Improving Markets Fall, Silicon Valley Stays Hot
The number of housing markets nationwide that showed “sustained improvement” continued to fall to 258, down from 273 in April, according to the National Association of Home Builders’ (NAHB). The index tracks housing permits, employment and home prices in markets across the country.
Silicon Valley continues in a league of its own as home sales continue to soar across Bay Area counties. Homes selling for $1 million or more in Silicon Valley have doubled in many communities – outshining heavy weight markets like Beverly Hills and Miami.
Bay Area cities including Saratoga, Los Altos, Burlingame and Cupertino lead the nation with homes selling in excess of $1 million. Daren Blumquist of Realtytrac says, “Silicon Valley is one of those hyperlocal markets that are just very strong right now.” The Bay Area’s tech growth continues to be the main driver of demand in Silicon Valley.
Home-buying season is just beginning and the tech community’s hiring craze is only fueling demand in the market. Bay Area counties with a varying range in home prices, like Santa Clara County, have seen a shocking rise in home prices in the past couple months. Average home prices in Santa Clara County in April were in excess of $800,000, up from $700,000 back in January.
NAHB chief economist David Crow says of the market nationwide, “While seasonal trends in home prices resulted in an overall decline in the IMI this month, the index remains at a very strong level and continues to represent markets in every state.” He goes on to note that over 70% of all U.S. metros are holding onto their spots on the improving list.
Factors like availability of credit, building materials, labor and lots for development continue to be a challenge for market recovery.