Silicon Valley Tech Boom Sparks Housing Boom

Daily Real Estate News | Friday, August 12, 2011

Housing isn’t hurting everywhere: A tech rush in Silicon Valley is once again causing mega-mansions to be in demand there. Real estate pro Alex Wang says he’ll get 17 or 18 offers on a property at times, and that buyers are even purchasing homes for hundreds of thousands of dollars over the asking price. Also, many of these buyers are paying cash and closings are happening quickly.

The social media tech boom in Silicon Valley has caused mansions to become sought-after, but with limited inventory of homes for sale, new construction and bidding wars are increasing, Fox News reports.

In Palo Alto, Facebook’s headquarters, the median sale price of a single-family home rose nearly 5 percent over last year to $1.3-million in June, DataQuick reports.

“The social media and explosion of high-tech IPOs are also creating a new work environment where people aren’t always in the office,” says Allison Buffam, marketing manager with SummerHill Homes. “They want to be able to be at home and work as well, and they want the best home they can afford.”

Source: “California Bay Area Mansions Are in Demand Due to Tech Boom,” Fox News (Aug. 11, 2011)