San Jose Real Estate Prices?

[moose168]

I was told this area is the hotest area in CA to buy in but I am not so sure about that.

Silicon valley is not the hottest; nor is it by any means the cheapest, but you will make a sound investment if you buy a house now or sometime soon. The real-estate market is in a slump right now - that's the best time to jump in.
Besides, San Jose has some excellent career opportunities, and the projections are for a lot more growth in the job sector. That will in turn increase your real-estate investment if you buy now.
I'll give you some figures - I bought a house in the '80s in south San Jose near the 101 and Capitol Expy for just over $100grand - sold it 2 years ago for nearly $650grand. That neighborhood is mid-'70s era - not the best, but certainly not the worst.
I'm now living temporarily in the Phoenix area for family reasons, but I'm coming back sooner or later>>>>>>>> hopefully sooner! Phoenix used to be such a nice city, but now it's an oversized, spread-out cesspool of asphalt and shoddy-built stucco homes. No character whatsoever, and not too many career opportunities unless you want to work in a call center.

[islandsunshine]

Oh so it is in a slump now? How long are they thinking it will stay like this?

I looked at moving to Scottsdale. Loved the area but the heat would just kill me and I saw a few too many road rage incidents on the highway and seems like there are a lot of crazies running around there.

Then we looked into Sedona but I was afraid I would get too bored from everything closing down at 6pm there.

Good luck with your move!

[Luke9686]

Pretty much most of the nation is in a slump right now. Some places more than others. The San Jose area is probably the least affected, but it is by no means a good market. Most of the bay area is seeing slight declines in home values, San Jose is seeing slight increases. I doubt we will see the 10-20% appreciation rates that was here a few years ago.

It all depends who you believe on the situation of the market here. I would by no means listen to a realtor though. Not that they are all bad, but most of them don't know the first thing about investing, plus they will say anything to get a sale. Especially when homes are sitting like they are now. I would honestly not buy an investment to hold here, unless you can get it for at least 20% below market value.

The Las Vegas market is one of the worst in the nation. Builders are giving huge incentives, sometimes $50,000 cash and 8-10% commission for agents just to sell a home. The market there is oversaturated with overvalued homes. I would stay away from that market. I doubt if they will see the increases in value like they did a few years ago. Too many houses on the market, too few buyers.

Also, you mentioned you were looking into the Austin area. I think that area is a great area to invest. The market there is pretty good. You have to be carefull in Texas markets though. In most places in Texas, homes don't appreciate. Dallas and Austin are exceptions. Also, property tax is extremely high in Texas. My aunt owns a home she paid $135,000 for and pays around $8,000 per year in taxes. I think that is a reason homes don't appreciate.

You should also look at Salt Lake City and Boise Idaho. Maybe even check out Bend Oregon. The markets in those places are pretty hot right now. I think Boise's appreciation is supposed to be around 10% for the next few years. The population is supposed to double in the next 10 years. Salt Lake City is supposed to see good appreciation also.

If I were you I would buy three houses in Austin, Salt Lake City, Boise or Bend for the price of one in San Jose. Most of them in the places mention should cash flow most of the time.

[Luke9686]

If you go to www.reiclub.com and go to the forums section, do a search for the screen name "deeinaustin". She invests in the Austin area. She posts a lot on that website.

[moose168]

Originally Posted by islandsunshine

Oh so it is in a slump now? How long are they thinking it will stay like this?

I'm not sure, but it's not in a boom period as it was 2 years ago. Prices are generally flat across the nation; so as with the stock market, that's a pretty good time to get in.
Silicon valley is such a good area for high-paying jobs - especially in the technology sector. With that in mind, I think you'll see another boom in home prices and sales within a few years.

I looked at moving to Scottsdale. Loved the area but the heat would just kill me and I saw a few too many road rage incidents on the highway and seems like there are a lot of crazies running around there.

OMG, you speak the truth!
You see, I was born in Phoenix, but I moved to California in the mid-'80s. I love the San Jose area for the career opportunites; and San Francisco for the nightlife and culture. I moved back to Phoenix because I'm taking care of my mother who is 83.
Scottsdale is often portrayed as the Beverly Hills of the Phoenix metropolitan area, but to me it's just another spread-out suburb. They have 1 freeway that serves as a loop; and people have been known to drive at speeds of 125 or more late at night. Thankfully they're putting in speed-detection cameras, so that's about the only thing that will make them drive like civil human beings!
Yes, the summer heat here is unbearable. It doesn't even cool down much at night anymore because the asphalt and concrete jungle holds in the heat.
There are opportunities to make good money in the Phoenix area, but it's often made through shady real-estate deals>>>>>>> and if you're a developer of cheap-quality stucco sub-divisions, you're rolling in the dough. Illegals and the uneducated love the area for the quick cheap labor, and questionable companies love to hire them.
When the time is right, I'm moving back to northern Cali.

