Who says Silicon Valley is expensive.  I think it is one of the best bargains out there.  And with the recent correction, the savvy value buyer will buy now.  There is just not too many times in Santa Clara County Real Estate, well the Bay Area generally when the market takes a pause and breaths deep before it takes off and runs.  How long a pause and how deep a breath no one knows. 

But that really begs the question – would you rather buy in the pause or try to catch a moving target? 

Here is a list of the most expensive cities in the world and only one US city made the list and it’s not even on the west coast.  I looked at the list, love to visit – wouldn’t want to live there.

We live in paradise; we are the center of the known universe for technology, which drives the world.  We for the most part are smart, educated, interesting bunch of people pursuing the American Dream.  The weather can’t be beat, whatever recreation you desire there are world class venues within a 4 hour car ride, the scenery is beautiful and whatever lifestyle is your thing there are several communities to choose from. 

A good financial planner once told me you buy when everyone else is selling, and you sell when everyone wants to buy.  Don’t be looking back on this market wishing you jumped when you had the opportunity. 

Since the Silicon Valley became the Silicon Valley we have seen booms and busts, roughly running every 7 years with an average appreciation of about 7%.  Each low market (and this one is no exception) has never gone lower than the last low market and each high market has always gone higher than the previous market.  Every time we were in a low market there were economic factors that indicated that the highs would never return and the valley would never rebound – but it always did. 

Everyone waits for the precipitous drop in prices and it never happens. 

I am not trying to make light of the troubles in the sub-prime market, the worlds instability, the upcoming election, high gas prices and the fear of Global Warming.  I am here to say that with all that has happen and continues to happen in the world, the constant is that if you buy in the Silicon Valley and have a 7 year plan you have made buckets of money and if you have had a 3 year plan you have not been harmed. 

The bonus is living in this great area, in a great home, within a great tax shelter.  With interest rates around 6%, there has never been a better time to purchase.

I firmly believe that Morgan Hill, San Martin and Gilroy show the best opportunities, particularly in the high end.  More on that latter.