There is currently high demand for houses for sale in Palo Alto. House buyers are not just interested in owning a house, they want to own a house in this area. It is no surprise though considering that this is the heart of silicon valley, the home to tech giants like Google and Facebook. For many of the buyers, it is a huge investment buying real estate in this area as the prices are expected to rise even more.
A recent report by CNBC in January 2015 brought to light the intensity of the competition for housing which has even driven up the prices of the smallest homes in Palo Alto. In the report a house that seats on about 999 square feet was sold for 3 million dollars – that is the price of a luxury house in the same area with great finishing. This is a common trend in the valley with real estate figures showing about a 40 percent jump in house prices in 2014 alone and the trend has continued into 2015.
According to realtors in the California area, the majority of the Palo Alto homes for sale are being snapped up by foreigners especially Chinese who are investing in the tech industry and have realized the investment potential in the valley. Many of the small houses that are being bought are probably going to be broken down and replaced with bigger, better houses.
It is becoming increasingly tempting for home owners to sell off their small homes to big-money investors who can pay over top dollars for property in this area. Many of them also are still holding out to see just how high the price will go so that they can get as much money as possible for their property. Some realtors say they are being asked to find houses for sale because most of those that were available on the market were snapped up. This month of August in the whole of Palo Alto, there are less than 5 luxury homes available on the market yet the number of clients pestering realtors to find them luxury houses is on the rise. For the realtors, it is a bit of a stressing situation having that much demand with very little available. But off course for those that get to sell those few houses for sale in Palo Alto will be very happy with their commissions.
According to experts, there is still a lot of money coming into the Silicon Valley and this can only fuel more competition for houses which will push the prices even higher. At the moment real estate developers are trying to utilize every piece of land available to them to set up new houses for sale in Palo Alto but the big question is will it be enough to provide for the market demand with the increasing number of people moving to the valley employed by the tech companies?
At the moment is is close to impossible to find a house on sale without the services of a realtor and the house owners also need them to help get the best deal.