Los Gatos residents complain about corporate buses

The controversy that's followed corporate buses from San Jose to San Francisco has arrived on Los Gatos' doorstep. Both Apple and Google operate buses that take town residents to work in Cupertino and Mountain View, but some of their neighbors are complaining.

One complainant is Michael Farr, who lives at Knowles Drive and Carpi Avenue, where Googlers are picked up in the morning and dropped off in the evening.

"They come and go just like a transit center," Farr said. "They're an accident waiting to happen. This is a residential street, not a parking lot."

Town manager Laurel Prevetti said the Googlers apparently started parking on Capri after being "kicked out of the Vasona Station shopping center"

because they were taking customer parking spaces.

Since Knowles and Capri are public streets, anyone can park there for up to 72 hours.

"We talked to Google in March to talk through some options," Prevetti said. "We have a lot of questions, we don't necessarily have a lot of answers. So, we need solutions. One solution is land: Is there land available so they can have a designated place to park?"

Mayor Barbara Spector is also working the issue, and parks and public works director Matt Morley is looking into a couple of parcels of land that could possibly be used for corporate parking.

Farr likes that idea. "They should buy a parking lot," he said.

He also thinks the buses should be regulated.

"If you want to have a shuttle, then you have to have a permit just like a taxi service," Farr said. "I find it really wrong to let big corporate buses use residential streets as a park and ride lot."

This isn't the first time residents have complained about the Google buses. In February 2012, Pam Kee told the Los Gatos Weekly-Times that the buses were endangering children walking to school on Shannon Road.

The buses no longer stop on Shannon.

Google and Apple both use the Office Depot parking lot at Lark Avenue and Los Gatos Boulevard, which is why Prevetti calls this a town-wide issue.

"We've received calls about the buses using residential streets from a few neighborhoods, so we have to look at this from a town-wide perspective," Prevetti said. "We don't want to push the problem around. Looking at the bigger picture, the buses do take cars off the road."

Even so, Prevetti said, it's a "sticky, quality of life issue" that the town council will likely discuss in June.

Source: San Jose Mercury News, Judy Peterson
http://www.mercurynews.com/real-estate-news/ci_29880745/los-gatos-residents-complain-about-corporate-buses

Buy a Home in Silicon Valley for $25,000—but There’s a Catch

Anyone who lives here in the Silicon Valley knows housing (both renting & buying) comes at a premium. Last year I think it was when I heard the story of a guy in Mountain View who was renting a tent in his backyard for $800 a month, and I thought that was bad, but now I heard about this. So apparently a guy will rent a van, just to Google employees for $30.00 a day to sleep in their parking lot, since Google apparently doesn't pay some employees enough to afford a place. The employee can use their restroom, cafe, etc. provided they have a place to sleep - that's where the van comes in. Anyhow, seeing things like this speak to the high cost of housing here in the valley.



Psst … want your own place in Silicon Valley for a mere $25,000? Then you should meet Robert Allen, an entrepreneur who’s retrofitted six vans with beds and kitchenettes. His target clientele? Google employees.

This makes total sense: The tech behemoth, based in Mountain View, is justly famous for its amenities that encourage employees to linger in the office around the clock. With cafeterias dishing up a range of delicious free food throughout the day and top-notch exercise facilities where you can shower, who needs to go home for anything but sleep?

That’s where Allen’s vans come in. He initially rented the vans to travelers staying a night or two, via his site Go-Tel.net (not hotel—get it?). But his latest Craigslist ad woos cash-strapped Googlers with the following pitch: “Eat Google food, use their gym, and sleep in the van (CHEAP).”

There is a precedent for this—in one highly publicized case, a 24-year-old software engineer opted to sleep in a box truck in the parking lot at Google to  save on housing costs. The company’s reaction? Shrug.

The vans rent for $30 per day, or you can buy one outright for $25,000. If you’re not lucky enough to be employed at Google, Allen’s ad says, “you tell me where you would like it parked and I do the research to make that happen” (which we infer/hope means he finds legal parking spots for you).

Sure, living in a van sounds cramped and uncomfortable, but it’s undeniably a deal, considering that the cheapest Mountain View apartments on realtor.com® start at $1,625.

Here’s a pic of the place, located at 1970 Latham St.:



And here’s a peek at what we presume is the kitchen and, um, the rest. Cozy isn’t it? But hey, if you’re working around the clock at Google and taking advantage of its immense cafeteria and other amenities, all you really need at your crash pad is a few microwaveable meals in your freezer for the weekends. Assuming there’s room for a microwave, that is.



