• "Spreading the ideas of freedom loving people on matters regarding metals, finance, politics, government and many other topics"

This billboard says everything you need to know about absurdity of San Francisco real estate

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
32,742
Likes
47,724
#1
This billboard says everything you need to know about absurdity of San Francisco real estate
By Sally French
Published: Apr 6, 2016 8:49 a.m. ET







Summit 800
The Summit 800 development of new-construction single-family houses in a remote corner of the City by the Bay puts entry-level pricing near — not at, mind you — a million dollars.
Want to buy a house in San Francisco but frustrated at the stubbornly low level of inventory? Lucky for you, some new real estate is coming to market. The cost? In the mere “low $1,000,000s.”

Imgur/Wolcam


That’s right: The supply-and-demand situation in the San Francisco Bay Area is today so out of whack that the people behind a new development in the city’s Lake Merced neighborhood felt they could attract eyeballs with a billboard suggesting their starting–at–$1 million value proposition.


Eyeballs captured, the billboard quickly made the rounds on social media:


Here’s a look at what those “low $1,000,000s” will buy you: a 1,547-square-foot, three-bedroom, two-bath town home (listed on real estate site Redfin for about $1,012,000).

Redfin


Yours for $1,012,000.
Less near that mythical million-dollar mark is this three-bedroom, 3 ½-bathroom, 2,393-square-foot town house listed for somewhat over $1,649,900.




At the $1,649,900 price point.
“You’ll take in the lifestyle of the city but leave all the limitations of San Francisco behind,” according to the development’s website. “So, when your day is done, you’ll pull into the garage, hit the button and walk into a place that’s different from the start.”

Translation: This development is well removed the city’s hustle and bustle, and it’s not in a traditionally sought-after neighborhood. The Lake Merced area is located in the city’s southwest corner. It’s about as far from the Financial District or the charm and attractions of, say, North Beach as one could get and still be within city limits.

This is not the first San Francisco property listing to garner widespread attention of late. Recall the shack that was listed for $350,000 and sold in September 2015 for $408,000, nearly 17% above the asking price. The real-estate agent referred to the house as “above and beyond distressed.” That frank admission signaled that the value was in the land, not the structure standing on it. Fair enough. But the land itself is located in the shadows of both a busy freeway and BART tracks, in a relatively remote and rundown section of the city.

Don’t miss: Mapping the San Francisco–area real estate market, BART station by BART station

If that doesn’t sufficiently impress (or exasperate) you, a perusal of listings in the city’s more central and amenity-rich areas may leave you rethinking Lake Merced and its “low $1,000,000s” town houses.

Take the one-bedroom, two-bath home of 1,428 square feet located near the AT&T Park that’s currently on the market for $1,950,000, plus $563.36 in monthly homeowners-association dues.

Redfin


Or this three-bedroom, two-bath home in the hipster enclave Mission Dolores. A significantly more sizable property than the one-bedroom near the ballpark, at 2,580 square feet, this house, previously a two-unit property, has recently taken a “huge price reduction” — all the way down to $2,599,000.




Home prices in San Francisco have risen 10.5% on a year-over-year basis, while U.S. house prices overall were up 5.7% in January compared with a year earlier, the S&P/Case-Shiller 20-city index showed in March.

National builder Hovnanian last month announced its intention to up stakes in the Bay Area, pronouncing the market “frothy,” “lofty” and “almost speculative.”

http://www.marketwatch.com/story/th...-estate-summed-up-in-one-billboard-2016-04-05
 

Mr Paradise

Midas Member
Midas Member
Joined
Dec 3, 2011
Messages
9,531
Likes
10,664
Location
Lake Superior
#2
When the 99% finally go full Red October neighborhoods such as these will be torched and the people living in them will be thrown from the 3rd floor balcony.
 

the_shootist

Old Pasty White Guy
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
52,510
Likes
95,169
Location
Earth
#3
When the 99% finally go full Red October neighborhoods such as these will be torched and the people living in them will be thrown from the 3rd floor balcony.
 

normaldude

New Member
Joined
Mar 31, 2016
Messages
77
Likes
92
#4
When the 99% finally go full Red October neighborhoods such as these will be torched and the people living in them will be thrown from the 3rd floor balcony.
And then they'll be baffled at why their favorite smartphones, apps, search engines, youtube, ecommerce sites all stop working.

Personally, I think it's a good thing that the center of tech innovation is located in the US. If all the tech firms & talent fled SF Bay Area & Silicon Valley, and reformed in another country, I would view that as a negative.

Capitalism is the path to prosperity. Red October communist uprisings always resulted in crushing poverty.
 

solarion

Midas Member
Midas Member
Sr Site Supporter
Joined
Nov 25, 2013
Messages
6,914
Likes
10,867
#5
Sweet...wonder where we can get some of this "capitalism" thingy. All I see is rigged markets and constantly devalued funny munny.

