Other members of the joint venture which purchased Plant 51 include San Francisco-based Farallon Capital Management and Greenfield Partners of Connecticutt.

The Santa Clara County Association of Realtors (SCCAOR) will be holding its Homeownership Fair 2008 at the Santa Clara Convention Center on Saturday, April 5, 2008 from 10:00 am to 4:00 pm. The Homeownership Fair is a one-stop shop for anyone interested in real estate and consists of 80 information tables, 24 educational seminars, and dozens of professional speakers. Whether you are a buyer, seller, investor, or someone just looking to learn more about real estate, the Homeownership Fair is a fantastic venue to get lots of valuable information.

You can even take the Light Rail to the Homeownership Fair. Just exit at the Great America Light Rail station.

SCCAOR Homeownership Fair 2008
Saturday, April 5, 2008
10:00 am - 4:00 pm
Santa Clara County Convention Center
5001 Great America Parkway
Santa Clara, CA

Downtown San Jose’s Three Sixty Residences was featured recently on KTVU Fox Channel 2’s “The Malou Review.” Advertised as downtown San Jose’s most prestigious address, the video clip prominently displays many of Three Sixty’s condo and complex amenities, including a Smart Home feature. What’s a Smart Home? According to the video clip, the Smart Home feature allows you to control certain features of your home from a computer anywhere in the world. Turn on the lights from your office. Roll down the window coverings while you are on vacation. You can have a Smart Home at Three Sixty.

The Malou Review is hosted by two-time Emmy Award winner Malou Nubla. The weekly “info-tainment” program combines useful information with exciting entertainment.

Click here to watch the episode of the The Malou Review and learn more about Three Sixty Residences. The clip about Three Sixty is halfway through the video.

Another month, another round of statistics to digest. From January to February, the numbers remained relatively constant. The February 2008 median price actually jumped $50,000 from January 2008 and even surpassed the median price from February 2007. However, the number of closed transactions in February 2008 was almost half of what it was the previous year and the inventory available is significantly up from the same period in 2007. And that’s not even counting the new construction in downtown San Jose (i.e., City Heights, North Keystone, Axis, and soon to be The 88). So if you’re a buyer, you’ve got plenty of inventory to choose from. The following statistics represent Central San Jose’s (MLS Area 9 which includes downtown San Jose) condos, townhomes, and lofts.

*These statistics are generated using information from the MLSListings, Inc. (formerly RE InfoLink) MLS, but have not been verified and are not guaranteed. MLSListings, Inc. disclaims any resposibility for the accuracy and reliability of these statistics. This information should not be relied upon for real estate transaction decisions.

Downtown San Jose’s newest high-rise condo building, Axis, is holding pet-friendly, downtown walking tours on Saturday, March 15, from 9:00 am to 12:00 noon. The “Pet Axis” event is designed to give potential high-rise residents and pet-owners alike the opportunity view models, tour downtown San Jose, and experience living in downtown with their pets. Tours for “Pet Axis” are scheduled to begin every half hour beginning at 9:00 am.

“Pet Axis” will also include “Downtown Doggie” and “City Kitty” contests with prizes courtesy of Andy’s Pet Shop. In addition, South Bay Purebred Rescue will be providing pet adoption information and copies of Humane Society Silicon Valley’s “City Pet: Guide for Downtown High-Rise Living for Pets and Their Owners” will be on hand.

“Pet Axis”
Saturday, March 15, 2008
9:00 am - 12:00 pm
Axis
38 N. Almaden Blvd.
Downtown San Jose

Do you live in downtown San Jose and own a pet? What has been your experience living in downtown with a pet? Where do you take your dog for a walk? What parks or dog parks do you and your four-legged friend visit? Feel free to share your downtown-living-with-pet experience.

Many of you have been waiting and asking about the new legislation, the Economic Stimulus Act, that temporarily modifies conforming loan limits. Wait no longer, the new conforming loan limits have been released by the US Housing and Urban Development (HUD). The new conforming loan limit amount for Santa Clara County is $729,750, which is the maximum amount under the new legislation. The new conforming loan limits vary by county.

For more information about this “FHA Forward Loan” or to view the new conforming loan limits for other counties, visit the HUD site.