I would never have believed that Palo Alto real estate ads would take on an appearance quite like this, but here you go:

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In spite of the lowest mortgage rates ever, it seems to me that real estate is done with its ridiculous countertrend rally and should be fully exhausted by this point.

I’ve lived in Palo Alto my entire adult life. The main drag in town is called University Avenue, which is sort of the Rodeo Drive of the area, with expensive, high-rent retail spaces. This weekend, I took a quick drive down this street, which was a glistening mecca of gold-plated retail just a few months ago, and took the following pictures. I can’t remember the last time I saw even one For Lease sign on this avenue prior to 2020, but just look at this………….

With interest rates heating up, long-term trendlines for homebuilding funds are starting to crack.
