Do you think this will be true in our high priced Bay Area as well. If a $3M house appreciated by 13% (as Zillow predicts nationally), then price will go up to $3.4M. If mortgage rates also go up from 2.5% to 4%, the monthly payment will almost double. How is that sustainable?
4% mortgage rate is actually very low by historic standard. People get spoiled by the abnormally low rate in the last year or two.
People here can afford 3M or 4M house the same old way: stock gain. The rest of the world is subsidizing Silicon Valley.
new Rivian millionaire army is on the way!
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Rivian’s software team is in Palo Alto.
Well, I don’t get any stock from my employer, so nobody is subsidizing me. I am glad to have locked in 2.625% 30-year fixed rate mortgage earlier this year. Amidst all the rising prices, at least my housing price is not going up
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they hiring a lot of people now including self driving division
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Rivian’s software is still not as good as Tesla’s. They need to hurry up. EV has much more software content compared to traditional ICE cars. Bodes well for SV.
I was looking at where all the crypto exchanges are located. Actually most of the big ones are right here in SF: Coinbase, Kraken, FTX. They make a big deal about decentralization but turns out it’s still mostly in SV yet again. The big exception is Binance. They refused to tell people where they are. Very fishy operation.
Decentralize means all locate in SFBA?
Democratize means put our fate under the hands of SWEs?
I don’t make the rules. I just benefit from them.
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Where did u buy ? Sunnyvalle?
Oh, I bought many years ago, but I was on an ARM loan, which I refinanced into 30 year fixed loan few months ago
Not this time. We can’t do a Paul Volker and raise rates to 18%. The government would collapse; no way to service 30 trillion worth of debt - maturing on average every 7 years or so - at those rates. So we’re stuck with the inflation. Trade cash for assets.
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Trade cash for Bitcoin 
Bitcoin is not a asset. It a speculative piece of crap that can easily replaced by dozens of other crypto coins.
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Not sure about easily replaced but pretty sure is not too difficult for SWEs in control of the network to pull the rug underneath.
If you believe in the Wizard of Oz, Bitcoin is for you. But if has no use. Is not tangible. Is not a currency. It is a collectible, like baseball cards. It can be stolen, lost , counterfeited or replaced… there is no one behind the curtain no government support or insurance no intrinsic use or value no bank of last resort. FOMO can only last so long. Ethereum at least has some utility. I see the value in the third world where the government and the local currency is a joke. But there are a million other better ways to store value than Bitcoin. It is fascinating that on RE forum, even hard nosed RE investors are being hoodwinked by this crap. Meanwhile RE prices are booming. Just like the 70s when RE was the best hedge against inflation. In fact even better because the FED is too scared to raise interest rates.
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This year, I have bought three SFHs so far. Not exciting to talk about. Crypto and stocks are exciting topics. Make money investment not exciting, just quietly make $$$ from them. Entertainment stocks - exciting to talk about.
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Exciting investing is for youngsters playing with throw away money. Like casino gambling. Bread and butter investing is for long term wealth. 90% of all millionaires made their money in RE. If they chose to gamble it away on Bitcoin so be it. Plenty of other fun hobbies. Buy a strip club in Austin. There is excitement for you.
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Agree, RE is where the real wealth will be built, pun intended