BY NATE
CLICK ON THE PICTURE TO SEE THE LARGER VIEW -
This is from a posting on HMBREVIEW.com that I contributed on their Talkabout Page regarding this question -
Do you know if the property value is up or down in Montara/Moss Beach area? How much is a house with a coastal/mountain view?
I will answer your second question first. To some people...priceless. No joke. A one bedroom, 780 square foot home, on a 6400 square foot lot on the cliffside in Moss Beach just closed for $1,100,000. I am sure they are very happy.
To answer your first question, the "numbers" RIGHT NOW point to YES. But keep in mind that eventhough we are bombarded with negative media about the sky falling, it is a fact that real estate has gone up (appreciated) over time. Property values might have dropped over the last year, but to put it in perspective over a 15 year period, few can argue that our property values have gone down.
Here are some facts -
1) In the last 10 years, Bay Area homes have appreciated more than 175% *Source: DataQuick
2) On average, homes have doubled in value every 6.6 years *Source: DateQuick
3) Mortgage Rates continue to remain near 25 year lows *Source: Federal Home Loan Mortgage Corporation - 30 year fixed conventional rates
Here are some other fun quotes that the media wanted us to believe in the past.
“The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000.” - Business Week - 1969
“The median price of a home today is approaching $50,000 . . . housing experts predict price rises in the future won’t be that great.” – National Business - 1977
"The golden-age of risk free run-ups in home prices is gone.” – Money Magazine – 1985
“A home is where the bad investment is.” San Francisco Examiner - 1996
Today’s media plays up bad economic news more than ever, which leads to misconceptions about economic reality. For people who plan on LIVING in a home instead of INVESTING in a home, history has pointed to that downturns are temporary.
