Bay Area Real Estate Update Reports Santa Clara County House Prices Are Going Up

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The median home price in Santa Clara County is $550,000, which is good for those selling homes but not too good for those looking to buy.

If this is a sign of things to come (which is still up for debate, way too early to tell), then the time to buy a home is quickly slipping away.

With so many perks to stimulate the housing market (Federal tax credit, proposed California tax credit, and record low interest rates) a quote from a friend comes to mind. “If you don’t buy a home right now you’re either dumb or broke.”

It is true that credit is harder to come by with a 45% DTI becoming standard (Debt-To-Income ratio) when lending, but with programs like the USDA, VA, and CalPERS out there, it’s not hard to get the financing.

The hardest part is staying disciplined long enough to bring your expenses down.

Here is an excerpt from the San Jose Mercury News:

The Bay Area overall showed a 10.6 percent jump in the median price of all homes sold, including condos and new homes — from $350,000 to $387,000 — and a nearly 20 percent pop in the number of homes sold. The real standout counties in terms of volume were Santa Clara (a 47.2 percent jump), Marin (52.9) and San Francisco (46.8).

There were several factors behind the encouraging numbers, experts say, including government help in the form of tax credits for first-time buyers; low down-payment FHA financing; and an easier overall access to financing, even in the nosebleed section where a borrower on Thursday could get a 30-year fixed loan for up to $2 million for 5.75 percent.

The full article can be read here

Is the worst over? Does the spike in home prices and home sales mean we’re out of the water? In my opinion, don’t bet on it. If you’d like some guidance on how this affects you as a home buyer, call me on my cell at (714)244-7368 or email me at ChrisA@BroadviewMortgageCorp.com.

I just delivered the update, it’s up to you what to make of it.