As for the cheapest house you can actually buy in Mountain View, that’s a whole different animal. The cheapest listing on realtor.com is a mobile home at 191 E El Camino Real, Space 210, going for $99,000.

And according to the listing, it “may need to be a cash deal.” You may even need to bring it in a suitcase.

Once you see the reality of real estate in Mountain View, a van for $25,000 starts looking pretty sweet, doesn’t it?

Source: Realtor,com, Judy Dutton

http://www.realtor.com/news/trends/buy-home-silicon-valley-for-25000/?iid=rdc_news_hp_carousel_theLatest

RELATED:
Camping Tent Rents at $900 a Month in Mountain View
Million Dollar Shack: Trapped in Silicon Valley's Housing Bubble

Cities Plagued by Shrinking Inventory - and guess which one is #1. . . .

Low inventory means higher home prices and buyers competing with each other with multiple offers. It's a reality going on here for awhile in the silicon valley, which is why many agents prefer working with sellers and getting a listing (home for sale) rather than work with buyers. It's not that those agents refuse to work with a buyer because they will, it's just that when you're working with a buyer, it's harder in this market to get them into a home, which means no commission if they don't succeed. 

If you are a buyer looking to get into a home in this market, you must be very serious, pre-approved for a home loan and willing to listen to the advice of your Realtor if you want to stand a chance of getting into the home. Be prepared to compete with other buyers, some of whom will be making All Cash offers. Also be prepared to make an offer possibly well over the asking price (depending on the neighborhood, school districts and some other factors your Realtor will discuss with you). 

The article cites San Jose California as the #1 city with the lowest inventory. San Jose is the heart of the Silicon Valley, and the story is the pretty much the same for the surrounding cities here in the valley. The tech giants here in the valley, such as Google, Apple, Facebook and Intel, keep bringing in more and more workers thus putting strain on housing market. Evidence for this can be seen with low inventory and developers coming in and building mega apartment blocks and charging sky high rents.


Cities Plagued by Shrinking Inventory


More than 1.3 million – or 1.6 percent of the nation’s nearly 85 million residential properties – are vacant. That’s down 9.3 percent from the third quarter of 2015, according to RealtyTrac’s first quarter 2015 Residential Property Vacancy Analysis.

“With several notable exceptions, the challenge facing most U.S. real estate markets is not too many vacant homes but too few,” says Daren Blomquist, vice president at RealtyTrac. “The razor-thin vacancy rates in many markets are placing upward pressure on home prices and rents. While that may be good news for sellers and landlords, it is bad news for buyers and renters and could be bad news for all if prices and rents are inflated above tolerable affordability thresholds.”

RealtyTrac analyzed 147 metro areas with at least 100,000 residential properties and found that the following cities had the fewest number of vacant properties in the first quarter:

1. San Jose, California: 0.2%
2. Fort Collins, Colo: 0.2%
3. Manchester, N.H.: 0.3%
4. Provo, Utah: 0.3%
5. Lancaster, Pa.: 0.3%
6. San Francisco: 0.3%
7. Los Angeles: 0.4%
8. Boston: 0.5%
9. Denver: 0.5%
10. Washington, D.C.: 0.5%

Meanwhile, vacancies were highest in the first quarter in these cities:

1. Flint, Mich.: 7.5%
2. Detroit: 5.3%
3. Youngstown, Ohio: 4.4%
4. Beaumont-Port Arthur, Texas: 3.8%
5. Atlantic City, N.J.: 3.7%
6. Indianapolis: 3%
7. Tampa, Fla.: 2.9%
8. Miami: 2.8%
9. Cleveland: 2.8%
10. St. Louis, Mo.: 2.6%

Source: Realtor Magazine Online from RealtyTrac
http://realtormag.realtor.org/daily-news/2016/02/16/cities-plagued-shrinking-inventory?om_rid=AAFmZk&om_mid=_BWw4bMB9Ku34LR&om_ntype=RMODaily

The fate of Santa Clara County Fairground

The Santa Clara County Fairgrounds has been a historic icon of the Silicon Valley for many years, but now it seems there are those who want to put the land to better use. Many who have grown up in this area have gone to the fair grounds at lease once are also the biggest supporters of keeping the fairgrounds as it is due to it being something of a landmark and their fond memories there. Be that as it may, the supporters of progress will likely win out because there is just too much demand for housing in this valley. Afterall, Apple, Google and Facebook need more housing for their many workers.

