Home Prices?? (San Jose, San Francisco, Milpitas: apartment, condos, loans) - California (CA) - City-Data Forum

redrockglass · 10-11-2006, 08:02 PM

I have a question about housing prices in San Jose. Are they still going up in value? I was told that it doesn't matter what houses are appraised at, they don't sell by that, they sell way higher. How would people get loans from the bank if the house appraises way cheaper and then sells for 1.8 million?

This concept just amazes me. I guess the banks have different rules for California. As a future resident, this type of practice scares me.

Thanks

J-Lu · 10-13-2006, 11:33 AM

I believe that housing has flattened out in SJ. My mom lives there and there is a house across the street that has been on the market for 4 months now. It was originally listed at 1.1 million and I see that they have now lowered it by 50k. I went to the open house with my mom when it first came on the market. The realtor said that she thought the house was over-priced, but had to honor the seller's wishes in setting the price. I believe that people there are still in the mentality of a few years ago when homes were being over-bid and they are still a bit greedy. The market has corrected now like in other areas and there will probably be a dip in prices, although it is still outrageously expensive.

Wisteria · 10-15-2006, 10:12 PM

Hi,
I live in Felton, just a few miles from the beach and outside Santa Cruz. Many people in this area commute to San Jose. I probably live in the cheapest part of Santa Cruz and you'd be surprised at the deals here. The houses out here (I'm from the eastcoast originally) are not as great as in other places -- you pay for living near the ocean, and for being in or near Silicon Valley. At any rate, check out my area: lompico.org and you'll see what I mean. Quite honestly, I wanted to move to other areas around here and there's just no way. I am always amazed at the prices around here -- although the wages are higher here. Anyway, that's a good option if you like nature and woods and stuff -- we're not in the city, but most of us who live in Lompico do so because it's cheap and still accessible to the beach, to San Jose and San Francisco. Can't hurt to check it out.

Angel Bear · 10-16-2006, 11:54 AM

Wisteria--What are the prices like by you if you don't mind sharing? Thanks in advance

Wisteria · 10-16-2006, 05:36 PM

Hi, Our zipcode is 95018, HOWEVER, the part of town that I live in is called "Lompico," and it is not listed like that on realtor.com or anything. If you go to the www.lompico.org website, you will get an idea of the area. I'm not sure if we're allowed to post things here to specific stuff like that, but if so, then you can check these MLS postings in my neighborhood -- now remember, it IS rural, but it is ALSO very close to the beach (20 minute car ride -- 6 miles). It's very eclectic, and compared to most places in this area, there is actually land. That's unusual for around here. But, you do have to like redwoods, and trees, and the occasional raccoon

The MLS numbers are just a few random ones near my house ranging in price from $260,000 to $459,00. Just go to realtor.com and find the place to plug in MLS numbers and they'll come up:
Moderator cut: info removed

Then check out the www.lompico.org site and you can see more what the area looks like. I live within 5 minutes walk of a lake called Loch Lomond, which has fishing, hiking, boating and picnicking. I'm just 6 miles from the beach and downtown Santa Cruz. I have about 2/3 of an acre of land, another building on the property that was a workshop but I turned into a recreation room for me and my daughter, and lots of ferns, and tropical plants under the redwoods, plus a lawned area, and a patio. I mean, I still think prices are way too high, but since I'm here right now and I know what they are charging in San Jose and Santa Cruz, we're still pretty cheap in comparison -- plus you get all the land and country here. Good luck!

Wisteria · 10-17-2006, 12:23 PM

I see that the moderator cut out the MLS numbers (sorry about that, I wasn't sure if we were allowed to do that or not), but a lot of the first few pages are in our area of zip code 95018 in Felton on realtor.com Hope that helps. Probably best to just check the lompico.org website because you could link to people in the neighborhood and ask more specific questions. Good luck and let me know what you think if you do check it out. Thanks!

jcp123 · 10-25-2006, 11:32 AM

Well, I can tell you what our experience was:

We sold a 1578sf 3-bed/2ba tract house in Milpitas (basically a suburb of San Jose), on .25 acres, built 1963 but fully renovated. Care to guess how much?

$720k.

Granted, this was in early 2005, so prices are probably off the high, but don't expect them to come down much.

Oh, and meanwhile we bought a 2800sf house on 8 acres with other improvements for about 1/3 of that here in TX. We got so much equity our of the old house we paid cash and no longer have a mortgage.

Wisteria · 10-25-2006, 02:39 PM

See, that's what I'm telling you -- our area IS cheaper. It's because it's NOT Milpitas, and it's in the redwoods, and most people have never heard of it. It's only 6 miles to the beach, but it is definitely in the redwoods! (It's a few miles from Roaring Camp Railroad, and Henry Cowell State Park.) Again, check out the Lompico.org website and you'll see. Of course, my house is much smaller, only 1040 sq. ft., but I have 1/3 acre. Your price sounds more like in town here -- even condos go for $500-$600 -- for an apartment, essentially! I'm only mentioning Lompico because it's little known, but is still near the ocean, near San Jose and an hour and a half from San Francisco. There ARE deals out here IF you know where to look -- that's the catch. Plus, our area of Lompico (a section of the town of Felton) has some of the best schools in the area, it is safe, and it is tucked away in the mountains but close to the beach. This is one of those hidden away places people never hear about -- not like Marin and all that.

Jerry Garcia and his family used to vacation up here when he was a kid. Most of these homes were summer vacation homes for the wealthy in San Francisco around the 1940s and 50s. Then in the 80s sometime it transitioned into year-round homes.

