Tuesday, September 11, 2007
Foreclosures in Silicon Valley
The tide of foreclosures is rising in even the most solid of areas in Silicon Valley. I do believe though this is just a distribution of wealth from those with shaky financials to those who are ready to benefit from this weakness. There are very many people watching for short sales, foreclosure sales and bank REOs. The low rate of return in local investment properties also makes these low cash flow investments at least as attractive as their alternatives. There is also the ease of flipping a house that was well-acquired. The wealth of this valley will offset any difficulties that a small percentage of people are feeling.