If you are tired of paying $3,000 per month in rent for a 1 or 2 bedroom apartment and have decided that you want to buy a Silicon Valley home, you may find that it’s complicated and scary as the San Jose area is in a very deep seller’s market. Let’s take a quick look at the major challenges and decisions you’ll face as a potential Silicon Valley home buyer.
Major obstacles include:
- lack of affordability
- saving the down payment (and other costs)
- wanting what you can afford
- market conditions (homes selling with few or no contingencies & well over list price)
We’ll take these one at a time.
Want to buy a Silicon Valley home? Challenges in getting it done
Affordability – or the lack of it
Challenge # 1: the cost of housing is staggering, whether you are renting or buying, whether you are a first time home buyer or you’ve just relocated from somewhere else less expensive (meaning almost anywhere). Homes under a million dollars are few and far between, as the newspapers and media have recently announced, and the median price of houses in Santa Clara County is about $1.665 million, with the average price more than $2 million.
Of course, condos and townhomes are less pricey, but they will have Home Owner Association or HOA dues to factor in.