Million-dollar homes appreciating in Silicon Valley

In “IPOs Boost Demand for Silicon Valley Mansions“, Bloomberg attributes the robust housing market in Silicon Valley to the increasing numbers of instant millionaires benefiting from IPOs. The price gains are startling given the second-dip recession that has descended upon so many other neighborhoods across America (for the latest see “US Housing Crisis Is Now Worse Than Great Depression.”)

“The real estate gains in the valley, located primarily in the San Jose metropolitan area, are mostly occurring in towns where million-dollar values are already the norm. The median price in Cupertino gained 12 percent last month from May 2010 to $1.08 million, and values in Saratoga rose 4.7 percent to $1.62 million, according to San Diego-based DataQuick…

…The median price of single-family houses sold in Palo Alto, home of Facebook Inc., climbed 20 percent in May from a year earlier to $1.63 million, the biggest jump since 2008, according to preliminary figures from research company DataQuick. In Mountain View, the base of LinkedIn Corp., prices rose 3.1 percent to $957,500, the ninth year-over-year gain in 12 months.”

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