They’re Making More RBA Land
Sometimes a picture explains what words cannot.
Rising home values push more Bay Area homes above water, Zillow says
By Pete Carey, San Jose Mercury News
Posted: 02/21/2013 06:26:11 AM PST, Updated: 02/21/2013 06:26:39 AM PST
Rising prices pushed thousands of Bay Area homes back above water last year, according to a report released Wednesday, another sign that the region's housing crisis is easing as the economy recovers.
The report, by the housing website Zillow, shows drops across the region in the number of homes that are underwater — worth less than the value of their mortgages.
More than 56,826 homes bobbed back above water across seven counties of the Bay Area in 2012, Zillow reported. That still leaves 205,986 homes with a total negative equity of $31.5 billion.
Now let's see the graphic. See? Fewer homes are underwater! That means more of them are Special, so more are also in the Real Bay Area! They must be making more Real Bay Area land.
Glad we could clear this up.
March 1st, 2013 at 8:38 am
Well… when you run out of land the only place left to put houses is over the water (typically on reclaimed land in the bay area)
March 1st, 2013 at 9:17 am
More land is being made out of San Jose flea market.
March 1st, 2013 at 9:19 am
As I said before, advances in technology and transportation changes everything. You gotta look at the region’s infrastructure growth plans.
March 1st, 2013 at 9:25 am
Re-iterating a point brought up before, Palo Alto itself has very minimal crime. Most of the crime is is caused by out-of-towners.
March 1st, 2013 at 9:27 am
Better trolls, please.
March 1st, 2013 at 9:31 am
Kudos to Marissa Mayer for putting the dead woods on notice. Really, this is Bay Area here. We take work seriously. Either come to work in RBA, or work somewhere else that’s not as special.
March 1st, 2013 at 9:35 am
We see a lot of negative press on Marissa on her decree. Most of those articles are written by people living in other areas who don’t understand that Silicon Valley is Major League and special. You can’t use mom and pop values from other places and apply it here.
March 1st, 2013 at 9:37 am
Nearly three years later, and he’s still working on the second grade?
CRAZY!
March 1st, 2013 at 9:37 am
Still very low inventory in Palo Alto. Only 9 properties on realtor’s tour this week.
March 1st, 2013 at 9:40 am
Low inventory in Palo Alto leads to strong seller’s market.
March 1st, 2013 at 9:43 am
So last week you suggested, No, contrary to intuition, now is a terrible time to sell. The reason inventory is low is because everyone and his grandmother knows prices are on the way up.
Now this week it’s a “strong seller’s market?”
Beyond that, it is quite clear that you are quantity over quality. Maybe try one message that actually has some meaning.
March 1st, 2013 at 9:48 am
SEA,
Are you really stupid of what? Somebody help him!
March 1st, 2013 at 9:56 am
Why in god’s name are we looking at a chart that covers next to no data points? Show me what it looks like compared to the 80′s, 90′s, and 00′s, not just the last year and a half. Talk about worthless data.
March 1st, 2013 at 10:02 am
What does 80′s or 90′s data matter? Do you need more convincing of what’s happening out there?
March 1st, 2013 at 11:28 am
It seems like a bubble. Three of us on my street who bought between 2005-2007 and have been lingering at 80-90% LTV for the past year or two are in the refi process (non-PMI loans). And my neighbor is listing in a few weeks at at 400 sq ft, which is about the upper end of my hood in 2006/07.
March 1st, 2013 at 11:32 am
All these homes and none for sale?
Why don’t we just all agree that all homes are worth 30% more than they actually are!?
It seems this would solve everyone’s problems! The banks, the homeowners, the government who collects taxes on the value.
This is perfect!
March 1st, 2013 at 12:31 pm
The shear number of offers on our side of not RBA (eassssssst bay) – 17? 23? That is enough information for me to think bubbles…..but the real question here – when will it pop?
March 1st, 2013 at 1:10 pm
Jb, this time it’s different. Buyers are paying with cash or otherwise highly qualified. Market is on solid footing.
March 1st, 2013 at 2:08 pm
This time it’s different! Really! BUY NOW OR BE PRICED OUT FOREVER!!!!!!!!!!!!
All these homes and none for sale?
Why don’t we just all agree that all homes are worth 30% more than they actually are!?
Funny you should say that, DonnieJ. Someone over on Redfin Forums Bay Area suggested that the game today is list the house with everyone knowing that it’s worth 15% above asking.
Thanks for noting that the overbidding really needs two iterations.
March 1st, 2013 at 6:09 pm
1. This time it’s different
2. There is no bubble, it’s a whole new paradigm!
3. They aren’t making any more land.
4. Better buy now before interest rates go up!
5. Buy now or be priced out forever!
6. People are buying with cash, so house prices won’t drop.
etc
March 1st, 2013 at 8:03 pm
A third grader might suggest that the percent of homes underwater is going down because of all the debt laden homes being foreclosed on and sold to cash buyers. Second graders aren’t expected to make that possible connection.
March 1st, 2013 at 11:28 pm
Sure, it’s a contributor, but are you arguing that home prices aren’t going up locally?
See figures 6 and 7 in particular.
http://www.zillowblog.com/research/2013/02/20/nearly-2-million-american-homeowners-freed-from-negative-equity-in-2012/
March 1st, 2013 at 11:31 pm
One person who used to be here all the time is no longer arguing.
March 2nd, 2013 at 7:15 am
#19,20,
What we see in front of us is not a bubble, but an overdue economic recovery, based on sound fundamentals. The same thing is happening in the stock market. The good news is that if you haven’t bought yet, you haven’t missed the rally. Buy before Spring bounce, and you still have opportunity to gain some instant equity.
March 2nd, 2013 at 8:03 am
#22- Those two charts are “for homeowners with a mortgage.” The cash buyers shift the sample.
Additionally, if loans are being paid, then principal is going down (conventional note). The question is if the rate at which the principal is greater than market value changes in the down direction.
March 2nd, 2013 at 10:17 am
Jb, this time it’s different.
—–
Ha ha. Such a quintessential message!
Here, one good read for this weekend: Same Old Hope: This Bubble Is Different
March 2nd, 2013 at 11:22 am
From 2009? That was last time.
March 2nd, 2013 at 12:08 pm
Last time? I thought it was different this time.
March 2nd, 2013 at 12:32 pm
Keep up, SEA.
March 4th, 2013 at 10:36 pm
Nice blog .The information provided is very useful and interesting.Thanks a lot!! And Please Keep sharing!!!
Of course we’ll keep sharing, except we’ll let you keep your Florida real estate URL all to yourself. Sorry, it’s those danged agricultural inspectors. –ed.