Where Americans Pay Most To Live – San Jose! San Francisco!
Where Americans Pay Most To Live – Forbes.com
Where Americans Pay Most To LiveIt happens every month: Millions of American pony up for the gas bill, mortgage or rent payment and real estate taxes–and subsequently watch their bank balances dwindle. That’s because housing expenses are the biggest monthly expense most families face.
But there’s a big difference between the size of your payments if you live in Seattle, Wash., than if you have put down roots in New York, N.Y. And if you live in California, you’re likely to be writing bigger checks than anywhere else in the country: More than half of the 20 most expensive cities for housing are in the Golden State, according to a report released last week by the U.S. Census Bureau.
San Jose commands the largest amount in housing costs of all metro areas we surveyed for this story. After you’ve shelled out for your monthly mortgage payments (or gross rent, if you’re a renter), not to mention utilities, taxes and insurance, you’ll be $1,828 poorer in this Silicon Valley hub.
Thanks to Burbed reader Herve for this find.
Congratulations to the Bay Area for being #1 and #5!
Finally our time has come. We’ve all dreamed of the day when we were #1 in housing costs, because that would mean we’re the most special and most desirable place to live. Finally it is here.
Without a doubt, this is the most authoritative study on housing costs ever. Do you know how I know? Let’s look at our mortal and semi-mortal enemies:
Booyah. We’ve all long known that New York City was just over hyped as being expensive, and now this study proves it: New York is actually dirt cheap. Heck! It’s cheaper than Rainattle!
This is a study we should be proud of. Great work everyone. Next year, let’s aim for the world!
November 8th, 2009 at 8:38 am
SV is also the leader in falling rents:
“Silicon Valley apartment rents fall 3.8%; biggest decline in nation”
http://74.125.155.132/search?q=cache:Dwyj-hAke2kJ:www.mercurynews.com/ci_12837370+san+jose+mercury+rents+fall&cd=1&hl=en&ct=clnk&gl=us
Guess it’s hard to charge high rents when there are high rental vacancies and high unemployment. Wonder what will happen to home prices too???
November 8th, 2009 at 1:09 pm
Answer: Soar!
November 8th, 2009 at 6:33 pm
Geez, this wasn’t predictable…
In upscale communities such as Los Altos, Greenbrae and Alamo, where median prices top $1 million, about twice as many households received default notices from January to September as in the same period in 2008, according to recorders’ office data compiled by MDA DataQuick, a San Diego real estate research firm.
The same is true for mid-scale areas with median prices around $500,000, such as Walnut Creek, Los Gatos and Campbell.
“The question is, could this be the beginning of something that gets a whole lot worse?” said Andrew LePage, an analyst with DataQuick.
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2009/11/08/MNMC1ABRBC.DTL
November 8th, 2009 at 7:49 pm
For instance, Saratoga, where the median sales price is $1.34 million, had 101 default notices in the first nine months of this year, up from 43 in the same period last year. That’s a current rate of eight default notices per 1,000 homes. Default notices are the first step in the foreclosure process; more than half of homes receiving them end up repossessed by lenders.
Saratoga’s default incidence is still minuscule compared to outlying suburban areas where subprime loans were commonplace. For instance, in Antioch’s 94531 ZIP code – one of the most foreclosure-ridden neighborhoods in the Bay Area – residents received 1,123 default notices from January through September, a rate of 90 per 1,000 homes. The median sales price there this year was $231,090.
2x almost zero is still zero.
Big-ticket jumbo mortgages are shunned by lenders, which closes off refinancing.
Bullshit. Plenty of jumbo mortgages are being refinanced. With the “equity cushion” the article cites, it isn’t a big deal, except for the neg-am folks who are screwed (and too dumb to be saved).
While foreclosures, as well as defaults, are increasing at the upper echelons, they’re still relatively rare. “They’re trickling in,” said Eric Boyenga of Intero Real Estate in Los Gatos.
For instance, in Saratoga, lenders repossessed 16 homes from January through September this year, up from six in the same period last year.
November 8th, 2009 at 9:40 pm
The SF Gate article is making an issue out of nothing. At the end it even acknowledges that foreclosures in the upper echelon are very rare. Due to the near zero foreclosure rate in these areas historically, any number that shows up becomes something to write home about. Give me a freaking break. Most people with big mortgages are saving big money now due to the lower interest rate. Yet, their homes have held value better than virtually anywhere else in the country.
