>> SIGN-UP: Get breaking news sent to you
In the Bay Area, a new report suggests the slump in home prices has arrived in San Jose.
You wouldn't know it that Hopkins Drive is located in a neighborhood of homes losing the most value in San Jose. The yards and homes are kept up. However, in zip code 95122, the median price has dropped almost 45 percent in the past year. In adjacent 95116, home prices have fallen over 41 percent. The numbers for 95111 and 95127 aren't far behind.
The numbers come from Zillow.com, an online site that tracks home prices. Zillow says San Jose now joins the housing slump that already hit other parts of the Bay Area.
"People were losing jobs across the board, the technology sector was hit for the first time, and people in high-end homes with a large income were hit the first time as they saw their portfolios start to decline. That keeps buyers off the market," said Amy Bohutinsky with Zillow.com.
"The activity below $500,000 in our marketplace is huge. Those homes are flying off the shelves. So you're going to see those numbers are going to drive the price down," said Quincy Virgilio, president of the Santa Clara County Association of Realtors.
Karl Street homeowner Ray Salac says several of his neighbors had to move out due to foreclosure, leaving debris behind.
"We called it in for the city and tell them to clean it up, but they haven't. I don't know why. It's bringing the values down. It is going down now, but it's making it worse because of the blight," said Salac.
Norma Stewart does a power walk down Karl Street almost daily.
"Last year these houses were going for the high fives, low sixes... well, two years ago. within the past year, year and a half, $250,000," said Stewart.
Zillow says its index is different from others that track recent sales only.
"For median sales price, that would skew the numbers to reflect what happened with low-end homes, not all homes. So we're taking those homes that sold, we're doing complex algorithms and putting that across all homes and saying, what's the impact on every house in this market?" said Bohutinsky.
Real estate experts expect the trend to continue as long as people fear losing their jobs.
Today's latest headlines | ABC7 News on your phone
Follow us on Twitter | Fan us on Facebook | Get our free widget
