A friend of mine got a townhouse in North San Jose 2 years ago for $360k and he is selling for $490k and looking for a bigger house in Sunnyvale.......

I tried to get a house about a year ago. Credit score low, no good. Okay I waited. Now I tried to look again and you can probably imagine how shocked I am.

What's wrong? Jobs that were lost have not been recovered yet. And I doubt if it will ever recover...companies who want to expand have two choices nowadays: 1. Other US states, 2. India
And those that choose neither ones honestly don't really hope to sustain long term(Only startups looking to be acquired or similarly visioned businesses are willing to pay high for local, experienced talents.)

And not to mention the new hires will not get paid with what we lucky ones got.

Home sales are slowing down but prices going up?

From what I see these are just owners' "hopeful" prices. But who the hell do they think are going to support that level of expensiveness?

From what I personally know there are quite a lot of people who have no choice but to put most part of their salaries to their homes. Now can anyone say he is happy about this kind of life? I can't.....no matter how nice the house could be.

Worse yet, a Bay Area house does not need to be really nice to eat most of your income.

Any thoughts, folks?

 

It gets worse too. As folks in California retire they move away to places that cost less, like Arizona and Nevada. So they sell their house for $500k, relocate, and pay whatever-the-hell the market asks for houses there. As a result prices in these states are going up too. My parents just sold a house in AZ for more than twice what they paid 9 years ago.

I just don't see how it can be sustained.

 

prices are going way up.

My parents bought a house in Orinda for $659K in Feb, the house now appraises at $765K.

I own a house in vacaville that is being rented out....paid $290K and its worth over $400K now....the problem is that I haven't lived in it so if I go to sell it then i'll get raped in capital gain, so i'll just sit on it for now since I don't need the money anyways and it doesnt look like prices will be going down anytime soon in that area anyways.

edit: oops wrong user name

-Zoeb
(02BlackWRX)

 

Actually there was a great write up in the Chron (?) a year ago or so....

It is because there are so many two income families. They have more money and they can afford to move into bigger homes...more money, more demand for homes. Prices go up.

It is not cool.

 

Ah......now there's one reason: Owners holding up and observe.

 

You've got a few things going on...

The weather's nice
There's not a lot of places to put new developments due to the lovely mountains surrounding Santa Clara Valley
Mortgage rates are low
2 college educated people can afford one helluva monthly nut for mortgage and still lead a decent lifestyle

FWIW, my parents were saying the exact same thing in 1979. That was the year they sold a house in San Jose for $79K, which they had purchased a few years prior at 27K. They just knew the bubble was going to pop...they got back in the San Jose market in 1991 and spent ~270K on a house which is now selling for ~600K. Although I don't see the current gains as sustainable, it's a nice place to live, so I am guessing prices may temporarily dip, but they will not "crash".

 

Not to mention, Greenspan is raising interest rates every chance he gets, so not only are the costs of homes skyrocketing, but the interest rates on the loans are flying through the roof! You buy a house for ~$600k, and by the time its paid off, you are out nearly $1 million! just because of the interest rates. GRRRRRRR.

-Ted

 

Now's the time to buy in the Sacramento area. This is exactly why i bit the bullet to gain equity on a few properties. Not to mention, I can give myself on helluva deal .

 

Traditionally, Due to interest rates, you will pay 3 times the cost of the house to buy it on a 30 yr mortgage....

So if you pay 600K for the home, on a 30 yr mortgage you will actually pay a total of about 1.8 Million. That assumes the 7% average that is the average in the US since 1920 to today.

 

Time to invest in financial companies

 

Glad this thread showed up.
If anyone needs a loan to buy a home or wants to refi their current home shoot me a pm.
I'll hook you up w/ an i-club rate =)

 

woot for San Diego County!

My wife and I (both working, making far into the 6 figs) could barely afford a decent townhome on the pennisula (~500k++, for a 20 year old ****hole ). And I sure as hell ain't living in the east bay.

Come down here for my new job, she doesn't have to work anymore, just put an offer on a huge <1 year old condo for <400. And we'll actually be extremely happy with it, rather than disgusted like we would be in the Bay. :banana:

 

"Now's the time to buy in the Sacramento area. This is exactly why i bit the bullet to gain equity on a few properties. Not to mention, I can give myself on helluva deal "

The unfortunate part is by saying this, it's already too late

I'm trying to figure out how to buy a home on the penninsula and realize I am FOCKED every which way I look...my credit is stellar and my job/pay are secure and good.

Sooooooo...figure it's better served and emotionally enjoyable to spend money on my STi than a house...but don't tell that to my girlfriend who wants to get married.

 

If you want sticker shock go to Reno, holy crap. Housing when we where GOING to buy was around $170k, the ones that cost around $900k in the Bay Area (gated, etc), now its $700k+ and RISING. Thank God they stopped all devolpment

 

I moved down here from auburn because there are no digital effects or videogame companies anywhere near there - and i dont know how im going to start a life down here - rent is so high that its almost impossible to save, and even the ghetto houses are in the mid 100k's. I don't know - I suppose i should look for a new career. **** this town.l