homesmillbrae.com

Silicon Valley, bolstered by soaring tech stocks in 2017, fueled luxury home sales and price growth in the Bay Area last year, according to market data out this week.

“Proximity to the heart of the high-tech boom has been one of the major factors in recent appreciation rates,” wrote Patrick Carlisle, chief market analyst for Paragon Real Estate Group, in a report Wednesday.

More: New Bay Area Home With Remarkable San Francisco Views

San Francisco saw record prices, with single-family homes hitting a median price of $1.415 million and median condo prices reaching $1.15 million in 2017. But Silicon Valley, which spans Santa Clara and San Mateo counties, saw prices soar last year; these counties now house the bulk of the Bay Area’s luxury housing stock.

“Though San Francisco is a major player in luxury home sales, Silicon Valley—Santa Clara and San Mateo Counties together—has over 3.5 times as many homes selling for $2 million and above,” Mr. Carlisle wrote in the report.

In Santa Clara, the median single-family home price jumped 15.8% in 2017 to $1.175 million. In San Mateo, the median single-family home sold for $1.418 million—a 9.2% increase, according to a separate report from Golden Gate Sotheby’s International Realty on Wednesday.

In Palo Alto—home to Facebook, Tesla and Hewlett-Packard—the median price soared 15.7% in 2017 to $2.95 million. In neighboring Mountain View, home to Google, the median price increased 14.8% to $1.98 million. And in Apple’s home of Cupertino, the median price hit $2.1 million, an annual bump of 11.8%, according to the Sotheby’s report.

A lack of inventory has translated to quick sales in the Bay Area. The average home in San Francisco and Silicon Valley was sold in one month or less.

That was particularly true for Silicon Valley’s budding condo market. Last year, the average Santa Clara condo sold in only 17 days, and in San Mateo, it took on average 22 days, according to Sotheby’s report.

But gains won in the housing market due to the thriving tech industry are vulnerable to market volatility seen in the past week.

More: 2018: Global Luxury Real Estate to Feel Tax Impact

The Dow Jones Industrial Average fell more than 1,000 on Thursday as fear over rising interest rates continued to rock financial markets.

“Financial market volatility can have a chilling effect on real estate markets, especially at the high-end, since the affluent are generally much more invested in, and sensitive to, financial markets,” wrote Mr. Carlisle, of Paragon, before the market tumult that started a week ago.

Volatility in the financial markets would be particularly bad for startups—with which the Bay Area is replete.  

“If investor and venture capitalist confidence suddenly collapses due to national or international events, as has occurred in the past, it will have adverse effects on currently unprofitable startups with negative cash flows and insufficient reserves,” Mr. Carlisle said.

Follow Mansion Global:

Facebook | Twitter | Instagram | LinkedIn | Messenger
Write to us: info@mansionglobal.com

Article source: https://www.mansionglobal.com/articles/88260-high-tech-boom-leads-bay-area-prices-to-soar

Silicon Valley, bolstered by soaring tech stocks in 2017, fueled luxury home sales and price growth in the Bay Area last year, according to market data out this week.

“Proximity to the heart of the high-tech boom has been one of the major factors in recent appreciation rates,” wrote Patrick Carlisle, chief market analyst for Paragon Real Estate Group, in a report Wednesday.

More: New Bay Area Home With Remarkable San Francisco Views

San Francisco saw record prices, with single-family homes hitting a median price of $1.415 million and median condo prices reaching $1.15 million in 2017. But Silicon Valley, which spans Santa Clara and San Mateo counties, saw prices soar last year; these counties now house the bulk of the Bay Area’s luxury housing stock.

“Though San Francisco is a major player in luxury home sales, Silicon Valley—Santa Clara and San Mateo Counties together—has over 3.5 times as many homes selling for $2 million and above,” Mr. Carlisle wrote in the report.

In Santa Clara, the median single-family home price jumped 15.8% in 2017 to $1.175 million. In San Mateo, the median single-family home sold for $1.418 million—a 9.2% increase, according to a separate report from Golden Gate Sotheby’s International Realty on Wednesday.

In Palo Alto—home to Facebook, Tesla and Hewlett-Packard—the median price soared 15.7% in 2017 to $2.95 million. In neighboring Mountain View, home to Google, the median price increased 14.8% to $1.98 million. And in Apple’s home of Cupertino, the median price hit $2.1 million, an annual bump of 11.8%, according to the Sotheby’s report.

A lack of inventory has translated to quick sales in the Bay Area. The average home in San Francisco and Silicon Valley was sold in one month or less.

That was particularly true for Silicon Valley’s budding condo market. Last year, the average Santa Clara condo sold in only 17 days, and in San Mateo, it took on average 22 days, according to Sotheby’s report.

