First-time buyers continue to be priced out of the market, but foreign investors remain active.
IRVINE, Calif., March 13, 2017 – HomeUnion®, an online real estate investing platform, has announced that while still elevated, investment home price growth in San Jose has slowed, especially at the higher end of the market. Prices are still out of reach for most investors, after hitting $900,000 in the third quarter of 2016, though San Jose properties provide long-term appreciation opportunities for investors with large capital reserves.
“West Coast markets generally attract an above-average share of foreign capital, particularly from Asia,” explains Steve Hovland, director of research at HomeUnion®.
“At the same time, the elevated prices limit the pool of traditional homebuyers. Furthermore, many younger tech workers in Silicon Valley are opting to rent rather than purchase. Despite the reduction in venture capital, major tech employers will continue to add to local payrolls, keeping renter demand healthy in 2017.”
Here are some key takeaways on San Jose’s investment housing market:
- The metro’s year-over-year employment growth is projected at 3.3 percent this year, compared to 1.7 percent growth nationally.
- Single-family rental (SFR) vacancy in San Jose is expected to grow by 60 basis points to 5.0 percent.
- Rents for San Jose SFRs are anticipated to grow to $3,719 per month, up 1.4 percent from 2016.
- Prices for investment homes in San Jose ended 3Q 2016 at $900,000, with over 80 percent of investors choosing to use leverage
For more information on the state of the U.S. investment housing sector and market conditions in 29 metros nationwide, download the 2017 National Single-Family Rental Research Report.
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About HomeUnion®
HomeUnion® is an online real estate investing platform. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion®’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Media Contact:
Stacey Corso
Communications Manager, HomeUnion®
stacey.corso@homeunion.com
415.672.6460
