A surge in wealth from technology stock sales and initial public offerings is spilling into the Silicon Valley real estate market as newly rich workers bid up home values in suburban cities south of San Francisco.
The median price of single-family houses sold in Palo Alto, home of Facebook Inc., climbed 20 percent in May from a year earlier to $1.63 million, the biggest jump since 2008, according to preliminary figures from research company DataQuick.
As a plugged-in reader notes:
According to Redfin there were only 63 SFH sales in Palo Alto in the past month. It’s completely possible for 10 people to alter a median with that small a sample. In fact it would only take 32 people to basically set the median!
And with respect to the broader market, last month Santa Clara County, of which Palo Alto is part, recorded a 23.6% year-over-year drop in sales volume (a loss of 510 transactions) and a 5.1% decline in median sales price.
∙ Home Prices Exploding in Silicon Valley Amid More Millionaires [Bloomberg]
∙ San Francisco Recorded Sales Activity Down 20.1% In May [SocketSite]