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Market Struggles ContinueSteinberg’s bill would provide funding for affordable housing, but critics ask: Where’s the money?by Danny Wool on Nov 18, 2009There are rumblings that the economy is improving, but that's hardly felt these days in the Santa Clara real estate market. The number of homes in the process of foreclosure rose dramatically this year, from a low of 1,661 in February to a high of 4,661 in October, an increase of almost two hundred percent. While the number of foreclosure sales has more or less flat-lined in that time, they still stand at 479, almost double the March low of 247. At the same time, prices are rising. The "affordability index" for single-home buyers, designated by the California Association of Realtors, is 64 throughout the state, meaning that 64 percent of potential first-time buyers could afford a new home. In Silicon Valley, however, the index is at 53, five percentage points lower than last quarter. The median cost of a home in Santa Clara County is $481,100. Medium- and low-income housing projects have all but stopped throughout the county because the economy is troubled on all levels. One potential solution to the problem is SB 500, a bill introduced by Darrell Steinberg, president pro tem of the state senate. The bill is intended to establish a permanent source of revenue for affordable housing projects in California. While the bill is endorsed by groups such as Homes4CA, critics of the bill question where funding would come from, especially in the current economic climate. Read More at the Mercury News. by Danny Wool on Nov 18, 2009 |
 Prices are up in the first-time buyers market, but sales are down. |
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