Silicon Valley luxury homes sales soar amid AI boom

While the broader housing sector continues to face challenges, luxury homes in Silicon Valley are flying off the market. Analysts attribute this surge in high-end real estate activity to the ongoing artificial intelligence boom.

Yahoo Finance's Rebecca Chen breaks down AI's impact on the region's successful real estate trends.

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This post was written by Angel Smith

Video transcript

That the power of A I hype spilling from the tech world into the housing market of Silicon Valley as artificial intelligence booms.

So too does the demand for luxury homes here with the detail.

We've got Yahoo Finance's Rebecca Chen.

Hey Rebecca.

Hey Brad.

So we've seen luxury housing doing extremely well in Silicon Valley lately.

Data is showing us that there's been an 80% increase in the number of luxury homes sold in Silicon Valley and by luxury, I mean homes over $5 million.

I've also chatted with local agents who are saying that they've been seeing their luxury listings or many of their luxury listings are going in contract within seven days and many times without any contingencies.

So we've been wondering why this has been the trend and why all of a sudden one of the market analysts we spoke with said it's because of the A I boom.

We all know that A I boom is happening right now and NASDAQ has a lot of stock that is going up in price going up in prices.

And these employ employees who work in Silicon Valley has been doing extremely well and that is what's making them having the confidence and also the money to purchase these higher end price real estates.

So, you know, this hasn't been like something new in Silicon Valley we've seen in the past that there has been many booms and busts in the area given how tech has been doing.

And many times the real estate trend often follows what has been happening during the two thousands or the 19 nineties, 1995 to 2 thousands.

When there was that internet boom, housing prices also increased during that time.

And then again, between 2014 and 2020 when social media companies like Facebook and Instagram were doing extremely well.

Housing again went up during that time.

So now this time, we believe that the A I boom is giving the luxury market another boost in Silicon Valley.

Um and people are just giving how well A I has been doing and from the looks of it, it will continue to be doing pretty well going forward.

Um A lot of people just in the area just have the confidence um for these real estate markets, all artificial intelligence it's giving as the uh as the youth out there would say uh luxury home market boost.

Ultimately, we'll see what happens and what prices as well that appreciates that.

Thanks so much, Rebecca breaking that down for us.