While national property prices in the US have sagged to an eight-year low, house prices in Silicon Valley are going up as a result of robust tech stock shares and a wave of IPOs making new millionaires in the IT industry.
In Palo Alto, where Facebook headquarters is located, median prices for single-family homes went up 20% in May from the same month in 2010, the biggest increase since 2008. In Mountain View, home of LinkedIn, prices rose 3.1% for the ninth year-on-year time in 12 months. Facebook's much-hyped, eventual IPO is forecast to continue the price surge in the region through 2013.
The price gains in Silicon Valley are mostly located in areas where six-figure property values are already the norm.