SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

REALTOR®: Bay Area housing market expert presents positive outlook for Silicon Valley

Wednesday, January 15, 2014

The latest report from MLSListings Inc. indicates median prices for single-family homes in the Bay Area are starting to feel some pressure and December sales of single-family homes were flat. This development does not disturb experts in the real estate industry. They say buyers are merely "taking a breath" and the market should pick up by spring.

Carole Rodoni, president of Bamboo Consulting, Inc. and formerly president of Fox and Carskadon Real Estate, chief operating officer of Cornish and Carey Real Estate, and president of Alain Pinel Realtors was in Palo Alto last week and told members of the Silicon Valley Association of REALTORS® that home prices have come back an average of 24 percent in the Bay Area.

In Silicon Valley, Rodoni said "the market has been on fire." In some places like Palo Alto, she said prices are up 40 percent. According to MLSListings, the median price of a single-family home in Palo Alto from October through December 2008 averaged $1,330,000; the median was at $2,275,000 during the same period in 2013.

Rodoni said the San Francisco Bay Area is experiencing an "economic revolution," attracting investors, international buyers and those with cash. She said real estate in Silicon Valley is "the heart of technology."

"At the end of the day, it's a good thing because you cannot own or run a business today without technology," said Rodoni.

Giant companies based here like Apple, Google and Yahoo, are acquiring more companies and workers every day. Start-ups that succeed will go public and give birth to more millionaires.

Rodoni predicts the valley will continue to have multiple segment markets in 2014, depending on price point, location and area. Buyers need to decide which type of market they are in – is it a negotiable market or a multiple offer market. If they are in a multiple offer market, are they willing to pay a premium price?

Though higher prices have put a damper on housing affordability, it is still a very good time to buy. A 3 or 4 percent mortgage interest rate is still better than the average 7 percent, said Rodoni.

"At these still very low interest rates, you gain equity on your property and it doesn't have to appreciate," explained Rodoni.

Rodoni said the market is "taking a breath" for now. It doesn't mean it is in a bad state; it is merely readjusting. Expect more action in the spring. It will be a good market moving forward.

Expect most of region's buyers to be the millennials, who are attracted to edgy, funky, trendy communities, many of which are located in Silicon Valley. Other buyers will include the affluent, the international buyers and even foreign governments like China, which is already buying homes and shopping centers.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

» Back to Real Estate Articles

Site Navigation