San Jose and Silicon Valley help power Bay Area housing market
Since its birth, Silicon Valley has been a unique engine for the surrounding economy. Unlike other regions of the United States that are typically anchored by long-standing, established companies, Silicon Valley is primarily home to a rotating cast of small, fast-growing businesses. During the economic downturn a few years ago, this meant that the area's economy was more at risk than other communities' markets. However, in recent years, this atmosphere of rapid growth has helped the economy flourish and contribute to significant upticks in the value of real estate in San Jose and surrounding area.
According to the San Jose Mercury, the Bay Area added a stunning 8,800 jobs in October 2012, largely based on the strong performance of Silicon Valley's economy. If the pace continues, the region will double its job gains in 2012 compared to 2011. With slow times firmly in California's rearview mirror, these impressive figures have filled some experts with a renewed sense of optimism.
"A broad-based jobs recovery in the Bay Area remained firmly intact in October, despite growing fears about the fiscal cliff and slowing demand from abroad," Scott Anderson, chief economist for Bank of the West, told the source.
In keeping with this assessment, recent unemployment figures from the Employment Development Department show that San Jose's economy continues to strengthen. After adding 3,400 jobs in October, the South Bay's unemployment rate has improved to eight percent.
The recent addition of more than 3,000 jobs confirms what many people believe about Silicon Valley - that the region's high-risk, high-reward strategy has been paying off. In fact, one respected technology expert believes that Silicon Valley's future rests on the ability of creative professionals to continue to make bold decisions.
John Sculley, a former CEO of Apple, told Bloomberg Businessweek that Silicon Valley entrepreneurs need to continue aiming for innovation, as this will help them create companies and make the region attractive to residents, investors and businesses.
"The real strength of Silicon Valley is very talented people willing to take risks - too big - to do big things," Sculley told the source.
Sculley stated that by sticking to the principles that helped the South Bay flourish in the first place, professionals can make the region a leading force of technological innovation and economic development in the coming years.
On the right track
If South Bay's autumn is any indication, it seems like Silicon Valley is taking Sculley's advice. According to the San Jose Mercury, the private sector of the South Bay and San Francisco has been doing a yeoman's job in propping up the region's job market and property values.
"The private sector is leading the way for the Bay Area job market, no doubt about that," Jeffrey Michael, director of Business Forecasting Center at the University of the Pacific, told the source. "The South Bay and San Francisco had a very strong [October]."
Impact felt in the housing market
The economic success of the fall has helped raise property values in San Jose and the greater Bay Area. According to The Wall Street Journal, home values rose 11.4 percent from September to October, which was the highest increase in any large metro except Phoenix.
With its growing economy and stabilizing housing market, San Jose could be the ideal place to find your next home. As more people are drawn to the region for its strong economy and coveted lifestyle, home prices may rise further, so now may be a great time to consider a property investment.