Looking for a new home in San Jose? This is when to buy. Real estate search company Trulia reports a 13 percent increase in price reductions in July and August. Discounts are highest for luxury homes, valued at $2 million or more, where prices have gone down by as much as 14 percent.

Nevertheless, prices are also going fdown or cheaper homes at an average of 9 percent. In California, only San Diego saw a greater increase of price reductions, coming in at 15 percent. Meanwhile, Zillow reports that home prices are stabilizing, with the median price of a home in Santa Clara County increasing by as much as 7 percent. Home buyers in downtown San Jose can also receive a loan of 20 percent of the value of their apartment at a 3 percent interest rate, using state funds.

Taken all together, there should be a busy few days ahead in the real estate market, since first-time home buyers have until August 15 to apply for a $10,000 state income tax credit.
More at the San Jose Business Journal.