Despite shocking prices, some realtors say Silicon Valley housing market has recently cooled

SAN JOSE, Calif. (KTVU) - A new report finds the San Jose metro area tops the nation for the largest jump in home value appreciation in the last year.

Teresa Dickerson, a longtime Bay Area resident, knows how much home values have gone up recently.
She just points to the Santa Clara home her son and daughter-in-law purchased two years ago.

"They bought it for $1.4 million. The realtor told them it's worth $1.8 million as of today. So up $450,000 in two years. It's incredible. The prices are just skyrocketing," said Dickerson.

According to Zillow, the San Jose metro area tops the nation with the greatest home price appreciation in the last year, up 26 percent since last May, with the median home value in San Jose now at $1,265,300.

"Let's face it...it's been a rough run if you're a buyer these days," said Rick Smith, the former President of the Santa Clara County Association of Realtors.

Smith isn't surprised by the report, noting the region had very strong demand in the first quarter 

"The first quarter we saw 10, 15, 20 percent increases in sales prices just on individual sales just in January, February and March," said Smith.

He points out one of his listings, a 1200-square foot home in Santa Clara on the market for $1.3 million, would have sold for $200,000 less a year ago, signifying a 29 percent increase in value in the last year alone.

But several realtors say Silicon Valley's hot housing market has cooled a bit in the last six weeks, with more homes for sale, staying on the market about a week longer and drops in list prices.

Dickerson says the home she bought was on the market for two months and purchased for significantly less than asking.

"A lot of that has to do with the fact sellers that are a little late to the market," said Smith. "They think now I can get whatever I want...let's finally sell the house. They come on the market a little too high," said Smith.

Smith says if the slowing continues, it could bring some relief to those looking to get into the market