The local multiple listing service reports there has been a significant increase in the sales of single-family homes priced at more than $1.5 million in Silicon Valley. The rise in sales of million-dollar homes in the region is largely due to influential buyers and growth and success of companies based in the region, according to the MLS.
MLSListings Inc. reports there was a 26 percent increase in the number of closed sales of homes that sold for more than $1.5 million from January 1 through Sept. 30, 2013, from the same period last year. MLSListings is the multiple listing service of the Silicon Valley Association of Realtors and serves the five Bay Area counties of San Mateo, Santa Clara, Monterey, Santa Cruz and San Benito.
The rise in sales of homes sold for over $1.5 million is largely attributed to influential buyers, including foreign buyers, attracted to property in Silicon Valley. "We have a burgeoning economy in Silicon Valley and are seeing much growth and expansion of companies before our very eyes," said Carolyn Miller, president of the Silicon Valley Association of Realtors. Miller is a Realtor with RE/Max Real Estate Services, who has sold real estate in the valley for the past 32 years.
Miller noted Facebook in Menlo Park, Google and LinkedIn in Mountain View, Apple in Cupertino, Yahoo in Sunnyvale, are just a few of many companies that are growing, raising the value of real estate in the region. MLSListings adds that these companies bringing in talent will raise not only property values, but bring market sustainability to the region, as well.
Shortage of supply has created more market competition. At the California Association of Realtors Expo held in Long Beach last week, state Realtor group vice president and chief economist Leslie Appleton-Young said the share of home sales with multiple offers in 2013 is the highest in at least the last 15 years. According to findings from the 2013 Housing Market Survey, Realtors report 70 percent of properties sold this year had multiple offers, compared with 50 percent in June of 2005. Appleton-Young noted, Realtors also report working with more international buyers in the Bay Area and Los Angeles.
Meanwhile, September's housing market showed signs of seasonal slowing. Sales of single-family homes in Santa Clara County rose just 2 percent from last year, and were down 9 percent from the prior month.
The September Santa Clara County median home price of $779,950 was down 4 percent from the August median of $815,000, but 19 percent higher than the September 2012 median of $655,000.
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.
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