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In general, local real-estate values reflect the local economy. Salaries are higher in the Bay Area which is why property values are higher.
If the median household property in the Bay Area is a million dollars, it probably means the median household income is around 250k. Simple math. If the median home price in Seattle is 750k, it means the median household income is around 185k.
Nothing to disagree with here in theory... though you do have some counterexamples like SD where housing values do tend to be proportionately higher than salaries. Nowadays foreign investment is another external factor which can affect values.
Nothing to disagree with here in theory... though you do have some counterexamples like SD where housing values do tend to be proportionately higher than salaries. Nowadays foreign investment is another external factor which can affect values.
Home values in SD are much less than the Bay Area. I think the median home price there is 600k. I'd have to look that up to be sure.
I think overall, if we rule out the rat race, SD is a more desirable area than the Bay, which goes to my point. It's all economics.
I don't think foreign investors make as large of a dent as people seem to believe they do.
Out of the three California cities, LA is the most out of sync (salary to home prices) and that can be attributed partly to some X factor of desirability.
Home values in SD are much less than the Bay Area. I think the median home price there is 600k. I'd have to look that up to be sure.
I think overall, if we rule out the rat race, SD is a more desirable area than the Bay, which goes to my point. It's all economics.
I don't think foreign investors make as large of a dent as people seem to believe they do.
Yeah, but incomes I believe are also much lower in SD even adjusting for the lower housing costs. Foreign investment though can have a huge impact. Just look at what happened to Vancouver BC. They had to impose the 15% tax on foreign buyers due to the impact it was having on home values.
Yeah, but incomes I believe are also much lower in SD even adjusting for the lower housing costs. Foreign investment though can have a huge impact. Just look at what happened to Vancouver BC. They had to impose the 15% tax on foreign buyers due to the impact it was having on home values.
Vancouver's in Canada where their immigration and investment policies incite direct private investment in turn for residency cards. Most of the DPI is from China. The US' investment docket is different because R/E markets are less susceptible to price inflation through private investment by international buyers. Canada =/= US.
Vancouver's in Canada where their immigration and investment policies incite direct private investment in turn for residency cards. Most of the DPI is from China. The US' investment docket is different because R/E markets are less susceptible to price inflation through private investment by international buyers. Canada =/= US.
Well that may be true as far as incentives for investment go but it is still a warning for unchecked foreign buyers in general. I understand that the immigration incentives are a pull factor however.
Yeah, but incomes I believe are also much lower in SD even adjusting for the lower housing costs. Foreign investment though can have a huge impact. Just look at what happened to Vancouver BC. They had to impose the 15% tax on foreign buyers due to the impact it was having on home values.
If you have two people making 75k each, they can easily afford a regular sized home in San Diego. Well qualify for a mortgage and be paying it off for the next 30 years.
If you have two people making 50k each, they can afford a Condo or townhouse.
I'd wager enough people make that money in San Diego to support their real-estate prices.
San Diego is also a desirable place, so besides foreign investors you have people elsewhere in the USA wanting second homes or to retire. But personally I don't think this is a big factor in home prices there.
Home values in SD are much less than the Bay Area. I think the median home price there is 600k. I'd have to look that up to be sure.
Median Home Price, April 2017:
Central Bay Area:
San Mateo County $1,500,000
San Francisco County $1,402,500
Marin County $1,325,000
Santa Clara County $1,160,000
Alameda County $875,000
Contra Costa County $653,690
San Diego Metro:
San Diego County $590,000
Quote:
I think overall, if we rule out the rat race, SD is a more desirable area than the Bay, which goes to my point. It's all economics.
San Diego is nice to visit but I dont find it more 'desirable' than SF at all. To each his own.
Median Home Price, April 2017:
Central Bay Area:
San Mateo County $1,500,000
San Francisco County $1,402,500
Marin County $1,325,000
Santa Clara County $1,160,000
Alameda County $875,000
Contra Costa County $653,690
San Diego Metro:
San Diego County $590,000
San Diego is nice to visit but I dont find it more 'desirable' than SF at all. To each his own.
That might be the median in Metro SD but in desirable core neighborhoods that won't even get you a doll house on a postage stamp sized lot. Edit: the lot size is actually 2261sf, not the nearly 4000sf listed- I was just at the open house.
10 Most Valuable US Corporations
By Market Capitalization, 5 June 2017
1 Apple $802.6 Billion( San Jose MSA)
2 Alphabet $694.4 Billion( San Jose MSA)
3 Microsoft $558.0 Billion( Seattle MSA)
4 Amazon $483.4 Billion( Seattle MSA)
5 Facebook $445.2 Billion( San Francisco MSA)
6 Berkshire Hathaway $411.7 Billion( Omaha MSA)
7 Johnson & Johnson 351.2 Billion( New York MSA)
8 Exxon Mobil $339.5 Billion( Dallas MSA)
9 JP Morgan Chase $294.1 Billion( New York MSA)
10 Wells Fargo $258.5 Billion( San Francisco MSA)
6/10 on the West Coast
4/10 in the Bay Area
not bad.
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