It shouldn’t be entirely surprising that a city as big as Saratoga has a few foreclosures. Parts of the city is in the Campbell school district, and isn’t all that expensive.
November 8th, 2009 at 10:59 pm
More expensive = less likely to have foreclosures!
It’s so simple even real estater can parrot it!
November 9th, 2009 at 6:32 am
Unfortunately, RE is right. Not seeing those fissures in the market right now. Not even seeing many for sale sign around, foreclosures or else. Isn’t that why everyone here is still waiting for the elusive fall?
November 9th, 2009 at 8:36 am
San Jose Craig: The issue with the high-end is that there isn’t the move-up equity available any more that drove up prices from 2000-2007.
It will take time, and I don’t think it will collapse the way the low-end did.
Low inventory is a bad sign. Look at all the 4+ bedrooms available for rent (and empty) at $5000, $6000/mo. Those are frustrated sellers. A retired couple close to me put their house up at $2.5M, and took it down a few months later. They’ll try again in the spring, probably at the same price.
November 9th, 2009 at 9:02 am
“Low inventory is a bad sign.”
The problem with that statement is that high inventory is a bad sign as well
November 9th, 2009 at 9:57 am
Those are frustrated sellers. A retired couple close to me put their house up at $2.5M, and took it down a few months later. They’ll try again in the spring, probably at the same price.
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I am not sure if they are frustrated, but they are definitely in denial, hoping for market to turnaround soon. And some of those sellers are mentioned by RealEstater himself in past – unintentionally (as documented here).
Meanwhile, 973 Harney Way in “fully recovered” neighborhood just got its first price reduction after 4 months – after sitting in market for whole summer ( “summar” for RealEstater). I don’t know if this guy is frustrated, but he is trying to do the best he can to get a buyer who will be willing to pay his [seller] wishing price – remodeling kitchen with granite countertop, top appliances and “stunning cabinetry”.
November 9th, 2009 at 10:21 am
Those people have to wise up. Down in the slums of LG, sellers have reached acceptance. Take this one for example:
http://www.redfin.com/CA/Los-Gatos/102-Ayala-Ct-95032/home/1573560
That’s the third house in that neighborhood to sell in the last 2-3 months, each with a loss of at least $150k. This one is pending at $241k below purchase price. Maybe (big maybe) it went for above asking, but it wouldn’t be by much.
Still, it’s a lot better than the neighbors fared (with a $430k loss) – it wasn’t a short sale, but rumor has it there was something “weird” about the place.
http://www.redfin.com/CA/Los-Gatos/132-Regent-Dr-95032/home/1036069
November 9th, 2009 at 11:33 am
A retired couple close to me put their house up at $2.5M, and took it down a few months later. They’ll try again in the spring, probably at the same price.
zanon, can you look up their purchase price? if they bought it in 1975 for $200K and pay $3K a year in property tax, it doesn’t matter. if they bought it in 2005 for $2.3M and are looking to get their money back, I’d agree with the in denial assessment.
November 9th, 2009 at 12:36 pm
So according to the post, San Jose now has a HIGHER median house price than San Francisco?!
Ha! Take that elitist SFers!
November 9th, 2009 at 2:34 pm
Last sold in 1988 for $700K. It’s 20 years later, so they should be getting $2.8M for it!
I don’t know how frustrated they are feeling, but they planned to sell this year, and will try again next year. Certainly their plan was frustrated.
DreamT: Hah! Excellent point. Sales are down though, that’s surely a bad sign, no?
November 9th, 2009 at 2:43 pm
zanon – sales are up +17% YoY
(http://scc.rereport.com/market_reports)
And no I don’t interpret that as a good (or bad) sign. By itself, that metric is meaningless.
November 9th, 2009 at 3:13 pm
No no no – that metric is not meaningless. It means that home values will soar!!!
November 9th, 2009 at 3:36 pm
DreamT: Yes, but not at the high end (RBA).
November 9th, 2009 at 3:44 pm
zanon: when will you actually check the facts before posting?
Cupertino YoY sales increase: +56%
Los Altos: +25%
Palo Alto: +90%
Los Gatos: +66%
Los Altos Hills: +266%
November 9th, 2009 at 7:33 pm
DreamT: Wow — those are YoY numbers?
Let me check your link…
Wow, you are right.
OK, the party is back.
