Comments on: What's a reasonable price for a Bay Area home?

By: Brendan

Brendan — Tue, 13 Mar 2007 01:01:35 +0000

The only explanation has to be a foreclosure. I found another house like that also.

By: mhhhhh

mhhhhh — Tue, 13 Mar 2007 00:36:35 +0000

So I was looking at some homes in the $500-600k range in a San Jose neighborhood on Zillow.. and I saw a few homes with a sale history that looked like:
May 2005 – $545,000
Jan 2007 – $212,000
Feb 2007 – $510,000

Can anyone explain the anomalous Jan 2007 figure? Is that a foreclosure price at auction or something? Or is that a Zillow mistake? Or…?

By: i8thekittypurr

i8thekittypurr — Mon, 12 Mar 2007 15:54:33 +0000

Over the weekend, Kron4 News has one of their “real estate specials”, where a smug couple and realtwhore were commenting on how hot the market is, with having to make bids on the home they bought and paying more than the purchase price.

I’m sure these three idiots will regret the day they allowed themselves to be filmed spewing such BS. The most classic: the “car interior” shot of the bitchy wife talking to the camara: “Gosh, if it’s going to be such a great time to buy, why not hit the market now, before the Spring rush”.

Brilliant.

The local news reports are simply advertisements for stunned realtwhores.

By: burbed

burbed — Mon, 12 Mar 2007 02:19:22 +0000

Here’s to hoping that better properties start ending up in the $600-650k range.

By: Area 51

Area 51 — Mon, 12 Mar 2007 02:08:53 +0000

Only one problem. Looked at realtor.com and there are THREE, count ‘em *three* listings in the $600-650k range in Cupertino and two are 2BR condos in the 1100SF range.
Is that all a 6 figure, 2 income household can afford in Cupertino?
I don’t think you really believe those prices are reasonable, but wanted to elicit outraged responses.

By: Brendan

Brendan — Sun, 11 Mar 2007 23:35:43 +0000

I’m glad I sparked a burbed post! Anyway I see your ‘fuzzy math’ and I believe it is true.

The only way I can ever think that prices will get real is if there is some horrible downturn in one (or a few) of the key industries that are here. If India or China truly take over tech then we can see prices take a huge dive. Also there is a possibility that when people’s ARMs start breaking that may drive the payments up so high that everyone has to sell or foreclose.

I must admit I’ll probably fall into the category of tech guy and wife who will pay 650 some odd thousand for a crappy 3 bedroom house. I’m a Bay Area native, and I live here long before it was so special. I don’t plan on moving so I suspect if I buy a house now I would definitely hang on to it for at least 5 maybe ten years. And real estate ALWAYS goes UP HERE!!! Another REALTOR told me that yesterday!

By: bay area relo

bay area relo — Sat, 10 Mar 2007 21:49:47 +0000

My husband and I just relocated to the bay area from LA for a career move. We have to buy a house in the east bay because my husbands office is in Walnut Creek and I will be working in SF. First off, I am not thrilled living in the east bay…it is boring and not very attractive, plus my commute is going to be over an hour each way. My commute in LA was 30 min. We had to sell our home as to be able to afford our temporary rental in SF,while not paying our mortgage at the same time. Now we are looking to buy here, and I received listings from a broker today for a 1700 sqft ugly home in Lafayette for 995k, which for the idiots who have drunk the housing price “Kool Aid” up here might be considered a “steal” Well here is the letter I wrote the realtor regarding the listing:

Hi Gerry,

I wouldn’t feel comfortable paying more than 900k for either of these homes with a sweet spot being 875k. These homes remind me of very bland neighborhoods in “anywhere usa”. They really lack curb appeal or charm, even with the “luxury upgrade” of granite in the kitchen. Additionally, upon my research, the sellers of this home purchased it less than 2 years ago for 700k. How is it possible that they should earn 300k in that short period of time?

I also believe the market is going to take a gradual nose dive, and I don’t want to lose my down payment when these homes are adjusted for reality. I would rather wait until the fall to see what happens, than be the sucker who over pays for a home like this, lose all my equity when the value goes down, and spend the next 10 years of my life digging myself out of the mess so some greedy person can make an extra 100-150k.

I truly feel sorry for anyone who buys a 1700 sqft home for these prices in this over inflated area. I am beginning to think this is why everyone in supposedly “upper middle class” neighborhoods in the east bay area drive old cars, dress in tacky, cheap looking clothing, don’t wear make up, get their hair done, or work out, go to political protests on the weekend instead of taking vacations, because they cant afford to have anything else, after overspending for their suburban shack.

No Thanks. I prefer to have a life.

~Susan

I think if more buyers take my attitude with the realtors trying to sell them over priced homes, we might see prices adjust much quicker. I am so tempted to rent for a year, and put the equity from my home sale in LA into a t-bill or CD which would earn 5-10%, and wait to see what happens.