SF is like its own creepy planet $1.6 million fake "dollars" doesn't even buy a dang yard?!? You can open a window and touch you neighbor's house. Uh...no thanks, I'll take a real house on a plot of actual land in non-communist controlled territory.
 

nickndfl

Midas Member
Midas Member
Midas Supporter ++
Joined
Jan 7, 2011
Messages
14,815
Likes
14,778
Location
Florida
#6
I was over there last year and not only is it expensive, but a lot of SF looked washed out, even by North Beach. I like classic rock from the 1960s and 70s, but everything else from electronics to cars to homes to women I like new and fresh. Those town homes are worth the $1m asking price for the Bay area simply because new construction is better. There is a sacrifice of being in a less desirable part of town, but they will sell out.
 

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
32,742
Likes
47,724
#7
Personally, I think it's a good thing that the center of tech innovation is located in the US. If all the tech firms & talent fled SF Bay Area & Silicon Valley, and reformed in another country, I would view that as a negative.

Capitalism is the path to prosperity. Red October communist uprisings always resulted in crushing poverty.
this...........with a caveat

when these funny money gains, gains from nothing occur, all fine should they stay and play in Cali.
Problem is, when they sell out, then take these phony gains to Wyoming, Colorado, Montana. Fists full of wads of cash to dump on the local markets driving prices there to ridiculous valuations.

then once they move there, the want is to change the local systems and policies to match what they left.

So while I don't necessarily have a problem with it overall, the wall should be built on the Cali borders to keep them in and have them deal with the repercussions of what they have created. The cancer of Cali's is spreading, and causing disruptions in other parts of the country.

These valuations are only reflective of capital dislocations created by the markets and .gov.

edit to add: It also affects many of the Cali's who live there and participate there severely and negatively.
 
Last edited:

the_shootist

Old Pasty White Guy
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
52,510
Likes
95,169
Location
Earth
#8
this...........with a caveat

when these funny money gains, gains from nothing occur, all fine should they stay and play in Cali.
Problem is, when they sell out, then take these phony gains to Wyoming, Colorado, Montana. Fists full of wads of cash to dump on the local markets driving prices there to ridiculous valuations.

then once they move there, the want is to change the local systems and policies to match what they left.

So while I don't necessarily have a problem with it overall, the wall should be built on the Cali borders to keep them in and have them deal with the repercussions of what they have created. The cancer of Cali's is spreading, and causing disruptions in other parts of the country.

These valuations are only reflective of capital dislocations created by the markets and .gov.
The cancer is spreading beyond CA and beyond the Northeast, beyond New York and beyond the upper mid west. It's very pervasive and can't be stopped with talk or understanding or tolerance. There's only one way to stop them. Eventually they will take over the entire nation and rename it to the United States Socialist Republic -USSR
 

Mr Paradise

Midas Member
Midas Member
Joined
Dec 3, 2011
Messages
9,531
Likes
10,664
Location
Lake Superior
#10
Florida real estate is bubbling again because of all the northeast transplant pensioners. I visit and it's a northeast license plate convention on every Cadillac and Lincoln I see. Stucco & mud 2/2 homes in my mothers gated community have almost doubled in the last 5 years due to the influx of New Englanders with their $85,000 pension and that cashiers check for $600,000 from selling their rundown New Jersey 3/2's ...they think they've died and gone to heaven when the builder tells them $325,000 including cement pond.
The northeast funny money causes an unhealthy spike that puts a strain on the $12hr natives and the no pension social security midwesterners that try and get a piece of the sun.
 

97guns

Gold Member
Gold Chaser
Joined
Jul 29, 2010
Messages
1,461
Likes
1,248
Location
USA
#11
RE markets with the fastest growth like SF are driven by jobs. if there is a good job market the RE market is sure to hit gold and a savvy RE investor knows this and will invest close to an area where good jobs are plentiful

a market like florida is seeing gains but not for the reason of jobs, when the RE market takes a hit it will be markets like florida that take the biggest hits and a job rich market like SF will take the smallest hit
 

90%RealMoney

Midas Member
Midas Member
Joined
Apr 22, 2011
Messages
4,806
Likes
4,049
Location
Left Flank, Oceana...Locked and Loaded!
#12
When the 99% finally go full Red October neighborhoods such as these will be torched and the people living in them will be thrown from the 3rd floor balcony.
I thought the same thing while working in a gated community in Rancho Murrieta, Ca. A gated community filled with wealthy senior citizens who zip around on their golf carts all day long. I just thought to myself "You poor fools, WTSHTF, places like this are going to be the first on the Marauders list".
 

