Most real people who can afford places in SF have been here for a long time.
The new money coming in are from the same guys who are driving the $25,000
Westies.

In my experience as a Realtor in San Francisco, most of the big money coming
in has been from out of state people being enticed to come here by Bay Area
companies. It is not unusual for a company to pay up to 10% of the buyers
downpayment.

Fear not we have a downturn. According to the National Association of
Realtors, Santa Clara County values fell by 38% compared to last year. San
Francisco dropped by 12%. Those homes selling for $500K should be $390K now.
Well, in theory anyway. What is really happening is the highend has dropped
dramatically due to the dot.com and hightech stock drop. The midrange and low
end stuff are still climbing.

The guys with the $25K Westies are dropping out. Unfortunately, those who
have to buy Westies and 2WD below the $3 mark still have to live somewhere.
In most cases that means staying in the $500,000 home in the slums.

The best Vanagon story I have is the one where a young man who looked barely
14 bought a house with cash, a nice Syncro Westy, and a Ferrari next to it.
He said his most valuable possessions are his palmtop and his Westy.

The End,

BenT
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