One of the more unique aspects of living in Silicon Valley is the jaw-dropping price of housing. Homes here have luxury pricing but not always the luxury amenities you expect. The home pictured here is currently for sale in the city of Palo and has been completely redone top to bottom. It’s stunning with 4 bedrooms, 3 1/2 baths and 2400 square feet of living space. It’s in a nice little cul de sac near a busy street with homes built in the 60’s. It’s listed for $4.3 million dollars. There’s no bowling alley, swimming pool, indoor gym, theater room, or even room for a boat in the side yard. That’s luxury real estate here in Silicon Valley.
If you travel just 20 miles south and head into San Jose’s Cambrian Park neighborhood, the median price hovers just under $1.5M for a single family home. For that price, you’ll typically find a home that’s a ranch, built in the 60’s, with tile countertops and maybe even your grandmother’s linoleum flooring! That’s the enigma of living here, you get the luxury price tag without the luxury estate you see on HGTV.
Despite the sticker shock, the housing market is on fire with homes being competitively overbid by up to 20-25%. And that’s not just in the “lower luxury tier” under $2M but in the $3M – $5M price points as well.
Nationwide, these competitive bidding wars in the Luxury market aren’t uncommon either, as more people continue to identify their changing needs this year, more and more are moving into even more upscale housing to get more space or finer high-end features.
In their most recent Luxury Market Report, the Institute for Luxury Home Marketing (ILHM) shares:
“In a snapshot of 2020, despite the devastating effects of the coronavirus pandemic, the luxury real estate market has seen one of its strongest years since 2008. In comparison to experts’ predictions in early 2020, it is remarkable how significant demands for property type, location, and amenity preferences have changed amid the pandemic.”
With more opportunities to work from home and a growing interest in having extra space for things like virtual school, working out, and cooking more meals, the desire to own a home that can meet these needs continues to increase. Additionally, record-low mortgage rates are creating opportunities for homebuyers to stretch their legs into higher price points or even expand their real estate portfolios. The ILHM report continues to say:
“Experts believe that the demand for exclusive residential properties outside the metropolitan areas will continue well into 2021; even with the introduction of vaccines, the pandemic is far from over.
For those who have moved to the suburbs and beyond, moving back to the city full time is unlikely while the work from home trend remains. Many of these affluent homeowners are now making their secondary properties their primary residences for the foreseeable future.”
If you’re hoping to buy the home of your dreams, this could be the year to achieve that goal. Let’s connect today to explore your possibilities.