Pricey home sales hit record in Bay Area
Posted in the Martinez Forum
#1 Aug 1, 2014
Pricey home sales hit record in Bay Area
There was a time when a million-dollar home was something families drove by on a Sunday outing to get a glimpse of how rich folks lived. But now they're more common than Starbucks, at least around here.
Fueled by the booming tech economy and seemingly insatiable demand for housing, the Bay Area set records in the second quarter of this year in the number of homes sold for $1 million or more as well as those costing at least $2 million, a real estate information service said Thursday.
In the nine-county region, 5,734 homes sold in the April-June period for at least $1 million, representing a staggering 24.5 percent of all sales of new and existing homes and condos, according to CoreLogic DataQuick. The previous peak was 5,699 in the second quarter of 2005.
The biggest number of such sales was in Santa Clara County, which had 1,791, its largest total ever. San Francisco also set a record with 857 $1 million-plus sales.
A total of 1,117 Bay Area homes sold for at least $2 million, amounting to 4.8 percent of all sales. The previous high was 871 homes costing that much during the same period a year ago. Santa Clara County also was tops in that category with 399 sales, a county record. Other $2 million-plus sales records were recorded in Alameda, San Mateo, San Francisco, Marin and Napa counties.
"Barring some shock to the economy, it's likely these numbers will continue to rise," said CoreLogic DataQuick analyst Andrew LePage, noting that the rapid appreciation in the value of real estate has hoisted the price of many homes past the $1 million mark. Although prices have begun to ease lately, he added, the cost of housing is still so high "it can be bad for people trying to get into the Bay Area market."
Among those experiencing that painful reality is Amy Austin-Hanson, 31, who lives in an apartment in West San Jose with her husband, James, 34, a Safeway truck driver, and their 3-year-old daughter.
"There's no way we can afford to buy a home and to make it," she said. "Worse, rent in the Bay Area has skyrocketed. My husband and I went to the bank to try to qualify to maybe buy at least a townhouse. The lady actually laughed at us." With their combined $75,000-a-year income and houses selling for $1 million, "we were told we'd never make it."
She noted that townhouses in their neighborhood are going for $600,000 to $700,000.
"The house down the street, an older tract home, is selling for $998,000," she added. "You would think, if you spend $1 million, you would be buying a mansion. These are three-bedroom tract homes."
Still, while many people can't afford a home here, there's no shortage of others snapping up houses, said Mark McLaughlin, CEO of San Francisco-based Pacific Union International, which specializes in handling luxury home transactions. He attributed the run-up in home prices to population growth, abundant jobs and the fact that the Bay Area "is one of the most desirable places to live in the world."
The housing trend is especially influenced by the sudden wealth generated by the booming tech industry. New companies going public and others lavishing their employees with stock options have created a flood of eager homebuyers driving up the price of the region's relatively limited supply of available houses.
In the $1 million-plus category, Alameda County had 777 sales in the second quarter, Contra Costa County had 714 and San Mateo County had 951. Among sales of at least $2 million, Alameda County had 79, Contra Costa County had 67 and San Mateo County had 230.
In some communities virtually all home sales were in the million-dollar category, according to CoreLogic DataQuick.
#2 Aug 1, 2014
Except in Vallejo where we have so many undesirables , home prices are just beginning to recover.
Since the city has invested in attracting the people most likely to create social problems , no one wants to invest in the city .
As a new wave of people forced out by home prices elsewhere slowly displaces the underclass., prices will come up . Our white trash and ghetto renters have slowly been replaced by decent people who can hold a job. Except for the apartment buildings.
#3 Aug 1, 2014
and where will they go? naw, the city dumbsters will just build more affordable housing. there are no stats to support your claim that decent people are forcing out tweekers and thugs. they are not going anywhere.
city policy is to embrace the worst citizens money can buy and the federal government is only to happy to keep giving dumbass vtown more money to do it with.
you can be sure another vha budget increase will pop up next meeting, and the magnificent 7 will say YES.
#4 Aug 1, 2014
It was the vha budget that will pay for the removal of the pass and badge building. The 108 loan is from HUD, through the vha. Try looking more intelligently at what the vha budget really is before you show your ignorance.
#5 Aug 1, 2014
well! if the badge and pass demo is with hud loan, fed law requires the bidding process instead of no-bid award as WAS DISCUSSED at last meeting.
NOW who looks ignorant?
and who cares what the vha budget is? the problem is that it grows and grows with the complicity of this batch of the 7 stooges.
you want ever expanding vha budgets?
wth is wrong with you?!
#6 Aug 3, 2014
In my neighborhood , two rentals formerly occupied by sleazebags are now rented by a nice young couple and a nurse. All of the foreclosures have been bought by better quality people than the previous owners. The older renters are still trash , but rents in my hood are up. When they leave , rents rise.
Right now , the renters are the source of all of our neighborhood problems. Not all people who rent cause trouble , but all of the trouble come from people who rent and their associates. Feral children , white trash with yards of garbage and junker cars leaking oil, ghetto people burglarizing and churning out children they don't have the skills to raise.
Long time Vallejoan's are so apathetic that that the dysfunctional state of affairs is normal to most of them. They don't leave Vallejo much , so they don't perceive the blight and despair like normal people do.
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