--- In FairfieldLife@yahoogroups.com, akasha_108 <[EMAIL PROTECTED]> 
> I know, California real estate is unreal (literally IMO and is not
> stable at current levels.) Thats one reason I left the state, 
> been born, raised, educated and careered there. Housing prices are
> just in fairyland compared to many other "nice" areas. And with
> broadband internet being most everywhere (and soon to be wireless, 
> literally EVERYWHERE, location is less and less important IMO,
> particularly if you can make a living not tied physically to a 
> hub business center.)
> Compare a $500,000 or million dollar home in SF, San Diego or Sac 
> one in FF. Its a joke.
> But the mortgage deduction still applies to the 350k bungalow. The
> proposals are for it to be partially taken away for the kind of 
> $million middle class home close to it.
> And long run, thats a good thing, it will help bring housing and
> affordability back into synch. 15% affordibility rates are crazy 
> unsustainable.
I was just looking at housing prices in my neighborhood in Santa 
Clara, Cal. which is a middle-class neighborhood, but nothing ritzy- 
Many retired folks, some families and couples. Houses are typically 
single story, about 50 years old, 1200 to 1500 square feet. Selling 
prices are 750 to 900K. You won't find a house for less, although I 
did see a 2/1, 900 square feet, for 720K...

The proposed mortgage deduction would hurt a lot of people here, 
even if prices softened somewhat. The trend here, just to buy a 
house, is to take out an interest-only loan. So many homeowners are 
counting on that large mortgage interest deduction to be able to 
afford the house.

For the last twenty years at least, through good times and bad, 
people have been predicting housing prices to go down here. There is 
about a 15% affordability rate in this area, with lots and lots of 
overseas investor money mostly from Asia keeping prices high, even 
through recessions. 

So the SF Bay Area is not purely a domestic real estate market.
If the mortgage deduction is adjusted to the 350K range, all that 
will happen here is that local people will be forced to sell, the 
properties will be snatched up by investors and we'll have more 

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