Is Silicon Valley’s real estate market finally ready to cool off? Well, for at least, sort of…
But, what really happened? It seems like how this area has finally seen one of the biggest declines in all those median price homes. It all happened last month and we are the witnesses of all those homes that now take much longer to be sold. Besides that, it definitely seems like how the whole inventory of those available homes is just increasing day by day.
Nevertheless, we must admit how Silicon Valley still is one of the strongest real estate markets in the whole country.
So, what happened? Numerous people have realized how they are not able to afford the homes they offer. Affordable price is not something that can be correlated to Silicon Valley’s market.
Although this area is well-known for the great climate, people cannot afford to live there. Approximately, people who want to get their new beloved home in this area must earn from $200,000 to even $500,000 in just one year! Of course, we are talking about the amount where IPO money is not included. Got the clearer picture why is this all happening?
For example, when we take a look at the prices of San Jose bungalow which has three bedrooms (costing $973,000), we are able to see how people there become happy when they don’t have to spend more than a million dollars. That won’t bring any good to this real estate market.
People also complained about how they don’t have enough money left for gas, food, and life at all. Does that surprise us? Not at all. Something definitely must change.
How will the future look like of these house prices? We can now only guess. At least, for now… Yet, we also think about how those won’t stay the same because no one can afford that.