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In a sign the luxury residential market in Silicon Valley is slowing down, custom-built homes are up for sale longer and seeing price cuts. While recent economic uncertainty is affecting top-end properties, the mid-tier is still robust.
Homes in Palo Alto stayed on the market for an average of 16 days in April compared to a 10- to 11-day range that has been the norm for the month since 2014, Bloomberg reports. While 16 days is far below the national average of 67 days, the longer deal times are likely due to a pullback in tech valuations and a slowdown in the flow of Chinese buyers.
While a similar slowdown is happening across California and the nation, the impact is felt acutely near San Jose, since it is the frothiest market. The trends have led John Burns SVP Dean Wehrli to conclude the market has peaked and is trending downward.
Even with high-end woes, mid-range residential continues to boom. Hiring at mid-levels at tech companies such as Facebook and Google continues to be robust. This has driven interest in apartments that cater to this segment. [Bloomberg]
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