Newly built townhomes going on sale in Mountain View's South Whisman area are being snapped up by eager buyers -- and often fetching prices about 50 percent higher than the developers expected.
Call it the latest sign of Mountain View's red-hot housing market. A new neighborhood of row houses originally expected to go for $1.15 million are now selling as high as $1.82 million, according to sales data from the Santa Clara County Clerk Recorder's Office.
The neighborhood -- dubbed the Radius community -- consists of 200 town homes built by the Atlanta-based developer Pulte Homes. So far, the company has put 126 houses on the market, all of which found buyers. Fifteen more houses are expected to go on sale every three weeks until all are sold.
When the housing project was approved back in 2015, Pulte representatives said the homes would likely sell for around $1.15 million. Since then, the demand to own housing in Mountain View has surged, and Pulte has steadily notched up the asking price.
The median price for a three-bedroom house in Mountain View was about $1.24 million in March 2015, but that value has shot up to $1.62 million as of last year, according to the Trulia real estate website.
One silver lining for Mountain View officials is the city's 3 percent in-lieu fee for housing takes a cut of the sales price. That means the higher prices of these homes will contribute more money to the city's fund that goes toward provide affordable housing.