If you are thinking of moving to California’s famous tech hub, where some of the big tech companies like Google, Facebook (now known as meta), and Apple are located, you will need some serious cash. According to a 2019 article published by The Mercury News, a person needs to make at least $255,000 annually to afford a median-priced home in the San Jose metro area, which is a big chunk of Silicon Valley. In a more recent report provided by HSH.com, the figures for 2022 reveal that number to be greater, at least $282,427.26, which is a 10.7 percent increase in three years. However, this depends on what type of home you are willing to buy, whether a luxury piece of real estate or something more modest.
Need to Be a High-Income Earner
It is evident that to live comfortably in Silicon Valley, you need to be a high-income earner or plan to be one in the near future. HSH.com reveals the average home price in Silicon Valley to be about $1,675,000, and for comparison, the average national sales price of a new home in 2021 was $453,700, according to statista.com. This makes Silicon Valley one of the most expensive and competitive housing markets in the entire country.
Qualifying for a Mortgage on a New House
The U.S. Census Bureau states that 62 percent of Americans carry a mortgage while the rest either rent or pay in full with cash. Buying a house with bathtub fittings is a significant investment that requires a lot of financial planning. If you are looking to buy a home in one of the most expensive areas in the United States, be prepared to apply for a mortgage if you cannot pay the full market price. It’s recommended to seek the expert advice of a realtor; they will be able to guide you on filling out a mortgage application and finding a suitable lender.
Navigating through Property Listings
It can be daunting to look at the listing of homes in Silicon Valley, with most of them being in the higher price bracket. However, that doesn’t mean that every house is ultra-expensive. There are modest houses with reasonable prices in the area that can appeal to middle-class individuals with a lower income. You don’t have to be a millionaire to live in California’s tech hub, but being financially prepared is crucial in the long term.
Seeking the Help of a Realtor
An experienced California realtor will always be there to guide your purchasing decision for your next home, or if you are brand new to the housing market, for your first home. Home buying can be tedious and usually involves a ton of paperwork such as forms, disclosures, legal, and other financial documents. So go now and start your search for a knowledgeable realtor who knows the market from the inside out and can provide you with the most accurate numbers and property listings with solatubes and other luxuries to save you time and money. As a home buyer, you have options; tell your realtor what you are comfortable spending on a new house, how long you plan to stay in your new home, and if you are married, plan out with your significant other any mortgage arrangements.
