patrick.net

Fall Real Estate 2000

Publication Date: Wednesday, Sept. 20, 2000

http://www.paloaltoonline.com/news_features/real_estate/fall2000/2000_09_22.lowmarkt.php

Breaking into the market
Yes, Virginia, it is possible to buy a first home in this area--if you're willing to make compromises
by Jocelyn Dong

So you're looking to buy your first home in Silicon Valley. How do you get into the market?
"Stock options," says real estate agent Chuck Atwell dryly. "Being a multi-millionaire."

Back then, sellers of stock options into the tech bubble, were buying homes at what ever price the seller wanted... after all its free money. You want $1M for the 300K home in Palo Alto, NO PROBLEM.. lots of options left on the table. So they thought!

From the article... Laughable.

"But a new report from the Street points to the "second coming of tech spending." It is fueled by the heady potential of such companies as Zynga and Twitter. But this growth is a tenuous one, writes Jason Notte, putting our area solidly on bubble status."

Real tech spending as it was back in the 80s and 90s were from corporte buyers from many different domestic and international industries buying PC, servers, ERP software, and storage devices. They allocated up to 20% of their budgets to build up their operations. Thats why you saw so much growth.

Twitter, Zanga and others like it DO NO make tech products... they are small fries who use tech products in their ops, but not enough to spur real double digit sales growth in HW or SW tech industries.

It's terrifying that people think companies like Facebook and Twitter are the future of this country.

StoutFiles says

It’s terrifying that people think companies like Facebook and Twitter are the future of this country.

I think the deal is we're going to be dumbing-down entertainment in this country.

We're not going to be able to afford a $50 movie night, but $20/mo in social media costs might be doable.

robertoaribas says

how have bay area prices done since June 2011, when you wrote this???

I never said that there weren't going to be any dead-cat bounces, did I? Even in Japan, they had dead-cat bounces. But, now, decline has resumed, even though the FED is still trying to manipulate the market. Did you notice the latest market reaction to the latest FED $45B stimulus. I guess, Bernanke is finally losing this war against Kondratief, just like you will eventually lose this bet against me: