Monday, November 25, 2013

Prices Rising: New California Home Buyers Shut Out of Silicon Valley

According to the San Jose Mercury News, local MLS (multiple listing service) reports show a rise in single-family home sales in Silicon Valley. However, rising home prices and interest rates have made home ownership less affordable in California, particularly in Silicon Valley. Compared to October 2012, median prices in San Benito, Santa Clara, and Santa Cruz counties have all risen between 12 and 45 percent.

The Mercury reports that home buyers need to earn a minimum annual income of $165,420 to qualify to purchase an $805,000 median-priced, single-family home. Carolyn Miller, President of the Silicon Valley Association of Realtors, states that "with Silicon Valley's economic recovery, there is no doubt that it has become more difficult for home buyers, especially first-time home buyers, to purchase a home in the region."

Source: Rose Meily, High home prices shut out buyers, SAN JOSE MERCURY NEWS (November 18, 2013) http://www.mercurynews.com/news/ci_24550995/high-home-prices-shut-out-buyers.

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