Bay Area housing is now a depreciating asset

Oracle / Other alive!
Jan 9 35 Comments

the bulls kept stating that the drop in prices are seasonal, and kept stating that the interesting number should be YOY appreciation.

Now the YOY numbers state that 4 Bay Area counties are depreciating asset. These include Santa Clara and San Francisco counties 😂

The houses in Santa Clara and San Francisco counties sold for lesser prices in NOV2018 compared to NOV2017.

Bay Area housing is now a depreciating asset

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TOP 35 Comments
  • LinkedIn vfgh215
    I'll just leave this here
    Jan 9 8
    • Apple nmgfd
      Past performance is not always indicative of future performance.
      Jan 9
    • LinkedIn vfgh215
      Yeah well this is 32 years worth of data so are you trying to say a data point of one year is better?
      Jan 9
    • Airbnb Hova999
      Of course the real estate co sponsoring that pic, wants you to buy regardless!
      Jan 9
    • LinkedIn vfgh215
      Well sorry your TC doesn't stack up enough to buy a house here. Maybe you could've afforded it back when they began tracking the data ¯\_(ツ)_/¯. I'm good with the fact my house made more then me last year I'll take a drop and be ok while you piss away $5k/month on rent
      Jan 9
    • LinkedIn vfgh215
      And oh by the way it's S&P data you dip shit
      Jan 9
    • Apple nmgfd
      Why so much hate Mr. LinkedIn. Enjoy your house and ignore the data.
      Jan 9
    • LinkedIn vfgh215
      Because this site is toxic and brings out the worst in people
      Jan 10
    • Intel Jopdi(78
      Have a thicker skin and recognize the good intentions of others
      Jan 10
  • F5 Networks Op64em
    The people who bought houses in the SF Bay (or Seattle, or DC, etc.) presumably did so to reap benefits that accrue over many years, not one.
    Jan 9 1
  • Oracle / Other alive!
    OP
    So now the goal post again changes for the bulls. When prices were dropping MOM then the argument was that YOY is the golden number. Now that YOY has turned negative then the argument is that it needs to be seen over several years 😂
    Jan 9 3
    • F5 Networks Op64em
      I'm not sure whom you're talking about. I've always been skeptical of homeownership and only purchased after getting married, having a kid, and realizing I'd be staying put for at least ten years.
      Jan 9
    • Autodesk senator
      This makes the most sense. It seems most people don’t realize that a first home is rarely a strategic financial investment. It’s an emotional purchase. This does not make it a poor choice.
      Jan 9
    • Intel Jopdi(78
      For the Bay Area as a whole, the price is up based on the data you shared. Housing is always v local - why pick at the city or county level instead of by neighborhood?
      Jan 10
  • Facebook public2
    Alive, just stay out of real estate, it is not for you. You clearly don't get it and I don't mean that in a bad way, it is not for everyone. It's not a liquid assest that can be traded monthly. It can and will rise and fall over and over again. Relax ;)
    Jan 9 0
  • Facebook Dogfart
    That's fine, I bought in 2012.
    Jan 9 0
  • Facebook ujsX74
    Shit’s overpriced and overvalued. This is not surprising.
    Jan 9 0
  • HPE mtpbg
    It’s hopeless trying to argue with the housing bulls here. According to them, the average South Bay home will be worth $10m in the next decade 😁
    Jan 9 4
    • F5 Networks Op64em
      Homeownership as an investment is a bit weird. It's illiquid, not diversified, and highly leveraged. But it will fix housing costs and give you a place to raise a family. If it weren't for that I'd just buy Admiral shares of Vanguard index funds. #bogleheadsuperstar
      Jan 9
    • Facebook public2
      The leverage is what makes it great.
      Jan 9
    • F5 Networks Op64em
      To each his own. I'm more of a live-far-below-means sort, so the additional leverage just makes it harder to pay the whole thing off early.
      Jan 10
    • Facebook public2
      Totally makes sense and fair strategy. I was leveraged up to eyeballs early on in life but had nothing to lose. It was occasionally stressful but in retrospect I would do it again without question.
      Jan 10
  • Akamai Technologies / Eng Trn
    And so are the stocks then?
    Jan 9 0
  • New / Product
    ʕ•ٹ•ʔ

    New Product

    PRE
    Amazon
    ʕ•ٹ•ʔmore
    And your favorite chart.
    Jan 10 0
  • If it goes down enough, op may be able to afford something.
    Jan 9 0
  • LinkedIn vfgh215
    Jan 10 1
    • HPE mtpbg
      Great way to get some free publicity 😀
      Jan 10
  • New / Product
    ʕ•ٹ•ʔ

    New Product

    PRE
    Amazon
    ʕ•ٹ•ʔmore
    Alive! Why my home appreciated? For the last 1 year? It is +%13. What happened to my home?
    Jan 10 0
  • Facebook public2
    Also this chart is median sale price lol, housing is still appreciating (at a slower rate) median sale price is based on sales rofl. Read the article before you rush to blind to make a false statement that housing is a depreciating asset: https://www.car.org/en/aboutus/mediacenter/newsreleases/2018releases/nov2018sales
    Jan 9 0
  • Oath / Eng fat
    Dow dropped like..what..10%?
    Jan 9 0
  • Autodesk senator
    A single year unfortunately does not make for a statistically significant definition. But since I don’t want to live based on statistics alone it seems that you are quite correct.
    Jan 9 0
  • Oracle ypoint
    TV news _today_ in the Bay Area had realtors saying, "there's a tectonic shift in the market," and to expect the "normal" RE appreciation of 1-2% per year, not 18%, and that the peak was May/June 2018.
    Jan 9 0
  • Autodesk DouP01
    Bay Area home prices is highly correlated to tech stock. We did the rent vs buy calculator again based on just 2018 data. It turns out buying is still the way to go, under the assumption that if we don’t buy, we’ll put all our money into index or mutual funds, which did poorly in 2018.

    Exhibit A, vanguard performance:
    Jan 9 0
  • Amazon eofjdkjd
    OP doesn't understand depreciation and the real estate market, so just tc/gtfo
    Jan 9 0

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