Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Impact of rising interest rates in Silicon Valley.
California’s Housing Affordability Index (HAI) for Q3 2015 was recently released.  Compared to last Quarter, housing prices dropped, however, the rise of interest rates had offset the any potential savings from the lower prices.  The Affordability Index remained the same for both Santa Clara and San Mateo Counties as Q2 2015. 
 
 
In Santa Clara and San Mateo Counties, less than 1 in 5 Californians could afford to purchase the median priced homes in these respective counties.  Think about that number.   The Affordability Index is a huge psychological hurdle for most homebuyers.  
 
 
 
The Data
 
 
In Santa Clara County, the median home price was $965,000, the mortgage payment was $4,870 and the income needed to purchase such a home was $194,720 in Q3 2015.  Only 19% of Californians could afford to purchase the median priced home in Santa Clara County.  
 
 
 
Chart 1  (Q3 15)                          HAI
 
 
 
 
 
 
In Q2 of 2015, the median price was higher at $980,000, however, the same 19% of Californians could afford to purchase the median home, because of rising interest rates.   By comparison, in Q3 of 2014, 21% could afford to purchase the median priced home in here. 
 
 
Chart 2 (Q2 ... more

__________________________________________________
Are you on The Rain? Grow Your Network!