Location, Location, Location (What Housing Slump In San Franciso And Parts Of L.A Alert)

Los Angeles Times ^ | 11/26/2006 | David Streifeld

[goldstategop]

Things have come full circle. Location counts again. That's why the East Bay towns — along with a few other places around the state, including neighborhoods in Santa Barbara, San Luis Obispo, Pasadena and Silicon Valley — are still reasonably hot. There are more people who want to live in these areas than there are available houses.

[goldstategop]

Housing slump? What housing slump? If you live in the right location, you can still get MORE than your asking price if you sell. There's no six month backlog of homes in San Barbara, San Luis Obispo, Pasadena and San Francisco. They are still hot places to live and it seems every one wants to live there. Housing slump, indeed.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[goldstategop]

I wouldn't live among liberals. But some people are willing to pay up to 800G for a commanding view of the Bay or the Pacific. Go figure.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[AdamSelene235]

Give it a little time, the housing correction hasn't even really started yet.

[AdamSelene235]

[AdamSelene235]

Or if that's too rich for your blood, try this 1 Bedroom starter home.

[spectre]

I see the "Bigger Fool" theory is alive and well.

[mac_truck]

Those houses are knockdowns. What they're selling is the land, in two very desirable areas.

[goldstategop]

Yes. Land in San Francisco and in parts of northern California and around L.A still command a premium because housing is so scarce there and every one wants to catch up with the Joneses. Personally if you ask me, I think its insane.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[FreedomCalls]

Housing slump? What housing slump? If you live in the right location, you can still get MORE than your asking price if you sell. There's no six month backlog of homes in San Barbara, San Luis Obispo, Pasadena and San Francisco. They are still hot places to live and it seems every one wants to live there. Housing slump, indeed.

Multi-million dollar mansions and ocean-going yachts still sold quite well in 1933 at the height of the depression.

[SoCalPol]

Depending on the zip code in San Diego County, a resale home can start at $500,000 to over $1.5 million dollars.

Many homes go for 2 to over 20 million.

Condos in my neighborhood go for 1/2 million to 4 million a unit.

Rent for 1 bdrm apt start at $950.00 a month

[GOP Poet]

bookmark

[mac_truck]

Personally if you ask me, I think its insane.

A free market is one that brings together a willing buyer and a willing seller with a minimum of outside interference. Whatever personal feelings you or I may have about the transaction just isn't relevant.

Caveat Emptor!

[goldstategop]

I have nothing against the free market but I can imagine very few people having the means to acquire properties at those kind of prices. And San Francisco is a very expensive city.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[RobRoy]

I agree. Thre are still strong areas here in Seattle.

On the other hand, there were actually quite a few people who made money during the 1929 stock market crash, but it was still followed by a fairly bad ten years by most, and led to a world war.

[RobRoy]

What they're selling is the land, in two very desirable areas.

Then I assume the neighbors houses re nicer? ;)

I am wondering exactly what made them desirable. It certainly does not look like it is in Beverly Hills, nor do I get the feeling it is a view property. 'Course I could be wrong.

[RobRoy]

Magic loans don't hurt either. At first...

[mac_truck]

I have nothing against the free market but...

Eh?

Either you believe in the efficiency of a free market or you believe in the wisdom of big government.

Frankly, it may be a touch of class envy that's making your head sweat...

[Swordfished]

The weather out there is heavenly - it's really worth it. You feel healthier and are healthier. There are tons of things to do, proximity to the ocean, mountains, etc.

[mac_truck]

Take a look at the stats for the second property. It's a tiny house on an oversized (for that area) lot. The property already has the entitlements needed for residential contruction, and the utility infrastructure in place. The replacement cost for raw land, entitlements, and infrastructure in this area are equivalent or greater. Not to mention the opportunity costs (time) involved.

My point is that each of us looks at that property differently. Joe homebuyer might look at it and say what a dump, Joe developer might look at it and say what a deal!

[RobRoy]

>>Joe developer might look at it and say what a deal!<<

I agree. But I remember when CD players first came out. A nice Sony player was $1,299. When they came down to $799 some people thought "What a deal!". I was in the business. I knew there was no real reason for the price to be higher than $150, other than "what people are willing to pay".

They should have waited...

People that are thinking of buying a home need to do the same right now. That home will quite possibly be seen as overpriced (even with the "oversized" lot) at $300k by this time next year.

We'll see.