A recent article in The Wall Street Journal (WSJ) highlighted the very unique characteristics of real estate in our area.
Entitled "Apple Paychecks - One Reason for High Home Prices", the article shows the findings of research the WSJ carried out with Zillow, focusing on the extent to which home prices are rising, influenced by tech workers, in this case concentrating on the house purchasing patterns of employees at Apple's headquarters in Cupertino.
The research established that home values are rising much faster in neighborhoods where Apple workers live. The article says that homes occupied by Apple workers are appreciating at 18% per year.
These are, of course, hugely significant statistics for anyone either considering a home sale or buying investment property in the area.
For home sellers, the continued success of Apple and other tech companies means that demand remains high and at least partially explains why we see so much competition for high quality homes with more and more instances of multiple offers and an eventual selling price above what the property was listed for.
Property investors clearly stand to make virtually instant returns on investment. There is also another key dimension here, in terms of rising rental incomes through growing demand from those individuals who are unable to keep pace with rising home prices. The WSJ story states that rents have "skyrocketed".
This data again emphasizes the quite special nature of real estate in our area, hugely influenced by high Silicon Valley salaries.
In a recent blog entitled "Exciting Times in Silicon Valley Are Great News for Residential Real Estate", we highlighted the likely very positive effects on our homes market due to the proposed $3billion redevelopment of the Vallco Shopping Mall in Cupertino as a 30 acre elevated sky park, which will also see the production of the world's largest ever green roof, attracting yet more worldwide attention.
The subtext of all this is that buying and ultimately selling property in this area is likely to continue to produce world-class returns long into the future. The fact that Apple has made such a long term commitment with the currently under construction Spaceship Campus only serves to underline these extremely robust prospects.
Get in touch with us today to discuss your best home selling or property investment options.