But gains won in the housing market due to the thriving tech industry are vulnerable to market volatility seen in the past week.

More: 2018: Global Luxury Real Estate to Feel Tax Impact

The Dow Jones Industrial Average fell more than 1,000 on Thursday as fear over rising interest rates continued to rock financial markets.

“Financial market volatility can have a chilling effect on real estate markets, especially at the high-end, since the affluent are generally much more invested in, and sensitive to, financial markets,” wrote Mr. Carlisle, of Paragon, before the market tumult that started a week ago.

Volatility in the financial markets would be particularly bad for startups—with which the Bay Area is replete.  

“If investor and venture capitalist confidence suddenly collapses due to national or international events, as has occurred in the past, it will have adverse effects on currently unprofitable startups with negative cash flows and insufficient reserves,” Mr. Carlisle said.

Follow Mansion Global:

Facebook | Twitter | Instagram | LinkedIn | Messenger
Write to us: info@mansionglobal.com

Article source: https://www.mansionglobal.com/articles/88260-high-tech-boom-leads-bay-area-prices-to-soar

Silicon Valley, bolstered by soaring tech stocks in 2017, fueled luxury home sales and price growth in the Bay Area last year, according to market data out this week.

“Proximity to the heart of the high-tech boom has been one of the major factors in recent appreciation rates,” wrote Patrick Carlisle, chief market analyst for Paragon Real Estate Group, in a report Wednesday.

More: New Bay Area Home With Remarkable San Francisco Views

San Francisco saw record prices, with single-family homes hitting a median price of $1.415 million and median condo prices reaching $1.15 million in 2017. But Silicon Valley, which spans Santa Clara and San Mateo counties, saw prices soar last year; these counties now house the bulk of the Bay Area’s luxury housing stock.

“Though San Francisco is a major player in luxury home sales, Silicon Valley—Santa Clara and San Mateo Counties together—has over 3.5 times as many homes selling for $2 million and above,” Mr. Carlisle wrote in the report.

In Santa Clara, the median single-family home price jumped 15.8% in 2017 to $1.175 million. In San Mateo, the median single-family home sold for $1.418 million—a 9.2% increase, according to a separate report from Golden Gate Sotheby’s International Realty.

In Palo Alto—home to Facebook, Tesla and Hewlett-Packard—the median price soared 15.7% in 2017 to $2.95 million. In neighboring Mountain View, home to Google, the median price increased 14.8% to $1.98 million. And in Apple’s home of Cupertino, the median price hit $2.1 million, an annual bump of 11.8%, according to the Sotheby’s report.

A lack of inventory has translated to quick sales in the Bay Area. The average home in San Francisco and Silicon Valley was sold in one month or less.

That was particularly true for Silicon Valley’s budding condo market. Last year, the average Santa Clara condo sold in only 17 days, and in San Mateo, it took on average 22 days, according to Sotheby’s report.

But gains won in the housing market due to the thriving tech industry are vulnerable to market volatility seen in the past week.

More: 2018: Global Luxury Real Estate to Feel Tax Impact

The Dow Jones Industrial Average fell more than 1,000 on Thursday as fear over rising interest rates continued to rock financial markets.

“Financial market volatility can have a chilling effect on real estate markets, especially at the high-end, since the affluent are generally much more invested in, and sensitive to, financial markets,” wrote Mr. Carlisle, of Paragon, before the market tumult that started a week ago.

Volatility in the financial markets would be particularly bad for startups—with which the Bay Area is replete.  

“If investor and venture capitalist confidence suddenly collapses due to national or international events, as has occurred in the past, it will have adverse effects on currently unprofitable startups with negative cash flows and insufficient reserves,” Mr. Carlisle said.

Follow Mansion Global:

Facebook | Twitter | Instagram | LinkedIn | Messenger
Write to us: info@mansionglobal.com

Article source: https://www.mansionglobal.com/articles/88260-high-tech-boom-leads-bay-area-prices-to-soar

A Bay Area mover’s checklist:

Rising home prices?

Check.

Rising rents?

Check.

Click desperately through real estate websites for a cheaper home and a better life?

Check.

Efforts to move out of the Bay Area continued in recent months, with 16,000 residents packing up and taking to the road for cheaper housing and new opportunities. A study by real estate brokerage Redfin found the Bay Area remains the top region for outward migration in the country.

The most popular destination for Bay Area refugees remains Sacramento, followed by other tech hubs and California cities. “It’s pretty much in line with what we’ve seen for the past few years,” said Taylor Marr, senior economist at Redfin. “Many people leaving the Bay Area are still looking in California.”

