Even I was shocked at what my realtor told me I could get for my little Spanish Colonial here in LA!!
This is probably due in some measure to the massive building of rental units in the Bay Area.
A couple of years paying rent in San Francisco could buy you a pretty nice place in much of the South or Midwest.
I don’t expect the low prices to last for very long. Not in this area. It’s that way here in Marin too. A nondescript brown shack is sold for top dollar in Sausalito, Ca. Why so high? Because it’s in Sausalito, Ca., or because someone expects to have to pay that much. So they do.
I’m hearing some interesting things in the commercial real estate market. In many large metro areas, there has been a flood of new rental housing built in the last few years as more and more people decide that owning a home is not a great financial position for them to be in. Banks are now cutting their exposure to these types of projects because they anticipate a combination that could be disastrous for small real estate developers: rising interest rates on commercial mortgage renewals, and falling rents as the excess supply drives the prices down.
I am paying $2300 for one bedroom 720 sq ft. no washer=dryer inside apt in Sunnyvale, CA (Silicon Valley)
Who can afford the lower rent let alone that high rent!
I am in N Nevada high desert. I have a horse property —5.58 acres—for sale. Sunday, I had 3 females & 2 males look at the property. Appeared to be all one family. brothers or some such.
The males claimed they both worked UNION construction in San Fran/San Jose. They both rent. This property is over 400 miles from San Fran/San Jose. Maybe the payment on this property would be less than their combined rent. They are looking to completely get out of Calif & move to Nevada.
Calif is truly teetering on the brink.