Have you built a home in Palo Alto before? If not, there are things to consider besides timing.
There are plenty of people who are putting their money down believing now is a good time to buy and build. A 30,000 sf lot at the corner of Louis and California sold for $4.2M. They are surely planning on sub-dividing the lot and building several large homes. Sub dividing is not a quick task.
If you would like to see some numbers for the money made knocking down and rebuilding a home in Palo Alto visit http://julianalee.com/palo-alto/new-palo-alto-homes.htm
If you would like to see some of the experiences I had building a new home in Palo Alto visit
The biggest deciding factor for you is probably are your abilities to run a rebuild competitive to your competition?
I don't know if 2005 is a typo but Palo Alto home prices rose dramatically in late 2006/2007.
or are you referring to the crazy building spree and difficulty hiring contractors, getting permits?
If your funding is secure and you have the time to keep things moving without mistakes, tearing down and rebuilding stands a very good chance of being profitable.
Give me a call or send me an email, I'd love to chat with you.
cell: 650-857-1000 email: email@example.com
Top 2 agent nationwide at Keller Williams Realty
Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo counties.