San Jose has seen a sharp decline in home values since they peaked in April at nearly $1.7 million.
House values in the San Jose metro area fell faster than in any other major urban region in the country last month, according to a new report. The typical home in the region encompassing Santa Clara and San Benito counties saw its value drop by 3.
3% from October to November, according to the. By contrast, the nationwide the value of middle-of-the-road homes fell 0.2% over that period. Areas outside the city of San Jose weighed down home values in the region as a whole. In the city itself, the typical home saw its value stay about the same from October to November, according toHome prices in the region and nationwide have been falling since the summer, thanks to rising interest rates, the company said in its report. The average mortgage rate hit 6.9% in October — a 20-year high. Such rates discouraged sales that closed in November, Zillow said. The rise in rates is hitting hardest some of the areas that were formerly among the hottest housing markets in the country, Zillow spokesman Matt Kreamer said in an email to the Business Journal, "We're seeing the markets that are either the most expensive or those that grew the fastest during the pandemic slowing the most right now," he said. Zillow's home value data focuses on homes that are priced in the 35th to 65th percentile for their region. The typical home value in the San Jose region peaked at nearly $1.7 million in April, making it the priciest area in the country. That value has fallen 10.6% since then. The San Jose region has topped the nation in terms of home value declines both from October to November and from its peak. But other regions are seeing values drop significantly too.Values in the Raleigh, North Carolina area fell 2.5% from October to November, and those in the Phoenix metro region slipped 1.6%. Values in the Austin area have dropped 10.4% from their peak and those in San Francisco dropped 9.5%. The San Jose metro area was one of just three among the top 50 nationwide where home values were down, or flat, in November compared with the same month last year. Home values in the region were up just 0.7% over that period, topping only Austin, which saw no growth, and San Francisco, which saw values fall 1.1%. As high mortgage rates make it less affordable for residents to buy homes, buyers are forced to either pay more, shop for less-expensive homes or opt out altogether Kreamer said. On the flip side, with fewer people buying, sellers have to start lowering prices in order to close deals. While sellers may not want to hear it, the price correction is a good thing, Kreamer said. During the early parts of the Covid-19 pandemic, values were rising rapidly at unsustainable levels, he said. What's happening now is a kind of balancing out, where prices are going back to where they would have gone if not for the pandemic boom, he said. The quick jump in prices"was unhealthy for the market," Kreamer said. He continued:"There's still a lot of room before home values could fall enough to eat fully into those pandemic gains."Join 4 local Mayors as they discuss the economic outlook for Silicon Valley.Latinx Business Leadership Awards 2023: Individuals The Silicon Valley Business Journal is honoring exemplary local Latinx business owners, executives and entrepreneurs for their contribution and commitment to the community and their outstanding professional performance.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Eastern Michigan beats San Jose State to earn first bowl victory since 1987Eastern Michigan defeated San Jose State in the Famous Idaho Potato Bowl, earning just the second bowl victory in school history.
Read more »
San Jose State unable to hold on, falls to Eastern Michigan in Potato BowlSan Jose State (7-5) turned the ball over three times. It was first time this season that the Spartans had multiple turnovers in a game.
Read more »
What employees want in a post-Covid office space - Silicon Valley Business JournalA new study reveals what employees want from the office and how the right workplace experience can increase their effectiveness.
Read more »
PHOTOS: Hanukkah unity burns brightly in Silicon ValleyFive Chabad Houses come together for Santana Row ceremony
Read more »
Inside the $4M Silicon Valley home where Sam Bankman-Fried is under house arrestThe fallen crypto king will spend house arrest in his parents’ Palo Alto, California home located steps from Stanford University, where they’re professors.
Read more »
San Jose Man Arrested, Charged With Drug Sales After Los Gatos Students OverdoseA San Jose drug dealer has been arrested and charged after a group of Los Gatos High School students overdosed on fentanyl-laced pills that they purchased from him, according to the Santa Clara County District Attorney’s Office.
Read more »