Hi again everyone.The second quarter housing statistics for the city of San Jose are out and they have surprised me a bit. The first quarter of 2013 showed that rents were continuing to rise but the pace of growth had slowed substantially. In the fourth quarter of 2012 and in the first quarter of 2013, rent pricing had begun to slow and was holding steady at 8% growth YoY. That was down from 10% YoY in the third quarter of 2012. With two consecutive quarters of slowing, I expected the trend to continue and I was beginning to prepare my owners for the inevitable downturn of our rental market. But then the second quarter comes out and shows that rents are up again, a lofty 9.8% YoY. The average rent price for a three bedroom home is now $2,554.00. That is up from last quarter, when the price was $2,411.00, pushing rental housing even more out of reach for many in the San Jose area. And it is getting more difficult to purchase a home as well. The median price for a home in Santa Clara County is $811,000.00, a whopping 25% YoY increase. The housing sales data will have a measurable impact on the rental market in the coming months. Note that all data collected for the City of San Jose Housing Statistics Report were provided by Real Facts and surveyed only projects of fifty units or more but this is still a very good indicator of where the market is going. Other sources include Employment Development Department, and the City of San Jose Housing Department.
Take a look at our website for the housing numbers on the tools and resources page of our website or simply click here. Meanwhile, I keep an eye on the market so we are not surprised in the future.