Sunday, May 6, 2007
Someone has to have the vision of a changed landscape, vibrant lifestyle, robust businesses for the skyline to change. People like Donald Trump, who may be despised by many, change the face of cities all the time. San Jose is being redeveloped and will be drastically different in the decade to come. Condos will be more the norm for first time buyers and the 1,400 square foot ranch house on a 6,000 square foot lot will be more up-scale. What will increase in value more? It's a timing issue. The first condos that hit the market must be sold at attractive prices to get the projects underway. Then values will go up as the market matures and as people get more accustomed to the condos. Then the market will flatten as more inventory hits. This rapid rise in prices and flattening will differ from the stable rise of the single family home prices.
Very nice communities that have benefited hugely from Bay Area retirement dollars. The baby boomers have purchased many houses in the area at prices less than what they sold their Bay Area homes. The communities have boomed in value and population, yet the retail is a significant missing factor. Diversity of restaurants and shopping tend to be sorely missed. New retail in these areas will do very well. Also upgrading shopping centers with nationally recognized tenants is a good move. I would rather invest there than the more open Central Valley.