the_shootist

Old Pasty White Guy
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
52,510
Likes
95,169
Location
Earth
#13
I thought the same thing while working in a gated community in Rancho Murrieta, Ca. A gated community filled with wealthy senior citizens who zip around on their golf carts all day long. I just thought to myself "You poor fools, WTSHTF, places like this are going to be the first on the Marauders list".
Yep, rich in assets and weakly defended
 

normaldude

New Member
Joined
Mar 31, 2016
Messages
77
Likes
92
#14
this...........with a caveat

when these funny money gains, gains from nothing occur, all fine should they stay and play in Cali.
Problem is, when they sell out, then take these phony gains to Wyoming, Colorado, Montana. Fists full of wads of cash to dump on the local markets driving prices there to ridiculous valuations.
I know a lot of tech millionaires in the SF Bay Area - friends, family, business contacts. I have never heard of one moving to a cold weather rural red state like Wyoming or Montana or Idaho. Denver Colorado might be a possibility, but I personally don't know anyone who made that move.

If a tech millionaire leaves the SF Bay Area, they are far more likely to move to Portland, Seattle, Vancouver Canada, Toronto, NYC, Boston, DC, London, Paris, Hong Kong, Sydney Australia, etc.

In fact, you could probably use the Innovation Cities index to see the places they are most likely to move near, whether it's for work, semi-retirement & retirement.

http://www.innovation-cities.com/innovation-cities-index-2015-global/9609

The exception is when they do non-profit work in 3rd world places like Africa or South America.

If there's going to be a housing bubble in a cold weather rural red state, it's probably far more likely to be driven by shale oil & gas millionaires when oil & gas prices spike high enough (people who suddenly get offered millions of dollars for their house's land rights, because it turns out drillers & frackers can now extract oil & gas from that area).

http://www.cbsnews.com/videos/shaleionaires-2/

http://www.foxnews.com/story/2008/07/01/oil-making-overnight-millionaires-in-north-dakota.html

I don't have any resentment or hate for "shaleionaires", even though that sudden wealth is pure luck.

What irritates me more is that a guy can study hard, get a engineering or computer science degree from a top university like Stanford or MIT, work 80 hrs a week developing technology & software that everyone finds useful or enjoyable, by age 40 he's making $250,000/yr, his nurse wife working long hours is making $90,000/yr, they've been frugal, saved enough for a downpayment for one of those above homes, and now some "Red October" communist thugs (who probably spent years using & enjoying the technology he's worked on) want to break into his home and kill him because he's living in a 1,500 sqft house.

Communist revolutions have always led to mass poverty. 100% of the time.
 

the_shootist

Old Pasty White Guy
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
52,510
Likes
95,169
Location
Earth
#15
What irritates me more is that a guy can study hard, get a engineering or computer science degree from a top university like Stanford or MIT, work 80 hrs a week developing technology & software that everyone finds useful or enjoyable, by age 40 he's making $250,000/yr, his nurse wife working long hours is making $90,000/yr, they've been frugal, saved enough for a downpayment for one of those above homes, and now some "Red October" communist thugs (who probably spent years using & enjoying the technology he's worked on) want to break into his home and kill him because he's living in a 1,500 sqft house.

Communist revolutions have always led to mass poverty. 100% of the time.
The new Amerikan Dream!!
 

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
32,742
Likes
47,724
#16
I appreciate the point,

yet ask those people in the states I mentioned where they came from,
story after story is Cali, not shale
 

Usury

Site Supporter
Site Supporter
Platinum Bling
Joined
Apr 1, 2010
Messages
4,817
Likes
4,407
#17
It's simple economics guys...there are only so many consistently temperant climates year-round in the U.S. and property valuations are higher there because of the limited supply. Supply & Demand.
 

Mr Paradise

Midas Member
Midas Member
Joined
Dec 3, 2011
Messages
9,531
Likes
10,664
Location
Lake Superior
#18
Just as the thief doesnt care how hard you worked for the things in your safe. The mob won't care how hard you studied or how many years you sacrificed attaining the upper middle class social position.

They will have been indoctrinated to see only privilege ...white privilege. So while you and your MIT degree are taking a nose dive off the third floor balcony your nurse wife will be on her back enduring a gang rape that will guarantee her a spot in heaven or hell ....depending on how much she enjoyed it.
 

normaldude

New Member
Joined
Mar 31, 2016
Messages
77
Likes
92
#19
Just as the thief doesnt care how hard you worked for the things in your safe. The mob won't care how hard you studied or how many years you sacrificed attaining the upper middle class social position.

They will have been indoctrinated to see only privilege ...white privilege. So while you and your MIT degree are taking a nose dive off the third floor balcony your nurse wife will be on her back enduring a gang rape that will guarantee her a spot in heaven or hell ....depending on how much she enjoyed it.
I guess we'll just have to build terminator robots & self-driving cars & drones, to deal with "Red October" communist mobs, so we can have some peace & quiet in our 1,500 sqft homes.