San Jose home prices drop 3.3 percent, Oakland home prices drop 2.6 percent

SAN JOSE, Calif. (KTVU) - Donald Kilmer and his wife are in the process of selling their 4-bedroom home in the Cambrian area of San Jose and moving to Idaho.

"You're on pins and needles a little bit because you want to get your best price," said Kilmer.

But prices have dropped. According to Redfin, the San Jose market has seen the second biggest drop in median sale price nationwide following Bridgeport, Connecticut.

Prices in San Jose are 3.3% lower than last year.

Oakland's prices have dropped 2.6% in the same time, marking the fourth biggest price drop in the country.

"It takes a lot more effort to get a house sold these days," said real estate broker Lex Orosco.

Orosco is the Kilmer's real estate agent. He says the market has changed in the six weeks since he listed the property, with buyers more picky.

"Buyers are able to ask for more when they're submitting their offers. They're getting more time to do their inspections," said Orosco.

Across the city line in Santa Clara, realtor Myron Von Raesfeld lowered the price by $125,000 for a 3-bedroom, 3-bath home near Santana Row now on the market for $1,475,000.

"Things under about $1.2 million or less, we're still that seeing that still be a very competitive market. When you start getting into the marketplace above that, you're seeing it a little bit slower," said Von Raesfeld.

While prices have dropped, according to Redfin, San Francisco, Oakland and San Jose still remain the top three most competitive markets in the country.

"When you combine the lower interest rates with some of the pulling back of prices, we're beginning to see more buyers have the opportunity to really look at enter a marketplace where just six to eight months ago they thought they'd never have a chance to get into it," said Von Raesfeld.

As for the Kilmers, they've dropped their asking price by $50,000 after about 6 weeks on the market.

"The little kid in you is disappointed because you want a lot of candy for your effort. But then at the same time, the market is the market. It's impersonal and prices adjust, and we all have to learn to live with it," said Kilmer.