The people who had my house for 50 years (the woman died and her family sold the house), had literally gotten the land for FREE! It was during a time that the San Francisco Chronicle was giving a way a lot of land with a newspaper subscription!! That is a very strange, but little known fact. Thus, my house was originally built by the people who had THREE newspaper subscriptions, thus, three lots together. It's an interesting history.

Of course, as it turns out, my teenaged daughter HATES the woods and rural lifestyle! She wants to be in a big city! We can see deer walk up the street, and watch the blue jays in the yard, and have all our pets, and she wants to live in an apartment in a city -- figures, huh? And here we are just down the street from a lake, and all the beauty, and she wants out.

Of course it is less expensive in various areas of the country, but if someone really wants to live in California and they feel strongly drawn to it, I'm just saying it's possible. I kind of fell into my situation -- I couldn't afford Santa Cruz, and overheard someone in town talking about moving to Felton because it was cheaper, which I had never heard of, and that's how I found out about. Otherwise, I would've left years ago.

Quite honestly, I plan to leave when I retire in a few years. I'm not from California, originally, so I don't have real ties here, other than my job. But some people just adore it here and would never leave, or really want to live here -- and I'm just putting it out that one has to creatively search out those little known areas that can help them to live out their dream. Of course, rural mountain living does not appeal to a lot of people, but around here, it's the best deal in town.

jlvs2run · 10-30-2006, 07:40 PM

Wisteria,
You seem to really like it there so why move.
Once your daughter lives in the city, she will be longing to come back.
Anyway there are not many nice places with 1/3 of an acre these days.
All the best.

Wisteria · 10-30-2006, 08:50 PM

Hi Johnlvs2run,

Why? Actually because it IS too big a lot for me! Seriously. For me alone, it is way too much for me to handle. I have lots of trees, lots of gardens, two buildings (one is the house with 2 bedrooms, extra room, wood stove, etc.) and the other is a small building that I currently use as a recreation room/gathering room. It is just way too much work for me alone.

Plus, when I retire, I'd still have to pay the mortgage, and I really don't want to pay a high mortgage, and I don't want to work full-time -- in fact, I want NO mortgage! Yes, it is a lovely area, and I KNOW that many people are dying to live in the Santa Cruz area, but quite honestly, California is just not my place. I ended up here because I had a friend here who had a place I could be with my daughter when she was little, and then I got a job (which people were surprised about -- guess they're generally hard to get), and a teaching job (again, they were surprised) and a place to live (before I bought the house), (again they were surprised).....but I just never felt at home in California. I have no idea why. I have always felt more at home in Colorado where I lived before -- maybe it's the high altitude, I don't know.

Sometimes I actually feel guilty because I know a lot of people want to live out here, and close to the beach. I just don't know why I feel the way I do, but I do. And to pay such a high mortgage, (well, I suppose not high to some people) and to stay here with all the work involved with a lot of land, is just not for me. I'd like to downsize and be in a more urban-like (or larger town) setting but walkable.

Ideally, my property is probably for a family with parents in their 30s and young children -- lots of land, safe, close to the beach, etc. But for me, no -- I actually fell into this property (long story, suffice to say I own it), and my daughter truly loves cities. She is currently in a city in Chile right now (exchange student), and each time when I mention choosing a college -- we have the University of California Santa Cruz right here -- her response is: "Redwoods....remember???..." The unversity is in the middle of the redwoods, too -- she just does not like that. She never has. I don't know why. A lot of kids around here love the woods and nature -- my daughter has always been a computer geek and musician -- she is just not a true nature lover -- I can't even get her to come out and look at the stars at night. I still think I gave her a good upbringing living here -- I know she appreciates it when she goes other places and sees the difference, but she just needs to experience the city.

So, I agree, it IS difficult to get this kind of land --- especially in California!! And at these prices. But I just want to downsize, and be in a place that is not so much work for me (the woman who owned the house before me, whom I actually knew, fell off the roof while clearing it off, and ended up in a nursing home -- in her late 80s and died there).

Someone will truly appreciate this property when they buy it -- when people walk through my yard, they generally say it is "enchanting." But I just can't do it by myself. And even my neighbors have said to me "I always coveted that property."

What I'm looking for is a walkable city that has amenities, so that I can have a small yard (not like this), with a few flowers and a nice area to sit, to do some pottery, teach some classes, and just enjoy life. My daughter will be fine -- we are truly in the country, and you do have to be a country person to live here. I KNOW it's only 6 miles to town (the beach in Santa Cruz), but I absolutely detest driving, my daughter wants to be able to walk or easily get to friends' houses, and she's into computer science -- she's looking at San Jose. I don't like San Jose, but she is considering college there because of all the computer companies there.

I don't think I have adequately answered your short question, with my really long answer. I guess the bottom line is that I have TOO much property to keep up by myself, and I don't want to work full-time (or even part-time) to pay the mortgage. I am sure that someone will love this home -- it has had only two owners -- and I do hope I get to see who buys the place. I hope it is a nice, kind couple with a child or two who really want to live in the country and have the amenities of Santa Cruz, and will stay for decades. But I'm not selling for a couple of years, so if you know of someone, tell them it's down the road.....

(Did you check out our area -- lompico.org -- ? it really is lovely but it takes more than one person to handle it.) (Somehow I feel guilty, but I just know I can't handle this into old age by myself.)

Thanks, John.