The steady climb in real estate prices has made first-time home-buying expensive and frustrating for many newcomers.  And rents continued to rise year over year, especially around tech giant headquarters in Silicon Valley.

The median price in December for a single-family home in Santa Clara County was $1.2 million, while a similar home in San Mateo was $1.4 million, and in Alameda, $838,000, according to real estate firm CoreLogic. A comparable home in Sacramento is $314,000, according to Zillow.

Overall, the region’s population continues to grow. But the number of outgoing residents has hit its highest point in more than a decade, according to a report released Wednesday by Joint Venture Silicon Valley.

People are leaving Silicon Valley nearly as quickly as they are coming in. Between July 2015 and July 2017, the region gained 44,732 immigrants but lost 44,102 residents to other parts of California and the country, according to the regional think tank. The population drops have been most notable on residents between the ages of 18 and 24, and between 45 and 64.

Redfin analysts combine sales data and searches on their website to determine where users are moving. For the past nine months, San Francisco, New York and Los Angeles have had the highest number of residents moving out.

About 1 in 4 Bay Area residents looking to leave searched for homes in Sacramento, and nearly 1 in 10 browsed Seattle listings. The top five destinations for Bay Area movers were Sacramento, Los Angeles, Seattle, Portland and San Diego.

The Bay Area migration also causes ripples through other housing markets, Marr said. Relatively wealthy Silicon Valley residents bid up home prices in other cities, lifting values in their new regions.

Sandy Jamison, owner and broker at Tuscana Properties in San Jose, has seen several homeowners cash in and move to cheaper areas. Among her recent listings of homes for sale, 9 of 10 owners are leaving the state.

Her recent clients have moved to Colorado, Idaho, Texas, Florida, North Carolina, New Hampshire and several other states, she said. “They’re going everywhere.”

A typical client has been in their home for decades, and no longer feels connected to the changing community, she said. Selling a family home for $1 million in the valley and buying a new home for half the price in another state makes sense for many retirees, she said.

“It’s a newer house, in a newer area,” Jamison said. “And now they’re set up for retirement.”

Article source: https://www.mercurynews.com/2018/02/08/packing-up-and-moving-out-bay-area-exodus-continues/

Caption

Close

Data via RENTCafe

Data via RENTCafe

Data via RENTCafe.

Data via RENTCafe.

Photo: RENTCafe

Over the last decade, the total U.S. population gained approximately 23.7 million people. At the same time, the number of renters increased by 23 million, while homeowner numbers grew by less than 700,000.

Nowhere is this trend more noticeable than in the nation’s cities. According to a Market Snapshot prepared by RENTCafe, “Almost a quarter of the 100 largest US cities shifted from owner- to renter-majority between 2006 and 2016.”

That means the total number of major cities where renters outnumber owners almost doubled, as 42 major American cities became renter dominated over that ten year span.

Method 

RENTCafe used the American Community Survey archives from the U.S. Census Bureau’s public database to compare “the number of people living in renter- and owner-occupied housing units in 2006 and 2016.”

The breakdown of the 22 cities mentioned appears in the gallery above.

Local implications

The numbers highlight Bay Area cities east, west and south. As of 2016:

• Fremont has the 6th highest percentage increase in renter share in the nation: 31% since 2006.
• Oakland has the highest renter-over-owner population of the Bay Area cities studied:  58.9 percent of Oakland residents are renters. 
• San Francisco is 56.3 percent renter, and this is 4.2 increase in its renter share since 2006.
• Though still majority owner, San Jose saw the biggest net gain in the renting population. More than 96,800 people have become renters since 2006. 

Future is dire

If you pin homeownership as a staple of building wealth, or at least security, you might be alarmed at other data uncovered in these figures. Namely, the renting is outpacing owning in 97 of the 100 cities studied.

The 22 cities listed above are only the tip of the iceberg. In most other large cities, although the renter population still falls away from the number of homeowners, the ratio has gone through a dramatic change. In fact, apart from Anchorage, Ala., Irving, Tex., and Winston-Salem, N.C., all large U.S. cities of the top 100 list have shifted in this direction.

American Dream, only a dream?

Economists have theories about this trend: low inventory of houses for sale means slow growth of new owners. Higher qualifications for home loans means more renters. Foreign investment is inflating the median home price beyond the median income in many cities. Younger people may be less interested in buying.

Whatever the cause, the idea of the American dream seems to be in flux. Indeed, if that dream is to own a home, then that dream may not ever be a reality for those Americans living in the nation’s largest cities.

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert

Article source: https://www.sfgate.com/realestate/article/rent-increasing-homeownership-stats-US-Bay-Area-12557102.php