The last few weeks have produced a slate of new legislation aimed at helping to spur the economy and boost the real estate market. Several significant new pieces of legislation were included to pump up real estate sales. Most notably are the tax credits currently being offered. The federal American Recovery and Reinvestment Act includes an $8,000 tax credit for first-time homebuyers purchasing a principal residence frm January 1, 2009 to November 30, 2009. In addition, the California legislature added a provision in the state budget for a $10,000 tax credit for the purchase of a new home that has not been previously occupied from March 1, 2009 to February 28, 2010. So if you are a first-time buyer purchasing a brand new home, you may qualify for up to $18,000 in tax credits. Let’s hope all this stimulus gives the real estate market and the economy a swift kick in the pants!
Maybe all this new legislation will spur things around here in downtown. The number of closed transactions dropped to seven for the month of February. This is down from ten last month and also when compared to February 2008. In fact, to find the last single digit closing month you have to rewind all the back to December 2001. Over seven years ago!
Short sales and bank-owned listings accounted for over half of the closed transactions in downtown San Jose in February. Not a big surprise there. The three lowest priced transactions all involved bank-owned properties. Again, not a surprise. There are definitely a lot of great deals on great properties to be had out there. Maybe some of the new legislation will help get us back in the double digits in the next few months.
Reminder: The following statistics represent resales of Central San Jose’s (MLS Area 9 which includes downtown San Jose) condos, townhomes, and lofts. As noted in past statistical postings, these numbers may not include sales from new construction developments. New developments may or may not provide information to the MLS.
| Inventory | Closed Sales | Median Sales Price | Total Sales Volume | |
| Jan '09 | 159 | 10 | $292,500 | $3,078,000 |
| Feb '09 | 179 | 7 | $419,000 | $2,726,722 |
| Feb '08 | 169 | 10 | $519,500 | $5,036,800 |
| Feb '09 | 179 | 7 | $419,000 | $2,726,722 |
*The above 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.