Comments 1 - 10 of 10 Search these comments
Across the street from the old IBM plant. Did they clean up the groundwater yet?
When things were sane.. $238K was reasonable .. at best add 30-40% for inflation.
That pretty much leaves you .. $320-339K which is about 3x incomes.
All this pretty much mirrors the chart as you can figure our yourself.
http://www.housingbubblebust.com/OFHEO/Major/NorCal.html
Feb 12, 2010 Delisted -- -- Inactive MLSListings #4
Feb 10, 2010 Listed $575,000 -- Inactive MLSListings #4
Jan 19, 2010 Sold (Public Records) $428,000 -20.3%/yr Public Records
Jul 11, 2007 Sold (Public Records) $760,000 7.4%/yr Public Records
Nov 17, 2000 Sold (Public Records) $472,000 15.6%/yr Public Records
Feb 29, 1996 Sold (Public Records) $238,000
Of course your dealing with a flipper.. LOL! I love to do a face to face with this person.
Most of Sunnyvale had groundwater contamination but no one seems to of heard of it before.
Im glad you didnt say $550K. At least your head is in the right direction.
Just keep going down a bit more. There is a couple that paid $1.4M for similar
home in Fremont. I told them not to do it.. They arent sleeping well these days.
E-man, that site across the street used to be the biggest private employer in the county, maybe even in the whole Bay Area, with good paying manufacturing jobs with good pay and benefits. It is where magnetic storage was commercialized and first mass produced, ushering in the computer age in the 1960's. It was such a landmark in its time that Nikita Kruschev visited it during his famous tour of the USA when he was Soviet premier. I grew up with many kids who thanked their lucky stars that their parent(s) could do so well for them as IBMers. Worked there myself as a college intern.
If it were back in the IBM days, a dual-income family of the kind of IBMers who would live there would probably be about 120-130K (we are talking about the workers; the troops, not the elite employees who are more likely to live in Almaden Valley or else The Fortress). So you could do the math and figure out what a family like that can afford, including some profit for the landlord.
But the problem is, IBM's not hiring prospective homeowners for that house anymore: Now that site is a Loews hardware store.
sybrib, there are too many people who recently came to the Bay Area who are clueless about the BA and its history and ecomonic constraints in doing business here. They are unable or unwilling to grasp that jobs, even well paid jobs, in Silicon Valley do disappear. The main driver of loss jobs is high home costs, as prices go up, jobs disappear permenantly. So they move the Mfg and R&D elsewhere. The need for disk storage and production hasnt changed, its still in big demand, but its no longer feasible to keep any jobs in SV.
These people are stuck on fly paper. Eventually reality will set it and it wont be pretty.
Basically, the last 1.5 years has reset a new base for the housing market.
Oh yea! the last 18 months have corrected the past 10-12 years of the RE bubble.
Still a have a very long way to go to get anykind of a base (bottom).
It will be like all other declines, a bell shaped curve... that is why we havent reached the bottom.
The annual current declines have been double digit, and that may continue or decelerate to single digit for some time to come.
-3 -5 -7 -10 - 12 - 10 - 7 - 5 - 3.. and than flat.
A 7, 5 and 3% decline going forward comes to a 15% decline or maybe more over the next 3 years.
There was some fundemental reasons why prices increased in the 80s and it corrected accordingly.
Our recent bubble was all based on nonfundemental reasons that will never return.. inflated stock prices
on IPOs and ARM loans. As you can see the low number of recent IPO havent fueled any rescue
for home prices as was the case in later 90s. And no one is touching ARM loans!
I would never buy that house. I drive up Highway 85 each morning, passing Cottle on the way to work, and the drivers that enter north 85 from Cottle are arrogant a-holes. Maybe it's because it took them three hours to go a tenth of a mile to get on the freeway, I don't know, but my experience with that area of South San Jose is pretty consistent... lots of built up stress there for some reason.
Sold for 580?
Crazy but hope they're happy. Looks nice on the inside, but worth nowhere near that IMO.
How much would you pay for this house? Please do not comment if you don't know the area. It went pending for $575k in less than a week on the market. We'll find out how much it sells for in about a month.
The seller is apparently a flipper. He bought this home at the court house for $428k on January 19, 2010.
https://pro.mlslistings.com/Reports/Main.aspx?Export=true