patrick.net

The Professor says

If we are in RE recovery how can there be so many foreclosed and pre-foreclosed properties?

The Fed is moving the market as a command economy. Inflation will stop him. If he stays 0 after 2015, Medicare and SS will need a bailout and pension funds private and public will have to cut retiree promises since they won't meet actuary estimates.

 ...the story has yet to unfold Professor

The Professor says

If we are in RE recovery how can there be so many foreclosed and pre-foreclosed properties?

part of the recovery back down to normal..

coriacci1 says

http://www.trulia.com/CA/San_Francisco/94110/

Very first property:

$1,400,000
$6,274 / mo mortgage

Only a fucking idiot would think this house is worth anywhere near that. It's worth less than one fifth that price.

The freaking taxes on this property if you paid $1.4 million for it would be about $14,000 / yr. And that's at 1% taxation!

Yes, housing prices have a long way to come down in some areas.

Dan8267 says

Only a fucking idiot would think this house is worth anywhere near that

Loving how they call it a "Victorian" facade--oh, yes, the '70s composite siding and flat Taco Bell roof are just ooozing with character and charm of a bygone era. I guess you're paying $1.4 mill for a Connoisseur's Property.

WTF!!! That place looks like a flipper put his Home Depot mark of cheap crap all over Archie Bunkers house.

This is the norm here in SF. Another reason why I am considering on moving. If only I could get the same wages elsewhere.

robertoaribas says

It is worth what someone will pay for it.

No, its worth whatever a scammer can get a scammy bank to lend at 0%. Nobody pays for anything anymore, they borrow gigantic sums of money and are one economic dip or a job loss form total failure

Nobody pays for anything anymore, they borrow gigantic sums of money and are one economic dip or a job loss form total failure

thus the high number ( when i checked it was 76 foreclosures outta 115 for sales in the 94110 zip) of foreclosures in this hotter than hot google bus to silicone valley neighborhood? just asking.

The Professor says

Google pays the most with a mid career median salary of $141K. Facebooks median start pay is under $60K. I just don't see how these wages can support those prices. Just what do these companies produce that can't be made elsewhere?

"Navy seals of the workforce"? I know a SEAL and all he wants to do is blow stuff up and party.

Yeah, but the salary is just one part of many of those people's packages. A good family friend was one of the first 100 or so through the door at Google. I believe he was making a 100k or thereabouts when he started with them. He is now a retired multi-millionaire. That didn't come from the salary. The amount he made may be very unusual, but there seem to be quite a lot of people making good bonuses or cashing out share options to drive the prices you are seeing.

SFace says

You can't say they are not smart because they are the navy seal of the workforce.

This is one of the most idiotic phrases I've heard yet. I hope a real Frogman shoves his foot up your ass for using such a stupid analogy. I'm sure they'd be honored to be compared to some skinny-jean wearing asswipe with Aspergers who drinks Kombucha and writes code that can infect your computer and track every keystroke in order to sell it to some multi-national conglomerate to bonbard you with ads for shit you don't need.

Facebooksux says

This is one of the most idiotic phrases I've heard yet. I hope a real Frogman shoves his foot up your ass for using such a stupid analogy. I'm sure they'd be honored to be compared to some skinny-jean wearing asswipe with Aspergers who drinks Kombucha and writes code that can infect your computer and track every keystroke in order to sell it to some multi-national conglomerate to bonbard you with ads for shit you don't need.

Why's it stupid? It's an analogy. The top silicon valley companies recruit some of the best and the brightest from around the world, do they not? That makes them part of the elite of the workforce.

Is there something special about 94110?
It still has a bit of urban grit, but has settled down enough since the gang injunction. It's next to Noe, which has already undergone gentrification, and North Bernal, which is on the upswing. That and easy access to the highway for commutes south. BTW, a $700k 2/1 is bought for development potential.

EBGuy says

Is there something special about 94110?

google busses that whisk google turds to silicone valley then dump them at the curb when back in 94110

The Professor says

So what I hear you saying is that rich people are buying up all of these
undersized, overpriced (IMO) houses in the 94110.

So this bubble is being blown by seals from high tech instead of NINJA's with
HELOCS.

So this is how the rich are living? In $1.4mill tear-downs?

The Prof said: Who would ever pay 1.7M for a 3k sq ft lot 2 blocks from highway 101?
The home at 347 Mullen just sold for $2 million and is less than two blocks from 101.

Philistine says

So this is how the rich are living? In $1.4mill tear-downs?

Yes, this is what happens when federal policy concentrates resources at the top of the income scale: you get a bubble in the high end market including Klimt paintings and trophy locations for real estate. It's the same Klimt painting, or the same Van Gogh or whatever, but it carries an astronomical price tag because it's a trophy and the bidders are surfing a tsunami of cash. The numbers seem incomprehensible to median wage earners, but in fact they result from policies enacted by the politicians that median wage earners elected. Meanwhile, it's the same tear-down house, but it costs 10x more.