Are Amazon.com prices Real?

Real Estate prices in San Francisco Bay Area - Los Altos, Cupertino, Saratoga ..

• With everything in the economy setting new lows, the SF bay area real estate is growing up surprisingly. During the hey days of internet boom, the real estate hike was justified with the stock prices. Now most of those internet companies are bankrupted or trading at their lows of a few pennies. Yet, the bay area real estate is HOT, sizzling and I heard that the home prices are indeed going up. This has left me clueless as it defies all the gravity. I would like to know the reasons. Also, if the reasons indicate that there is a manipualtion of this market by vested parties, I would like some pointers as well. And above all, when does one see the real estate crash in this area and what could trigger the same. Thanks.

• Answer:

  Hi! Thanks for the question. I have collected the following assessments on why the Bay Area real estate market is being overpriced right now. According to these two articles by Broderick Perkins of the Realty Times he mentioned two underlying factors: (a and b). a. “The area's housing market is further influenced by the contraction of household wealth, largely due to the bust in the area's technology-based economy.” “When the market crashed, housing prices declined, and many new homeowners, who found themselves with a mortgage they could no longer afford, put their homes on the market.” These statements are particularly trying to point out that a selective few are trying to squeeze the real estate market especially for high-end homes. http://realtytimes.com/rtnews/rtcpages/20020205_bayarea.htm b.) “The spotty-market syndrome” – “A record high "luxury" home price index that doesn't fully jibe with reports of lagging sales activity is a red flag indicating a spotty-market that warrants close scrutiny by both buyers and sellers. Spotty-Market syndrome or reporting is using data that does not adequately represent the targeted population in this case the sellers and buyers of homes in the Bay Area. “ “Home shoppers may buy into bidding wars that don't exist and pay too much in a flat or depreciating market in a given neighborhood… could be trickling down to mid-priced homes which aren't appreciating as fast as even cheaper condos and townhomes.” http://realtytimes.com/rtnews/rtcpages/20010223_bayprices.htm Do these two statements subscribe to your suspicion as regards to someone or somebody trying to control the market? I think they do. c.) Supply and demand. There is such a demand for land/housing in the Bay Area, and this drives the price of homes up. However, there are affordable housing options. This was taken from Advantage Homes website. This can be located at the lower part of the web page. http://216.239.33.100/search?q=cache:2eSmmIcxiNcC:www.bayarea.com/mld/bayarea/business/personal_finance/debt_management/mortgages/ask_expert_front.htm+%2BWhy+Bay+Area+homes+expensive&hl=en d.) The region's economy is so much more diverse than a decade ago. This reason is specifically a factor for the Sacramento area according to this article. http://www.sacbee.com/static/archive/home/realestate/2001/0520.html Some housing bargains in the Bay Area are mentioned this article. Housing Bargains: http://beta.kpix.com/news/5reports/Housing_Bargains.shtml As to your question as to when it would end? The second article of Broderick Perkins which I cited said this near the end. "Buyers and sellers are cautioned to keep tabs on sales and prices of all homes. As spring approaches with its seasonally more active market, a clearer picture of the spotty market should emerge -- for better or for worse." The article continued that small changes in the Bay Area economy will change the balance of supply and demand bringing pressure for high-end home prices to go down. http://realtytimes.com/rtnews/rtcpages/20010223_bayprices.htm I pray that right now this is the case. Search Terms Used: +Why Bay Area homes expensive spotty market I hope this would be of help. Thanks for being a part of Google Answers. Regards, Easterangel-ga