Real Bay Area house prices set to soar 10% next year thanks to Google
Christmas Comes Early for Employees of Google
Google has given all of its employees $1,000 cash "holiday bonuses" and 2011 salary increases of at least 10%, a loyal reader tells us.
The 10% company-wide raise will take effect on January 1, 2011. In addition, Google will also give each employee an additional raise equivalent to 1X the employee’s target bonus for the year. And employees will be eligible for additional "merit increases" based on their individual performance. In another nice gesture, Google will pay the taxes on the $1,000 holiday cash bonuses, thus allowing employees to keep the whole thing.
And… as we all know, Google is currently having a hiring spree. This means that salaries across the board in Silicon Valley will go up 10%. And a 10% hike in salaries mean a 10% (or more!) hike in the ability to pay mortgages!
Booyah! House prices automatically set to soar 10% next year in the Real Bay Area.
Thanks Google! You really are the best!
November 15th, 2010 at 6:11 am
i’m jealous.
i only get cost of living adjustment. Better than being unemployed, I guess.
That’s why I’m a bitter renter and not a homeowner with pride of ownership and a lawn to water.
November 15th, 2010 at 7:16 am
Wow, a thousand bucks is enough to buy a square foot of habitable space, or maybe even two. Apparently Google isn’t buying into the latest thinking about motivation from behavior science research as popularized by Dan Pink and others.
November 15th, 2010 at 8:33 am
Little slip, burbed – a 10% bump salaries means a 50% bump in the ability to pay mortgages in the RBA.
November 15th, 2010 at 8:41 am
sonarrat- 10% salary bump -> 10% greater ability to pay mortgages -> 50% housing price appreciation.
November 15th, 2010 at 9:38 am
10% salary bump -> 50% increase in disposable income -> 250% housing price appreciation
November 15th, 2010 at 9:43 am
Buy now or be priced out forever!
November 15th, 2010 at 10:58 am
Here’s Patrick from Patrick.net talking with those lucky Google people about why it’s a bad time to buy a house in the Bay Area: http://patrick.net/housing/contrib/patrick1.html
If the Google folks are as smart as people say, they may have a second thought about buying now in the RBA.
November 15th, 2010 at 11:37 am
Don’t the Google-oids live at the office anyway? Seems they’d all rent because there’s no time to water the lawn.
November 16th, 2010 at 12:25 am
Just take a look at the Mountain View home prices lately. It should pretty easily settle the debate of whether Googlers are buying.
November 16th, 2010 at 12:41 am
The poor guy who leaked the news is not likely to be buying soon. He’s probably going to have to move to Nashville now.
November 16th, 2010 at 1:11 am
Useless anecdotal data.
November 16th, 2010 at 12:24 pm
#9: Following your link, Mountain View House Statistics show median price is down, inventory is up, and price reductions are up since last year.
November 16th, 2010 at 1:31 pm
Joe- You do realize that’s “useless aggregate data,” and statistics include undesirable [=not RBA] houses.
“You need to look at the velocity of “buyable” inventory.”