The trend of living in Metropolitan Downtown

Looks like people are moving back from suburb to Metropolitan downtown again. For me, I am always dreaming of living in San Francisco downtown. I don’t have to fight with the traffic everyday. I don’t even need a big SUV. A small economic car might meet all the need of the family. If I need to go somewhere, there are always buses, BART, and train. Plus, there are so many cool things to do in the city.

New residential buildings are rising in all major metropolitan downtowns. I guess those developers feel the trend. Otherwise, why they pour so much money back to downtown again? Plus, boomers might be more willing to switch their suburb big houses to downtown condos after they retire. Who knows? Maybe downtown areas are the next real estate hot spot.

If you have extra money for real estate investment, where do you prefer, downtown condo buildings or suburb house? Just curious.

QQQQ trend

I thought QQQQ is in a downside trend and bought a PUT option on it. Unfortunately looks like it breaks the trend today.

My next bet is that it will hit Bollinger Band 42.3 and go down. Let's see if the chart theory is working.

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Comment on March 9:

It hit 42 roof at the begining of March and went down. As of today, it hits 40.5 level.

A Note: Silicon Valley Real Estate Market is still in Upward move

As of today, house price in Willow Glen and Evergreen of San Jose is higher than last Dec.

I am particularly interested at Evergreen area. The newly developed neighborhood is superb. The newly built high school and Elementary school are fantastic.

For rent: A brand new luxury apartment located at the heart of San Francisco

How do you like living in a luxury one-bedroom apt. in the heart of San Francisco Financial District?

Are you willing to pay above $2100 a month to live in a luxury appartment Downtown S.F. close to Embardero Center and Bart?

The building is a historic landmark of S.F.

Right across Pacific Stock Exchange.

It has all the luxury Amenities.

Take a look at the official web site: http://www.theroyalsf.com/

2006 Real Estate Market Outlook of Bay Area, California

My vision on 2006 Real Estate Market in California, especially Bay Area, is very rosy. California real estate market is a separate book from the national. You cannot judge California market based on nationwide sentiment. This especially applies to N. Cal. market. After all, how many are there Silicon Valley in U.S.? How many Google in U.S.?

Is the interest rate the most critical factor in North California market? If you are talking about nationwide, it might be. However, if you are talking about Bay Area market, that is definitely NOT the case!

What factors dictate Bay Area market? It is the INCOME and DEMAND. Not the interest rate.

1. 2006 is the year that Fed interest rate hype will stop. The new Fed. Chairman is a pro-growth guy.

2. Hi tech. business in Silicon Valley is hiring big time this year, which translates to income increase in 2006.

3. More jobs means more people will move to the Valley and more families will look for houses. Meanwhile, the available land in the Valley has been gone. No more land. The only areas that can build new residential buildings are re-zoned old commercial areas. No more land, but more demand.

4. The hype of nationwide real estate boom might be gone. But Silicon Valley just started. Remember? In year 2001 and 2002, the dark years of Silicon Valley, most of the areas of the nation enjoyed real estate market boom while Silicon Valley market dipped 15%. Now it is time Silicon Valley market picks up. Yes, it is lagged behind the nationwide, but it is coming.

Yeah, some one is talking about the big recession in early 90's. He might say it could happen again. In that recession, Bay Area market dipped 30% and more. But, think about it. How high was the interest rate at that time? Almost 2 digits. How was the business market condition in the Valley? Far away from today's robust market. I don't think that would come again or even get close.

Meanwhile, Venture Capital is investing big time. Where the big bucks go? Majority is in the Valley, which means more jobs, if not more millionaire for now. (Well, most of Google millionaires are in the Valley)

Thus, 1. Fed. interest rate raise stops, 2. More jobs and increased income, 3. limited land -- will pump Bay Area (Silicon Valley + San Francisco) market go higher this year.

Don't believe me? Let's see. :-)

If you are also interested at real estate investment in Bay Area, I'd love to hear from you.