Skip to comments.The Housing Market With Nowhere to Go (but Up) [San Fran]
Posted on 03/09/2014 8:35:01 PM PDT by Lorianne
Not long ago the pink house at 1829 Church Street, in the Glen Park neighborhood here, hit the market for $895,000.
It sold for $1.425 million $530,000 over the asking price in less than two weeks.
The story of this fixer-upper, with three bedrooms, two baths, linoleum floors and an Eisenhower-era kitchen, is in some ways the story of the moment in the city, where longtime residents complain that Silicon Valley money is basically ruining the place for everyone else.
More wealth is concentrated in the San Francisco Bay Area than just about any other place in the nation. Google alone, the story goes, minted 1,000 millionaires when it went public. Ditto Facebook. And Twitter? Some estimate 1,600. Tech worker bees are doing just fine, too, with average base salaries now north of $100,000.
To understand how all this money is transforming San Francisco, for better and worse, look no further than this citys hyperventilating real estate market. As technology companies have moved in more than 5,000 start-ups now make their home locally the influx of well-paid workers has pushed rents and home prices through the roof. Worsening matters, San Francisco has also become a bedroom community for many of the young people who work in Silicon Valley. Each day, Apple, Facebook, Google and others shuttle tens of thousands of their employees to work using private buses that have become a controversial symbol of rising tech wealth.
At a recent open house for 1829 Church Street, the broker explained the propertys dilapidated appeal.
Its a block away from all the tech shuttles, he said.
(Excerpt) Read more at bits.blogs.nytimes.com ...
The entire U.S. housing market has no where to go but up. Except, perhaps, for the multi-million dollar properties traded by the very rich.
just another California housing bubble
Who would want to live in aids-ville?
Who would want to live in aids-ville?
there are those whos desire to save the so called environment....is based on inflating the value of their own real estate.
curb building..... and guarantee a housing shortfall...and higher prices on most existing homes..
theyve been doing it in most of california for years.
That’s quite a hefty mortgage for an average sized old home.
Add in the state, city and other taxes plus the higher cost of living there. A lot less to save for the future.
Well actually, Mother Nature DOES have a VERY easy solution that none of these bright and shining people worry about at all...
Exactly....to put it another way. A $100k salary in tthe SF area is the equivalent ( after state and local taxes and housing costs) are subtracted, of about a $50K income in much of Florida or Texas..
If it goes up it would be because the dollar is so messed up it takes twice as much as it costs before.
Average family can not come up with $500,000+ for old dumpy houses.
20% down =$285000, monthly payment = $7600 (5% i + 30 yr)
Sure they can...nothing down, and a 3% 50 year mortgage...oh, wait a sec..we’ve seen this before..
Earthquakes might hurt the values.
The housing here is a joke. So your houses are worth a lot but you can’t afford to move up. My husband and I tried to move many times in 2007 but were out bid. Now the prices are higher and even though we could sell our house we could not afford to buy anything better so whats the point.
My husband was laid off in November and we are still afloat but in the event we have to sell our home we will never be able to buy a home here again. The homes in my neighborhood which are cookie cutter ranch style 1200 sq ft. built in 1954 are going for close to 800K which is a joke we bought our house for $350K in 1998 and it was joke then as well.
Leading realtors in that area report between half and 3/4 of purchasers are from communist China, with the local tech companies playing a distant second as source of buyers. Also included are some folks from other foreign countries. But it’s mostly PRC — communist factory managers and the like who are being permitted to leave — and with suitcases of money. Both were prohibited or restricted just a few years ago. Now the escrow companies give out Chinese language instructions (which include request to not bring cash Into office but to use bank drafts or wires please Instead). Leadjng realtor goes to shanghai and Beijing to hold sales seminars in big fancy hotels there. Realtors giving guided buying tours with Chinese guides and Chinese translated purchase forms. Realtors holding sales meetings in expensive country clubs with Chinese narration. Entire neighborhoods filling up with Chinese and other foreigners as American food groceries are replaced by Asian specialty food stores. And yes the ownership group at big tech companies can also buy. Almost everyone else cannot afford Tricky tacky sixty year old tract houses now at a million dineros in average areas and 2 million in preferred districts.
