Here in sunny Silicon Valley, land of palm trees, pool weather and Internet icons–clients tell me that last Saturday I walked right past Mark Zuckerberg in downtown Palo Alto without recognizing him (I must have taken him for just another celebrity disrupter)–I’ve met just one buyer who wanted a pool, and if I sell homes for another sixteen years I may meet another.
A May 20 article in the Washington Post is the latest salvo in what’s either a fight for the heart, soul and luxury condos of America or just another manufactured crisis. “Foreign investors are making housing more expensive,” the Post asserts, then asks “Should we tax them for it?”.
“A gentleperson is generous without having to spend; s/he makes people work without making them groan; s/he has ambition but no rapacity; s/he has authority but no arrogance; s/he is stern but not fierce.”
Open houses aren’t as crowded as they were a month ago. You can find a parking space in downtown Palo Alto. My Facebook real estate page seems permanently stuck at twelve likes. Is this the end of Silicon Valley real estate? Or the beginning of summer vacation?
A fresh look at the best of the MLS.
You’ve been acting too strange
You don’t love me with soul
Well, there’s lots of other guys
Who’d love to play your role
One Monkey Don’t Stop No Show, Big Maybelle, 1955
Over the past few weeks we’ve looked at what I’ve called Silicon Valley “home price volatility” from 1994-2013 and 2000-2013. But I realize that what we’ve been looking at can be better described as “historical downside risk”: combined home price depreciation during the last two real estate busts. Volatility isn’t just depreciation–it also includes the “good” volatility, appreciation. But…
“My husband and I have been house hunting for a few months in the PA/MP area. The market has gotten VERY HOT this year and we are starting to wonder if the bubble is back…this time encouraged by zero inventory, a handful of IPOs and a great deal of foreign investors worried about the stability of the economy in their home country. Seems like a great time to sell but would you advise waiting for a market correction to buy? Thanks!”