Palo Alto rang in the New Year with a big bump in prices. The median price rose 7% and the average price went up 22% from the previous December.
Real estate agents have their seat belts on and their tray tables locked as they wait to see how the much the heralded “Facebook Effect” actually plays out. Rather than make you wait, we will tell you what we think. It’s going to be everything every waiting seller is wishing it will be and more.
Inventory is as low as we have seen it in years. Buyers are stacking up like aircraft on a foggy day at SFO.
Interest rates are incredibly low, and the only thing holding back an absolute dam break is that the banks can’t understand what makes this place tick. Not to worry, though, local banks are filling the niche and the financial brokerages are all wound up to give straddle loans on just-issued public stock so the IPO hoard doesn’t have to wait for the lock-up to expire to spend their newly found riches.
On the other hand, the Facebook IPO could tank, everyone will stop importing expensive talent and our little local bubble will pop.
Kidding. It’s 1997 in Palo Alto. Here we go again.