Santa Clara County sales are down but so is the inventory reported DQNews.com. The article published today states that January 2010 sales are down from December 2009 but those are normal levels for this time of year.
Limited inventory equals less sales activity
The article also attributes this to various factors including tax credit, financing and lack of inventory. I know this already but in our case our clients are experiencing very limited inventory as the main factor.
Trend should continue in 2010
While sales have fallen in recent months we are going to continue to see this trend in the Silicon Valley mostly because of HAFA and as the demand for housing continues to remain high. Another contributing factor is that sellers not in foreclosure who would normally consider selling are staying put as the economy continues to recover.
The chart below shows in increase in sales volume for Santa Clara County and an improvement in the Median sales price.
|
Sales
Volume |
Median
Price |
| County |
Jan-09 |
Jan-10 |
%Chng |
Jan-09 |
Jan-10 |
%Chng |
| Alameda |
994 |
936 |
-5.8% |
$300,000 |
$341,000 |
13.7% |
| Contra Costa |
1,333 |
1,078 |
-19.1% |
$220,000 |
$257,250 |
16.9% |
| Marin |
122 |
153 |
25.4% |
$525,000 |
$535,000 |
1.9% |
| Napa |
78 |
87 |
11.5% |
$370,000 |
$350,000 |
-5.4% |
| Santa Clara |
1,037 |
1,137 |
9.6% |
$400,000 |
$451,000 |
12.8% |
San
Francisco |
229 |
311 |
35.8% |
$562,000 |
$629,000 |
11.9% |
San
Mateo |
273 |
355 |
30.0% |
$489,500 |
$579,000 |
18.3% |
| Solano |
560 |
462 |
-17.5% |
$192,500 |
$201,000 |
4.4% |
| Sonoma |
424 |
334 |
-21.2% |
$299,750 |
$325,000 |
8.4% |
Bay
Area |
5,050 |
4,853 |
-3.9% |
$300,000 |
$350,000 |
16.7 |
source dqnews.com
Click here to read the DQNews article
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
Michael and his son stand in front of their new home
I met Michael years ago and would say hello to him from time to time. Little did I know that Michael would inspire me in the way that he did when I handed him the keys to his new home.
You see about a year ago Michael had a stroke and it changed his life. Michael is a hard working single parent of two great kids. His Daughter just started college at SFU and his son lives with Michael.
The best part of this story is that Michael triumphed over his predicament and ultimately made changes in his life to prevent a reoccurrence of a stroke. One of the decisions that Michael made was to become a homeowner early this year and as a result contacted me. Michael was looking for a home under$250,000; a challenging task especially because this has been the hottest price range in 2009 and the competition is fierce.
After months of looking and making offers we were successful in finding a cool little 2 bed 1 bath remodeled home in Gilroy. The story doesn’t end there; we now had to navigate though the short sale gauntlet once we were successful in getting into contract.
Among some of the challenges we faced were appraisal issues and loan approval hurdles to overcome with the seller’s Short Sale investor. The entire process took three months to close escrow.
Michael’s faith and patience played a large role in helping him realize his homeownership dream. Thank you Michael for showing me that prayer, perseverance, and patience are the keys to life.
I’m so happy for you and your family. You are a wonderful role model and a hard working father. This will be a very happy Christmas for you.
Note: Michael is eligible for the Federal tax credit and I signed him up for the complementary California Association of REALTORS housing affordability fund. The C.A.R. fund is available through the end of the year and pays his mortgage up to $1,500 for six months should Michael lose his job or as a result of an injury. The only requirement is that Michael purchases his home with the assistance of a REALTOR.
“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:
Santa Clara County has programs to put first time home buyers into homes specifically in the unincorporated areas including the Burbank area near Santana Row. The program is run by the Housing Trust and relies on grants and is available at various times of the year depending on the availability of government funds.
Timing is Everything
Programs like these are available until the pot of money runs out making it a challenge for some and perfect timing for others. Buyers considering this type of program should check with the Housing Trust before counting on it’s assistance.
Housing Trust Programs for First Time Home buyers
The three programs comprise of the following:
Closing cost assistance – $6,500 to help with buyers closing costs
Down Payment Assistance - $15,000 low interest loan deferred for 60 months
Mortgage Assistance – Applications available September 8th 2009
Income Limits are the Catch
Generally any government funded programs like this are meant for buyers who need that extra help to get the over the top and into a home. Here are the income limit requirements for 2009.
Broker’s Advice
Use this resource of funds to help structure your offer, this will help you write a stronger offer. Especially if you are not having to ask a seller to credit you for closing costs and if you can show that you have a larger pool of funds to close because you qualify for one or more of these programs.
For more information click on the following:
Housing Trust Website link here
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