I came across an article from Curbed San Francisco about how the real estate prices in Silicon Valley have truly lost touch with reality.
We read a report where a 936 sq.ft. house built in 1921 in Palo Alto is currently listed for about $10 million dollars. It has two bedrooms and one bathroom. That’s over $10,000 per sq.ft., which is a lot.
Of course, some buyers would consider buying it simply for the land which is about a half an acre.
However, the writer who lives in the area said that while one year ago, a house might stay on the market for a few days, now he notices that the ‘For Sale’ signs are posted for months. The urge to own has dried up.
These are the signs you don’t want to ignore. We believe that the bubble has burst, but our political leaders still tell us how wonderful everything is. And the stock pundits tell us about the great opportunities in buying stocks. This is the part of the market cycle where you should not listen to financial TV if you are susceptible to the opinions of Wall Street analysts.
That’s why your remote control has a “mute” button.
Read the full article here: http://sf.curbed.com/2016/4/29/11541002/palo-alto-bungalow-10-million