[quote=flu]You underestimate the amount of money floating in the Bay Area…
Folks that think income inequality and real estate is unaffordable is bad in San Diego, its much worse in the Bay Area….
You have a bunch of people that made it in banking and tech that have a lot of money, and you have bunch more people who are struggling to keep up.
We lost quite a number of people to Apple and Google recently. People willing to pick up their bags in SD and relocate to the bay area, despite the insane home prices…
Real estate prices in the Bay Area move in much different ways than they do down here. A lot of it (plus rental prices) are driven by the tech industry…If you think home prices are bad there, wait until you look at rental prices..
If you have a home in the bay area, you’d be best serve keeping it for the long term. Because unlike here, there really isn’t that much more places to build in the Bay Area, and housing will always be tight in tech capital.[/quote]
No doubt about the amount of money in the Bay Area, and I totally get the fact that rents have skyrocketed along with prices and incomes, making the price/rent and price/income ratios better than they would appear to be at first glance. But I think that the stock market is the biggest bubble, and, IMHO, Bay Area housing prices are largely affected by the stock market and crazy IPOs.
Agree that holding onto houses there will probably be a good bet, even if there is a bubble, but still think that if the stock/credit bubble bursts, then the SF area will be affected as well.
