Categorized | Investing

Surge in wealth reflecting in the real estate industry

Surge in wealth reflecting in the real estate industry
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A sharp increase in wealth, especially in the technology industry is affecting prices of homes and other properties in some strategic areas, and research has shown. Just-become-rich from the technology industry are bidding higher for homes, especially in the Silicon Valley area.

The recent numerous sale of stock in the technology sector has put more money in the pockets of both sellers and buyers of the stock. 2011 recorded the highest number of 300 companies filling for initial public offerings since 2011. The big names such as Skype and LinkedIn are not left out in the offerings. Facebook’s expected offering is expected to bring in more home buyers into Silicon Valley.

The other side of the story is that, the ICT stock listed on the stock market are all doing exceedingly well, with some of the prices doubling daily. This means people who invested in these stocks are making a lot of money and hence why they are able to put up higher bids for properties. Houses in other parts of the country are however dropping continuously in the wake of increasing unemployment and high interest rates.

An expert is quoted as saying that, this is only a beginning and that we should expect the impact to go on for a few more years to. Another research revealed that, if people make a lot of money, one of the first things that come to mind to spend on is housing. It is therefore no wonder that those making money out of the ICT industry are investing in homes.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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