Almost every day when I run into someone and we start talking about real estate or someone from my past finds out that I'm working as a Realtor, I feel as if I've just walked into a funeral. I hear about how rough the economy is and all about foreclosures/short sales and falling home values that they've heard about on the news. Now I can relate to the news. I worked in broadcasting for several years. Without murders, suicides, war, destructive weather, sickness and a bad economy, they would pretty much be out of business. You won't find too many stories on the news with a happy ending. It happens, just not that often.
But one good story that local news outlets are not reporting on is that real estate in Silicon Valley up the peninsula towards San Francisco is faring pretty well despite national trends. According to a Business Week article that printed on July 10, 2008, job growth in the technology sector along with some of the highest salaries in the nation have helped this area buck the trends that have befallen many other California communities. Median home prices in prime areas of Silicon Valley are "plus or minus 5%" compared to a year ago, according to Kenneth Rosen, chairman of the Fisher Center for Real Estate & Urban Economies at UC Berkeley. Commercial real estate is even stronger. Apartment rents climbed 5% to 10% in the first quarter compared to a year ago, he says.
With limited land to build on, a great economy and fantastic weather, people continue to make this area their home. At an open house that I hosted in Santa Clara this past weekend, I had several people who came thru the property who were ready to buy. It's a smart move. Interest rates are at historic lows and are forecasted to rise later this year.. Add in some price reductions on properties and you have a recipe for a great deal for homebuyers. Just remember the next time you are watching the news, every real estate market is different. In fact, in the SF Bay Area there are several micro-markets. And while many out there aren't doing so well, the Silicon Valley market is still one of the best in the nation to invest in.
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