The Spaceship Effect

It is increasingly becoming common knowledge that Palo Alto is the epicenter of real estate in the Bay Area. The closer you get to it, the more expensive the prices get. This is nothing new for many Silicon Valley residents and even most newcomers. In a natural progression, those priced out of Palo Alto move to surrounding cities and thus the outward expansion of desirable real estate begins. Additionally, the momentum of today’s biggest tech companies has brought thousands of jobs and consequently thousands of new residents to Silicon Valley. Along with new residents and rising prices comes impressive development. One city whose real estate has transformed into a hub of seductive sanctuaries is Sunnyvale.  

With Apple’s headquarter and their new spaceship on the Cupertino/Sunnyvale border, flocks of new buyers have swarmed to Sunnyvale in the past few years. It is a central hub for many buyers who work at start-up or a variety of the big three (Google, Apple, Facebook). As a result, infrastructural development has blossomed. New home communities, new restaurants, even an entirely new downtown (if it ever gets finished) are all part of the makeover. What does that mean for Sunnyvale real estate? Let’s dig a little deeper…

If you look at the statistics over the past three years, there are a variety of analytical avenues to pursue. To give you the digestible version of seemingly endless amounts of data, we’ve provided some hot points. First and foremost the average sales price of homes in Sunnyvale has risen by $400,000 in the past three years, moving from ~$1 million to ~$1.4 million. That’s impressive. Now, let’s give you a closer look at recent history.

Within the past three years, both list and sales prices have been steadily increasing. Sunnyvale is hot, and this has been reflected in our field experience. There have been several situations where our buyers have gone up against a multitude of offers on a property that ends up selling a few hundred thousand dollars over asking. So, pardon us, Sunnyvale is really hot. 2017 is no different. It is on an upward trend, and still rising.

On the other hand, supply is extremely limited. It is the lowest it has been in the past three years, and its scarcity has been amplifying the multiple offer situations. On average, the number of active listings is 20 fewer than last year. With high demand and short supply, the competition has gotten fierce.  

So how does one break this all down? Well, a few ways. If you bought in August of last year, well done. If you just sold your home last month, well done. Compliments aside, the aforementioned desirability has been reflected in its housing prices. While there are ups and downs, they’re really more like highs and a-little-less-highs. Sunnyvale is experiencing record sales in record speeds, and we’re here to help guide you through it. Have any questions? Ask away, we’d love to help!

Property Nerds crunch Silicon Valley’s home sales data with a new index!

The Property Nerds at the Boyenga Team are pleased to welcome a new nerd to the team, Meiyi Cheng. Having graduated from MIT with a bachelor’s degree in Management Science, we are thrilled to have her join us and provide in depth analysis into the Silicon Valley real estate market. This market we are immersed in is always changing (for better or worse), and it is imperative to have someone on our team who will be able to analyze trends and data. As the first real estate team in the nation to utilize a data scientist to dig deeper into the Silicon Valley real estate market, here’s what you can expect going forward.

Meiyi will be developing the first Home Sale Index focused entirely on Silicon Valley.  The new index will be known as the Property Nerds Silicon Valley Home Sales Index.  It is being developed to keep consumers, agents, and brokers educated and informed about what is happening in the market.  Also along with this will be an ongoing segment tailored for those who are interested in deeper analysis of real estate trends in the Bay Area. Updated frequently, this will be your one-stop-shop for market conditions updates and news about real estate here in Silicon Valley.

Next, we are introducing a new segment called the “Data Dojo”. Within this, Meiyi will be providing consumers, agents, and brokerages with unique insights utilizing complex data points and predictive analytics. Whether it’s a fresh take on standard metrics such as days on market or list vs. sales price, or it’s an inside look into the relationship between two seemingly unrelated data sources, www.ThePropertyNerds.com  will be your go-to resource for expert examination of the housing market. You will be able to come here anytime, read, and learn about all we have to share revolving around the real estate industry we love.

Lastly, all of our work we will be backed by Meiyi’s expertise as a data scientist to help ensure we are bringing you accurate, relevant, and informative data. Through this, we will offer consumers the full breadth of Silicon Valley real estate experience.   With over a century of combined real estate experience our team can offer our clients a stress free and predictable real estate journey. If you’d like guidance navigating through the sale or purchase of a home, we are here to help. Contact the Property Nerds at Boyenga Team to find out how we can engineer your real estate happiness.