Shreedhar' s Weblog

Bay Area home prices moving downward ?

I found an interesting analysis of the supposed housing boom in the bay area on this site: http://www.patrick.net/housing/crash.html

The author makes some very valid statements of facts but occassionally some conspiracy theories to explain away the run-away prices here which sound a bit unbelievable but could well be true. I very much agree with his opinin that the lack of sustained rise in incomes and employment in Bay Area coupled with the increase in outsourcing/offshoring activities will drive down prices and demand sooner than later.

I can't believe it when I see some prices on the MLS. 1300 sqft, 35 yr old house, with a lot size of just 3500 sqft in Sunnyvale quoted at $860,000? Holy moly! I talked with the agent for that house ( I just do these rounds on some weekends out of sheer curiosity and not to go look for a house at these insane prices) and his response was "You know people are beginning to feel comfortable with their jobs and hence there are too many buyers. Prices wont stay this low for long" What? Of course, agents make statements such as this to inculcate the fear factor.
May good sense prevail.

Posted at 11:20AM Aug 26, 2004 by Shreedhar Ganapathy in General  |  Comments[1]