Bay Area

[TheGreenBanker]

I think these home prices are here to stay.  What I am having trouble with is 3bd 2ba 1500sq homes demanding 1.2 million in the Peninsula.  Who on earth would pay that when you can get something comparable for half the price within a half hour drive??

[SamShuehRealtor]

In certain parts of  Pennisula like Emerald Hills, W. Menlo Park, within a mile or so, they are interested in the land value not the size or age of these older homes.

In LA a couple bought a 7500 sf lot for $1.1 mil back in 2009 and would be happy to sell it for a loss. They received 4 offers way over $1.1 mil with guarantee they can built recently.  The people who purchased are builders/developers. They are looking for construction projects to stay busy for 2013, it is hard to tell if they come out ahead or not. These people put their own time and money into. 

[buyinghouse]

  Well, in my hood, a home went for $412K, not even the same size as mine, so, basically, people are paying because they have money, not that they are dying to move into a home. Hard to tell what's driving this market. Bunches or money of the mantra "hurry or you will be left out".

[Adam070]

where can you drive 30 minutes and get something or equivalent quality for half price?  let's say we even ignore schools.

but you are right, 1.1M is easily affordable for a dual income family on the peninsula, only downward pressure will be a rate jump to 6%,  or if there is a major earthquake that causes damage to enough homes that they all have to sell because they won't be able to afford repairs.

[TexasLaw]

30 minutes from Burlingame in rush hour traffic gets me to Livermore?  How about Daly City....Feel free to buy a 600k home in Daly City and see how your quality of life works out......

[BAzx]

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TexasLaw wrote:

30 minutes from Burlingame in rush hour traffic gets me to Livermore?  How about Daly City....Feel free to buy a 600k home in Daly City and see how your quality of life works out......

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Daly City Westlake area is pretty nice...

[norcalnative]

Pacifica is about as close to this option with decent houses and even some what respectable schools. 30-45minutes pending traffic.

Fastest I could do Redwood shores to Fulton and Park Presidio on the Motor cycle is 28minutes and that was one notch behind the stupid crotch rocket bikers riding on one wheel down 101 while doing 90mph. I keep both wheels on the pavement and 85mph to get some distance on speeding cagers was about as far as I took it.

[TheGreenBanker]

http://www.redfin.com/CA/San-Bruno/2741-Plymouth-Way-94066/home/629182

This house in San Bruno would cost 1.2-1.3 million in Millbrae, Burlingame, San Carlos, Palo Alto, Los Altos.  San Bruno is literally 10 minutes away from Burlingame.  Is 10 minutes work $600,000?  Also, why are we assuming that everyone works in San Francisco? 

Look here's another one near Santa Theresa Blvd San Jose:

http://www.redfin.com/CA/San-Jose/435-Calero-Ave-95123/home/987185

The crime rates in these neighborhoods are comparable to the exclusive areas of the Peninsula.  I can keep going on and on.  Let's say your household makes $250K per year.  Where will you have better QOL?  What happens if you're laid off?   To me it's insanity to leverage everything you have into a house so that you can say you live in an exclusive neighborhood. 

[lexa]

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TheGreenBanker wrote:

I think these home prices are here to stay.  What I am having trouble with is 3bd 2ba 1500sq homes demanding 1.2 million in the Peninsula.  Who on earth would pay that when you can get something comparable for half the price within a half hour drive??

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so... you changed your opinion 180 degrees within a week...What happened within it to change your opinion?

[sfsfr]

I think where you live is pretty darn important when you are talking about quality of life. I bought a house on the mid-Peninsula because I really like it here for a variety of reasons. I don't like fog so further north isn't good. Further south is too far from San Francisco for my liking. I like the hills, proximity to the coast and parks, convenience to both Silicon Valley and SF, the downtowns, and so forth. To me I would rather have a smaller house in this location than have a bigger house in a location I like less.