The California Association of REALTOR’s 2015 survey of recent California home buyers reveals that they plan to live in their newly-purchased home for two-hundred years. No, I made that up. It’s really twenty years, up from six years in 2013 and 8.8 years in 2014, but it might as well be two-hundred for all the sense it makes, at least here in Silicon Valley.
It’s been splashed on the front page of the local newspapers, so it’s official: real estate is cooling. I said that a week ago, even though I didn’t have a CoreLogic press release in my inbox to tell me that. But how cool is “cooling”?
Recently it’s come to my attention that some of you home buyers are buying by the pound: you’re focusing on cities and neighborhoods where homes cost less per square foot.
Prices continue to flatten or decline slightly in most local markets, and activity continues to slow. What’s up?
So what’s happening with “foreign investors” aka Chinese buyers these days? The Chinese economy is slowing, its stock markets shedding big chunks of equity. Do they have any money–or motivation–left to buy Silicon Valley real estate?
Interested in saving the environment, or interested in saving a buck? Why not both?
“While stock markets in the U.S. have been more than a little volatile the past month or so, the dip has been nothing compared to China. The Hong Kong Hang Seng index is down more than 21 percent so far this year and more than 38 percent from its 52-week high. So what impact will troubles in the world’s second largest economy have on the U.S. housing market?”
Learning from the past. It’s a popular idea after any big downturn, particularly among first-time home buyers apprehensive about making their first major financial decision. But the problem is that first-time buyers are like generals: they learn everything about the last war, but the next war is completely different.