Yet another CA insanity thread AKA you don't have to read it but can't look away from the trainwreck! (Dallas: house prices, compensation)

[BayTexan]

Now that I have your attention - for those who keep talking about CA house prices and how DFW is catching up etc., please sample this:

Sunnyvale house goes for $782,000 over asking price

That's 782K above asking - i.e. a full 2 or 3 houses in the rest of America (definitely >1 even in 'overpriced' DFW:-))

And before anyone gets started on it's in the land of milk and honey etc. etc. - this is in 'Slummyvale' - a very ordinary suburb with homes built in the 50s-70s. Of course it is only 1 mile from the Apple spaceship which will Uber all Kool-aid drinkers to the promised land when the crash comes :-)

[octo]

So what. Just means that the house was underpriced.
That area is known for opportunities where equity compensation can explode so there are people that have the financial means to pay that much.

[BayTexan]

Having lived in the Bay Area through 2 bubbles, I can tell you that this will not end well.

You honestly believe that the Unicorns and decacorns are worth that much? Then I have a bridge to nowhere to sell you!

Originally Posted by octo

So what. Just means that the house was underpriced.
That area is known for opportunities where equity compensation can explode so there are people that have the financial means to pay that much.

[octo]

yeah, it's a risky area. As long as VC is flowing there will be a segment of the population that can get wealthy enough to pay enormous amounts for a house. Once that stops they'll sit in a house that lost tons of value. I don't think it makes sense to compare this to DFW.

[BayTexan]

I am not comparing. My point is that as long as CA and the coasts remain crazy and people and companies keep moving here, there is still room for house price growth (albeit with small dips if the overall economy crashes). 150-200/sqft is peanuts compared to over 1000/sqft don't you think?

Originally Posted by octo

yeah, it's a risky area. As long as VC is flowing there will be a segment of the population that can get wealthy enough to pay enormous amounts for a house. Once that stops they'll sit in a house that lost tons of value. I don't think it makes sense to compare this to DFW.

[TheOverdog]

yeah, it's a risky area.

That's not a risky area. that's the opposite of a risk. Highland Park is farther from downtown Dallas that that place is from Apple's HQ, and where Apple locates, a lot of other companies will as well.

[kyam11]

Originally Posted by BayTexan

I am not comparing. My point is that as long as CA and the coasts remain crazy and people and companies keep moving here, there is still room for house price growth (albeit with small dips if the overall economy crashes). 150-200/sqft is peanuts compared to over 1000/sqft don't you think?

Well said.

[Hacker1234]

The SF bay area right now, homes are getting an average of 250k over asking price. I have a bad feeling the area is going to drop like a rock.

[Gravy Train]

Whatever global correction or asset valuation reset is coming, it's going to have to hit the Yuan pretty hard for us to notice a fire sale. All that cash has come back to roost, courtesy of the Chinese, looking for asset classes their government can't reach.

It's too late but would have been nice to see select counties enact codes regulating foreign investment. Things got well out of hand for Vancouver and Toronto before their recent legislation.

[octo]

Originally Posted by TheOverdog

That's not a risky area. that's the opposite of a risk. Highland Park is farther from downtown Dallas that that place is from Apple's HQ, and where Apple locates, a lot of other companies will as well.

With risky I meant there is a risk of a bubble popping.

In general I find it annoying when people throw the word "crazy" directed at California. It's a dumb cliche along the lines of redneck cliches thrown at us in Texas. There are perfectly reasonable causes for what at first glance looks crazy or backwards to uninformed people.