Anything under a million is usually called a “ starter home”. Or a “ fixer- upper special “ if it’s a dog. The nice houses that you’d like to live in, not necessary luxurious or very large, can go much higher than two million in a number of decent to good areas. Realtors advise that mostly Chinese bidders can often compete against each other so that our commie friends are giving themselves a high priced. Costly introduction to the operation of a free market as they buy up most of the housing. .
They may be from communist China but it is raw capitalism that is putting so much money in their pocket.
They are rich and buying property and more often than not they are paying cash. Interest is a dirty word to Chinese.
On the other hand, Americans put a big screen TV on their credit card and make payments that nearly double the cost of the TV.
Question. Are you complaining about people working hard, saving their money, taking risks to start a company and succeeding?
Not complaining at all. Just observing Thanks.
Sorry. I was trying to make a point. Did not mean to be attacking you.
You should be complaining. Its another market jacked up by foreigners in SELLOUT USA. Ignore the gun dope above.
We are not the world, your point is invalid. Allowing foreigners to breeze in here to buy and sell as they please is what a poor corrupt third world nation does
“Realtors advise that mostly Chinese bidders can often compete against each other so that our commie friends are giving themselves a high priced. Costly introduction to the operation of a free market as they buy up most of the housing. .”
Let them buy. They will find out that what goes up, will come down. The Chinese don’t like the Japanese, but they should take a look at how California real estate screwed the Japanese wealthy a decade or two ago. It’s a good way to get our money back from the little bastards.
California is ridiculous. Texas is excellent.
these people will be below the surface shortly.
If you live in the Bay Area and your husband is out of work you can sell your house and move to the Sierra foothills and buy a nicer place for 1/3 rd the $. Then put $ in the bank or buy 2 places and rent one
We live at 3000 ft elevation El Dorado County Great place to live 2 of our kids still live in Bay Area and now have someplace sane to escape on weekends.
Amador County also outstanding
Thanks for the info. The Bay Area is just crazy. I have 2 daughters who are married and they both live in the Bay Area. It would be wonderful to not be so far away from them which just kills me to think about but if something doesn’t turn around soon we will have to move.
Interesting. Here around DC there were numerous Arab buyers, not sure how many there are now, but there is enough Muslim infrastructure to support them along with their sleeper terrorists. Developers here favor the extreme high end since there seems to be no upper limit on what those jokers will spend.
Welcome to corrupt third-world America; brought to you by the Democrat and Republican parties.
“Now the prices are higher and even though we could sell our house we could not afford to buy anything better so whats the point.”
In cases like that it is the supply and demand of the buildable space dictating prices (as in San Diego, Portland). A friend retired here in NJ, and was considering moving to San Diego. Even though he owned the NJ house free & clear (in a decent area where prices are rising), he said if he moved to San Diego he could buy a place about an hour outside of the city. As I understand it, in Portland so much of the surrounding area has been “protected” from building that it has driven up prices significantly.
More fascism than capitalism. These people are the politically connected elites in China.
Sustaining a mortgage relies on a growing and stable job market. I can’t imagine where such a thing exists right now or at least for another 3 years and the repeal of disastrous obamacare.
Well placed people and corporations have profited mightily from American free trade policies that hollow out industry and export jobs to China, Mexico etc. They hire libertarian think tanks like Cato to propagandize how great both are plus they bribe (via campaign donations) and influence the right politicians. Same for profiting from our open borders via cheap labor.
You closed the borders and the minimum type wages will start creeping up without any of Obamas stupid minimum wage laws
Nope, sorry. Not true. Ordinary folks.