Parts of America Still in MAJOR Denial on Housing...

[El Pinko]

This 1100 Sq Ft bungalow in Palo Alto, CA (Silicon Valley) is a short sale, and they are asking - get this - $999K for it.

It's cute, but PLEASE. The property tax alone will run you $11K/year! (well, at least until you get it reappraised at the probable 2010 value of $400K)

$916 per square foot.


http://www.redfin.com/CA/Palo-Alto/2360-HARVARD-St-94306/home/1524129


I guess it's still "different" in Palo Alto. But just wait and see...

[dbonds]

1. A house like that would go for 100k here in Alabama.

[natrat]

2. please...prices in nice areas in the bay area have gone,and are going up

you cant get anything in a nice area in SF for less than a million. Might think it's a rip off, but that's just the way it is-friggin prices just dont drop

[El Pinko]

3. They will.

Things used to be "different" in Tracy and Livermore and Walnut Creek and Sacto, and now houses in those areas are in the $200Ks.

Incomes are high in SiliValley and will continue to support high housing prices, but not like this.

Just wait and see.

[rubberducky]

4. When I read things like this, it makes me feel like I live in a different

third- world country here in very small suburb of the big"D" (Detroit). We are in financial PAIN here. The bottom has fallen out of the housing market. I don`t know where we bottom out, but financially here it`s very, very bad. BTW, I lived in CA for 12 years in the late 60`s, early 70`s. The cost of living was out of sight then,cannot imagine living there today.

[xchrom]

5. sorry el pinko -- it's gonna stay like this in the bay area.

this is a place where everyone wants to live -- and certain areas like palo alto or los gatos or berkeley or piedmont and on and on will
always have a premium price.

[El Pinko]

7. Ha ha.

Keep telling yourself that.

Yes, it is a fantastic part of the country.

And no, incomes there will not continue to support these prices.

As of 2005 60% of ALL bay area mortgages were "exotic" (subprime, Alt-A, etc.)

The industries in Silicon Valley are just as vulnerable to foreign competition and price pressures as any other.

Palo Alto will never be like Sacto or Mountain House, but as credit dries up and jobs become scarce, prices are going to be falling precipitously, with the exception of the toniest enclaves.

And plain old Palo Alto is no Atherton.

[xchrom]

9. you're gonna be disappointed. nt

[El Pinko]

10. I'd love to make a wager on it if I knew you personally...

Meet me here again in 2 years' time?

:)

[SmokingJacket]

6. Houses are "worth" what anyone will pay...

The question is whether they'll hold onto that "worth"...

[PVnRT]

8. I'm glad I'm far away from places like that

Living in smaller communities a short drive from work has its advantages.