A shack in Silicon Valley and a mansion in Austin: Here's what a $1-2 million home looks like...

[bluesbassman]

A shack in Silicon Valley and a mansion in Austin: Here's what a $1-2 million home looks like in 7 major US cities.
http://www.businessinsider.com/a-shack-in-silicon-valley-costs-the-same-as-a-mansion-in-other-cities-2015-6

This home in Mountain View, California, recently sold for $2 million.


In growing tech-hub Austin, a $1 million home is still a four-bedroom mansion on the shores of Lake Travis.

It's gotten outrageous here in the Bay Area. A friend of mine has a 1600 sq ft 3bd 2ba home in San Jose rented out for $3,600. Feels just like the bubble building in '05-'06. The only difference is nobody is getting pick-a-pay neg-am loans or interest only loans. Still, there's going to be a lot of down payments lost if the bubble bursts again.

[KamaAina]

1. You mean "when the bubble bursts again".

[bluesbassman]

6. Yeah, just trying not to be too pessimistic.

I've lived here all my life and have seen this several times. It's not good.

[closeupready]

2. I wonder if it really is a bubble. Lots of big money there.

Lots of workers making lots of money - when I look at the median salary for typical jobs, the pay scale is highest in San Francisco compared to every other market, including New York. That would seem to indicate an underlying strength of the regional economy. Thus, maybe real estate values like this are reasonable.

Certainly HIGH, but reasonable considering the market.

[BillZBubb]

5. It would be a bubble if those wage rates are not sustainable.

[bluesbassman]

7. Well yes there are a lot of people making big money...

but there are a lot more just scraping by, and they project another 3mil or so in the next five years. It's just not sustainable IMO.

[BillZBubb]

3. Location, location, location.

[bluesbassman]

10. Yep, as long as you don't have to commute.

Unbelievable drive times anymore in virtually all directions. Approaching LA for the gridlock quotient.

[Warpy]

4. You don't mean "if," you mean "when."

California seems to be locked into a boom and bust cycle for the foreseeable future, prices pumped up by flippers and agents and bid up by desperate people who think if they don't jump now, tomorrow will be too late.

I can always tell when the bubble has begun to inflate, the flipper shows come back to HGTV.

[bluesbassman]

11. Good point. n/t

[demmiblue]

8. This is what you can get for $1.549 in Detroit (Fisher Mansion):

Via: http://detroit.curbed.com/archives/2015/06/fisher-mansion-palmer-park-for-sale.php

[LuvNewcastle]

17. That is so gorgeous.

I probably couldn't even afford the taxes for the place, much less all the expenses for upkeep, but it would be a fine place to retire to. Furniture would be another huge expense. You'd have to put some massive furniture in there in order to make the place look proportional. Still, it's quite a bargain for such an outstanding property.

[Liberal_in_LA]

20. beautiful place

[Tikki]

9. I believe it still is location, location. location.

And the best job you can get with your education and particular skill set...oh, and location.




Tikki

[JDPriestly]

12. Where do capable, smart people want to live?

On the liberal West Coast and in liberal NYC or in conservative Louisiana and Texas?

If you had millions where would you go?

Romney picked California I do believe.

Lots of rich people do.

Thus, the high housing prices.

Housing prices are not rising across the US. They have gone up a bit, but not that much.

California is booming in spite of the drought and the high costs. It's because deep down most people would rather live in a state that is tolerant and forward-thinking and adventurous and accepting.

Nobody (I'm exaggerating. I should say, not so many people) really wants to live in the Bible Belt if they have a choice.

[bigwillq]

13. It's the same way in parts of CT, too

Houses of the same size are priced higher in CT than in a lot of other states. I browse Trulia a lot for fun (LOL) and I've noticed the price differences.

[KamaAina]

14. $2 million for that? In Mountain View?!

I could actually see that in next-door "Shallow Alto", but Mountain View is supposed to be semi-reasonable, by our standards anyway.

[dixiegrrrrl]

15. That first house, assuming 3 bedrooms, would sell here for 100,000

on an acre lot ...in town.
"Town" being rural southern pop. of 6,000.

On another street not too far from here, on a 1/4 acre, it would sell for 80 k.
Assuming your basic kitchen appliance, no pool, good condition, etc.

[Gregorian]

16. I just sold my childhood home a few blocks from that for two million.

Gone in six days.

It was in perfect shape, yet the new dipshits tore it apart and remodeled it. Man, what a waste of money and resources.

[MisterP]

18. and as long as they lave an original pipe standing it counts as a "remodel"

now on to the next humpbacked 3-story abomination with barrel windows that look like they're on a dollhouse, "foyer," facilities that take up more water than two acres of lawn, gables separated by 5 feet that look like a CPU error on The Sims, frigid echoing caverns of cheap "Carrara" granite, and 500-sqft brushed-steel kitchens for people who can't cook

[Liberal_in_LA]

19. wow. congrats