Looks like the Housing Bubble 2.0 has started to explode. You mean 0 interest rate for decade and 10 Trillions printed money didnt solve the debt crisis but made it worse by blowing bubbles everything!

RE sales traditionally slow down as we approach Thanksgiving/Xmas time.

Most families prefer to do their prospective home shopping in the spring with move-in dates occurring during the early summer months.

No biggie. We'll rake in the commissions later down the road come April.

Have a nice holiday season.

Anybody have a pointer to what the average yearly real estate price/inventory cycle looks like around here? For the last 40 years, I've always heard that prices are highest and sales quickest in the spring/early summer here. It was alleged that it was because of the school cycle, and, cities where schools are perceived as "better" attract parents who are likely to want to move during summer vacation. So, if prices are declining and inventory rising, isn't that what happens -every- year?

QUOTE: RE sales traditionally slow down as we approach Thanksgiving/Xmas time.

QUOTE: For the last 40 years, I've always heard that prices are highest and sales quickest in the spring/early summer here....So, if prices are declining and inventory rising, isn't that what happens -every- year?

Bingo. No need for any charts and graphs or Powerpoint presentations. Like the RE Agent mentioned, they will cash-in 'later down the road'.

Home prices around here may eventually stabilize a bit but they aren't going to go down in the near future.

Maybe it isn't Thanksgiving. More likely there is a holiday or other event in China that is slowing things down.

^^^^^ Or maybe some of them have second thoughts about buying a home in Palo Alto since many of their predecessors have pushed the median home prices up to the point of being overvalued and overpriced.

To lose money on an expensive house (if later sold) would be cause for great distress.

Posted by A View From the Orient, a resident of Charleston Meadows

>> To lose money on an expensive house (if later sold) would be cause for great distress.

I hate to break it to you, but, -every- investment is subject to "market risk". People who bought houses here at the 1989 peak had to wait until 1997 to break even. Anybody selling in 1996 lost out on the next boom. etc. And, real estate prices around here have been quite a bit more volatile than elsewhere due to the successive different waves of tech booms (aircraft/defense, semiconductors, computer hardware, internet/web, next generation software/internet-based services).

IOW, better not buy here in the first place if a significant price drop will cause "great distress".

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Posted by Hwang, a resident of Mountain View

>> Bad feng shui to be near traffic

Traffic is a.e. (almost everywhere) in Palo Alto now, so, better off not buying here.

>> and do not want to buy house where someone has died.

In the past, many people died at home. In fact, it was a considered a good thing to die at home in your own bed. And, still is, by some people. Also, any older houses are subject to the Historic Preservation process. So, better off not buying older homes in Palo Alto:

Web Link

I suggest Cupertino: founded in 1955, with less than 500 voters, and virtually all houses there were built after 1960. The schools are now as good as Palo Alto.

e.g.

Web Link

Web Link

Web Link

Title of the PA Weekly article: >More inventory may be good news for buyers


Only if you have the money to buy. If not, nothing has changed in terms of affordability or availability.

It's like a car dealer saying his car lot is filled with inventory and all models currently in stock are priced to sell.

Makes no difference if one can barely afford the hubcaps.

All 5 sales in the weekend paper sold for $3-5 million dollars and all sold to Asians.
That's been the reality for a long time. No slowdown for billionaires. So obvious.

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Posted by Hwang, a resident of Mountain View

>> Bad feng shui to be near traffic.


For an enlightened, advanced, and so called superior society, why are the Chinese so much into feng shui and superstitious about numbers?

I can't remember a time when the economy was in good shape and Palo Alto prices didn't track more with Los Altos and stay high when things were high. There have been signs of Palo Alto real estate not holding as well as it should for awhile. But even during the Bush recession, Palo Alto prices held pretty well because of the schools.

Overdevelopment gains us nothing and has negative consequences.

I don't know why no one is talking about this, but there are a lot of middle-income California homeowners who are having to make tough choices because of the consequences of the big federal tax increase they were handed at the end of last year. We're trying to hang on until HS graduation, but now that we are doing actual calculations, the damage appears to be much worse than we expected and we are dipping into retirement savings (and getting help from family in Red States, ironically) to stay afloat.

