The stories seem so bleak: The sub-prime mortgage mess threatening to torpedo the global economy and plunge this nation into recession. Yet here in Silicon Valley, something weird is going on.
Sure, sales are plunging, but home prices are actually climbing! The experts call it the Silicon Valley Real Estate Paradox. The most recent figures from DataQuick show that sales dropped 11% in July; but the media price of a single family home climbed 7.4% to a record $805,000.
It's bizarre until you start examining the strange quirks of this particular region, something home-seller Doug Darling had to do when he and his sister inherited their parents' home in stylish Los Gatos. "We listed it, based on the realtor recommendation, at $1.69 million. And the final offer actually came in at $1.875 million, which was a very nice amount over what we had expected," he tells us.
Nine offers, and the house sold in five days. You'd think he'd be down in the dumps having to unload a home in a market like this one, which so much emotion tied into the place. He's still having difficulty letting go, but a sales experience like this one should help a little bit.
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