While rental prices in the Bay Area are as nightmarishly expensive as they’ve ever been, it’s getting noticeablyharder to sell a mansion in Silicon Valley. In super-wealthy Palo Alto,where the median price for a home is $2.1 million, Silicon Valley mansions—those costing more than $5 million—lingered on the market for 16 days in April 2016, compared to 11 days in April 2015 and 10 days in April 2014, Bloomberg reports. (The average national median time a house stays on the market, by comparison, is 67 days.) Luxury-home sales in Silicon Valley had been propped up by tech executives flush with cash after initial public offerings, and foreign buyers. But now, in the wake of tumultuous times for global financial markets, including China’s slowing economy, luxury-home sales across the country have slowed.
“The seemingly inexhaustible well of very high-end buyers has proven exhaustible after all,” an executive at real estate consultancy firm John Burns told Bloomberg. “The peak is behind us, and that’s becoming clearer and clearer to builders and buyers.” Last April, the average price of a Silicon Valley property costing more than $3 million was $4.12 million. Last month, that pricedropped to $3.76 million, according to the National Association of Realtors. One Palto Alto-based realtor says he’s seen less interest for properties that cost more than $4 million. “The market is cooling down,” he says. “It doesn’t mean the market is going to crash tomorrow. This is a time where basically we have reached a point where it’s too expensive.”
But don’t think Silicon Valley’s housing market is going to reflect the rest of America any time soon. Realtors say there’s still plenty of demand for homes costing between $2 million and $3 million—those are the homes affordable to software engineers and tech execs in the Valley alike. And if a median-priced home in the Bay Area is outside your budget, you can still try your luck renting. Just be prepared tobid against your fellow Silicon Valley apartment-seekers, Hunger Games-style.
Maya Kosoff writes about tech for VF.com, with a focus on start-ups and venture capital.
Author:Marilyn Cortez Phone: 956-587-1633 Dated: May 20th 2016 Views: 421 About Marilyn: Always ahead of the highly competitive RGV real estate market, Marilyn Cortez is a Spanish speaking ...
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Always ahead of the highly competitive RGV real estate market, Marilyn Cortez is a Spanish speaking native of the Rio Grande Valley. Born and raised in Mission, Marilyn is committed to her clients, and is recognized as a Top Agent in the Greater McAllen Real Estate area, and within Keller Williams Realty. Since the start of her Real Estate career in 2007, she has sold over 40 million dollars of real estate. Known by her fellow real estate agents to be hardworking, honest, dedicated and motivated, Marilyn is knowledgeable in all areas of Real Estate and has built her business on results, with more than 70% of her clients being repeat clients.