Silicon Valley Mortgage Update 06-26-2011
We’ve all seen the headlines; across the country home values are down. Fortunately, we’re not interested in homes in Las Vegas and Detroit. They have little impact or bearing on our situation here in Silicon Valley, except one: the average buyer’s psychology and “feeling” about the market. Let’s face it; if everything you read, saw, and heard told you that the market was down, wouldn’t you begin to believe it? It’s a good thing that Real Estate here is not paying attention to the National news, because we’re seeing signs of local stability, if not outright recovery.
Let’s look at some important figures for local areas since May of last year: Palo Alto home prices have gained 20% to $1.63 million; Mountain View has increased 3.1% to $957,500; Cupertino rose 12% to $1.08 million; Saratoga gained 4.7% to $1.62 million. But why is this area defying National trends? We have the employment and economic growth that many other regions of the country don’t have. Furthermore, in the competitive tech and social networking industries, many of these new positions are highly paid. We’re also seeing a profusion of newly-minted millionaires from IPO’s and Venture Capital (over $9 billion in venture capital investment is estimated to have landed in Silicon Valley last year). And what do these newly affluent people want? Their own slice of the American Dream that they gain from buying a home.
The only question that remains is whether you capitalize on these trends before or after this flood of buyers hits the market en masse. So until next time, remember: Mortgage Matters!
Rob Pavley is a Mortgage Broker with Comstock Mortgage. Rob is a frequently contributor to StynesGroup.com. His insights and opinions on Mortgage Matters here in the Silicon Valley are invaluable to our team. If you have a Silicon Valley Mortgage question, we encourage you to contact Rob directly at:
19925 Stevens Creek Blvd., #100
Cupertino CA 95014
DRE: 01879276 NMLS: 307958