Prime real estate: Santa Clara Co. disputes Fairgrounds' future
Santa Clara Co., Calif. (KTVU) - It's a huge lot of land in San Jose considered rundown, underutilized and an eyesore. On Thursday, county leaders shared plans for the future of the Santa Clara County Fairgrounds.

A lot of people in the South Bay remember the fairgrounds in its heyday. It has declined over the years, where it now holds small events here and there. The county wants something grand, but many people at Thursday's meeting want it to stay as is.

The Santa Clara County Fairgrounds has a long history in the South Bay, well known for its annual County Fair. However, over the years, the 150-acre prime piece of land has lost its luster and quite frankly is falling apart.

"The board has been very clear they want to accomplish something that people will be really proud of," said Santa Clara County Director of Asset Bruce Knopf. "Something that's iconic and creates a lot of buzz and excitement."

On Thursday, the county unveiled a new vision for the fairgrounds, where half of the land would be used for sports. The other would be a park similar to Golden Gate Park or New York's Central Park on a much smaller scale.
"If this leaves, if they take this away," said Joan Schramm of Los Gatos. "We probably can't exist."

Joan Schramm is with the Santa Clara Valley Gem and Mineral Society. Her community group has used the fairgrounds for 60 years. She's among the many people against change at the packed meeting.

"It would be a lot cheaper to fix what they got than to build this elaborate system," said Ben Schramm of Los Gatos.

4-H clubs are also concerned.

"I like showing my animals at the fair and a lot of people spend thousands of dollars on their animals," said Brandon Vandercook of the Hilltop 4-H club.

To that end, the county is considering carving 30 acres for an event center to hold the fair or relocating it all together.

"Our fair is already so small every year it's shrinking with the amount of vendors," said Ilona Mauro of the Hilltop 4-H club. "I don't have a lot of public showing up anymore so it's important to keep what we have."

All this is tentative. One of sports teams interested in the land is the minor league team the San Jose Giants. Any of the major professional teams are unlikely to relocate at the Fairgrounds.

"There were rumors some time ago seeking the Raiders," said Knopf. "It was nothing more than a rumor and you can see how long San Jose has been attracting the A's."

One thing the fairgrounds won't be converted to is housing. The county tried that approach a few years back and the developer backed out. Realistically, it's still in its early stages. The plans will be presented to the Board of Supervisors later this month.

Source: KTVU.com
http://www.ktvu.com/news/70855893-story

New study shows profound impact of tech industry on Bay Area real estate

To say that the tech sector has an effect on the real estate market here in the Silicon Valley would be a huge understatement, but still a good article though.


The tech industry. Over and over in recent years, this economic sector has been targeted as the cause of dramatic upticks in both home prices and rents in the Bay Area.

But is this a fair accusation? Apparently so, according to a new Zillow study. “[This analysis] highlights the widening wealth gap between tech company employees and other U.S. workers – a gap that is putting increasing pressure on housing markets where tech companies are booming,” said Zillow chief economist Dr. Svenja Gudell.

Facebook, Apple, Google and home ownership

First off, home values: Data show that Google, Facebook and Apple employees live in pricier homes than other Bay Area workers and have faster home value growth as well. In fact, the average Apple worker now lives in a home that is more than five times more valuable than the average U.S. home, according to Zillow.

Using census data, Zillow found the “typical worker at Apple’s Cupertino, Calif., headquarters lives in a home that is worth about $1.14 million, about $241,000 (27 percent) more than the median home in the already-pricey San Jose metro area and $380,000 (50 percent) above the median home value in the San Francisco metro area.”

Apple’s not alone. Workers at Google and Facebook headquarters — in Mountain View and Menlo Park respectively – live in more valuable homes as well. The median home value among Facebook workers is $1.25 million; among Google workers, it’s $1.28 million.

