China It is courageous to spend all of your income, plus the income you haven’t earned yet. Wake me up when there is at least a 33% drop in prices! When an emerging economy experiences healthy growth, some of the clever, educated emigrants come back home and start their own businesses, benefiting from fast domestic growth. It’s interesting how there are still so many local markets in US. People are massively striking out on their own. If you add the GDP from all SoCal counties, you will find a GDP that is just short of NYC. So it’s not exactly a focal point of modern industry and it doesn’t have a lot of high-paying jobs. Housing prices doubled there. The Bay Area Real Estate Market Will Not Crash. I have got a special circumstance rental situation that is dirt cheap and just right for me. Let’s see some new lows first. Jobs COVID-19 - spring housing market crash in Bay Area. The Super Ultra Dove Deluxes at the Fed are calling for .50% rate cut and NIRP because its the Feds job to prevent an earnings recession and make stock prices go up and we all know the Fed bases it’s policies on stock market performance. However, things picked back up in 2019, and after the lockdowns end, the spring 2020 buying season is simply going to shift to the summer. Click on the beer and iced-tea mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? China I travel to India frequently and I like it precisely for the opposite reasons you have described which you know aren’t true because you wouldn’t be here in all probability otherwise. Prices way too high for even well-off normal people to buy. After years of rapid growth, Bay Area rents continue to increase but are finally showing signs of a slowdown. In addition, there are mountains. It was quite interesting…as interesting as all (ALL) the forecasts that a left wing govt (called socialist) would drive the economy into the ground….that they couldn’t run a peanut stand….and yet they just announced yesterday a 1.4 billion dollar budget surplus forecast for the year. But, I do love Boston. The nine-county Bay Area as described in this article has a population of nearly 8 million people. Anybody who can get out will. Then spring buying season kicked in, and in June, the median price reached $1.76 million, up 8.8% from June last year, but up only 1.7% from the prior record in February 2018. Lamorinda Real Estate Market Trends. And now it’s in the process of giving up those gains again. Outside of a few west coast cities, the average returns on houses are pretty meager over the period of ownership and on the level of an equivalent government bond. He has seen booms and bursts come and go but continues the say the same thing. Sales volume of condos fell 16% in June compared to last year. They lost money then sold. My conclusion is that the Bay Area is a very desirable place to live provided you do have to commute and provided you have enough money. We’ve rebounded in 2019 as rates have collapsed and people are getting liquid from the tech IPOs starting in 4Q2019. Was there a rate cut in December that no one seemed to mention anywhere? Because they believe there is more room to drop. We should be so lucky! I’ll give you that as ridiculous. PS: India is maybe the only country that as soon as you land at the Delhi airport, the smell and stench of shit won’t leave you alone until you leave the country . I suppose it depends what cities you include. Did I mention you should buy a house? The luxury market in particular has flourished. As open houses can resume in Napa County, KTVU's Debora Villalon reports how the Bay Area real estate market could rebound. You are stupid to not go out on the risk curve with bonds He is looking for a private room starting November 1st week. This is GREAT NEWS for socaljim. Published on 6/9/2020 San Francisco Bay Area real estate was in a bubble that deflated by 11.5% in 2018. But my gut feeling is that this Housing Bubble 2 in the Bay Area is cooked, and that prices will trend lower going forward, in a zigzagging sort of way. Unlike you like NUDE NUDES. Prices follow inventory, with a lag. By the time prices have dropped 33%, the downward motion of the bust may be over and you’ve slept right through it and missed it :-], Also consider the Bond bubble and the Tech 2.0 bubble dynamic as well could easily lead to a 50% drop vs a 33% drop. A bust or natural disaster may temporarily drop pricing but over all the area will continue to grow in time. Ding ding ding, on the nose. And, when it comes to GDP, LA is the only area in the country that rivals NYC. Talltree is exactly right. I say if you plan to live in the house and can make figures work, go an buy it. Once the Tech 2.0 bubble pops and these companies start laying off workers, this is when the fun starts (NOTE: I work in tech Santa Clara area). The same report shows home prices in Southern California have increased Y over Y. SocalJim – Southern California may not appear as bad on aggregate, but the high end segment is getting crushed. I am moving this weekend from the peninsula to the east bay, booked a month ago with Uhaul and found out last night that they have no 15ft trucks available in the entire bay area. The question is; what will happen to Chinese investment and immigration post COVID-19? If the President get his way and weakens the dollar, Chinese repo rate just skyrocketed to % 1000. 36 Months from today, The median house price in June fell 3.2% to $1.37 million. Experts pessimistic about California housing market in 2020 Toggle header content. LA was important during the 20th century, but times have changed. The Valley is also seeing a very strong market. Bay Area’s dropping rents will reshape housing market J.K. Dineen June 9, 2020 Updated: June 17, 2020 8:38 a.m. Facebook Twitter Email LinkedIn Reddit Pinterest Read… I have not studied the markets on your list. Median means half sell for more, half sell for less. People are massively striking out on their own. US situs assets of foreigners is a big pain in the you know where. Went to Seattle yesterday could hardly wait to leave, which makes me very sad, but its only going to get worse. These are not “averages.” They’re median prices per county. Condo +11.1% ($220,000), Inland Empire: SFH +4.6% ($385,000). 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