Thursday, February 03, 2005

You don't get much for a million bucks in Silicon Valley

An article in the San Jose Mercury News notes the continuation of a trend. And the local economy is still in a slump!

"If you have $1 million to spend on a house in Silicon Valley right now, there's a 1,400-square-foot, three-bedroom rancher for sale in Palo Alto you could buy. Or you could opt for a split-level, four-bedroom house in San Jose's Almaden Valley. Or perhaps a 1,900-square-foot, three-bedroom house in Cupertino not far from some railroad tracks. No vast yards, no architectural marvels, just plain old valley houses. In other words, a million dollars doesn't buy you a 'luxury' home around here."

" 'I hate to say it, but there are some pretty regular houses out there selling for a million bucks,' said John Karevoll of DataQuick, which Wednesday issued a report that said 33,107 homes sold in California for more than $1 million in 2004. That's almost 74 percent more such sales than in 2003, a tribute to last year's fast-appreciating prices, which were driven by low mortgage rates and strong buyer demand. DataQuick began issuing its 'million-dollar homes' report 15 years ago, 'and it probably was a genuine gauge of the "prestige" market back then,' Karevoll said. Now, however, 'a million dollars just isn't what a million dollars used to be,' he said."

"In the Bay Area, 11,399 homes sold last year for at least $1 million, or about 73 percent more than in 2003. Santa Clara County saw 3,137 such sales, 67 percent more than in the previous year."



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