Biz Break: In California, real estate becomes more affordable (but who can buy?)
There’s a silver lining behind the cloud of falling actual estate values here in the Golden State: With mortgage rates still relatively low, housing affordability has climbed in Silicon Valley and other parts of California.
According to the California Association of Realtors, 37 percent of households in Santa Clara County could afford to acquire a median-price single-family home in the very first quarter of this year. That’s up from 34 percent a year earlier.
Assuming that household had a 20 percent down payment, it would have necessary $ 117,630 in yearly income to qualify for a mortgage for a $ 545,000 property.
Overall, although, the Bay Area remains a fairly costly location to purchase a property. In San Mateo County, for example, only 28 percent of households could qualify to acquire a median-cost single-family members house. In San Francisco, that number was 25 percent.
 
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