Realty One Group
Silicon Valley, CA
It encompasses west part of Santa Clara County with Palo Alto schools. The postal zip codes are 94301, 94302, 94303 than 67,000 residents. These single family homes were mostly built after 1940s. The gross living area is bracketed from 1,200 to 1,999 sf with a minimum 2 bedrooms and at least 1 full baths or so. This size range is necessarily to compare similar homes prices in different neighborhoods. There are also in recent years new modern homes constructed by demolishing old homes and they can ask as high as $17.5M for a 5300 sf mansion.
Hoover Institute, Palo Alto, CA
Total listings SFH = 12 Inventory: 1.0 month (2.5 month is healthy)
unemployment rate= 2.5%
Marketing time= 22 days
Avg home(1200-1999 sf)
2014 2015 2016
$2.186M $2.561(Jul-Sep) $2.302M
+22.7% +17.8% -6.5%
$1,352/sf $1,563/sf $1,438/sf
+21.3% +15.6% -8 %
The longest DOM during 2016 is the same like during the Great Recession meaning there is a demand anytime of an economic cycle always a sellers market.
SFH ($/sf) for size 900 sf -2000 sf - Palo Alto sold price
Other sources using median home prices without limiting large or smaller size homes also suggest similar trend during 2016. It is selling less than a year ago.
The % accepted vs. listed price shows it is still a seller market. We have been having a robust steep price increase since last quarter of 2011 or over 6 years now. Do home prices stay at this level. About 90% think it will go up in Palo Alto even more.
I have seen lower number of offers this year than in the past. The reason is strong economy and low unemployment rate in the area has one of the lowest. The low interest makes sense to own while enjoy have school age children attending top public schools in the area. The GPD in San Francisco Bay Area is 17th among all countries at $760B. With Silicon Valley being third highest globally (3rd globally in gdp per capita) at $80,000. There is tremendous momentum for future growth.
The issues facing many high technology workers is housing affordability. A typical $2.3 M modest entry level home, one needs to cough up $460K for a 80%-30 year jumbo mortgage which means ~$11,450 monthly is spent on mortgage (PITI) with a 3.85% jumbo loan. The minimum combined income to be eligible is $305,000 assuming one does not have major debts. Of course majority will put high down payment. Anyone got $3M can pay cash for an typical average home in this town. Use it for downpayment and get a loan to enjoy a better quality home.
Top employers nearby Palo Alto:
4 Palo Alto Networks
5 Stanford University
It is home for several software, virturalization, academia.
Current homes on the market or into contract:
$2.5- $3M 13
1 br, 1 bath expect to pay $2700-3200/month
2 br, 1 bath etc $3000-4000/month
Single Family 3/2 expect to pay high $5,000-6,500/month
Palo Alot Home prices (Palo Alto home prices)
Shueh, Sam How is my Silicon Valley home worth? (Silicon Valley Home Values)
Silicon Valley Real Estate July 2016 (San Jose area real estate update)
Shueh, Sam (Real EstateBlogs)
Sam Shueh Realtor
I've called San Francisco South Bay home for over 30 years. We love this area and all it has to offer, and I enjoy sharing what I know about homes. I documented in several books about Silicon Valley history. I have much expertise in real estate...please give me a call. (Four-O-Eight) 425-1601