It seems that one of the principal beneficiaries of the constantly-declining interest rate market has been real estate (coupled with the fact, I suppose, that newly-minted millionaires from China want to shove their money safer than the Middle Kingdom). Whatever the reason, the chart below, which is the triple-bullish real estate ETF, is jaw-dropping. (more…)
I did a post less than a month ago called Won’t You Be My Neighbor? which vividly captured a crumbling rustbucket of a “house” that was being offered for $1.8 million. The house is located on a very busy boulevard (in spite of the “very desirable area” mentioned below), and I’ve been keeping an eye on it for a “Sold” sign ever since. The absence of such a sign made me think, well, people have finally come to their senses. No one is buying this dump.
Of course, this isn’t the case………I present to you this news from this morning’s paper:
After reading the “0.1% Problems” post on ZeroHedge (which was about a snippet from a local paper about a fellow complaining that billionaires can get whatever they want, whereas ‘average millionaires’ in Palo Alto cannot), I thought I’d share a property listing with you good people in case you want to join me here in my fair city (my house, mercifully, I bought into back in 1991 when prices were merely above-average, and not insane).
May I present to you 258 Middlefield Road, Palo Alto, California, which is located within walking distance from my house and is a mere $1,800,000 (well, that’s the asking price, but it’ll probably go for more). The property features ample storage in the back…….. (more…)
The Palo Alto Daily Post is packed, cover to cover, with real estate ads these days. Most of the houses range from $5 million to $12 million, but in case you got into Facebook (or one of their target companies) early, maybe that isn’t enough. Perhaps that’s why, day after day, the Post is running a full-page ad for a $21 million residence in Italy, of all places. Here’s the web site for the residence, in case you want to kick the tires.
For a price not much higher than that of the Six Million Dollar Man, you can come hang with me here in drought-sticken Palo Alto! In this morning’s paper, there is a property featured in my neighborhood for the low, low price of $6.5 million, which is a cinch if you happen to be one of Facebook’s earlier employees. And the lot size – simply massive – a full .172 of an acre (and I am not making that figure up – less than one-fifth of a single acre). Must be pretty magnificent building, though, eh? Here ya go! (more…)
There are a slew of ETFs which look to me like beautiful bull traps; in other words, the bidding-up that took place on Friday and today is simply pushing them unwittingly into the fierce maw of the ursine set. One fine example is the homebuilders ETF, shown below, whose horizontal I’ve put at the price level $30.97.