There are millions of Californians whose absolute incomes seem really high but when $117,000 is considered low income because of the cost of living, the fact that the new tax law didn't take cost of living differences into account is going to mean the changes will have a brutal effect on many families' finances. Red States have a narrative where they believe California and New York are expensive because of taxes, ignoring the principle of supply and demand that they supposedly ascribe to, i.e., way more people want to live here. The media, of course, followed the bouncing ball of orange yarn away from the story, even calling them cuts and omitting mention of the increases very early on.

It both became significantly harder to buy an average-priced home around here and when the tax increase is such a major percentage of disposable income after housing, it's not surprising that more people than usual are deciding to move. Especially since quality of life has dropped so much in the last ten years from overdevelopment.

> For an enlightened, advanced, and so called superior society, why are the Chinese so much into feng shui and superstitious about numbers?


It has something to do with luck, prosperity and health. Goes back a long ways and old habits are hard to break. Good luck brings prosperity (money) and good health allows one to enjoy their prosperity.

Based on their unique Zodiac and the season one was born, good/bad luck comes with the territory. A feng shui expert is a consultant of sorts who instructs those born with bad luck how to correct matters and for those born with good luck how to ensure more of the same.

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Posted by The Feng Shui Way, a resident of College Terrace

>> It has something to do with luck, prosperity and health. Goes back a long ways and old habits are hard to break. Good luck brings prosperity (money) and good health allows one to enjoy their prosperity.

Whether it is a fad, aesthetic, lifestyle-related, or an actual religious belief-- the result is the same. If I were building/remodeling a house in the area, I would at least fix the design so it would be easy to accommodate Feng Shui.

Why? Simple. I've met people who clearly didn't believe in Feng Shui, who were still doing it for the simple reason that they didn't want their house to sell for 12% less just because. So, it becomes a transitive requirement, since nobody buying wants to buy something that they might not get full value for, even if they personally don't care. That is how a transaction between two people who don't care ends up requiring a Feng-Shui-capable house.

>There are millions of Californians whose absolute incomes seem really high but when $117,000 is considered low income because of the cost of living,

>>It both became significantly harder to buy an average-priced home around here and when the tax increase is such a major percentage of disposable income after housing


Paying high-figure property tax is almost like paying rent or so it seems. Wife and I each make over $117K but are unwilling to commit financially to both high mortgage payments and high property taxes.

So like many in PA, we bought a used motorhome and park it wherever we are allowed to. We've been saving money and watching our joint bank accounts grow significantly.

Though it's a transient lifestyle, we don't mind the inconveniences. Only a fool (or wealthy Chinese person) would pay $2.5M+ for a dumpy-looking house that still needs some work.

Posted by Get An RV, a resident of Another Palo Alto neighborhood

>> Wife and I each make over $117K but are unwilling to commit financially to both high mortgage payments and high property taxes.

You do realize that property taxes are the financial foundation for road and street repairs (where you park), fire and police departments (which we all hope we never need, but, most of us do sooner or later, including people in RVs), and schools (which the rest of us pay for even if we never had kids or if our kids have already graduated). The bottom line is that you benefit from all these services without paying your full share of them.

>> So like many in PA, we bought a used motorhome and park it wherever we are allowed to. We've been saving money and watching our joint bank accounts grow significantly.

It would be nice if you would donate some of that money locally. Lots to choose from. e.g. Web Link

>> Though it's a transient lifestyle, we don't mind the inconveniences. Only a fool (or wealthy Chinese person) would pay $2.5M+ for a dumpy-looking house that still needs some work.

If you don't want to be part of a neighborhood here, why do you live here? At least, I hope that you don't inconvenience people who live in a neighborly neighborhood.

>>> I've met people who clearly didn't believe in Feng Shui, who were still doing it for the simple reason that they didn't want their house to sell for 12% less just because. So, it becomes a transitive requirement, since nobody buying wants to buy something that they might not get full value for, even if they personally don't care.


Is this not simply catering to prospective buyers from China who believe in the practice of feng shui?

Ironic how some residents complain of this 'new money' from overseas yet they grovel for maximum dollar when it comes time to sell their homes. As a result, home prices in Palo Alto escalate to the point of being overvalued.

