20 years from now, what would the house prices be like in the Bay area?

Asked by Jo, Sun Apr 27, 2008

Would 2 million dollar homes become 20 million dollars? Would there be a lack of homes? etc etc

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John, , Moraga, CA
Wed Apr 30, 2008
Very difficult to predict that far out. But Harry Dent has tried in his book on Demographics. (look for it in amazon)
To Joanne. Interesting quotes. They don't convince me that homes are a good investment or that prices will continue to increase. In real terms (adjusting dollar value) home prices did not appreciate more than the inflation rate from 1890-1990. So historically, speaking homes prices will stay flat (after they adjust back to where they were in the mid 1990s) Home prices for the most part = 2.5x the avg income of the area they are in. If they are higher, people will default.
1 vote
V, Both Buyer And Seller, 94607
Tue May 27, 2008
Quite interesting thing is that back in early 90s, when family income were making 60k/yr in bay area, the house price was around 250k. When the salary / income per household became 200k/yr, the house price was above 800k. So it really depends on how much people are going to make 20 years from now. If the income level shoot up to 1 million (thanks to the inflation), do you think the house price will stay the same or gone to the MOON?
0 votes
Joanne Liotta, Agent, Danville, CA
Sun Apr 27, 2008
Do you think the real estate market has no where to go except for DOWN? You are not the first one.

•"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline." Time Magazine 1947
•"Houses cost too much for the mass market. Today's average price is out of reach for two-thirds of all buyers." Science Digest 1948 (average price at the time: $8000)
•"The goal of owning a home seems to be getting beyond the reach of more and more Americans?”
Business Week 1969 (average price at the time: $28,000)
•"The era of easy profits in Real Estate may be drawing to a close" Money Magazine 1981
•"If you are looking to buy, be careful. Rising home values are not a sure thing anymore?”
Miami Herald 1985
•"Most economists agree...a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was..." Money Magazine 1986
•"We're starting to go back to the time when you bought a home not for its potential money-making abilities, but rather as a nesting spot?”
Los Angeles Times 1993 (Note that 1993 was the absolute low-point for real estate values in Los Angeles. Prices have sky-rocketed since.)
•“Financial planners agree that houses will continue to be a poor investment?”
Kiplinger's Personal Financial Magazine 1993
•“A home is where the bad investment is." San Francisco Examiner 1996
Thinking of down-sizing, up-sizing, buying new, or just making an investment? No time like the present with home prices down to make the move. Call me today; I hold the key to your dreams. Joanne@JoanneLiotta.com
Web Reference:  http://www.JoanneLiotta.com
0 votes
Barbara Wils…, Agent, Danville, CA
Sun Apr 27, 2008
Boy, if any of us knew for certain, we would be quietly doing the right thing ourselves. But what were prices like 20 years ago? Lower. If you are going to buy a house, buy it, enjoy it, live in it. But don't just buy for speculation. That is part of what has gotten us into the mess we are in now.
0 votes
T. Pole, Home Buyer, Boulder, CO
Sun Apr 27, 2008
Let me get my crystal ball out and I'll let you know.
0 votes
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