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E-man says

I love talking to older & retired folks. They can provide so much insights about the Silicon Valley in the last 40 years. In short, it was never affordable for an average Joe.

Clearly that was never true statement. IT WAS affordable.. even a on a single salary one could buy a decent home after the 1988 peak. The historical prices as you have seen prove that. Further more, we had a booming industry in the 70s and 80s which many ignored. It wasnt until after 2000 that everyone else notice SV. Than you had this massive bubble explode upwards... say beyond our histical norm.

bmwman91 says

Yup. Is it any wonder that the rest of the nation considers CA, specifically the SF Bay Area, to be The Land of Fruits & Nuts?

The rest of the nation, fruits and nuts, are the ones who migrated to California.. bearly 1 our of 4 Californians are actual natives.. the rest are from Mexico or the North East. Things were very very different here in prior decades..

Charlie dont surf here!

ducsingle5313 says

And rental property loans are recourse debt, so no free lunch if things go south.

You may want to check your fact again.

E-man, you should do the same. Reference California Code of Civil Procedure section 580b. Note the language "of that dwelling occupied, entirely or in part, by the purchaser".

hanera says

Did you consider those lucky high tech youths? Those working for FaceBook, Zynga, Apple, Google, Instagram, groupon, etc. Many could be like noodlephilly buy a few houses for rental income.

Well, Instagram has 13 employees, so I don't think that should be a problem.

Anyway, no matter the company, once it gets big enough the bean counters will come in and move jobs out of the area - or just cut them as new software allows them to. And Facebook, with an expected market cap of $100 billion+ has only 3000 employees. Yes there will be a lot of non-employees that will benefit but not like many are predicting. And let's face it, most who will get rich from Facebook (other than the employees) already own a home.

So, the nice areas of the peninsula will continue to go up. The rest will see more modest gains.

Since the RE crash, so many things have happened with local RE, MERS in some states, recourse in some states, the word is out, many foreclosures, and especially short sales are coming, where I do not know because I don't research it like some of you guys do, it still spells opportunity for the savvy, and knowing and I'm sure many investors are licking their chops with the most recent case-shiller data.

People need to remember, the girl chooses the man here, foreign girls marry the white man because he will let her do whatever she wants.

81 Sun, 22 Apr 2012 at 8:27 am Mail Quote Permalink Like Dislike (2)
hanera says
Helloeeze says
... why do white guys marry Asian women so often?

And yet hardly any white gals marry Asian men?

I love talking to older & retired folks. They can provide so much insights about the Silicon Valley in the last 40 years. In short, it was never affordable for an average Joe.

E-man, you must be talking to older folks with alzheimer's. Plenty of average, middle class folks were able to purchase homes in Silicon Valley during the 70's and into the 80's.

Older people love to tell younger people how hard the older people had to work, how easy the younger folks have it these days, etc. And because older folks have mostly benefited from the run-up in Bay Area housing prices and Prop 13, they don't spend a lot of time thinking about the long term negative impacts to the younger generations.

For those of us non-average Joes who can afford to buy here, the question is whether we want to contribute to a massive transfer of wealth from Gen X/Y to Baby Boomers. This of course affects family planning (e.g., having kids) and retirement timing.

One action rule. How often do you see lender pursuit judicial foreclosure in CA? :)

E-man, I don't have any data, but that would be a business decision for the lender. A judicial foreclosure on a rental property that is $10k underwater wouldn't be worthwhile. But when the stakes go up, a judicial foreclosure would be more likely. Plus there are lots of unemployed recent law school grads around to do the work at low cost.

But back to my original post, rental property loans are recourse. Whether the lender chooses to go that route is another thing.

everything says

foreign girls marry the white man because he will let her do whatever she wants.

because they can also get greencard for sure.

The asian guys are not as generally interesting to American women because they often lack masculine attributes. This is not genetic, it's imprinted upon them culturally. Of course, the flip side is they aren't obnoxious jerks, so for long term relationships the ladies eventually will gravitate to them.
All of the foreign women I have EVER met in California eventually located a guy to marry so they could stay. This is with just ONE exception since 1982.
Oh I've been introduced to a bunch myself.
I follow the old saw: "why buy the cow when you've got the milk?"
I've been offered cash for the trouble of marrying someone. It was getting pretty profitable but I said no for 1. moral reasons 2. legal liability 3. foolish pride.
I should have taken one up on the offer and bought more AAPL. Darnit.

Question: How come like at least 75% of the posts here talk about the Peninsula? The Bay Area is a huge metro and the Peninsula only takes up a small chunk of it...

Edvard, same thing happened on the Westside Meltdown blog for west Los angeles area. Posts shifted at one point to almost entirely the North of Montana area in Santa Monica. A very small portion of the Westside.

Housing bulls *cough realtor* *cough desperate homedebtors* look for the exception when they gasp for air. Already the LA market has begun crumbling anew(right as we enter the peak selling season no less). The bulls gotta grasp at their few remaining straws in the BA first.

Melissa says

I'm looking in the other south bay (Los Angeles beach cities). I'll probably wait until about this time next year to evaluate the climate. I'm concerned that there is a lot of "propping up" going on in the economy for the elections. I don't know if we'll be able to see which way things are going by next Spring, but I'll re-evaluate then.

At this point, it seems like homes in my area are losing value (using Zillow with a big grain of salt), on average, more than I'm paying each month in rent.

I think the big influx of buyers right now are after fools gold.

I'm single, so it's easy enough to wait, although getting damned old.