November 9th, 2009 at 9:04 pm
(pssst: its called cheap money)
November 9th, 2009 at 11:54 pm
The economy is raging right now. Dow is at the high of the year, and emerging market funds are doing even better.
I’m actually staying at a resort right now, and all the rooms are full. Restaurant business is booming everywhere. If this is a recession, we need more recessions.
November 10th, 2009 at 12:21 am
356 Iris has gone pending.
November 10th, 2009 at 7:43 am
#11, Those prices in Los Gatos are really low. I am really suprised to see two places selling for sub 2001 pricing. Also, those houses were new in 2001, so when they were purchased the owner likely spent more on landscaping and all those kind of things that aren’t necessarily included in a new house. Like the gazebo.
That’s a nice little development, backs up to a hiking trail, and a reasonably convenient location. Only drawback really is that it’s Union schools, not Los Gatos. But Union’s not bad. And at those prices, the math for private school becomes a lot more interesting compared to RBA schools. A 3000 sq ft house in Los Gatos schools is probably $1.8 or more. I can definitely see these putting pressure on RBA pricing.
November 10th, 2009 at 8:52 am
#22 – too bad the pwners paid $2k more than their listing price 3.5 years ago.
#23 – yes, they are low prices, but I’m rather surprised at the prices they sold for back in 2001. (I hadn’t looked back that far until you mentioned it.) Both dipped after a subsequent sale, but maybe that was the effect of the dot-bomb.
Union schools aren’t bad, but parts of San Jose attend them too so the LG address doesn’t carry as much weight when it comes to pricing.
November 10th, 2009 at 4:16 pm
#22 – too bad the pwners paid $2k more than their listing price 3.5 years ago.
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Must be generous person who is trying to help a move-up buyer. He just didn’t want to wait seven more years to see his home value doubled. Instead he is giving away this property in $2K discount. Talk about generosity.
November 10th, 2009 at 5:29 pm
The economy is raging right now.
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And unemployment is “on the way down, not up”.
November 10th, 2009 at 7:57 pm
As we speak, there are plenty of jobs going unfilled. If you are eating out of the same bowl as Indians, then you will not have anything to eat. It’s all about your skill set.
November 10th, 2009 at 8:21 pm
Plenty of job unfilled.
For example, 680 position unfilled in resort business. 1500 unfilled positions in restaurant business.
After all, resort and restaurant businesses are doing quite good. Those who are eating out of the same bowl as Indians will suffer badly. They deserve it.
November 10th, 2009 at 11:04 pm
“As we speak, there are plenty of jobs going unfilled. If you are eating out of the same bowl as Indians, then you will not have anything to eat. It’s all about your skill set.”
Given that the local unemployment rate is above the national average, apparently the bay area isn’t that special after all then.
I’m sure the new round of layoffs at EA (all deadwood without appropriate skill sets of course) will clear the local real estate market for take-off.
November 10th, 2009 at 11:21 pm
Overbidding is still common in Palo Alto. Look at all the closed sales. Plenty of people are buying and getting financing.
November 10th, 2009 at 11:24 pm
Tons of sales in Sunnyvale last month as well. People are paying full price on the average. The recovery is well under way.
November 11th, 2009 at 4:12 pm
Overbidding is still common in Palo Alto.
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Aha, overbidding in PA is in RealEstater’s radar again. November 1, 2008 was the last time when PA was detected in his radar. And this year on Nov 10th.
Keep the radar running, RealEstater. You will definitely catch it again in 2010 November.
November 11th, 2009 at 4:44 pm
Tons of sales in Sunnyvale last month as well. People are paying full price on the average. The recovery is well under way.
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On the top of the list (#1): 294 Hiddenlake Dr. 2004 sale price $542K. Current sale price $250K. Ouch!
Bottom of the list (#68): 1383 Devona Te. Initial listed price $1498K. Sale price $1250K.
Yes, there are signs of recovery – from top to bottom. If this goes on like this, 973 Harney Way at Sunnyvale “fully recovered” neighborhood is going to be sold pretty soon – over asking price.
November 12th, 2009 at 4:20 pm
More proof of what said in #21.
McDonald’s: 1,000 new restaurants in 2010
Restaurant business is indeed booming. Just think about the guy who is taking your order in drive-thru. He is going to be millionaire soon and will be buying properties in RBA. Those who are eating out of same bowls as Indians will be losers.