Monday, June 11, 2018

Silicon Valley Housing Rally Resumes, Breaks out of the Congestion

(Click on the image to enlarge)
The Silicon Valley (Santa Clara County) housing market continues to trend up, lately breaking out of the extended congestion of $1.1M to $1.2M. Both trendlines are amply confirming the breach.

The normalized price (bottom chart) confirms the trend as well. In fact, the median Price per SF has already breached $700/SF, finally breaking out of the $650 to $700/SF range. Of course, the 2-Mo Mov Avg rejects the big (Feb-18) jump to $770/SF, nonetheless confirming the overall breakout.     

Needless to say, certain towns – Cupertino, Los Altos, Mountain View, Palo Alto, etc. – are significantly pricier than the median price as shown above. Wonder what kind of income one needs to qualify for a jumbo mortgage there? Of course, if the 30-year Jumbo continues to trend higher, we may see some slowdown – or not?

- Sid Som, MBA, MIM
President, Homequant, Inc.

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