First time buyers who came through my open house yesterday asked about the loss in value of area homes. I told them what we had been seeing "in the trenches," which is that most sections of Sunnyvale (except 94085) and Cupertino, including West San Jose, had not been affected as much because of larger down payments on resales and fewer sub-prime loans. I told them that values in our area had fallen 10-20% in the past year, and that the west Sunnyvale house where the open house property was located had come down about 15%. The Mercury News proved me right this morning.
In an article about the Valley's "Split Housing Market" they wrote that foreclosures were driving the major drops in value...in some areas as much as 50%. (In zip code95122...East San Jose...68 homes per 1000 were in foreclosure last year, and values declined 57%!) Abandoned homes are especially detrimental to local property values.
So unless foreclosures increase in our more affluent areas, we should continue to show less loss in value...much depends on the local employment situation.
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