patrick.net

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.

E-man says

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).

http://www.housingbubblebust.com/OFHEO/Major/NorCal.html

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.