Housing Values May Drop Over 50% In Silicon Valley (big house, buyer)

[Lanienguyen]

Originally Posted by jmw1

It would even be smart to get married and still live at the parent's home. I don't consider that a loser move at all. That's very common in Asian families with multi-generations inside the same house. I consider that an extremely smart move given the ridiculous unaffordability of homes in the SF Bay Area.

It's common in Asian families with multiple generation.. but it is not because of the culture. I am an Asian too.. and all my family members as well as my in law's families.. when we/they were single. We stayed in the same house (rent or own). But when we got married.. we started our own family.. We all 1st generation here in the U.S. Now I see lots of them stayed together in one house.. But I do believe that money is the factor.

[aslowdodge]

Originally Posted by Perma Bear

Millennial median wage map - Business Insider

No I'm armed with facts.

I'll continue to hope the market crashes and people suffer while savings every dime I make. If I was born 50 years earlier I would own an apartment building by now. Those are the facts.

Isn't your money in the market? I would imagine if real estate crashes, the economy goes with it and so does your nest egg?

[SOON2BNSURPRISE]

I am reminded by my uncle and aunt. They moved to San Jose back in the early 1970's. My uncle figured he would work 30 years, save all his money, and retire to Arkansas. They scoffed at buying a home, although at the time they could have afforded a home in San Jose. Buying a home was not in the plan for them. They decided to rent the cheapest places they could find and save the money for a home in Arkansas. To keep his money "Safe" he placed it in bonds and other safe investments.

As the years went on they were priced out of the San Jose market and rents continued to go up. Eventually they changed their minds about buying a home and ended up buying a home a couple hours away from San Jose. My uncle commuted to work from then on. He hated it though. He was gone so much that my aunt got lonely I guess and found someone else, leading to their divorce. My uncle ended up staying at work all the time and gave up his home. He died in his early 60's a broke man. I have wondered how their life would have been if they had purchased a home when they were younger and prices were still in reach for them.

[JohnSoCal]

Originally Posted by SOON2BNSURPRISE

I am reminded by my uncle and aunt. They moved to San Jose back in the early 1970's. My uncle figured he would work 30 years, save all his money, and retire to Arkansas. They scoffed at buying a home, although at the time they could have afforded a home in San Jose. Buying a home was not in the plan for them. They decided to rent the cheapest places they could find and save the money for a home in Arkansas. To keep his money "Safe" he placed it in bonds and other safe investments.

As the years went on they were priced out of the San Jose market and rents continued to go up. Eventually they changed their minds about buying a home and ended up buying a home a couple hours away from San Jose. My uncle commuted to work from then on. He hated it though. He was gone so much that my aunt got lonely I guess and found someone else, leading to their divorce. My uncle ended up staying at work all the time and gave up his home. He died in his early 60's a broke man. I have wondered how their life would have been if they had purchased a home when they were younger and prices were still in reach for them.

We moved to San Jose from San Diego in 1971. We bought a new 4 BR, 3BA, 2200 sq. ft. home for $36,500. We sold it in 1976 for $80,000 and bought a Mexican restaurant in San Jose. That house is now valued at $1.1 million. We bought another new 4 BR, 3 BA, 2500 sq. ft. home in Livermore in 2000 for $455,000 and sold it for $620,000 in 2002. That home is now valued at $1 million+. We also owned 2 other homes in Southern California ( San Diego and Murrieta ). We have always bought new homes.

The point is that had your uncle bought a home, he would now be retired with a nice nest egg.

[Perma Bear]

Originally Posted by aslowdodge

Isn't your money in the market? I would imagine if real estate crashes, the economy goes with it and so does your nest egg?

Not all my money no and I try to save/invest 3k a month usually.

[RockyCity]

Here's an article I found today regarding the current state of housing in Silicon Valley.

In Silicon Valley, homes are routinely selling for $200,000 or more over asking

Didnt mean to rain on someones parade, its just the reality right now.

[phantompilot]

So glad I just sold my last property (SJ, not one of these ultra bubbly fantasy land areas...but not too far away either).

The crash is literally "around the corner".

This behavior just confirms it. When people act irrationally en masse, its a great portend of a massive shift/change in direction.

I wonder what the new lows will be. 50% cut now seems oddly conservative.

[Hacker1234]

Then who would sell.

[Perma Bear]

Originally Posted by phantompilot

So glad I just sold my last property (SJ, not one of these ultra bubbly fantasy land areas...but not too far away either).

The crash is literally "around the corner".

This behavior just confirms it. When people act irrationally en masse, its a great portend of a massive shift/change in direction.

I wonder what the new lows will be. 50% cut now seems oddly conservative.

As much as I hope you're right I have to agree you sound deluded.

[SOON2BNSURPRISE]

Originally Posted by JohnSoCal

We moved to San Jose from San Diego in 1971. We bought a new 4 BR, 3BA, 2200 sq. ft. home for $36,500. We sold it in 1976 for $80,000 and bought a Mexican restaurant in San Jose. That house is now valued at $1.1 million. We bought another new 4 BR, 3 BA, 2500 sq. ft. home in Livermore in 2000 for $455,000 and sold it for $620,000 in 2002. That home is now valued at $1 million+. We also owned 2 other homes in Southern California ( San Diego and Murrieta ). We have always bought new homes.

The point is that had your uncle bought a home, he would now be retired with a nice nest egg.

Very true. My dad kept trying to tell him that. My parents paid $13,000 in 1965 for their first home in Port Hueneme. They lived there for 38 years before retiring and moving to Surprise Arizona. Sold the home for $338,000. Nothing like the killing people could have gotten had they held on in San Jose. Still nice none the less.