San Jose Fastest Selling Home Market in US

San Jose Fastest Selling Home Market in US

Residential News » North America Residential News Edition | By Francys Vallecillo | May 23, 2013 10:24 AM ET

Homes in San Jose, California are selling faster than any other major market in the U.S., according to a new report.

Nearly two-thirds of new listings in San Jose were under contract within two weeks, and there was less than one month of supply in April, according to a monthly report from Redfin, the sales agency.

San Jose's northern California neighbor San Francisco was second on the list. About 57 percent of homes in San Francisco were under contract within two weeks, the firm said.

The slowest sales markets were the Triangle region in North Carolina (Raleigh-Durham) and Philadelphia, each of which saw 10 percent of homes under contract within two weeks.

Overall, the number of homes that went under contract within two weeks in April increased by 39 percent since last year and 3 percent from March, according to Redfin's monthly real estate market report.  

Homes that went under contract in one week went up by 54 percent in April from last year and up 2 percent since March. The numbers for one week and two week contracts were new records since January 2011, the report states.   

Home buyers are deciding on purchases quickly, finding ease in reaching out to real estate agents through mobile devices.  

"I've been seeing more homebuyers writing pre-emptive offers in an effort to get under contract before a bidding war erupts," Redfin Silicon Valley agent Mia Simon said in a release. "Typically, these pre-emptive offers are well above asking price, non-contingent, and from homebuyers who have already lost out in several bidding wars." 

Out of the 22 markets followed by Redfin, seven are in California, all within the top 10. Denver was the only market in the top five not in California. 

Other key findings:

  • Atlanta and Philadelphia are the only metro areas considered buyer's markets, with 6.9 and 8 months of supply respectively.    
  • Miami has shown the most dramatic acceleration over the last year, with a 149 percent increase in the percentage of homes going under contract in two weeks, followed by Atlanta at 123 percent.    
  • Miami also led the nation with the largest (45 percent) month-over-month increase in the rate of homes going under contract in 14 days, followed by Denver at 15 percent.    
  • The Chicago and Phoenix markets slowed down in the last year, with 22% and 16% drops in their respective rates of homes going under contract within two weeks.    
  • In the last month, four markets decelerated, seeing a month-over-month decline in the percentage of homes that went under contract in 14 days. They were Chicago (-23 percent), Las Vegas (-3 percent), Phoenix (-2percent), and Dallas (-1 percent).

Speed by Market, April 2013

Real Estate Listings Showcase

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