Perks of the Bay Area housing market: (Vallejo: sales, foreclosed)

[aslowdodge]

Originally Posted by HappyinCali

2008-2010 says no. Of course, there are people who go against the trend and they profit significantly.

Most go with the trend and lose or stay put and are always waiting for the next correction.

Why is the Bay Area stupid? The BA is a real estate paradise. It has massive restrictions which significantly limit the number of new housing. In SF, there will literally NEVER be another single family home built. Condos - yes, but limited. SFR - no.

My parents own a house in a booming city in the south. In 15 years they have seen very little appreciation because every free inch around their once quiet area is now built with new subdivisions. Zoning laws are free for all. New supply is constanly coming online, so why buy a used house if you can buy new?

Now THAT's a terrible area to buy in.

What part of the south?
Here in Atlanta the economy is doing decently. They are running out of space and are building further out. The infill areas have some new construction, but the lots are quite a bit smaller. So one might buy a used rather than new because they want land, mature landscaping, or no hoas. In some cases they want proximity to downtown for work, play, and not hassling with the horrible commute and are willing to pay more for a older house to have that rather than a newer house farther out.

[PixelatedTherapy]

Originally Posted by Ruth4Truth

Pix bought in Vallejo, which reports say is in the process of being "discovered" as the last outpost of cheap housing on the Bay. Pix made a pretty smart move. Daring, but smart.

That's right!

Originally Posted by Ruth4Truth

She's only been there a month. I think she'll be around awhile...

I'm a dude, but yes, I do plan on being around for a while!

[phantompilot]

Originally Posted by silverkris

Exactly. in 2008-2010 - the very stable, well established neighborhoods in the Bay Area did not experience a significant dip in RE prices - they stayed pretty stable, and went up when conditions improved.

Limited supply will ensure that in the long term, the RE market in the SF Bay Area will continue to appreciate. Those who are hoping for a big crash are going to be disappointed.

That's mostly inflation. You can only create so much demand. Tthe real limit is on demand.

[NewbieHere]

I regretted I didn't buy more when I bought my home in the Bay Area. But $15k is chum change. It's in the noise anyway.

[Perma Bear]

Originally Posted by NewbieHere

I regretted I didn't buy more when I bought my home in the Bay Area. But $15k is chum change. It's in the noise anyway.

You hear that kids? That's what a bubble sounds like. 15k is more than what most homes here sold for new.

[likealady]

Perma Bear: oh hush, you're not even poor. Stop with the whole "woe is me" attitude.

[Perma Bear]

Originally Posted by likealady

Perma Bear: oh hush, you're not even poor. Stop with the whole "woe is me" attitude.

I can't buy even a modest 2 bedroom, I'm poorer than someone making slightly above minimum wage in the 50s.

[Oakformonday]

Originally Posted by HappyinCali

Dommsdayers coming in 3 2 1....

Look, the market is not going to keep going up indefinitely. It will correct and then it will start going up. The way it has been since the 50s. Here are some facts

- the reason 2008-2010 was so jarring is because it happens extremely rarely. It hadn't happened in decades. Yet people keep referring to it as if that's the standard. The standard recession is much more shallow and less impactful.
- San Francisco is cheap on a variety of metrics when compared to cities like Tokyo, Hong Kong, NYC, London, Sinapore, Paris etc. Global buyers looking for a place to park cash still find SF attractive. LA even more so.
- Bay Area RE is not driven by 25 year olds working at VC financed companies. It is driven by wealthy foreign investors and people who are mid-level execs working at big tech. If you think that Google and Facebook will not be around then I LOL @ you

Finally,

the vast majority who say that will buy when "the bubble bursts" won't. The "bubble" will not burst when the economy is doing well. And when the economy tanks, and you see your friends and family start getting laid off, everyone will be too worried about being next and the last thing you will do is drop a major % of your savigs on a house that's going down in value.

That's how human nature is. That's why you couldn't give stocks or houses away in 2008-2010

This poster knows what they are talking about. My advice is to listen to this and ignore the other posts that are not as well informed. Cheers!

[NewbieHere]

Originally Posted by Perma Bear

You hear that kids? That's what a bubble sounds like. 15k is more than what most homes here sold for new.

You are not even coherent.

[Electrician4you]

Originally Posted by PixelatedTherapy

I bought a house early last month and since then it has increased in value by nearly 15k. If you own property in the Bay Area, you basically have a money printer.

Lol. So which bank account is that 15k deposited in? Congrats on the purchase but don't get too drunk on the value. Unless you're selling or gonna play the ATM the house away ponzi game