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I recently read about a house sold in San Francisco for 19.1m. This is the first time it has been on the market since 1971, when it was sold for 131k, which is
by cft 10y ago
I recently read about a house sold in San Francisco for 19.1m. This is the first time it has been on the market since 1971, when it was sold for 131k, which is 991k "inflation adjusted". Either there's more inflation than the official statistics, or there is a systemic bubble that will lead to the first default of the entire US economy in 35-40 years.
- thetrb 10y agoI highly doubt you can make these generalized assumptions from the sale of a single house.
- dilemma 10y agoSure, but it can point you in a direction for inquiry. Inflation in the Bay Area is around 20% YoY, based on price increases in the housing market.
- foota 10y agoThis pretty much seems reasonable. Housing demand should probably depend mostly on the amount of wealth (maybe this should be income?) in the area. It seems possible that wealth in the valley is growing at 20%.
- mintyfresh 10y ago20% growth would mean the wealth in the area would double every 3.46 years. This morning, it was announced that the US GDP grew at an annual rate of 2.9% last quarter, accompanied by the WSJ headline "US Economy Roars Back" [1]. 20% growth is nowhere near "reasonable". [1] http://www.wsj.com/articles/u-s-economy-grew-2-9-in-third-quarter-1477657992 http://www.wsj.com/articles/u-s-economy-grew-2-9-in-third-qu...