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The Meaning of Gasoline Prices
Five months ago, I had to pay $4.55 per gallon for regular unleaded at the local Valero gasoline station. At the time, gasoline prices were just 10% away from hitting the $5.00 per gallon mark. So, if I was offered a bet on whether gasoline prices would be over $5.00 or under $2.50 in five…
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Real Estate Bubble Signs
For those who were waiting for the real estate bubble to pop, the time has come. I recently glanced at some home listings from one ZIP code in San Jose, California. The listings told it all. Short Sale Subject to Lender’s Approval This is a short sale. Price and commission are subject to lenders approval.…
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Real Estate Bubble
Back in 2001, a person told me that the San Francisco Bay Area real estate market was appreciating too quickly. With thoughts of the dot.com stock deflation fresh in mind, he told me that he had sold his house to lock-in his gains and will be buying a new house once the real estate bubble…
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The Price of a Luxury Home
And luxury homes — properties listed for more than $3.5 million… BusinessWeek just made me laugh. The above quote was from In Silicon Valley, Real Estate Remains Strong. I think a luxury house is one that costs twice as much as the one you currently live in.
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Interest Rate Cut
The Fed’s second interest rate cut in just over a week really confused me. Instead of being merely aggressive, it appeared a bit desperate. Perhaps, the national economy is faring much worse than I had believed. The problem for home owners and real estate investors is that our perspective is often local. Easy to tell…
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Below Market Housing: Buy Low, Sell Low
Would you believe that you can find a place in Palo Alto for under $100,000? Yes, it’s true. Under the Below Market Rate Program, a buyer purchased a 2 bedroom 1-1/2 bath residence for $98,800 back in April 2007. However, to be a qualified buyer, you must meet the Palo Alto Housing Corporation’s income and…
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Location, Location, Location
The problem with living in a desirable location is that everyone else wants to live there as well. Of course, when you visit open houses on the weekend, everything looks great because you never see the grinding traffic that slows down all surrounding commute lanes during the weekday. So, if you are thinking of moving…
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Home Price Comparison
If you are thinking about immigrating to the United States or moving within the United States, you are probably aware that housing prices vary from region to region. Fortunately, Coldwell Banker offers a Home Price Comparison Index, which allows you to see what an equivalent house in 4 different regions will cost. First, set the…
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Real Estate Investment
One of the basic concepts of economics is scarcity. And, one of the scarcest assets is land, especially in the coastal communities of California. Through outsourcing and international trade, we are now able to tap into an international distribution network of manufactured goods. A factory in China can produce more clothes, more shoes, more computers…
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Location, Location, Location
A home is more than just a place to live. Purchased wisely, a new home offers its owners a path to financial security. For those wise – or fortunate – enough to own some real estate that has appreciated significantly in value, the benefits of homeownership are self-evident. However, if you’re still hunting for your…