San Jose Real Estate * REALTOR ® * Richard Gonzalez » affordability

Silicon Valley Affordable Index Q1 2011; New Numbers on What it Takes to Buy in San Jose

Richard Gonzalez — Tue, 17 May 2011 17:42:58 +0000

The California Association of REALTORS® have released the affordability numbers for the state of California and among them is the very expensive bay area and Santa Clara County is among them. Here is what they found.

In Santa Clara County only 37% of the population can afford to buy a home at the $545,000 median range.
The required take home to purchase is $117,630.
Your monthly payment will be around $2,940.

The Chart below shows the cost of home ownership in California.

C.A.R. releases Q1 2011 Housing Affordability Index (car.org)

What You Need to Earn in Silicon Valley to Buy a Home as of Q2 2010

Richard Gonzalez — Tue, 07 Sep 2010 20:45:33 +0000

The California Association of REALTORS latest report tracks entry level housing requirements for the state of California over the second quarter of 2010. Santa Clara County has slipped slightly in the affordability index from 55% in Q1 2010 to 51% in Q2 2010.

The report also tracks income requirements for entry level housing and monthly principal, interest, taxes, and insurance (PITI) payments a buyer should budget towards housing. A first time home buyer would need to make a PITI payment of $2,940. This is taking into account a Santa Clara County median purchase price of $535,500.

Read report here

How Much Do I Have to Earn to Buy a Home in Santa Clara County in 2010?

Richard Gonzalez — Wed, 17 Feb 2010 15:00:20 +0000

The very first question most home-buyers ask is “How much do I have to earn to buy a home in Santa Clara County?”. The answer may be found in the California Association of REALTORS 2009 Fourth Quarter Housing Affordability Index report.

52% of Santa Clara County residents currently qualify based on current housing prices and personal incomes.
The Chart below shows that you have to bring home a combined total of $85,200 in order to make an average payment of $2,840(taxes and insurance included).
Based on this criteria you should be able to purchase a home on an average sales price of $497,250.

There are more affordable homes in Santa Clara County and as such you can qualify for less. Consult your banks loan officer or mortgage broker to pre-qualify yourself.

Click here to read C.A.R.’s full report

Santa Clara County Affordability Index at 58

Richard Gonzalez — Tue, 25 Aug 2009 17:36:21 +0000

“Quick Facts:
· C.A.R. First-time Buyer Housing Affordability Index stood at 67 percent in the second quarter of 2009 compared with 49 percent (revised) in the second quarter of 2008
· The median price of an entry-level home in California was $224,180 in the second quarter of 2009
· The estimated monthly payment including taxes and insurance was $1,330 in the second quarter of 2009
· The minimum household income needed to purchase an entry-level home in California in the second quarter of 2009 was $39,930″

California Association of REALTORS most recent data shows affordability is at at an all time high. It’s no wonder buyers are opting to own for the cost of renting.

Read Article here:

Entry Level Affordability Index Rises to 49% in Silicon Valley

Richard Gonzalez — Wed, 25 Feb 2009 15:00:28 +0000

An interesting new statistic was recently released by the California Association of REALTORS showing Santa Clara County affordability index has climbed from 24% to 49%. Yet another indication that REO(bank owned properties) and Short Sales are making home ownership in Silicon Valley a legitimate option. Take a look at the C.A.R. chart below.

C.A.R. Region	Housing Affordability Index	Entry-Level Price	Monthly Payment Including Taxes & Insurance	Minimum Qualifying Income
California	59	$248,030	$1,630	$48,900
California – Condos	65	$210,830	$1,380	$41,400
United States	72	$153,090	$1,000	$30,000
High Desert	76	$125,080	$820	$24,600
Los Angeles County	46	$301,110	$1,970	$59,100
Monterey Region	58	$265,700	$1,740	$52,200
Northern California	56	$241,410	$1,580	$47,400
Northern Wine Country	53	$300,890	$1,970	$59,100
Orange County	48	$395,100	$2,590	$77,700
Palm Sprgs/Lwr Desert	65	$159,310	$1,040	$31,200
Riverside/SBernardino	70	$171,060	$1,120	$33,600
Sacramento County	74	$159,750	$1,050	$31,500
San Diego County	56	$282,910	$1,860	$55,800
San Francisco Bay	47	$414,070	$2,720	$81,600
San Luis Obispo County	44	$317,330	$2,080	$62,400
Santa Barbara Area	55	$269,380	$1,770	$53,100
Santa Clara County	49	$446,250	$2,930	$87,900
Southern California	58	$248,380	$1,630	$48,900
Ventura County	58	$333,480	$2,190	$65,700
County	\	\	\	\
Alameda	48	$369,050	$2,420	$72,600
Contra Costa	35	$540,050	$3,540	$106,200
Fresno	70	$140,000	$920	$27,600
Marin	29	$709,420	$4,650	$139,500
Merced	79	$101,850	$670	$20,100
Riverside	71	$168,640	$1,110	$33,300
San Bernardino	70	$166,540	$1,090	$32,700
San Francisco	30	$570,660	$3,740	$112,200
San Mateo	37	$559,300	$3,670	$110,100
Santa Cruz	43	$391,000	$2,560	$76,800
Sonoma	56	$295,600	$1,940	$58,200

Source: California Association of REALTORS

Methodology of First Time Homebuyers Data