Posted on 06/22/2022 11:13:16 AM PDT by NohSpinZone
The monthly mortgage payment on a typical home in the Bay Area jumped more than 50% from a year ago, soaring to over $9,000 in San Jose and above $8,000 in San Francisco, according to a report from Zillow.
The online real estate marketplace reported Tuesday that housing affordability across the nation is at a 15-year low, adding that buying a typical U.S. home at the current average mortgage rate of 5.78% would mean monthly payments of $2,127, 51% higher than a year ago.
As is customary, that number quadruples in the Bay Area's two largest cities. Here are some details from Zillow's report:
Housing in San Jose metro * The typical home value is $1,706,565, up 22.4% year over year and 37.6% since 2019.
* Mortgage payments on a typical home are $9,136 a month. That’s up 57.1% compared to May 2021 and 5.4% over April.
* Typical rents are $3,295, up 12.1% since May 2021. The share of listings with a price cut is 8.1%, compared to 4.7% in April
(Excerpt) Read more at nbcbayarea.com ...
“””The monthly mortgage payment on a typical home in the Bay Area jumped more than 50% from a year ago, soaring to over $9,000 in San Jose and above $8,000 in San Francisco,”””
But a small price to pay live in utopia!!!!!!
Puts those $80,000 Silicon Valley tech jobs in perspective.
I remember a very farsighted sage in the 70’s to us wees teen lads we’d need a million dollars in fifty years just to live half way decent. We didn’t laugh but wondered how to make a million and fast. Never happened for me.
The hedge funds and Chinese millionaires/billionaires welcome it.
$80,000 in Silicon Valley is near poverty level. There was a study last year that declared a family needed to make at least $300K to live like the middle class and $400K and above to be upper middle class+.
We can’t all be food-delivery app start-up millionaires.
where do waitresses, grocery store workers, truck-drivers live???
California people have money out the wazoo.
Yet another problem with centrally-controlled, printed/fiat government money - it turns everyone into speculators or political whores seeking favors from government.
A couple of options.
1. Multiple households in a single domain (even rents are outrageous)
2. Commute in from at least 50 miles away, which is really difficult with gas prices these days.
Good.
We need way fewer people around here.
Helped by greedy sellers. Here in the San Francisco Peninsula, we're seeing a number of homes go up for sale way over what they're worth due to seller greed. Home across the street went on the market asking $300K over what comparable homes are worth. They've gone through a couple reductions ($100K each time) in the last month. Those days of buyers offering $300K to $400K over asking price are gone. In talking to real estate agents this month, they tell me that the market has slowed down and some homes are now going under asking price. (About $1.5M here.)
I agree that foreclosures are going to ramp up this summer, and there will be lots of price reductions.
“The typical home value is $1,706,565,”
That will buy a very nice house in Texas. And that’s why they are streaming in.
This article is way, way, misleading.
They are talking about a NEW mortgage, taken out TODAY.
Once you have a loan, your payment is fixed for 15 or 30 years unless you have a variable rate, which you should avoid, and even those have not jumped all that much, although look out, it’s coming.
Anyone who refinanced in the past two or three years, up to about six months ago, could be paying as low as 2.25 percent. On a half million dollars, at 15 years, that’s about $3,300 per month.
Greedy? The top buyer determines the price.
(Unless it's government forcing taxpayers to buy it).
I always made sure my mortgages were assumable, for this very day. Huge competitive advantage offering an assumable at say 3%, vs the house down the street without and the buyer getting nailed at 6%.
“Jobs pay well around here but I do not see how payments like this are sustainable.”
Seems wacko. The $9100 is over $108,000 per year. Is someone going to tell me that the average family makes well over that per year? I said “average” not the tech brains.
Must have dual income for sure. But your typical white-collar tech job can pay anywhere from $150K to $300K depending on the company. So with two earners, the math works out.
However, the margins are incredibly thin. One person loses a job, and the whole thing collapses.
No .
People. there have second and third mortgages.
its a nightmare .
I have family that lives in Palo Alto. Just a few miles from Stanford. People rent tents in back yards and houses around facebook and google have dozens of foreign workers living in them. Reminds me of “hot racking” in the navy. I had a job offer there and laughed when he said the pay was $150k a year. “But we have stock options.”
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