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Housing Market Bubble 2: Bigger, Faster, & Stronger
- Thread starter urge
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Huh?
U do realize the Bay Area "proper" barely felt the effects of the housing crisis. Only the boonies "out burbs" or ghetto areas closer to the proper area felt the crunch.
Similar to the DC area. Prices barely budged during the downturn except in the minority areas. The out suburbs obviously felt the pinch.
It comes down to location locations and education level of the area.
Places like Florida, Arizona don't have true diverse economies like NYC, SF, DC etc.
The only time DC and say San Diego housing "crashed" was in the 1989-1991 period after the Cold War when government defense spending slowed down.
That's why the White House (Obama) or any democrat is scared ****less about cutting back on defense.
U do realize the Bay Area "proper" barely felt the effects of the housing crisis. Only the boonies "out burbs" or ghetto areas closer to the proper area felt the crunch.
Similar to the DC area. Prices barely budged during the downturn except in the minority areas. The out suburbs obviously felt the pinch.
It comes down to location locations and education level of the area.
Places like Florida, Arizona don't have true diverse economies like NYC, SF, DC etc.
The only time DC and say San Diego housing "crashed" was in the 1989-1991 period after the Cold War when government defense spending slowed down.
That's why the White House (Obama) or any democrat is scared ****less about cutting back on defense.
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Yes and no. Marin county was hit very hard in the last recession. Hard to imagine it now, but from 09-12 values were severely depressed. They have come roaring back in the last 2-3 years. The city itself plateaued, but never really dipped. Of course, anything could happen, but short of an international calamity or giant earthquake, it's hard to see the local market (city, silicon valley, probably Marin at this point) taking much of a dive. It can sometimes be hard to fathom the insane amount of wealth here, juxtaposed against a tight housing pipeline. SF is only so big; the whole region is limited by environmental protection, height restrictions, and NIMBY-ism. Yes, building is occurring, but not at a rate that is sufficient to satisfy demand. Add to that that every time a Twitter IPOs, 1000 millionaires flood into the market. Google, Facebook, Apple, and dozens of other companies pump out thousands of new millionaires per year. Add to THAT the intense interest from Asia; millions and millions of people with money who are smart enough to try to get it out of China.
Sure, anything could happen, but as one of my bosses likes to say, "100 years from now, people are still going to want to live in northern California."
Sure, anything could happen, but as one of my bosses likes to say, "100 years from now, people are still going to want to live in northern California."
That's the thing. My friends in the Bay Area proper. One inside the city 1200 square foot loft/condo he got for 1.2 in 2007. May have gone down to 1 in 2011 and he was worried. Now it's probably 1.3.
Whereas in my area in Florida. Homes peaked in my neighborhood around 1-1.2 million in 2006. Tanked all the way down to 600-700k in 2011 (30-40% drop)
Now it's maybe 700-800k. So it's still a good 20% off peak prices.
So like you said SF area prices in proper places ARE HIGHER in 2016 than they were in 2006-2007.
Same cannot be said about hard hit areas like Florida or Arizona or the boonie suburbs in certain California places etc.
Whereas in my area in Florida. Homes peaked in my neighborhood around 1-1.2 million in 2006. Tanked all the way down to 600-700k in 2011 (30-40% drop)
Now it's maybe 700-800k. So it's still a good 20% off peak prices.
So like you said SF area prices in proper places ARE HIGHER in 2016 than they were in 2006-2007.
Same cannot be said about hard hit areas like Florida or Arizona or the boonie suburbs in certain California places etc.
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I live in the Bay Area and was born and raised here. In the process of buying a home here now. Buying here is as safe a bet there is. Buy in a good school district and you're golden.
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I only got 3 minutes into the video before I got tired of listening that entitled woman earnestly talking about what prices should be.
Today, Zillow shows the house I grew up in to be valued at $1.09 million. It was built in 1972 and my parents bought it for $39,000. (They sold it for $141,000 in 1986.) The movie theater down the hill that I used to walk to is gone. Now it's a BMW dealer.
I couldn't afford to buy it today. So what? I don't have an inalienable right to pay $100 per sq ft for a home in Encinitas.
Today, Zillow shows the house I grew up in to be valued at $1.09 million. It was built in 1972 and my parents bought it for $39,000. (They sold it for $141,000 in 1986.) The movie theater down the hill that I used to walk to is gone. Now it's a BMW dealer.
I couldn't afford to buy it today. So what? I don't have an inalienable right to pay $100 per sq ft for a home in Encinitas.