[islandsunshine]

Oh I hope you can get back to California soon. I can't imagine how hard that must have been. It might have been fun for about 15 min. until you piles of illegals in beat up pick up trucks swerving in and out of traffic jams like crazy pirates.

We had flown to Phoenix to take a private glass from a gentleman who offered classes in making glass paperweights, beads etc. Thought it could be a fun hobby.

He told us how he keep a big knife in his garage when he is working on his Vette and if someone walks up the driveway he holds up the knife and says " Stop right there, what do you want". YIKES!!! That was when we learned what home invasions were about. That was also one of the things that changed our minds about moving to Arizona.

The laid back attitude that the majority of Northeastern California people have is not found in Arizonia.

I just could not understand if the police see tons of people hanging out at a gas station or Home Depot, why can't they just arrest them? They obviously aren't here legally or they would have jobs and not have to stand around hoping for someone to pick them up.

I know they have it in California too but nothing like Arizonia.

I hope you are able to get back to Northern California soon Good luck!

[islandsunshine]

HI Luke,

Thanks for the site and the info. Yes, I would probably invest in Austin or the surrounding areas. It's really nice there. Reminds me alot of Southern California and except the people in Texas are very kind. Not that people aren't in Southern California, but I mean in Texas they are REALLY nice. It was amazing.

As far as Vegas goes I think if people wait til it bottoms out and then grab them right before they go into forclosure and then hang onto it for 5-7 yrs. it might get them a decent return.

I was just there in Nov. and yes I saw major begging on the builders parts but the odd thing is, they are still building.

The San Jose thing scares me. I don't know if you read about that one house I found but the Zillow site was saying it was worth 760K and they were asking 1,399,000. Now it looks like they have lowered it to 1,199,000 but I still think that it is way off. I realize the comps and all you said but I mean, that much? The other comps zillow vs what they sold for wasn't off by that much.

It is just hard to figure when I have to do it long distance and trust a realtor.

I really think that I am going to stay away from San Jose. It just seems there is such a high variation in the prices. I don't want to buy a house for 1,199,000 and mean while zillow is saying it is worth 760K. I ususally try to get my numbers to be the opposite of that.

[Luke9686]

That's crazy about that Arizona thing. I am originally from Iowa, and if someone walked up to me in my garage I would think nothing of it, unless of course I was in the ghetto. I wouldn't feel safe in an area where I had to do stuff like that. It would be constant aggrivation having to have that attitude as if everyone is after ya... No thanks.

[moose168]

Originally Posted by islandsunshine

Oh I hope you can get back to California soon. I can't imagine how hard that must have been. It might have been fun for about 15 min. until you piles of illegals in beat up pick up trucks swerving in and out of traffic jams like crazy pirates.

They move - or I should say trespass - into Arizona for the cheap-labor type of jobs.
The real kicker is they don't speak English, and so many companies are willing to hire them - for the cheap wages of course. Even many people who own homes hire them to save a buck or 2.
It's so insanely stupid the way the state government just allows it to keep happening. Senator Mc Cain even has a passive attitude about the illegals; and he wants to be president?????? No thank you!

I hope you are able to get back to Northern California soon Good luck!

Oh I will as soon as things are taken care of here. I'll probably be looking for a small condo in a nice area of San Jose - or the general area - where my mother can live with me for a while.

[islandsunshine]

Luke,

Can you imagine that? I am a total no violent person so for me it was shocking. Plus, this was a nice, upscale neighborhood. Then also there was a hiker that had 2 dogs and his dogs scared another hiker and the hiker shot the man and killed him. WHAT???? See I just don't want to live somewhere that I have to feel like I am living in the wild, wild west! Carrying guns is normal??? No thanks!

Moose,
Don't even get me started on the non English speaking topic. I am just amazed (and you know it is political) WHY we are catering to these people? TRUE we are immagrants too BUT our grandparents or great grand parents came here, loved the land, learned the language, got jobs and were proud to be Americans. They weren't running around burning American flags and speaking, German, French, Japanese,etc.

Now they require special teachers because they kids are speaking Spanish in classes. Why aren't they making it a requirement that they learn English?

I was also shocked to hear that the border patrol cannot refuse an ambulance. So they just bring them over the borders and we foot their medical bills and then you know they don't go back.

The first time I went to Sedona Arizonia and there were about 50 men at various places, just standing around. So I asked someone what those men where doing. The sales clerk said " Oh they are illegals and that is who they gedt work, they are Day workers". She was very casual about it like it was no big deal.

Phoenix has razor blades on their barbwire at car rental places! WHAT??? They said i they don't they will steal them and take them over the border. Nice!

I agree, Mc Cain is not what we need. We have an illegal immigration problem and someone needs to clean up this problem that the politicians have ignored.

Whew....OK I'll get off my soapbox now.