Housing is absolutely NUTS in the bay area (San Francisco: sales, real estate)

[k374]

Good article with quotes that I like:

Housing Bubble 2: California November Home Sales Plunge to Multiyear Lows, Prices Soar | Wolf Street

The peak of the prior housing bubble in San Francisco occurred in November 2007, based on the same DataQuick series, with a median price of $814,750. After it imploded so spectacularly, everyone acknowledged that it had been an out-of-whack bubble phenomenon. Everyone had anecdotes of craziness. Sanity would henceforth reign in San Francisco, they said. Now, exactly seven years later, the San Francisco median home costs 32% more than it did during that crazy bubble peak.

Only this time, it’s neither a bubble nor a peak. It’s just an insufficiently recovering housing market, according to Yellen. And so she’s surprised that, after six years of free money for certain folks, it hasn’t “recovered” even more.

This has signs of ended really badly. When the money in tech goes dry there will not be any appetite for these severely inflated homes.

[bigdave01]

Originally Posted by k374

Good article with quotes that I like:

Housing Bubble 2: California November Home Sales Plunge to Multiyear Lows, Prices Soar | Wolf Street

The peak of the prior housing bubble in San Francisco occurred in November 2007, based on the same DataQuick series, with a median price of $814,750. After it imploded so spectacularly, everyone acknowledged that it had been an out-of-whack bubble phenomenon. Everyone had anecdotes of craziness. Sanity would henceforth reign in San Francisco, they said. Now, exactly seven years later, the San Francisco median home costs 32% more than it did during that crazy bubble peak.

Only this time, it’s neither a bubble nor a peak. It’s just an insufficiently recovering housing market, according to Yellen. And so she’s surprised that, after six years of free money for certain folks, it hasn’t “recovered” even more.

This has signs of ended really badly. When the money in tech goes dry there will not be any appetite for these severely inflated homes.

Why do you think the money in tech will go dry? I don't think technology is going anywhere, at least anytime soon...

[ccm123]

Technology could have a slight recession, as it does have it's up and down cycles. But, with some of the products and technologies that are being incubated by some local start-up companies here, the future is bright for technology, at least in the long run.

[bmw335xi]

I will be selling my place at the end of the year, so please don't pop yet!!!

[NOLA101]

Originally Posted by bigdave01

Why do you think the money in tech will go dry? I don't think technology is going anywhere, at least anytime soon...

Because tech is highly cyclical. The Bay Area had the nation's worst job losses 10 years ago, during the last downturn. Silicon Valley had higher unemployment than Metro Detroit.

Tech, for whatever reason, tends to boom and bust really hard.

[mrazyattic]

Originally Posted by NOLA101

Because tech is highly cyclical. The Bay Area had the nation's worst job losses 10 years ago, during the last downturn. Silicon Valley had higher unemployment than Metro Detroit.

Tech, for whatever reason, tends to boom and bust really hard.

A lot of people building startups... 99% of them will crash.

I'd also say a lot of kids think they can make money in tech around here, so there is a lot of surplus. Not counting the applicants out of state/country.

[Ruth4Truth]

Originally Posted by mrazyattic

A lot of people building startups... 99% of them will crash.

I'd also say a lot of kids think they can make money in tech around here, so there is a lot of surplus. Not counting the applicants out of state/country.

Most of the international applicants are coming with job offer and work visa in hand. And some of those visas don't allow them to change employers. Some do.

[Netflix]

One component to addressing the housing problem, although its somewhat late, is for county laws to be passed preventing further investor (how ever you want to define that) purchases of single family homes. If you want to be a residential real estate investor of any meaningful size, you need to be limited to invest in apartment buildings. If you're a mom and pop and want to buy a house or two, then you're good to go. If you think its a good idea then get your referendum on.

The same thing needs to be applied to foreign investors asap. No purchases of property. Look at Vancouver, Canada. They opened they immigration to folks who have means. An investor designation if you will. The city is loaded with uber wealthy folks from all over asia. Downtown is loaded with ferrari's, bently's, lamborghini. An AMG is a cheap car there. Thats the future of the bay area unless folks do something to stop the inflow of dollars. Can't do much about the current tech workers though.

[mrazyattic]

Originally Posted by Ruth4Truth

Most of the international applicants are coming with job offer and work visa in hand. And some of those visas don't allow them to change employers. Some do.

And this doesn't leave people unemployed?

[18Montclair]

Originally Posted by bmw335xi

I will be selling my place at the end of the year, so please don't pop yet!!!

Good luck. I recently moved myself to a new house here while planning a separate work relocation overseas at the same time