Something I posted on my blog SF Bay Area Housing Bubble Battle. The bottom line: The Bay Area has annoyingly and persistently sticky downwards house prices. Recent threads here have pointed out cases of buyers actually getting into bidding wars again. It's not all that surprising when considering the current job market in the Bay Area and how that affects market psychology. There's some economics behind "unpredictable prices" too. But I conclude that in the end even market psychology always gives way to fundamentals.
And the longer our prices remain stuck the greater the risk of a dramatic shock, as things suddenly and dramatically come unstuck. Like the recent rumblings on the Hayward fault, pressure can only keep building up so long until even the most earnest of wishing won't make it all just go away.
Something I posted on my blog SF Bay Area Housing Bubble Battle. The bottom line: The Bay Area has annoyingly and persistently sticky downwards house prices. Recent threads here have pointed out cases of buyers actually getting into bidding wars again. It's not all that surprising when considering the current job market in the Bay Area and how that affects market psychology. There's some economics behind "unpredictable prices" too. But I conclude that in the end even market psychology always gives way to fundamentals.
And the longer our prices remain stuck the greater the risk of a dramatic shock, as things suddenly and dramatically come unstuck. Like the recent rumblings on the Hayward fault, pressure can only keep building up so long until even the most earnest of wishing won't make it all just go away.
--Randy H
#housing