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> The median price paid for a single-family existing home in the Bay Area fell from $727,000 in 2006 to $430,000 in 2009 When people talk about the bay area ho

> The median price paid for a single-family existing home in the Bay Area fell from $727,000 in 2006 to $430,000 in 2009 When people talk about the bay area housing market, it's often said that it remained strong during the GFC. This fact seems to contradict that talking point.

refurb 6y ago
The bay area housing market took a big hit in 2008, even within SF. There is no reason why it couldn't happen again. Of course, even with the hit, SF was still one of the most expensive places in the US (everywhere else dropped as much or more). The Case-Shiller index dropped 45% in SF between the peak (Apr 2006) to the bottom (Apr 2009).[1] [1]https://fred.stlouisfed.org/series/SFXRSA https://fred.stlouisfed.org/series/SFXRSA
twelve40 6y ago
I'm not sure how useful it is to talk about the Bay Area as one market. During 2006-2010 things were very different from one zip code to another. I was just looking at some historical Zillow data from those years and some zip codes like Cupertino barely moved at all, for all those months. Others, like parts of San Jose dropped by as much as 50% and just recovered to their 2006 numbers recently. So maybe for some general sense of the numbers you can average the Bay Area market but when it comes to pricing an actual house and trying to see how recession-proof/prone it is, thinking of the entire SF Bay doesn't seem to make sense.
- deleted 6y ago
  [deleted]
SpicyLemonZest 6y ago
It was very regional. Housing prices fell in the broad area, but stayed mostly stable in San Francisco and kept rising in Palo Alto and Mountain View.
- refurb 6y ago
  Housing prices dropped 40%+ in SF itself according to the Case-Schiller index.
  - SpicyLemonZest 6y ago
    Interesting. That does seem inconsistent then, I don't know any specific data backing up my memory.
dragonwriter 6y ago
> This fact seems to contradict that talking point. It would seem to if it reflected prices on similar homes dropping by that much. If, OTOH, it reflected a change in who was selling homes to a lower segment of the economic ladder (especially if those people were selling up the economic ladder) it doesn't show that the housing market was weak, at all.

refurb 6y ago

The bay area housing market took a big hit in 2008, even within SF. There is no reason why it couldn't happen again. Of course, even with the hit, SF was still one of the most expensive places in the US (everywhere else dropped as much or more). The Case-Shiller index dropped 45% in SF between the peak (Apr 2006) to the bottom (Apr 2009).[1] [1]https://fred.stlouisfed.org/series/SFXRSA https://fred.stlouisfed.org/series/SFXRSA

twelve40 6y ago

I'm not sure how useful it is to talk about the Bay Area as one market. During 2006-2010 things were very different from one zip code to another. I was just looking at some historical Zillow data from those years and some zip codes like Cupertino barely moved at all, for all those months. Others, like parts of San Jose dropped by as much as 50% and just recovered to their 2006 numbers recently. So maybe for some general sense of the numbers you can average the Bay Area market but when it comes to pricing an actual house and trying to see how recession-proof/prone it is, thinking of the entire SF Bay doesn't seem to make sense.

deleted 6y ago
[deleted]

SpicyLemonZest 6y ago

It was very regional. Housing prices fell in the broad area, but stayed mostly stable in San Francisco and kept rising in Palo Alto and Mountain View.

refurb 6y ago
Housing prices dropped 40%+ in SF itself according to the Case-Schiller index.
- SpicyLemonZest 6y ago
  Interesting. That does seem inconsistent then, I don't know any specific data backing up my memory.

dragonwriter 6y ago

> This fact seems to contradict that talking point. It would seem to if it reflected prices on similar homes dropping by that much. If, OTOH, it reflected a change in who was selling homes to a lower segment of the economic ladder (especially if those people were selling up the economic ladder) it doesn't show that the housing market was weak, at all.