7-Digit Price Tags Not Deterring Silicon Valley Buyers

Key Highlights

• San Jose’s existing home sales spiked to +47.9% y/y in March 2021
• Median listing price now $1.4M

Silicon Valley Home Prices Keep Rising

Silicon Valley’s home prices have never be “cheap” but now in this sizzling hot housing market, the Valley’s infamously high prices are even higher.

As of March 2021, the median listing price of a home hit $1.4M.

Prices throughout the Valley have increased +11.1% throughout San Jose-Sunnyvale-Santa Clara, according to Norada Real Estate Investments.

Silicon Valley Home Buyers Just Keep Buying

Even with home price jumps throughout Silicon Valley, Norada Real Estate Investments indicates that existing home sales in just the city of San Jose skyrocketed to an increase of 47.9% y/y in March 2021.

Not only have existing home sales increased 47.9% y/y,  a local Coldwell Banker agent, said, “We’re seeing eight to 10 offers on homes as soon as they go on the market.”

Stock Options, High Salaries and Increasing Personal Savings Driving Home Sales

Wellman said, “You’ve got a lot of young buyers – the millennial wave – that are looking to buy in San Jose because they work at LinkedIn, Google, or Apple, which are all in this area.  A lot of times it’s a husband and wife, and they both work at a tech company, so putting a down payment on a $2M home isn’t really a problem for them.”

Additionally, during pandemic 2020, “No one traveled anywhere, so people were really able to save.  I’ve seen plenty of offers for +20% over asking price, at least.

Affordability appears to be irrelevant in Silicon Valley.  Wellman added, “Most of the renters in San Jose can qualify for homes out here.  There’s a lot of money being put into real estate right now, “ said Wellman.  “I honestly haven’t seen this kind of market for homes…since 2009.”

Thanks to Norada Real Estate Investments and HousingWire.

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