CA. real estate and the state of the world in 2017:

[speeder]

The house that sold for nearly $800,000 over asking price speaks to the inequity of California - LA Times

There is no possible way to put a positive spin on this.

[GH85Carrera]

Only if you are the seller.

[vash]

chit..i know ONE PPOT guy that is air-high-fiveing himself right now..

holy crap!!

[JeremyD]

This is what you get in Florida for that sort of money

https://www.zillow.com/homes/for_sale/47037295_zpid/27.801114,-82.605705,27.796905,-82.611472_rect/17_zm/

[sammyg2]

Damn that free market economy!

[scottmandue]

Originally Posted by speeder

There is no possible way to put a positive spin on this.

I presume you don't own a house?

I also presume from your posts you (and Randy Newman) love L.A.

Don't get me wrong, I was born here and love it too... but,

I'm about to turn 60, been a employee of the state for 20 years, so looking at retirement.

So when the time is right I can sell my house, move out of state, and buy a house outright with no mortgage.

[legion]

California real estate seems awfully frothy...

[McLovin]

Originally Posted by Wayne 962

Comparing a house that sold in Sunnyvale, CA (the heart of silicon valley) to the rest of California, is typical headline blather from the LA Times. I cancelled my subscription years ago, yet they still insist on sending me the Sunday paper once and a while (like two days ago).

The laws of supply and demand dictate the housing prices, especially in silicon valley. It's Google and Apple and the rest of them that have driving up the pricing. A side-effect of successful companies?

-Wayne

True, that is a very unique area even in California.

I track prices, I see lots of houses in desirable areas in California (for example, Newport Beach) that are sitting for literally a year, with prices being lowered. I'd say the market has cooled in many (or most) areas in California in the past year.

[McLovin]

Example:

Corona Del Mar (a very desirable beach city), listed at $1.399 million in April, lowered to $1.346 in June, lowered again to $1.299 in October, still not sold.

https://www.redfin.com/CA/Newport-Beach/3211-3rd-Ave-92625/home/4732310

[vash]

not sure how; but i imagine our recent wildfire ripping thru town will affect our home prices. i know RENTS are even more insane now.

[Aerkuld]

I have to question several lines in that article. Among them;

"The government's job is defense, and building roads and schools. But another part of the government's job is income distribution and too much of it has gone to the super-wealthy."

So why is the Government responsible for income distribution? I think a lot of people would disagree with that.

People with current mortgages in San Jose, Santa Clara and Sunnyvale are sitting on more than $239-billion worth of equity . . .

Yes, and they're paying for it, and they earned the money to do so. What point is the writer trying to make here?

I agree, the market in this area is nuts, but it is what it is, and it's unlikely to get any better, unless someone finds a way of making more land out of nothing, or the economy of the entire area is seriously disrupted.

Companies come here because there is a huge pool of available talent. Talented people come here because there is an abundance of companies looking for them. There is a huge demand for housing because of a very healthy economy, but there is only so much space available for housing, so what's going to happen? it's simple supply and demand.

I will say, I also wonder where the people live who work in the gas station, or the grocery store. On the other hand, we wondered how we were ever going to buy a house here, but we did because we saw where prices were going and knew we needed to make a move or be priced out.

People can whine about it all they like, but I don't see what anyone could realistically do about it, nor should they.

[yelcab1]

Sunnyvale is the home to Google and Facebook who have minted many millionaires. Cupertino is home to Apple who have minted even more millionaires and also has driven up property values around the Apple spaceship. Sign of the success. Supply and demand and all that.

[BE911SC]

Global buyers flying in to buy homes as investments. You're no longer competing with the nice family from across town.

[Bob Kontak]

Originally Posted by Wayne 962

Comparing a house that sold in Sunnyvale, CA (the heart of silicon valley) to the rest of California, is typical headline blather

Did the '95 Pebble Beach tour in August of '95.

Dude I went with had a Lotus and that was the feature marque.

His pal from college lived a block and a half from Steve Jobs in Palo Alto. His house was 1/2 the size of the subject house in Sunnyvale and he paid $800k.

[john70t]

Originally Posted by speeder

There is no possible way to put a positive spin on this.

Maybe there is?

The uber-wealthy still buy groceries(ok eat whatever their chef served).
And they need a reliable pot to piss in.

They still want the very best products and services at the cheapest prices, as we all do, but at their level or any level they are still fail-able to human nature.
It's easier to not count pennies or stick with strategy and discipline after a hard day making millions.
Just sign "OK" on the dotted line of the bill.
(Ever wonder how so many decent/normal stars like MC Hammer went broke after paying off the entourage bling?)

Upward advancement
The uber-wealthy want the best talent and that is what creates a positive hiring drive for the best workers who know their stuff.
Hey some countries are full of PHD-level academics driving taxis.
Let's all count our blessings...shall we?

Those workers will probably not ever be able to afford the RE marketplace they work in but they still have to live nearby.
As higher level workers they expect and demand a better living environment (not getting mugged at the front door etc)
Thus pockets of new more wealthy areas spring up surrounding the uber-wealthy.
All wages rise as a consequence of overhead costs..umm...theoretically.
And some of the service workers can afford to buy in those outside areas and even buy multiple properties and become wealthier themselves.

All these interactions will create pockets of potential growth for those who learn and know how to game the system better.

And thus all ships rise with the tide?

[Borders Reivers]

In North Dallas proper I paid $185k on a private lake

[john70t]

Accolades to the above independent choice.
My dream too.
(Uh. And any time y'all want to swap lifestyles BR I am ready to sign.)

My property was about the same in 2008.
Some nearby were $40/$50/$60K in the land of $200-300k at the time.
An equitable investment opportunity.
A tax basis about 1/10th normal.

I was prevented from buying those. Using force....

[speeder]

That Dallas house looks like more than $185k in the middle of North Dakota. I didn't know it was that cheap there.

[Neilk]

Originally Posted by Borders Reivers

In North Dallas proper I paid $185k on a private lake

You must have bought that house 20 years ago NORTH of Dallas, not in North Dallas. Curious where that is.

[john70t]

It was a respectable venture, whatever it was.