The sky is falling, the sky is falling. At least that’s what the media would like you to think is happening to the housing market. OK, maybe the sky really is falling in certain pockets of California (Hello, Sacramento and Riverside. Anyone out there? Anyone???) and around the nation. But here in the heart of Silicon Valley, San Jose is holding strong. According to Matt Woolsey of Forbes Magazine (November 21, 2007), San Jose ranked third nationally for best performing housing markets. The third quarter (2007) median home sales price in San Jose was $852,500; this is up 9.4% for the same period last year for San Jose.
Ahead of San Jose were Salt Lake City, UT ($246,700;+14.1%) and Charlotte, NC ($220,000;+11%). San Jose even outpaced its neighbor to the north as San Francisco ranked fourth on Forbes’ list with a median sales price of $825,400, which is up 8.6% from the previous year.
On the opposite end of the scale, Sacramento, CA was the worst performing housing market for Q3 2007. Sacramento’s median sale price of $335,700 was down 10.5% from 2006. Riverside/San Bernadino ($377,000;-7.6%) wasn’t far behind as the third worst performing housing market nationally.
While all the prognosticators claim doom and gloom for the housing market, that doesn’t appear to be the case for San Jose. This is not to say that all is good for real estate in San Jose, clearly there are areas within that are struggling. But maybe it really isn’t as bad as everything that’s said in the media.