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AFFORDABLE HOUSING IS AVAILABLE NOW IN ALL AREAS OF SANTA CLARA COUNTY WITH MORE THAN 1,000 SINGLE-FAMILY DETACHED PRICED AT OR UNDER $200,000

 SAN JOSE, Calif., April 20 /PRNewswire/ -- The San Jose Real Estate Board (SJREB) today released the following:
 With good credit, a down payment of only $10,000 and $5,000 for closing costs, it is possible for many families and individuals to buy a $200,000 single-family detached home in Santa Clara County right now. There are currently more than 1,050 single-family detached homes located in all areas of the county listed at or under $200,000, debunking the myth that there is little or no affordable housing in the beautiful Santa Clara Valley.
 In an area that has practically shut out middle and lower income residents from home ownership for many years, a wide choice of affordable housing (combined with very favorable market conditions) is now available to buyers with incomes as low as $42,000. As of mid- April, there were 31 homes listed in the Cambrian area for $200,000 or less, three in the Campbell area, 23 in Willow Glen, 74 in Blossom Valley, 136 in the downtown corridor and 131 in the North San Jose area. The remaining 600+ single-family homes now available for $200,000 or less are scattered all over Santa Clara County.
 In the case of a family with income of $42,000, how do the current market conditions of low-interest rates and a high inventory of homes for sale help them make their dream of home ownership come true? The data below shows what it takes:
 Sales Price of the Home $ 200,000
 5 percent down 10,000
 15 percent seller carry-back (2nd) 30,000
 80 percent new loan - variable 160,000
 Total $ 200,000
 Monthly Housing Costs
 $30,000 2nd at $ 187.50
 $160,000 1st at 4.85 percent var. 844.31
 Budget for taxes 208.33
 Budget for insurance 30.00
 Monthly outgo $1,270.00/mo.
 Estimated Gross Income Required
 Qualifying $1,369.74
 Monthly $3,424.00
 Annual $41,092.00
 These figures are based on the purchase of a $200,000 single-family detached home only and do not include those single-family homes listed for less than that or the hundreds, perhaps thousands, of condominiums and townhomes listed at under $200,000 right now. Also, buyers must find a seller willing to carry back a second (many sellers are willing to carry a second) and must secure adjustable mortgages at or around the rates quoted in this example.
 Sellers, especially those who have had their homes listed at unrealistic prices, have been lowering their prices in order to sell. Sellers must also have the property in tip-top condition, or be prepared to lower their asking prices even more.
 All these factors in combination make for an extraordinary opportunity for buyers, strongly favoring those who have been shut out of home ownership for lack of a qualifying income. If history repeats itself, the "buyers' market" will not last in the Santa Clara Valley. Even if interest rates stay low for several months, home values can continue to climb and inventory can go down, putting sellers back in the "catbird seat," naming their own terms once again.
 REALTOR members of the San Jose Real Estate Board can access the Santa Clara County Multiple Listing Service (the largest in the nation) to assist buyers in checking out all the homes they may qualify for. Look in the yellow pages for a realtor or call the San Jose Real Estate Board for information on how to select a realtor.
 Established in 1896, the San Jose Real Estate Board is the oldest trade association and the second-largest real estate board in California, operating the largest on-line computerized multiple listing service in the nation. With a current membership exceeding 8,000, the SJREB has made and continues to make significant contributions to the community over the nearly 100 years of its existence. Members adhere to the strict National Association of REALTORS' Code of Ethics and have been instrumental in protecting private property rights at all levels of government.
 -0- 4/20/93
 /CONTACT: Glenn Kinsey, president, 408-266-0430, or Dave Tanner, vice president, 408-272-8501, or Diane Brazil, 408-998-7300, all of the San Jose Real Estate Board/


CO: San Jose Real Estate Board ST: California IN: SU:

SG-GT -- SJ011 -- 8394 04/20/93 19:58 EDT
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Publication:PR Newswire
Date:Apr 20, 1993
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