Zillow used data from the U.S. Census Bureau tracking where workers live and work across the Bay Area, then combined that data with Zillow’s Living Database of All Homes to compute a median home value for workers at the Apple, Google, and Facebook campuses in the Silicon Valley. Boiled down, the information shows:

• On average, employees of Google, Facebook and Apple live in homes with a median value of well over $1 million.
• Homes rented or owned by employees of these three tech companies are worth more than surrounding homes and are appreciating more quickly than surrounding homes

The gap, just like the iPhone, is getting bigger: 

The gap between tech employee home values and those of surrounding areas has grown larger. Apple workers’ home values took off after the first iPhone was released in June 2007. Apple’s stock price rose, increasing the wealth of many employees and cementing the company as one of the most successful in the world. Prior to summer 2007, the typical Apple worker lived in a home that was 13 percent more expensive than the typical San Jose home; since summer 2007, that gap has widened  to 20 percent.

As recently as 2010, homes in the neighborhoods where Apple workers lived were worth only three times the national median. Now they are worth five times that median.

Apple’s gains are the most dramatic, likely thanks to the iPhone. In the same period, the typical Google employee went from living in a home that was 37 percent more expensive than the average San Jose home in 2007 to living in one that is now 39 percent more expensive. For Facebook employees, the gap went from 31 percent to 33 percent.

San Francisco metro highlights

Other interesting (and possibly troubling) local findings point to recently inflated housing prices in all areas in the San Francisco metro, including rent:

• Condos have appreciated 13.5 percent over the past year
• Single-family homes have appreciated 12 percent over the past year
• Rent has gone up 13.3 percent over the past year

The takeway

Probably the only thing we didn’t already know here is just how much and how deeply the tech boom has impacted local real estate. If you’re qualified to work for these companies, you’re likely qualified to buy and/or rent homes nearby. Other people, however, may be thoroughly priced out.

Anna theOnThe Block blog, Marie Erwert
http://blog.sfgate.com/ontheblock/2015/11/02/new-study-shows-profound-impact-of-tech-industry-on-bay-area-real-estate/

Google plans expansion in Mountain View, now eyeing north San Jose

Yet another reason rents will remain high and the real state market is going to continue to be robust is the hot job market here in the Silicon Valley. Google is apparently running out of space at its headquarters in Mountain View and now considering expanding some of its operations to north San Jose. This seems to be the trend in the valley right now with Apple and other high tech firms reaching into San Jose to house their work force. This is great news for the overall housing market because where there is a hot job market, there is a hot rental and housing market. It's great for us Realtors and great if your a homeowner thinking of selling, not so great if you're a renter or someone thinking of buying a property.



Google is expanding in its hometown of Mountain View — and for the first time is strongly considering planting its flag in north San Jose in a big way, an indication that job growth in Santa Clara County remains robust.

Google is in talks to lease two expansion sites in Mountain View that together total 357,000 square feet, and also wants to grab about 150,000 square feet or more in north San Jose, according to multiple sources familiar with the space hunts and the commercial real estate market in Silicon Valley.

“Silicon Valley is a hot area, and this is where talented people want to live,” said Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy.

The two Mountain View sites that Google is eyeing, the sources said, speaking on condition of anonymity because the discussions are private, are a 133,000-square-foot office project at 1001 N. Shoreline Blvd. being built by Calvano Development, and a 224,000-square-foot office project at 1625 Plymouth St. being developed by Broadreach Capital Partners.

Google’s efforts to broaden its reach in Silicon Valley make sense.

“This is not a bubble,” Levy said. “This is based on solid growth.”

What’s more, development and economic experts say Google’s interest in expansion isn’t likely to end any time soon.

“Everything we are looking at suggests that the growth we are seeing for Google and the technology sector is sustainable,” said David Vanoncini, a managing partner and senior vice president with the San Jose office of Kidder Mathews, a commercial real estate firm.

The two sites in Mountain View that Google is actively considering have yet to be constructed.

San Francisco-based Calvano Development wouldn’t discuss any specifics about potential tenants that might be in lease negotiations for the 1001 N. Shoreline site.

“We have had a number of serious inquiries,” said Mark Calvano, a principal executive with Calvano Development.

The company would consider constructing the office project on a speculative basis, that is, without a tenant and a signed lease, if the market is right.

“I don’t think the office market in Silicon Valley has ever been better,” Calvano said. “Technology is our future and companies are making incredible products.”

It also makes sense for Google to be looking in north San Jose, because space is getting tight in the Mountain View and Sunnyvale areas, and is nearly unavailable in the Cupertino, Palo Alto and Menlo Park markets.

“North San Jose is going to be a hotter market over time,” Levy said. “Office rents in the northern part of Santa Clara County are getting expensive. And you will have those BART extensions in Milpitas and Berryessa, which will have shuttles and provide more access to north San Jose.”

