We’re in a very exciting real estate era. Home prices have recovered – and then some – from the economic catastrophe last decade, and across Silicon Valley homes are selling for more than they ever have. And yet there are plenty of buyers ready to buy a new home in Silicon Valley, where homes are among the most expensive in the United States. Why do buyers buy these homes? In most cases, it’s probably for the same reasons people everywhere look for a new place to live. Although the prices of many homes here are definitely on the high end, the motivators that get people out of their current home and send them looking for a new one seem to apply universally.
Here are five primary reasons people search for a new home in Silicon Valley.
- Relocating. With all the business growth across the Valley, particularly in the tech sector, more and more people are relocating and need places to live that will perfectly accent their new lifestyles.
- No longer content in current home. Let’s face it – after a number of years in the same place, plans tend to take on new directions. As do goals and dreams. Many buyers are looking to stay in the same general area but move up to a new home that better suits their needs.
- Low interest rates. This calendar year, interest rates have fluctuated between 3.63 in January and 4.09% in June, a range that is very low, by historical standards. Low interest rates are to buyers what ice cream at a picnic is to ants. As long as rates are perceived as attractive, the buyer market should remain well-populated.
- “Attractive” home prices. “Expensive” is a concept that’s relative. Shrewd buyers know how to sift through the listings and spot homes whose prices are attractive, no matter the dollar figure. Someone in Gainesville, Fla., might think $5.5 million is too much to spend on a home. A buyer looking for a new home in Silicon Valley might consider $5.5 million Palo Alto home a bargain and see real value in purchasing that particular property.
- Cash (or its equivalent) at the ready. As the economy has recovered across the Bay Area and the rest of the country, people are once again realizing the financial resources necessary to get into a new home. It’s very common for “Now I can afford it” to be a pivotal factor in getting people into a proactive mode to search for a new home.
- Need more room. Another common reason for buying a new home is that the current home has simply been outgrown. A family increasing in size will create an unavoidable need for a larger home, and people moving for this reason can be considered highly motivated buyers.
People wishing to move to a new home in Silicon Valley or relocate from another area will find a large variety of amazing homes on the market all year long. And don’t let the “high-price talk” fool you: there are plenty of housing opportunities for most income levels throughout our wonderful communities.
When it’s time to start looking for your next home, trust a Realtor with intimate knowledge of Silicon Valley neighborhoods and all the twists and turns in our unique market.