Dollars are just a number. As long as US innovates more and remains attractive when compared with other countries, it does not matter. Hence, right investments and R&D is critical to maintain the edge.
Here is an example of appreciation slowing down for a higher priced house. This beauty in Los Altos just sold for $5M. Great, one would say, except that it last sold in 2006 for $2.75M.
In 15 years, it only appreciated by 82%. Less than 2x. Nothing wrong with the house, except it was expensive to begin with.
In contrast, houses that were selling in neighboring Cupertino and Sunnyvale for 800k in 2006 are now selling for 2.5M - a 3x increase
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In the past year during COVID (no open house), I see some homes sit on the market for several weeks to month(s).
Right now, the market seems seems to have pick up significantly. Houses on sale around the neighborhood have 1 weekend of open house, and then Sold signs went up. Cannot see the sales price yet.
Today, I stopped by neighborhood open house. I was there for 10 minutes. There were around 20 groups there looking at the house.
Here is a whopper in Palo Alto - sold for $5M or more than $2500 per sq ft!!!
Appreciated 6x in 25 years. Wow!
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= 7.4% within the 6-8% historical annualized return. IMHO, unless there is a reason to believe that SFHs in SB no longer appreciate at this rate, it makes no sense to sell your SFHs⌠unless youâre a RE developer, RE flipper or badly in need of cash. Anyhoo, I have been cash-out re-fi SFHs in SB to invest in Austin SFHs. So far,
Rent of SB SFHs and Austin SFHs > PITI of SB SFH mortgage
Hence, enjoy twice capital appreciation + some spare change
Mountain View prices on fire. This one sold for $2k per sq ft
Someone paid a lot of money for a tiny house on a small lot in Mtn View!
Prices will keep going up.
This is a rather extreme article, the author is indulging in fear mongering.
I can foresee todayâs 2.5M house doubling to 5M in 12-15 years, but it will not go up to 10M in that time frame
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Check this one out in Los Altos. Sold for more than $1M greater than an already eye-popping list price. Yikes 
Los Altos seems to be a different market⌠I see that it was a bit depressed in 2019, 2020 and really taking off this yearâŚWonder how long this can go on.
How long can the Fed keep printing trillions?
They have no choice. They have got to keep printing money and feeding people Vitamin M until the Main St economy recovers. Most restaurants are still stuck in 2nd gear, travel and tourism are in the dumps, business travel and entertainment spending still very low. Until pandemic recedes and those sectors are self sustaining, Fed has got to print money and keep them alive.
So, maybe couple more years?
Keep buying hard assets. The only inflation hedge.
RE, stocks, gold. What else? Bitcoin?
I donât consider Bitcoin a hard asset, neither are stocks. Bitcoin is a riddle, wrapped in a mystery, inside an enigma. Paraphrasing Churchill on Russia
Blockchain is a new language that nobody understands. Frankly fluffy BS designed to confuse investors. Pure speculation not something you can see and touchâŚâŚ more like a penny stock than a hard asset.
Touts are pushing fine art and collectibles. Hard assets that are impossible to value and illiquid.
Maybe buyer is thinking about dividing the lot and building duplexes?
Maybe, or at least they can build a couple of nice ADUs on all that land. Suddenly homeowners have lots of choicesâŚ
I sold this one in North Los Altos for under 3M if only I had the patience to build a 3500 Sq feet one
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Per Redfin, it is now worth $3.9M. If you had waited patiently for one more year you would have been $1M richer
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