Source: Silicon Beat, George Avalos
http://www.siliconbeat.com/2015/09/17/google-plans-expansion-in-mountain-view-now-eyeing-north-san-jose/

China's stock market turmoil and Silicon Valley real estate.

So, in case you've been living under a rock the past 24 hours, the Chinese stock market as well as the US stock market is taking a beating. Apparently China's currency is doing well compared to the US dollar which in turn is making their exports more expensive, so China is trying to manipulate their currency to make it cheaper, and this in turn is freaking out investors both in China and on Wall Street.

What does this have to do with Silicon Valley real estate? Well, this is just speculation on my part, but these investors in China are losing allot of money and because of that, they may want to recoup at least some of their wealth by selling the real estate they own here. If too many of these properties get put on the market it could drag the market down by creating an artificial buyer's market - a good thing for those in this valley looking to buy but have been sitting on the sidelines because property values are too high, but a bad thing if you are a non investor seller looking to sell. 

Another important thing to think about with regard to market crash is that there are many here in the Silicon Valley who are invested in the stock market through their 401K and/or their tech stock options they were given for getting hired on with the company they work for. Companies such as Google, Apple and Facebook give out stock options all the time to new employees as an incentive to come work for them. Anyhow, allot of these same individuals who haven't bought a home already here in the valley might have been planning on buying a home by cashing in their stock options. Now that stock prices of many of these companies are taking a beating, these buyers might deciede to sit on the sidelines longer, which will cause property values to go down. 

This could be a temporary market hiccup or a longterm market correction. It's too early to tell.
  

Here's a simple explanation for what just happened to the stock market

Report: 90% of Properties Now Have Equity

A new report by CoreLogic shows that more and more homeowners now have plenty of equity in their home. What does this mean? In a nutshell it means that housing market is doing well and the economy overall is past the housing bubble collapse/mess from 2008. 

Allot of homeowners here in the Silicon Valley are sitting on allot of equity, but many don't want to sell (for whatever reason) and because they don't want to sell, it creates an inventory shortage, which leads to home prices going higher, which leads to more equity. Of course none of that would be possible without the robust job market that we are experiencing here in the Silicon Valley/Santa Clara county area with the likes of Google, Apple and Facebook always looking to hire new tech talent.



As home prices rise, more home owners are regaining equity. During the first quarter of this year, about 254,000 properties regained equity, according to CoreLogic’s latest equity report. That now brings the total number of residential properties with a mortgage that have equity to about 44.9 million – or 90 percent – by the end of the first quarter.

“About 90 percent of home owners now have housing equity and, as a result, have experienced an increase in wealth, which can spur additional consumption and investment expenditures,” says Frank Nothaft, chief economist for CoreLogic. “The remaining 10 percent of owners with negative equity will find their home value rising while they continue to pay down principal on their amortizing mortgage loan.”

The still elevated number of home owners who have negative equity remains a concern, however. The number of negative equity households stood at 5.1 million, or 10.2 percent of all properties with a mortgage in the first quarter of this year, according to CoreLogic’s report. That represents a slight drop from 5.4 million homes, or 10.8 percent, that had negative equity in the fourth quarter of 2014.

“Many home owners are emerging from the negative equity trap, which bodes well for a continued recovery in the housing market,” says Anand Nallathambi, president and CEO of CoreLogic. “With the economy improving and home owners building equity, albeit slowly, the potential exists for an increase in housing stock available for sale, which would ease the current imbalance in supply and demand. There are still about 5 million home owners who are underwater and we estimate that a further 5 percent appreciation in home values across the U.S. would reduce the number of owners with negative equity by about one million.”

The following states had the highest percentage of properties in the positive equity territory by the end of the first quarter:

• Texas: 97.7%
• Hawaii: 96.9%
• Alaska: 96.8%
• Montana: 96.8%
• North Dakota: 96.2%

In general, the majority of positive equity properties are centered at the high end of the housing market, according to the report. For example, 94 percent of homes valued at greater than $200,000 have equity, compared with 85 percent of homes valued at less than $200,000.


Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/17/report-90-properties-now-have-equity?om_rid=AAFmZk&om_mid=_BVgbyqB9CyjZbQ&om_ntype=RMODaily

SV150: Current tech boom is no dot-com bubble, experts say

I touched on this a little bit yesterday when I was talking about the current expansion going on at the Valley Fair Shopping mall and how that relates to real estate. The below article from the Mercury News talks about how the current economic boom in the Silicon Valley is not the bubble like we saw in the late 90s and early 2000s. Though I do strongly believe there will be a correction in this real estate market, it won't be a big one by comparison with other parts of the US. Big employers like Google, Apple, Facebook and Intel have their corporate headquarters here, and they know this area is rich with the tech talent they need. Also, as far as housing is concerned, there is not allot more places left in this valley to build. This area is hedged in by to foothills to the east and west and the waters of the bay to the north. So, anyhow, as long as those factors continue to hold true, they will always keep the economy more robust as compared to other parts of the country and home values stable. But that's just my two cents worth.



SV150: Current tech boom is no dot-com bubble, experts say

Silicon Valley's tech cup runneth over. Job growth is humming, coders are being lionized on HBO, Uber and its shared-economy cohorts are on fire, disrupted innovation is unfolding on every corner. And everyone from downtown San Jose to Oakland's Uptown to San Francisco's South of Market is partying like it's 1999.

Luckily, it's not -- at least according to those who say today's boom and the exuberance of the dot-com craze are like night and day.

"Back around 2000, the IPOs were characterized by having only a few years' track record and little in the way of profits," says Brett Trueman, professor of accounting at the UCLA Anderson School of Management. "What's happening today is much different, because a lot of these companies have been around for longer periods of time, and they're more likely to be earning money than the startups during the dot-com boom. That's a clear indication that the froth isn't there now like it was in 2000."

Still, Silicon Valley knows froth. And the urge to compare the current craziness with the heady days of the past and fret about another bubble is understandable. You want froth? The SV 150, this newspaper's ranking of the largest companies in Silicon Valley based on revenue, shows the region lately has been a veritable cash machine: 2014 was the most profitable year since the SV150 began 29 years ago, with a 23.8-percent jump in overall profits, an 11.7-percent rise in sales, and a 7.1-percent increase in job growth.

So is it sustainable?

In a nutshell -- yes, says Beacon Economics founding partner Chris Thornberg, albeit with a small caveat.

"We're seeing record profits today, unlike in the '90s when you had huge valuations but nobody making the money to justify them," he said. "Back then, people were selling the IT and investors were buying it, but it wasn't being integrated into our lives very well."

Economists point to Uber, valued at more than $40 billion, as a prime example of the paradigm shift underway in tech, where an innovative service is changing the way we think about everything from car ownership to insurance to urban planning.

"Today," said Thornberg, information technology, or IT, "is something companies invest in and then make a lot of money off of it. So the guys now selling that IT are also making tons of money."

And the caveat? "The only place you might get into trouble," said Thornberg, "is if the labor markets heat up and corporate profits start going to the employees (for salaries). But it's way too early to call that."

A large chorus of Silicon Valley pundits insist that despite the heat of the moment, what's happening in the today is not "Pets.com, The Sequel."

Yes, the tech-heavy Nasdaq is finally approaching its dot-com high of 5,048. But it's been a long, slow -- and some would say healthy -- ascent that suggests its tech components remain on relatively solid footing. And sure, the "weighting" of IT companies in the S&P 500 index has grown from 6.3 percent in 1990 to nearly 20 percent today, perhaps suggesting a troubling dominance on tech. But consider that IT's share of that index hit more than 29 percent in 1999, just before things went bust so today's share is relatively modest.

While it's true that the SV150 now has the highest market-cap-to-sales ratio (3.8) since the dot-com bubble, meaning that it is valued by investors at nearly four times the annual revenue of those 150 firms, that's still less than half of the 8.1 sales ratio in 1999.

And then there's the Apple effect. The world's most-valuable company recently joined the Dow Jones Industrial Average, becoming one of five tech companies on the Dow 30, three of them based in Silicon Valley. Its inclusion confirms the Cupertino tech giant's crucial role in keeping the tech-boom momentum going. And the price-earnings, or PE, ratios for today's tech giants, which sit in the midteens, are seemingly conservative when viewed beside the 100-plus numbers of AOL and others back before the bottom fell out.

Despite all the comforting news, there's no way a rising tech-boom tide can lift all boats.

"Are there too many tech startups chasing too few things? Yes," says Brent Thill, managing director and senior analyst at the research division of USB Investment Bank. "Not all of them will survive, and you'll start to see the leaders in each category taking more commanding leads.

