Like other places in the country, the S.F. bay area has its low income "pockets" where values are down and there are foreclosures taking place on homes bought in the last couple years [usually with zero or little down payment].
Now here's the strange twist to this market "adjustment", which we've not experienced before. The high-end homes in the affluent areas are still appreciating, there are still multiple offers on some & overbids. Just outside S.F. on the west side of the bay is an area referred to as "the mid-peninsula". This area has many desirable areas which are still seeing this type of strong activity. I'll describe one city to give you an idea. Hillsborough is a city of approx. 3,000 homes and is one of the most expensive cities in the U.S. [as well as Atherton, Woodside, Los Altos Hills & Portola Valley also nearby & very expensive]. OK, back to Hillsborough. Last year the "entry-level" price to buy an older "fixer-upper" [usually a tired rancher] was $1.8 -1.9 million. Now this year that has jumped up to $2.2 -2.3 million, if there are any available. The strong market seems to be in the $2.5 - 3.5 million & agents are complaining there is not enough inventory. I recently saw a very tired Tudor on a hill sell for $2,650,000 [kitchen & baths at least 40 yrs old & needed everything]. It may be that this category of homes is quickly becoming the new "entry-level" as more homes in the $5 - 10 million price range have been appearing [one just sold for $10,600,000].
So, just curious if any other parts of the country have seen this same type of occurence: quiet entry-level areas with soft prices & foreclosures while homes in the millions within a few miles are selling like hotcakes.
For anyone thinking of a move to the bay area I'd be happy to answer your questions & explain the different cities/areas. As for the negative press we sometimes get [S.F. & Oakland], there are so many other nice areas to choose from within a few miles of either city. As a person born in S.F. & having traveled extensively, I can tell you the bay area is still one of the best places to live in the world [just ask the residents of Hillsborough].
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