There was a great article from Forbes recently that cited San Jose as one of ten cities across the US that would rebound nicely in the real estate arena.
The Local Market Monitor, a N.C.-based real estate research firm, helped compile the list, using factors such as the change in home prices over the past 12 months and three years, unemployment rates, job-growth projections, the change in population from 2006 through 2009, and new-home construction rates for the third quarter of 2011 as compared to 2010.
San Jose is a veritable oasis of prosperity. Employment in the capital of Silicon Valley is expected to expand 3.3 percent this year, and we gained 4,840 residents in 2010. Job and population growth are fueling housing demand: New home construction in the area was up a whopping 97 percent in 2011’s third quarter compared to 2010.
All of these factors indicate Silicon Valley’s real estate market has found its bottom. Real estate experts agree that price fluctuations of 3 percent or less generally indicate that a market is stabilizing. All of this is good news for San Jose home buyers and sellers. Reluctant sellers who were scared of prices continuing to fall should start to put more traditional sale homes on the market, increasing the inventory for would be buyers, who are now seeing multiple offers on the currently limited housing inventory. And with the Federal Reserve indicating it will keep interest rates at historic lows thru 2014, it’s still a prime time to buy a home.
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