patrick.net

Property history in Redfin:
http://www.redfin.com/CA/Palo-Alto/2430-Cowper-St-94301/home/1034864

2002 sale price $905K
2005 sale price $1215K

Then the property was on and off in market from March 2008 to June 2009. It was listed as low as $888K in Feb-Mar-Apr 2009. Forget 2005 sale price, it seems no buyer was willing to pay for 2002 price either.

Do people really buy houses like this? I can't imagine monthly mortgage payments on a $1M+ house.

jvolstad says

Do people really buy houses like this? I can’t imagine monthly mortgage payments on a $1M+ house.

Sure, I know people in those houses. Sometimes the finances are mysterious, but other times I can see how they pay the mortgage:

* one couple is two doctors
* another couple inherited the house from the wife's parents
* people across the street lived there since the 1950's, when mortgage/salary was way lower
* some are venture capitalists
* sometimes both husband and wife work at high-paying jobs, and kids are left to be raised by nannies
* some were early in the tech bubble and got stock (Juniper, Google)

But I also know people who were in over their heads and forced out. And I know other people who must not be making a lot in their jobs, and are probably ripe for getting forced out.

jvolstad says

Do people really buy houses like this? I can’t imagine monthly mortgage payments on a $1M+ house.

Not today. But in 2005 people thought it was perfectly OK to pay $1.2M for this.

Much of the inflated prices came from the tech bubble back in 99.
which would have been traded for worthless stock.

we certainly had dual income families, doctors, vc before the RE boom