Apartment Rents Jump — Especially In Silicon Valley

http://news.investors.com/business/091814-718137-apartment-market-recovery-shows-strong-rent-growth.htm

This article validates what I have been seeing in Silicon Valley this year.  Rents are high due to high occupancy rates in most areas. The highest rents are in places with highly ranked schools, like Cupertino, Saratoga and Palo Alto.  Rents are also on the rise for local retail and commercial property.  Apple's new spaceship campus in Cupertino is a magnet for development for miles around it.

Why The Housing Market Isn't Doomed To Tumble

Despite some less than positive housing news in the U.S. in recent months due to weather and rising mortgage rates, there are reasons to remain optimistic. The mortgage application purchase index is rising and new home sales are expected to rise.  There is more detail in the article at this link:  

 Business Insider on why the housing market isn't doomed

In addition, Silicon Valley and Bay Area hasn't felt the challenges the housing market in the rest of the country has.  Low inventories and a strong economy means there are still plenty of buyers hungry for nice houses. 

Bay Area apartment rents set record

 

Bay Area rentals set record in Mercury News 

Higher rents make rental properties an even better investment.  Residential rents in the Bay Area have been rising at double-digit rates for about three years, and the current average rent of $2,043 is an all-time high for the region, according to an analysis by RealFacts.

Bay Area home prices jump year over year

March marked more than 20 consecutive months of year-over-year price gains for single-family homes in the East Bay, South Bay and Peninsula, according to real estate information service DataQuick.

The San Diego-based company said that prices were up 29.2 percent from the previous March in Alameda County to $575,000. In Contra Costa County, prices rose 22.8 percent to $425,000. Santa Clara County gained 20.3 percent to $800,000, and San Mateo County was up 13.2 percent to $860,000.

More at Mercury news here:  Bay Area home prices jump year over year

How did home sellers handle multiple offers?

Interesting results from this survey of home sellers in California last year.  If you don't have cash, then you need to strategize about how to compete beyond just offer price.  Feel free to contact me if you want to discuss this.

12 "Incredibly Modest, But Insanely Expensive" houses for sale In Silicon Valley

Business Insider calls these Silicon Valley houses modest, but insanely expensive.  I don't think they live in the Bay Area.  $1,455,000 in Sunnyvale to $7,488,000 in Monte Sereno. The number of buyers for multi-million dollar homes is smaller, but in Silicon Valley recently there doesn't seem to be a shortage.

12 "Incredibly Modest, But Insanely Expensive" Homes For Sale In Silicon Valley

Silicon Valley home sales drop, prices rise

The number of property sales in February dropped 1.9% in Santa Clara County.   A shortage of houses for sale contributed to the 15.8% increase in the media sales price in the county.

Read the full article here:  San Jose Mercury News Real Estate section