- This topic has 6 replies, 6 voices, and was last updated 17 years, 10 months ago by
KnowNothing.
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February 9, 2007 at 2:01 PM #8356February 9, 2007 at 2:33 PM #45032
Anonymous
GuestSelling in 2000 was smart if your home was in Santa Clara County. Some prices declined 25% or more in the wake of the dot.com crash. Since then however, prices have probably increased 50-70% in the bay area. Not nearly as rapid an increase as in San Diego, since prices were already quite high here.
The peak here was probably reached mid-2005. In especially frothy areas without good schools and good commutes, I’d estimate prices have dropped around 100K on an average 800-1M home. Yes, 800K is an “average” home.
What’s different about the Bay Area? First off, it’s a hell of a lot nicer than San Diego. [Sorry Piggingtons, but it’s true]. Second, average wages are quite a bit higher here, so those prices are going to stay higher longer. Third, simple geography limits available land, so there is not a hell of a lot of new construction out there.
Much of the housing stock here is old and decrepit. In my town, teardowns on a 5,000 sq ft lot might sell for 850K if there is a view and no highway noise. A remodeled 1950s tract home of 1300 sq ft will sell for 775-850K. The few larger homes of 2000 or more sq feet will command their own prices, since there are so few of them. S
In summary, I’d say that supply and demand will prop up prices here better than in San Diego. Sacramento though, watch out.
February 9, 2007 at 4:30 PM #45041Nonbeliever
ParticipantFebruary 9, 2007 at 4:39 PM #45043blahblahblah
ParticipantWhat’s different about the Bay Area? First off, it’s a hell of a lot nicer than San Diego.
What about San Jose? Santa Clara? Alameda? Oakland? South SF? I can think of some nasty places in the bay area. SF is a nice city, sure, also Sausalito/Tiburon, Santa Cruz. But of course La Jolla, RSF, and Encinitas here are really nice also.
Housing prices in the bay area will never fall because of all the high-tech jobs up there. Oh wait those are all in Bangalore now. Oh well, you’ve still got all those Google-zillionaires, what are there, 1000 of them? That should be enough to maintain high home prices in the bay area forever.
February 9, 2007 at 5:23 PM #45044PerryChase
ParticipantMuch of the housing stock here is old and decrepit.
I don't think it's very smart to pay a lot of money to live in old decrepit houses.
There some really nice areas in the Bay Area. But "Bay Area" has been expanded so much that it's become meaningless to me. I don't consider San Jose the Bay Area. I would call it Silicon Valley.
To me, the Bay Area sucks unless you have the money to enjoy what it's got to offer. For many, the commute is horrendous and the weather is dreadful compared to San Diego. The Bay Area has more glamour than San Diego but only for the well-to-do. San Diego is overall a more pleasant place to live.
February 9, 2007 at 6:19 PM #45045justme
ParticipantHere is a site that is decent at telling what is going on in the bay area.
http://www.creeksiderealty.com/
Go to the “update” section and look at the February 2 report.
You will see that the “relative strength” that Rich Toscano posted about yesterday has NOT occurred in the bay area in January. Read that again. Not even a dead cat bounce!
Caveat: The narrative at this particular web site reads a little bit like a speech by Alan Greenspan, i.e. it is circumspect so as not to offend anyone (read: sellers and fellow realtors). However, read it carefully and it is clear what Richard Calhoun is really saying.
We’re going DOWN!
February 11, 2007 at 7:47 AM #45086KnowNothing
ParticipantThank You everyone for your information.
I will be checking the open houses and talking to realtors over the next couple of weekends and will post some observation and discoveries.
Thanks again.
KnowNothing
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