Even Palo Alto, ground zero for all that is tech, is cooling down. After a run-up which has seen prices rise 50% higher than the previous peak, residential real estate in Palo Alto may be coming back to earth.
It's all relative though, with the average sale occurring just 5% above asking compared to 15% above earlier this year. Some of the slowdown could be seasonal, but the chorus of somber comments about bloated valuations should not be ignored.
In many ways Palo Alto is gold plated and insulated from sustained property value slumps, but such an aspirational destination for the technocrati will certainly get hit when the music finally stops.