The Problems are the Path: Clearing the Road Part II

Interest rates rise.  No end in site, YET!  CPI rises, the best Valentines gift for your Lady Faire is a Dozen Eggs.  Price cuts are beginning to tumble out in the Ultra High End and Luxury Markets.   Spec Builders in the Luxury Markets are trying to sell projects on a "To be completed basis".  Once in demand "medium priced homes" are beginning to see price cuts.  The Medium Price of an Oahu Home has now broke below $1 million to $986,000, inventory doubles.  Locally, the real estate forecasts bounce like a drop of water on a hot skillet.  The latest forecast is a rise for 2023 of 1.5%, from a slight decline.  We will not know what the future will bring until 30 days from now. Then, the inventory of homes once taken off the market at the end of 2022 may come piling back on the market.  Real Estate Markets across the Nation are all seeing price cuts.  The once "hot markets" that the "Work From Home" group flooded to are weak.  Slowly there appears to be a dribble back to San Francisco and the Bay Area as the mobile work place returns to the office.  The Commercial Market is in the worst condition I can remember since the Great Recession of the 70's.  Google and Meta are reconsidering their Real Estate Projects in the Bay Area.  Affordable housing is a joke as the homes built cannot be afforded by the income of those on the street.  Progressives seem to think by making Atherton and The Curry Family build an apartment building will solve the inability to pay for housing.  Something wrong with the Economics I was taught here!  That is all we need here is for Atherton, Hillsborough, Portola Valley and Woodside to have "The Projects" to end the Camelot of Silicon Valley.  Good Job to all the Progressive Politicians in Sacramento!  Where Khrushchev failed, you Won!

Keep the faith, you will not have a bell ringing when the bottom occurs.  So buy what you can afford and wish to live in for the next 20 years.  Sellers get off the idea "it always comes back".  Tell that to the fellow who bought Nvidia at $330 per share!

Bond Traders and Junk Bond Investors say...NO RECESSION, as highly indebted companies, the first to go into bankruptcy during a recession, have seen loan prices rally and defaults remain low.

BTW: Happy Valentines!

No greater gift than wife, daughters and granddaughters wishing Happy Valentines!

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Silicon Valley Real Estate Newsletter

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