So pull out your feng shui compass and realign everything for maximum dollar return.

Posted by Feng Shui = $$$$, a resident of Downtown North

>> Is this not simply catering to prospective buyers from China who believe in the practice of feng shui?

Partly. In addition there are people who might want to sell to such buyers in the future. And people who might want to sell to someone who might want to sell to someone who ...

>> Ironic how some residents complain of this 'new money' from overseas yet they grovel for maximum dollar when it comes time to sell their homes. As a result, home prices in Palo Alto escalate to the point of being overvalued.

I'm not sure about the "grovel" part -- it is no different than putting in new turf in order the stage the house. And, it isn't "overvalued" until someone wants to sell and they lose money.

>> So pull out your feng shui compass and realign everything for maximum dollar return.

Or, don't put in the turf, don't repaint, don't re-roof, don't realign, and sell as-is for 12% less or whatever. It is a seller decision.

Like church, feng shui depend on believer.

When buying house, most younger Chinese more concerned with getting good price.

Older parents more concerned with feng shui but if they live with children, they have no say in matter.

In modern China like America, money talks.

How does one become a feng shui RE consultant? I've seen some books listed on Amazon.com but I'm not sure if they are comprehensive enough.

I don't speak Chinese but enjoy the culture and food. Would a prospective Chinese home buyer have any reservations dealing with a non-Asian feng shui expert who didn't speak their language?

I have extensive experience with various healing crystals and imagine that they would also be useful in conjunction with feng shui applications.

> So like many in PA, we bought a used motorhome and park it wherever we are allowed to.

Yeah sure! The RV'er is no doubt having a good laugh at everyone's expense. Just a different angle on vilifying the RV's already amongst us. It sounds intolerant and mean to attack them, so we get politically-correct manufactured comments like this.

Seriously, how many Palo Alto citizens would really admit to selling their houses and buying an RV to continue to live here?

How many are "so many"? If there are any at all long-term Palo Alto residents who are in hard-times, it would make me feel more tolerant of RV'ers, not less.

I'm skeptical the number is even in the single-digits.

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>> I have extensive experience with various healing crystals and imagine that they would also be useful in conjunction with feng shui applications.

^^^Sorry to disappoint you but feng shui & crystals won't make a bit of difference unless you are dealing with flakes.

Today it is all about value-added. In other words, if an older house is considered a 'teardown' or a remodeling candidate, will the incurred expenditures pay-off in the near future? Or will you now have a house that exceeds the typical asking price of other homes in the immediate neighborhood?

Sometimes it is best to simply opt for a house that has been updated rather than do it yourself by keeping in mind that in addition to the proposed costs, the home will also be unlivable while much of the work is being done.

So basically would you rather buy a 'ready to move in home' for say $2.5M or buy one for $1.75-$2M and do the necessary work?

Buy low and sell high is the basic axiom and a much harder goal to arrive at these days. As far as the overseas buyers from China are concerned, they scrutinize all of the economic factors involved before arriving at a decision to buy. Then many pay CASH in order to procure the property and 'seal the deal' thus avoiding escrow and any competing bids.

In the spring of 2019, many of you see an increased number of Asian neighbors and townspeople in the midpeninsula. Quality schools, shopping convenience and public safety are all key requirements in regards to their their home buying criteria.

If you happen to own a home in a nice Palo Alto neighborhood and it's in decent, livable condition you should have no problem selling it to the Chinese providing the home is also on a quiet residential street. That's about as close to 'feng shui' as one can reasonably expect these days.

Leave the healing crystals behind as they have no place in the real estate world.

Posted by RE Agent, a resident of Los Altos

>> providing the home is also on a quiet residential street. That's about as close to 'feng shui' as one can reasonably expect these days.

Good luck finding a quiet residential street. It seems like every street gets cut-through traffic now unless it is a cul-de-sac.

Cash money not a problem if you have it. The key is to find nice quiet house with enough room for both children and grandparents. Best if also be close to senior center for easy walking and senior lunch program.

Feng shui not critical unless front door face oncoming traffic from another street.

I've lived here long enough to see house prices gain 100x. Someone born today will see average single-family homes in the $200 to $300 million range. It's baked into our future budget requirements. Of course dollars in 2075 won't be what they once were.