San Mateo county is not known for getting the square footage for the price you pay (especially in more desirable areas), further south. If you are buying further north, your $436,000 could get the job done, but it would require some patience. However, if you go too far north, that will be San Francisco, and for $436,000, you will likely be in a condo/townhome or a home that requires some work or some type of "protection".

If you want the $436,000 to go farther, my suggestion is either the South Bay or East Bay.

Hi Wayne.

Bay Area Real Estate is made up of many micro-markets, all of which react differently to changes in the local, state, and nationwide economy. The East Bay is a more volitile market due to the expansion possibilities further East. The south Bay, San Jose, Morgan Hill, are also more volitile because of expansion to the south.

The San Francisco Peninsula west of 101 and east of Skyline Blvd. is the crown jewel of the Bay Area. Although some markets see small price declines every once in a while, the long term average of climbing prices is aided by a lack of new land available, slow turnover rates, low supply, and high demand.

The Housing Price Index (HPI) formulated by the Office of Housing Enterprise Oversight as rated the Santa Clara and San Mateo counties 2nd and 4th in overall appreciation over the past 30 years ant an average appreciation rate of about 9.4% for both counties.

Beacuse of the low turnover is these areas, they peninsula is less susceptible to foreclosures, which in turn keeps property values steadily rising over the intermediate and long terms.

In the best areas of the Paninsula (Atherton, Menlo Park, Woodside, Portola Valley, and Palo Alto) average quarterly appreciation rates range from 3%-7% from the period begingin Q1, 2002 up to Q1, 2008. Average sales price is still up this year from this time last year.

If you are intereted in investing in the Bay Area you should expect to have a net negative cash flow on average only to have great passive earnings through appriciation returns when you resale or borrow against your equity. Rents usually lag behind property values, meaning that to pay off principal, interest, taxes and insurance will probably mean you will be a little out of pocket.

Sticker shock is another thing you will have to get used to. Puchase Power here is lower than most places because of the high demand. An Acre in West Atherton goes for upwards of $4 million where in the east bay that would buy you several averaged priced homes.

If you have specific criteria you are looking for, I can get you in touch with a financing representative to help familiarize yourself with appropriate loan programs and I can set you up on automated Home searches that will give you email updates as to properties that become available that fit your specific criteria. I can also make available some unique research opportunities that will give you insight to the market activity and intricacies of specific areas.

I am a long time resident of the Mid-Peninsula and am always available to answer or seek the answers for any questions you have.

Wayne,
The great news about San Mateo and the surrounding areas is that they are already pretty developed, meaning there isn't room to expand. Because of that our prices stay pretty stable even in difficult economic periods. The San Francisco Peninsula is usually the last area to go into a real estate decline and it is usually the first area to come out of it. Having said that, you won't get a lot of home for $436,000. It is best to do some scouting with an agent so you can see what your options are.

Wayne, In this year of election that is a very hard question to answer Sir. The Bay Area is one of the most beautiful places in the world. As usual Bay Area Real Estate asking prices are set very high and the Sellers are not willing to let them go for peanuts. For example, Burlingame Ca. okanerealtor@yahoo.com