Avalon? Are you on the island?

dodgerfanjohn says

Already the LA market has begun crumbling anew

About time. This is a first, a two bedroom two bath in Sherman Oaks for 159k. And, it is not trashed. (High HOA, but we know that.)

http://www.redfin.com/CA/Sherman-Oaks/4501-Cedros-Ave-91403/unit-126/home/4825527

dodgerfanjohn says

Edvard, same thing happened on the Westside Meltdown blog for west Los angeles area. Posts shifted at one point to almost entirely the North of Montana area in Santa Monica. A very small portion of the Westside.

I think it might also be because even though places like the east bay and other areas in the Bay Area are still expensive and for the most part overpriced, they did cool quite a bit. The Peninsula on the other hand is still nutty and I think that draws people's attention.

Peninsula prices are caused by the 1. guys making just enough money to qualify for the mortgage 2. the social climbing females pressing them into the market 3.the females short-circuiting the brains of the men by direct stimulation of the hypothalamus. 4. men reacting to hypothalamus tickling by females and wanting to "keep her" and thereby buying the over-priced house.
The wages are high enough so the guys will keep struggling to buy.

clambo says

Peninsula prices are caused by the 1. guys making just enough money to qualify for the mortgage 2. the social climbing females pressing them into the market 3.the females short-circuiting the brains of the men by direct stimulation of the hypothalamus. 4. men reacting to hypothalamus tickling by females and wanting to "keep her" and thereby buying the over-priced house.
The wages are high enough so the guys will keep struggling to buy.

My god, we must know completely different women. Or maybe men...what sort of spineless loser lets himself be controlled like that? While I would believe that a lot of house-buying inevitably gets driven by the woman, I sort of doubt that gold-diggers / "tiger moms" are the ones behind the peninsula price lunacy.

yeah, and we must also know completely different men too.
I think the prices are just high because the location is commuting distance to jobs and of course, foreign women in particular do not care how much a house costs. I could relate an anecdote but I'll skip it for now.

hardly any guys I know who are married have to fulfill the dreams of a nice female. They just like to struggle for its own sake.
How silly of me.

clambo says

because the location is commuting distance to jobs

Agreed, there. Some of it may be socio-political too. Super greenie weenies with money also flock there because it is full of them already. It's like a bug lamp for them or something. Lots of people also cite the "weather" as an attraction. I guess it is worth all that money to enjoy the lack of snow & humidity when walking between your office & car.

clambo says

hardly any guys I know who are married have to fulfill the dreams of a nice female. They just like to struggle for its own sake.

How silly of me.

Sorry, you lost me a little here.

Please stop with the comments about white dudes and Asian chicks. There are plenty of other forums for those discussions, and a lot of the comments are demeaning.

Back to our regularly televised program - - - I agree that women can have a big influence in a couple's decision to buy a home. And this can affect how long you are able to wait in a major way.

One co-worker's wife was hell bent on buying a home in Palo Alto because their kids (oldest is 2) need to go to the best schools. It took my co-worker several months and a lot of wasted time visiting open houses in PA to convince her that between her PhD and his JD, they were just too ghetto to buy there. They wound up buying in Los Altos instead.

Another co-worker's wife is having a kid. They had a nice Eichler in a decent area of Mountain View, but she insisted that they immediately buy a place in Los Altos, again playing the "best schools for the kid" card. Their new place might even be a little smaller than their old Mountain View house.

These are just two examples. Other (male) co-workers have told me that they would never have bought their houses if their wives hadn't insisted upon it.

I think men tend to be a lot more objective and less emotional about house purchases than women. Maybe it's a nesting thing. So those who are married might have a more difficult time remaining a renter.

dodgerfanjohn says

Edvard, same thing happened on the Westside Meltdown blog for west Los angeles area. Posts shifted at one point to almost entirely the North of Montana area in Santa Monica. A very small portion of the Westside.

Housing bulls *cough realtor* *cough desperate homedebtors* look for the exception when they gasp for air. Already the LA market has begun crumbling anew(right as we enter the peak selling season no less). The bulls gotta grasp at their few remaining straws in the BA first.

Here again, the rules don't change. If the house is priced according to market and is in an area where schools are good and where people want to live (versus where people end up by default), the house WILL sell.

With regard to LA...yes, Santa Clarita is an outlying area but had we not moved north it is without question where I would have bought. Most of the middle to senior executives where I worked at the time live there. We sweated during fire season but other than that, things were good. We liked them and they liked us.

edvard2 says

How come like at least 75% of the posts here talk about the Peninsula? The Bay Area is a huge metro and the Peninsula only takes up a small chunk of it...

Because it is The (coveted) Fortress. Areas outside of The Fortress are Silicon Valley versions of the Manhattanites' B 'n T.

bmwman91 says

myob says

...and it's depressing just how little that much money gets you around here.

Yup. Is it any wonder that the rest of the nation considers CA, specifically the SF Bay Area, to be The Land of Fruits & Nuts?

That's because money has no value here. There's too much of it.

bmwman91 says

I guess it is worth all that money to enjoy the lack of snow & humidity when walking between your office & car.

Hilarious. It's also worth it to work in a windowless cubicle in coastal California rather than work in a windowless cubicle in Buffalo, NY.

rootvg says

That's because money has no value here. There's too much of it.

Inflation.

Newly printed money from Fed -> Wall Street -> Tech IPOs -> Silicon Valley real estate

wthrfrk80 says

Inflation.

Newly printed money from Fed -> Wall Street -> Tech IPOs -> Silicon Valley real estate

LOL

Sir, are you suggesting that our esteemed web service companies are somehow being fueled by funny money?

bmwman91 says

Sir, are you suggesting that our esteemed web service companies are somehow being fueled by funny money?

Of course not. ;)