"This tech boom is sustainable for select companies," said Thill, pointing to Uber. "I don't guarantee Uber's numbers, but I personally use Uber every single day and for me it's become as common as sending a text or making a phone call; Uber has changed the way I view transportation."

But Thill cautions that even while today's boom seems to have legs, that's not to suggest there could still be the occasional stumble.

"There are too many companies out there that think they deserve a billion-dollar valuation, but it's not logical," he said. "They shouldn't assume that, because there can only be so many."



Source: The San Jose Mercury News, Patrick May
http://www.mercurynews.com/news/ci_27942064/sv150:-current-tech-boom-is-no-dotcom-bubble-experts-say

Google's mortgage comparison tool is coming soon

Google, in case you haven't noticed is a big Silicon Valley giant and located a not far from my office. They have their fingers in allot pies; search (of course), smart phones (with Android), self driving cars, robots, high altitude balloons delivering free internet, etc. And now Google will be offering a mortgage comparison tool. Google is obviously doing this to make money. So when you use the tool, the mortgage lenders it provides you for the comparison agree to give Google a percentage of the money they make if the consumer goes through with getting the loan. The company already has the mortgage comparison tool available in the UK and currently has a credit card comparison tool for consumers in this country. Anyhow, it will be interesting to see how this affects the mortgage industry at the end of the day.

Google prepares to launch mortgage comparison tool

Tech To Attract Affluent Home Buyers

I'm a Realtor here in the Silicon Valley and many of my past and current clients work for many of the big tech firms like Apple, Google, Facebook, Cisco and others. Many of my tech inclined home buyer clients end up upgrading their newly purchased home with a tech upgrade or two, but whether your in the market to buy a home or currently own one and are looking for some ideas, below is a great article you may find useful. 

Tech To Attract Affluent Home Buyers
Written by Realty Times Staff on Wednesday, 11 February 2015 12:48 pm

ERA Real Estate and HGTV reported 46 percent of consumers see smart-home technology as important for their current and future residences. But luxury homebuyers are willing to make the ultimate sacrifice. According to Digital Interiors, 94 percent of buyers surveyed would sacrifice 1,000 square feet of living space for more technology in their new home. Oversized houses are no longer the driving trend in the luxury real estate market and agents are under pressure to respond to the demand. Here’s what affluent homebuyers are looking for and which gadgets are must-haves.

Get a Smart Thermostat

Outfit your listings for luxury with smart-home additions like a smart thermostat . The Nest programs itself based on your preferences and can adjust whenever you leave to conserve energy. Your clients can control the system right from their smartphones. Owners can warm up the living room before an evening entertaining clients. Talk about how they can jet set to their vacation home and simply check-in on their property as needed. The idea behind a smart thermostat is really about controlling the overall climate of the home as opposed to an exact temperature.

Enhance your Home Surveillance

Home security systems have always dabbled in the high-tech world of smart automation. In the past, most alarms simply triggered an annoying sound and contacted the police at signs of danger.

Today, home security cameras keep an eye on the inside and outside of the home with wireless cameras. A wireless camera system can be mounted to the wall or ceiling and monitored remotely. Home buyers are sure to be wowed by its sleek and discreet design. Some home security companies, like Lorex Technology, even offer subscription-free monitoring options, yet another attractive feature for potential buyers.

New owners can keep an eye on their home from vacation, at work or on a spontaneous outing without worry.


Go High-Tech Culinary

Updating a kitchen has always been a recommended way to raise a home’s price tag and attract buyers. But affluent home shoppers are looking for more than just new appliances and chef’s kitchens. The latest technology trends include no-touch faucets and smart refrigerators that can alert you when you’re running low on groceries. The LG model features an internal camera to check on its contents, built-in Wi-Fi to connect to your mobile device and offers available accessories that can be 3-D printed. Other high-tech touches like Bluetooth smart cooking thermometers tell your mobile device when your food is ready to create perfect dishes every time.

Upgrade your Luxury Entertainment

Just about every home has a flat-screen television; some piped for surround sound and home theaters. Let your clients take entertaining to a new level by controlling everything from one device like Savant. Your clients can adjust the lighting, change the channel on your smart TV and turn on music. A system like Savant can also help monitor your home’s security and adjust the climate as needed. While clients are getting ready upstairs for an evening with friends, they can adjust the entertainment area and living room downstairs to create a luxurious atmosphere.

Tech To Attract Affluent Home Buyers