According to the California Association of Realtors, only 25% of residents can afford
to buy their first home in the State. That percentage in Santa Clara County, with a median price range of $803,000, is even lower.
Sales are down nearly 20% from a year ago, but not in the higher priced areas of the county.
(See my May 8 post, "When It's Hot, It's Hot.") With fewer less expensive homes selling recently,the median is skewed by all the sales in the high priced areas.
In East San Jose and other entry-level areas, with homes in the under-$700,000 price range, inventory is high, and the market has slowed.
I have a small condo listed in the North Valley, in a complex where sales a year ago were $320,000 to $325,000. There are five for sale there at bargain rates of $299,000 to $310,00, but the only recent sale was a remodeled unit listed at $295,000, a major reduction from last year's values...indicative of the tightening credit standards for first time buyers.
