Monday, November 20, 2017

All Praise Janet Yellen: House in Silicon Valley Sold for Nearly $800,000 Over Asking Price

In September, a  three-bedroom, two-bath ranch located in Silicon Valley was listed for $1.68 million and sold, in a bidding war, for $2.47 million.

The house in Sunnyvale, California ( not far from the headquarters of Google, Apple and Facebook) was built in 1963 and was originally purchased for
around $25,000.

Steve Lopez at The Los Angeles Times reports:
In September, when the house sold for $782,000 above asking, dozens more sold for at least $200,000 above asking. [Dave Clark, a Keller Williams real estate agent who’s been in the business for 30 years] said that trend appeared to have been stabilizing, but he just had another big week.

He sold a house, also a three-bedroom in Sunnyvale, for more than $600,000 above asking. It was listed at $1.88 million and sold for $2.55 million.

“It’s in escrow,” Clark said, and the story gets crazier.

Clark said he sold that same house in May 2014 for $1.54 million.

So the house went from $1.54 million to $2.55 million in just 3½ years...

Clark, the real estate agent, put me in touch with Bill Malcolm, an Irvine lawyer who grew up in the Sunnyvale house that sold for $782,000 above asking.

“It was absolutely amazing,” said Malcolm.

When he has visited his old turf, Malcolm told me, “what has plagued my thoughts” is the question of where regular folks are living. “When I go into the Safeway or the gas station or Costco, I think, ‘How do these people afford it?’”

Malcolm thought about holding onto the house he grew up in, given soaring prices, but said his parents would be pleased that it was sold to a couple with three young children.

For $2.47 million.

And exactly how much did Malcolm’s parents pay for it in 1963?

The price, he said, was $27,500.

There is no way these type of price increases occur without serious money printing by Janet Yellen and the other Federal Reserve chairs. And that is exactly what has happened.

Since 1963, the money supply has increased from $386 billion to  $13.7 trillion at present. And with a Fed money spigot in Silicon Valley, you are going to see the crazed increase in real estate in the area.


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