Increase in home prices over last quarter in Silicon Valley top the rest of the country
Home owners in Silicon Valley witnessed their wealth grow faster than owners elsewhere in the U.S. last quarter, according to a new study that shows just how rich on paper property has made some area residents.
As reported recently in Mercury News, the median home price in the San Jose area, including Santa Clara and San Benito counties, rose 25 percent from last year, according to ATTOM Data Solutions’ Q2 2018 U.S. Home Sales Report.
The San Francisco area, which includes San Francisco, Alameda, Contra Costa, San Mateo and Marin counties, was fourth on the list, with an increase of 14.2 percent compared to last year.
“The numbers are actually fairly astounding, even for San Jose,” said Daren Blomquist, senior vice president of ATTOM Data Solutions.
This is good for homeowner as they have watched their wealth soar in recent years. For those struggling to buy in today’s market, the latest increases make the dream of owning a home more challenging to achieve.
Property database ATTOM Data Solutions analyzed 122 metro areas in its report and ranked the top five where prices are skyrocketing. San Jose and San Francisco continue to be high-scorers, but two more unlikely regions also made the list.
Flint, Michigan ranked second, with median prices up 23.7 percent from last year while Seattle and Boise, Idaho tied for third, with prices going up 14.3 percent.
In the Bay Area, homeowners who sell make a lot of profit. But sellers in the San Jose region made average increases of 116.6 percent when they sold their homes — the highest of 147 metro areas researched. San Francisco was second, with sellers making average gains of 85 percent.
Blomquist credited the spike in Bay Area prices to the increase in the number of sales over $1 million, $2 million and also $5 million.
In the San Jose metro area, the median sale price for a single-family home or condo was $1.2 million last quarter, according to ATTOM. In the San Francisco metro area, it was $925,000.
Those who have been following the trend of sale prices in the Bay Area, San Francisco was one of 42 metro areas analyzed that saw appreciation accelerate more quickly than the previous quarter. Despite its sky-high appreciation, the San Jose area’s prices actually increased more slowly last quarter than the quarter before that.
Bay Area homeowners also are keeping their properties longer than homeowners in other parts of the country. The average seller in the San Jose area was in the home 10.6 years before selling, and the average seller in the San Francisco area had been in the home 10.5 years, compared to a national average of eight years.
“People are just staying put longer and not selling,” Blomquist said. “It’s also contributing to the lack of inventory for … homebuyers who might otherwise move into those homes.”
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