Real estate in Santa Clara improves
The evolving housing market is showing potential homebuyers that the economy is changing. The real estate industry is posting significant improvements in national housing figures. Those positive numbers are present in metros across the United States like Santa Clara.
Real estate in Santa Clara is now more plentiful and affordably priced in a growing metro economy. There are fewer distressed properties for sale and more mid-range priced homes are being purchased at increased rates. All of these characteristics are indicative of overall national trends finding their way into the local Santa Clara market.
The national house market improves
The housing market in the U.S. has been showing positive growth recently. The Wall Street Journal reports that home prices are appreciating in the current economic climate. The median price for an existing single-family home rose in 120 out of 149 metros in the third quarter of 2012.
New real estate statistics are showing that in the U.S., the median price for a single-family house grew to $186,000 in the third quarter of 2012 - up 7.6 percent from the same three-month period one year ago. The news source claims that this is the largest year-over-year growth recorded since 2006.
The greatest housing price increases recorded during the third quarter of 2012 were in regions that were the hardest hit by the housing bust of the mid-2000s. Price gains for areas like Las Vegas, Miami, Phoenix and Riverside, California all improved with year-over-year price increases between 12 and 12.7 percent each.
"Housing inventories have been gradually trending down from a record set in the summer of 2007," said real estate expert Lawrence Yun. "Earlier this year, a broad equilibrium began to develop in most areas between home buyers and sellers, which led to a sustained upturn in home prices. We expect fairly normal appreciation patterns in 2013, but there is a risk of price acceleration if builders are unable to increase supply to meet the needs of our growing population and household formation."
The average financial situation of a Santa Clara resident
According to HomeInsight, the median household income in Santa Clara is $75,939. The median household income has risen 71.75 percent since 1990. The positive growth in the annual amount workers are bringing home indicates a strengthening metro economy that is staying pace with inflation costs.
Potential homebuyers making their first move to California may want to consider how the state's tax rate of 8.25 percent could impact their finances. The state's highest income tax bracket is at 9.30 percent - however, the lowest income tax bracket is only 1 percent. These local taxes could impact how much a worker brings home in his or her paycheck every month and the monetary funds available for a mortgage payment.
The median home price in Santa Clara is $506,979, claims HomeInsight. Property prices on average have a 6.74 percent gain during a two to five year period.
A potential homebuyer may want to consider the competitive pricing and increasingly fast-paced selling market in Santa Clara. According to ALTOS Research, the average property in Santa Clara as of November 2, 2012 had been listed as for sale for about 63 days. As of that date, there were approximately 90 properties on the market.
As more professionals consider the improving housing market, competition for real estate in Santa Clara could heat up. Potential homebuyers can check out the MLS listings for the region to determine if there is an affordable property available that they want to consider owning.