The Silicon Valley real estate is the most recent beneficiary to an explosion in technology stock sales, which has brought newly rick workers to this side of the state. Indeed, many are now opting to obtain a new home in suburban areas like San Francisco, San Jose, and Silicon Valley, instead of living in the big cities like LA. Naturally, with the growth in demand for homes in the area, there is also a corresponding increase in home prices.
Single family houses had now been estimated to be priced at approximately $1.63 million. This price has indicated that the median price for these properties has seen up to 20 percent increase from last year’s prices. This marked the highest increase for this type of property in the Silicon Valley real estate market since 2008, which is based on comparison data and statistics from a study conducted by a research company.
This recent explosion in the Silicon Valley real estate scene therefore belies the condition in the country’s overall housing status. According to the recent data provided by the US housing committee, the statistics had experienced a slump and signaled one of the lowest that the country has seen in as much as 8 years. And yet, real estate experts within and near Silicon Valley are confident enough to predict that this trend will continue on until 2013.
Another interesting point to consider with the recent boom in the Silicon Valley real estate arena is the fact that the biggest increase took place in towns or areas wherein million-dollar values have become somewhat of the new standard. This is why surrounding regions like Saratoga and Cupertino also saw a gain at 4.7 to 12 percent, respectively.
But what is it about the Silicon Valley area that got buyers interested? Is this the new hot spot in the California real estate industry? According to urban economics experts in California, this is a natural consequence with the boom in young people having access to real money. One of their main priorities these days is to have their own house. The increase in number of people interested in buying properties in Silicon Valley, California has prompted that price increase. Also, this does not fail to mention the fact that more people are now opting to live in the less active cities, like Los Angeles.
To prove that, real estate data has shown that over the past few months that houses were sold, the average age of home buyers went down from the 50s to the people in their mid-30s. Young individuals that are starting out are willing to spend a portion of their assets to own properties. It is also a manifestation of their wealth and status, such that many are convinced about the important of investing in real estate.
It remains to be seen whether the prediction made by an expert on the trend of the Silicon Valley real estate will live up. However, there is no denying that this is a hot region in California and buyers and sellers alike are keeping a close eye on this market.
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