Homeowners living in Silicon Valley celebrate an increase in annual home values in December of 2016. The California Association of Realtors presented the median price of a single family Silicon Valley property as $775,820 with an increase of 6.3% year over year. Values are significantly lower statewide where single family dwelling face an average price of $509,060 with a growth percentage of 3.9% since December of 2015.
Challenges in the housing market stem from low inventory for buyers and affordability factors. Sellers living in Silicon Valley may may find conditions favorable as they place their homes on the market. Trends are predicted to remain consistent throughout 2017 in the region.
Silicon Valley Property Predicted to Rise in Value
Nine Bay Area counties experienced ranges of home value appreciation in varying degrees. Napa County saw the smallest increase at 1.5%, with Solano County on top with 15.9%. California’s most expensive real estate market was San Mateo County, with San Francisco County not far behind. Median prices for both regions were above $1,300,000.
Residents in the Bay Area live an envied lifestyle resulting in low inventory in the local housing market. Although 2015 brought a slight increase in inventory from the previous year, constraints are still anticipated for 2017. According to CAR Senior Vice President Leslie Appleton-Young limited inventory will continue to provide challenges in the real estate market.