In one of the strongest signs yet that the Silicon Valley housing market is recovering, the median price of houses sold in Santa Clara County last month shot up 29 percent from a year earlier, hitting $550,000, the biggest year-over-year increase in almost a decade.
San Mateo County saw a similar phenomenon, with the median house price leaping 27 percent to $700,000, according to a report released Thursday by MDA DataQuick. That was the county’s biggest year-over-year increase in nine years.
"In the last four to six months, we’ve been seeing multiple offers, and there are definitely a lot of incentives" for people to buy homes, including both state and federal tax credits for home purchases, said Karl Lee, president of the Santa Clara County Association of Realtors. "I think there’s an undercurrent of demand even without the tax credit. The two greatest factors are the low interest rates, and that buyers believe prices have come down to where they think it’s attractive."
Those low prices helped spur Richard Jackman and his wife, Gina, to buy a three-bedroom house in San Jose’s Willow Glen neighborhood last month. After a little remodeling, they hope to move in next week. The Jackmans began looking for a home a year and a half ago, and in late 2008, they made an offer of about $700,000 on one, but ultimately did not buy it. This time, they won out over three other bidders, and paid $560,000 for a house that had been priced at $540,000.
Did I call it or what? The Valley is back! 10% year over year appreciation here we come!