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Originally Posted by Fleetlord
On paper there just is this big disconnect between salaries and home prices, such that I wondered how the prices got so high if there isn't that much real money earned to float them up up up and way!
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Supply and demand + countless new homebuyers immigrating to the United States with cash lined pockets. See below.
Quote:
Originally Posted by BravoOne
I built a 2 bedroom, 3200 sq ft home in Hillsborough CA (SFO Bay area) in 1979 for about 375,00. I see where the home recently sold for 3.8 million. That is insane but the HKG/TPE/PRC Chinese are willing to pay through the nose for these properties. I sold it in 1984 for around 650,000 and thought the buyers were crazy then.
There is a lot of high rise condo construction going on in down town SFO and buyers are mostly Chinese. They will buy 24 units in one building and live with other family members in three or four of the units leaving the others empty. Not a good deal for anyone that wants to live in the city.
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Short-distance shopping conveniences, relatively safe neighborhoods and high-quality public education districts are the primary draws. Much of this demographic phenomena is occurring in the mid to upper middle class suburbs of Silicon Valley and the San Francisco Bay Area. Fortunately the ongoing and massive influx of moneyed immigrants (bearing CASH upfront in lieu of traditional 10-20% residential down payments towards homes) hasn't significantly permeated into many of the more rural and pastoral settings in Marin and San Mateo Counties. The appeal of a moderately secluded bucolic residential environment hasn't caught on with a majority of them. Yet.