Homes in Silicon Valley are going for way over asking price and are on the market for just a few days before being sold. Bidding wars have returned.
Once Facebook goes public, prices will soar even more, as new millionaires buy homes. Some homeowners are waiting until after the Facebook IPO to put their property on the market, assuming they will get more.
The same thing in happening in San Francisco. An aging 1800 sq ft house in Noe Valley (where the views are admittedly spectacular) went for $1.5 million, 40% over ask.
This is all being fueled by the tech boom. Apple and Google are doing great. Startups, venture capital, and buzz are everywhere.
America, you want to revitalize yourself? Then take a look at what SF Bay Area geeks are doing and emulate it for your own area in your own way. Seriously.
Anybody but me see a page of history repeating itself?
I’m a Bay Area geek who rents. This isn’t universal. My neighbors are google zillionaires on one side, and homeless kids on the other.
James, you fail to understand what the concept it. it’s that if you can get somebody to show up in your neighborhood and pay 40% over fair market value then homes in the area will skyrocket in value accordingly. It actually won’t solve anybody’s homeless problem, but those that are upside down in their mortgages will suddenly be right side up if they can attract the techies to your town, say with some start up with a bunch of cash to burn and headquartered in your town. Who knows, over time it could end up being the next Google like company and then everybody will want to move to your town and thus people will start selling over fair market value. I honestly think that companies like Google come around but once in a while and there are thousands that try to be like them and fail before you see even one that might succeed. It’s a pipe dream really for any city to end up being chosen to be the headquarters for some big tech company, even in it’s start up stages. The sad part is when this tech bubble bursts and a lot of mortgages in the area are tied to the performance of the tech bubble, you’re going to see a lot of people in financial trouble trying to sell their homes to get out of high priced mortgages on houses that aren’t worth what they paid for them anymore. I just don’t think the economy is that strong that it can support the growth the tech industry needs to keep the bubble from bursting. You end up with companies creating jobs overseas for less money while still being headquartered in silicon valley and downsizing their local workforce. Any housing market boom for any area in or around silicon valley is going to be a tsunami. Nobody gets hurt until the giant wave comes later and crashes down upon them.