Home sales hit a 15-year high, and are up another 12% year over year, as of January 2004. Apparently, the recession of 2001-2002 had no effect whatsoever on San Francisco Bay Area Real Estate prices: http://www.sfgate.com/cgi-bin/artic...hive/2004/02/19/BUGL153G601.DTL&type=business
As interest rates rise, home prices overall should start to level off and decrease. Although California and New York have usually been less effected than other areas I'm in the market to buy a home and I cant justify these ridiculous prices considering just making the plunge , tired of paying rent any thoughts?
The bay area actually went through a reduction in housing values in some areas during the tech meltdown. Today, prices have stabilized and are beginning to appreciate. New investment in the bay area locations where the past run-up has occured is questionable since the economy of the silicon valley area is undergoing a re-structuring and it is not clear that the bay area economy will benefit from the re-structuring. IMHO only very select investments will make money there over the next several years - there are better US metropolitan markets to invest in right now.
Prices really are crazy around here. I live in East Bay and the house I bought 2 years ago is +30%. I told my gf (semi-jokingly)that once we hit the +60% mark we are cashing out and moving to Vegas.
Even the farther out areas like Brentwood ( which used to be all agricultural ) and is 53 miles from downtown San Francisco have seen enormous price increases to the extent that it doesn't make a lot of sense to get in out there. People are even commuting from Elk Grove now. It's unreal!
my BEST trade was buying my little 1,600' home in Santa Cruz in 97' paid $159,000 ... it was last appraised for $487,000.......and from the article quoted in the SF Chron. I think I can expect another 8% increase in value easily this year.
How is anyone able to afford a house? I think alof of homeowners opted for a 5 yr fixed loan with a small deposit. I'm thinking as interests rise and god willing housing prices start to fall, there are going to be a lot of people who will be in financial difficult. They will owe more on the loan than there homes. This i dont see happening for another couple years. I was in SF last week and I saw lofts in downtown SF for 800k, what the hell!!! My grandparents beach house was bought for 50k 30yrs ago but has gone up to over low 700's now. its insane thoughts?
My parents sold the home that they bought in the Bay Area back in 1963 for $20,000 , for $490,000 in 2001. Unreal.
Is really hot and a Seller's Market right now. Realtors just cannot get inventory. I'm in process to fix mine up for sale right now and they've been chomping at the bit to get the listing for my home. I'm expecting multiple bids over listing price when it comes to market in a couple weeks. A_MacLaren
Things like "interest-only" mortgages, etc. Don't worry, if you want the house, they will find a way to finance it for you, courtesy of Easy Al. And Claude Rains, the Invisible Man, er -- Franklin Raines, will buy your mortgage, repackage it into a derivative that no one understands and make the risk go away. wee