Silicon Valley real estate markets show strength in closing 2009
Though the business areas in Silicon Valley don't seem to be
packing nearly as much punch as they used to, it looks like the residential
Silicon Valley real estate market made some strong gains to close out 2009. The
last couple of years has been tough on the area, with prices for both homes and
condos sagging during that time period. This could be said of pretty much all
areas around the country over the last couple of years, so it's no surprise that
Silicon Valley home values have dropped off. With that said, those looking to
sell their homes in the coming months should be encouraged to learn than a
turnaround might be on its way.
December's big gains
In closing out
the year, the homes for sale in Silicon Valley sold a little bit better at the
end of the year. Likewise, Silicon Valley home values appear to be shooting up
at rates that are unusual. According to those pundits who track the Silicon
Valley real estate market and understand its peaks and valleys, this type of
movement is an indicator that the market is starting to turn around. The gains
were not just for the home market, either. Many like to look at the condo market
to tell if the market's making a recovery, and they were pleased to learn of the
condo industry's nice December.
Looking at the statistics
If you were
to look at Santa Clara County alone during December, you would see a 44%
increase in the number of homes sold during that month. That was quite a close
to the year for that county, as 2009 ended up at the most prolific home selling
year since 2006. Though not all counties across the Silicon Valley saw that high
level of success, this is a sign that people are once again looking to move into
the area and that homes for sale in Silicon Valley have a chance to succeed.
Home prices in that county were also up 15% over December 2008, a strong
indicator of the demand for new homes across the area.
So what is
powering this increased demand? It looks like some of the apartment options are
shrinking up around the Valley, which is causing more and more individuals to
look into higher end Silicon Valley real estate. Instead of settling for
renting, people are taking the dive and buying their home. For the last couple
of years, the big problem with this has been financing for many buyers, but the
banks around Northern California seem more and more willing to give out home
loans at this time. The mortgage market has still not opened back up completely,
but we are now at the level where people who have acceptable credit can once
again get approval for a home loan.
In all, Silicon Valley real estate
looks to be on its way back up. The strength of December 2009 in many counties
is a sign of things to come, at least to those who follow the trends closely.
For more information on Silicon Valley Real Estate contacts the experts at the Silicon Valley Real Estate Team.