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Posts Tagged ‘california’

I must admit I’ve been far too busy to keep up with the media.  But when I walked into a convenience store last Friday and saw this headline screaming up at me from a stack of San Francisco Chronicles I took note.

Up to this point, the inner San Francisco Bay Area seems to had a teflon coating against the declining RE market.  Yes the outer Bay Area is bad for a while, lots of foreclosures and huge price drops.  My personal opinion is that the severe downturn in the outer bay has been hastened by the high cost of energy.  Many in the outer Bay Area commute many more miles to get to places like San Francisco and Silicon Valley where the housing prices have always been higher.   At some point the commute stops making sense.  And let’s not even talk about further out into the central valley, where Stockton is ground zero for foreclosures, driven by speculation gone bust and really not much in the way of jobs.

But the inner bay has been immune, or so I thought, severe building restrictions, an awesome climate, great culture and high paying jobs has always kept prices high and competition for houses intense.  When I bought in 2000, I was incredibly lucky to be the one picked out of 14 offers.  But the cancer of the housing market has spread inward and yes even San Francisco has suffered a double digit decline (11%). 

What’s dragging down prices?  The large inventory of bargain priced bank owned properties.  The individual owners don’t really have much of a chance unless they have something really special that the right person will want.

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