The DeLeon Insight JANUARY 2014
DeLeon Realty’s
STATE OF THE MARKET
F
ollowing on the heels of 2012, 2013 was yet another stellar year for Silicon Valley real estate. While Silicon Valley has seen a robust market, the core areas, namely Mountain View to Atherton, have been even stronger. The towns within that core have experienced double-digit price appreciation, with some areas having an appreciation rate of approximately 20%.
While there are multiple reasons for the continued local market strength, the two most significant are the continued influx of money from overseas, particularly from Chinese investors, and the federal government’s low interest rates in an effort to stimulate the economy.
Foreign Investors & Overseas Money In 2013, we have seen continued investment in the Silicon Valley real estate market by foreign nationals who live abroad and those who relocate here. The stability of the U.S. market and the desire to invest in real estate, despite
restrictions placed by many of the foreign nationals’ home countries, notably China, are two key factors driving foreign investors. Foreign investors often write very strong offers, often including an all-cash payment at a price significantly above the asking price. While this may seem strange to some Americans, two recent business Continued on page 7
JOIN US FOR OUR FEBRUARY SEMINAR FIRE UP FOR THE SIZZLING SPRING MARKET Please join DeLeon Realty for a seminar focused on the upcoming Spring 2014 market in Silicon Valley. You will gain invaluable insight into the real estate market from the most successful real estate agent in Silicon Valley - Ken DeLeon. Also, meet Michael Repka, the Managing Broker & General Counsel, and DeLeon Realty’s talented Area Specialists, who focus on specific neighborhoods in Silicon Valley.
Saturday, February 8, 2014 10am -12pm (Breakfast will be provided)
Where: Palo Alto Hills Country Club, Grand Ballroom 3000 Alexis Drive, Palo Alto
To RSVP Please Contact Ting Conway - 650.543.8588