Zip Code Spotlight – 94040 – Mountain View, CA
This post first appeared in the November edition of Cirios Trends: Getting to the Bottom of the Housing Market
For this month’s zip code spotlight we head down the Peninsula to Mountain View, CA, home of Google Inc. and just up the street from rival Yahoo, headquartered in neighboring Sunnyvale.
For the past decade, the relationship between Google and wealth has been a rather simple one: As goes Google, so goes boatloads of cash (and hopefully long term economic stability). And while the Google Effect has been felt throughout Silicon Valley real estate markets, let’s focus on the market immediately in the company’s back yard.
Partly because of Google’s strong economic presence in the area, some neighborhoods have seen dramatic explosions in price in the last 10 years. This month’s zip code, 94040 which comprises the western portion of Mountain View, is no exception. As can be seen on the graph below, prices doubled from 1998 through the market’s peak in 2008.
However, recent price declines have hit the area hard, giving those looking for a mid-high end home a chance to squeeze into a market likely to be basking in the Google glow for years to come.
Looking more closely at the market, one finds a wide range of available properties. Currently available single family homes range from a $1.8 Million, 4 bed, 3 bath to a tiny 1-bedroom available for a “mere” $500,000. Over 70% of the properties in the area are listed at the million dollar plus level, so come ready to spend.
Schools in the area are terrific, consistently scoring in the 90th percentile of schools in the state. Downtown Mountain View has everything from shopping to nightlife. The city also boasts a bayshore municipal golf course and Shoreline Amphitheater (pictured below), a concert venue frequented by the biggest names in show business.
If you are lucky enough to work at Google, the commute from most parts of Mountain View is less than 10 minutes, and there are numerous other technology firms just minutes away. For the rest of us, Downtown San Jose is only 20 minutes away and San Francisco is somewhat farther, over 40 minutes in light traffic. CalTrain provides an excellent option for public transportation.
As the graph shows, prices are down ~20% in the zip since the peak, and a recent spike in supply is quickly subsiding. Ultimately, the extent to which prices can hold these levels is dependent on whether Silicon Valley’s up and coming home buyers continue to eye Mountain View as an attractive, desirable place to live.
Tags: 94040, Cirios real estate, Google, mountain view, yahoo