Homeownership Opportunities Abound in Santa Clara County

Oct 11, 2010, 14:41 ET from Santa Clara County Association of REALTORS

SAN JOSE, Calif., Oct. 11 /PRNewswire/ -- Low mortgage rates and a pause in price appreciation have extended the housing affordability window in Santa Clara County to another month.

In September, the average sales price for a home – including single family homes, townhouses and condos – stood at $659,798, according to MLSListings, Inc. It represents a 7.13 percent drop from the year's peak in July though an 8.76 percent increase from September last year.

Mortgage rates are at all-time lows. 30-year fixed-rate mortgage averaged 4.27 percent with an average 0.8 point for the week ending October 7, 2010, falling to the lowest level in decades the ninth time in the past 12 weeks, according to Freddie Mac.

"Short-term opportunities remain for qualified, motivated buyers, as long as the Santa Clara County housing market continues to experience decreased demand and increased supply, and the cost of financing stays low," said Karl Lee, president of the Santa Clara County Association of REALTORS®.

Since May, the number of homes sold in Santa Clara County has dropped at an average rate of 10.35 percent per month. 1,129 homes were sold in September. During the same period, inventory has steadily increased to 6,872 homes, at an average rate of 3.29 percent per month.

Lee said, "It's essential to work with a knowledgeable REALTOR® who helps the client evaluate the specific market and personal factors, and guides him or her through an increasingly complicated and unpredictable buying and financing process. Bad decisions can turn an opportunity into a disaster.

"This is particularly true for homeowners who are leveraging this window of opportunity to move into their next home, whether upgrading or downgrading. Poor pricing strategy that results in extended time on the market will impact their purchasing position on the new home because they did not get the most of selling the current home."

SCCAOR President Karl Lee can be reached for comments at karllee@resultspros.com or 408.205.1726.

About the Santa Clara County Association of REALTORS®

SCCAOR, established in 1896, is California's oldest and Northern California's largest real estate association. We represent 7,000 REALTORS® and affiliate members. SCCAOR exists to meet the business, professional and political needs of its members and to promote, protect homeownership and private property rights.

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SOURCE Santa Clara County Association of REALTORS