patrick.net

SJ says

@E-Man yeah but Morgan Hill is hella expensive now!

http://www.zillow.com/homes/for_sale/morgan-hill,-ca_rb/

Why pay this much when I can stay in RBA and buy home for similar cost?

Same deal is happening to the east bay real estate because the lemmings are willing to get stuck in 2-3 hours traffic each day commuting from east or south bay. I can fly 100 miles in 20 minutes where real estate is DIRT CHEAP

I see. They have gone up quite a bit too based on what I see with a subdivision I'm familiar with. There's one townhouse at 2130 Darnis Circle that just hit the market for $500k. These identical townhouses were selling in the low $300k just a year or two ago.

Well, there's one gentleman that works for Google. He flies in everyday. It should be fun. There's nothing wrong with that.

@New Renter,

It's a 2-year lease. I can't reveal his title and who he works for.

David Losh says

Now in 1999 the banks changed the way they do business: http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act

It allowed banks do do the accounting of your mortgage differently. This is where banks were allowed to package, insure, and repackage mortgages. So banks no longer needed to care about the value of the property, they just had to make the loans.

David Losh says

Now in 1999 the banks changed the way they do business: http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act

It allowed banks do do the accounting of your mortgage differently. This is where banks were allowed to package, insure, and repackage mortgages. So banks no longer needed to care about the value of the property, they just had to make the loans.

no different than decades past as GSE/FHA was packaging mortgages as debt securities.
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Why everyone went ape shit over bidding overpaying over leveraged.. on real estate / housing is an unanswered question....

thomaswong.1986 says

Why everyone went ape shit over bidding overpaying over leveraged.. on real estate / housing is an unanswered question....

Because of the amounts that banks would lend.

After 2001 there was a big push to bolster the economy. Higher loan amounts made higher security amounts, made higher stock prices, made higher equity projections, and it was all good.

It's hard to fight that global economic all boats are rising feeling.

David Losh says

Because of the amounts that banks would lend.

why did the public feel the need to overpay/overborrow.. and if you have one home.. why not buy a second, why not buy a third.. we havent even touched the reasons to the issues... banks were not the problem here...the banks didnt create this crazy public infatuation ( or neurotic obsession ) with housing.. and look around.. its still there...its all about the public...!

David Losh says

It's hard to fight that global economic all boats are rising feeling.

no.. it means your fixing problems with the roof and pulling weeds on weekends...
not a great driver of economic growth...