For most Americans, owning a home is a ticket to accumulated wealth to be enjoyed in retirement or handed down to children. However, the amount of wealth depends on where that home is located. If it is in San Jose, Sunnyvale, or Santa Clara in California’s Silicon Valley, then it is likely to be more than $1 million.
In its 2018 Housing Wealth Gains Report, the National Association of Realtors (NAR) found that over the past 30 years, average equity gains on a single-family home in San Jose-Sunnyvale-Santa Clara was $1,295,767. Compare that to the national average gain of $243,740. On the market, area homes have fetched a median price of $1.34 million, more than five times the national median.
What Is Driving Real Estate Prices?
Given their location in the heart of Silicon Valley, San Jose, Sunnyvale, and Santa Clara host major tech firms that pay their employees above-average salaries. Besides, more money is on the way. Apple recently purchased 16.3 acres in San Jose to build another California campus.
However, even non-tech workers have more cash to spend than their counterparts in other U.S. cities. In San Jose, Sunnyvale, and Santa Clara, the April 2019 unemployment rate was just 2.4%. As of this writing, the national rate – although still impressive – is much higher at almost 4%. The area is also home to universities like San Jose State University and Santa Clara University, which offer a steady stream of renters to investors.
Still Time to Buy Real Estate?
The million-dollar valuations in the area are based on strong fundamentals: tech is there to stay, the overall economy is strong, and universities attract investors while producing even more tech!
Propy is a blockchain-enabled real estate platform that simplifies the purchase process and makes it easier than ever to buy a home in the San Jose-Sunnyvale-Santa Clara area. Propy provides its users with listings aggregated from MLS and enables all pertinent documentation to be signed online through its All-In-One Transaction Platform. By using smart contracts to handle the purchase, users save on the time and expense of middlemen.
Area home prices may be high, but there is evidence that the market will continue to outpace national averages over the long term. Propy streamlines the purchase process, making it easier than ever to be a participant.