“Sereno has an online tracking system that shows about 1,800 buyers in our pipeline alone — and there were only 954 active listings in the county for the month of August. So our buyers alone could conceivably gobble up the inventory that’s out there, twice over. In other words, Sereno has five percent of the Santa Clara County market, yet our firm has twice the number of buyers as there are listings in the entire county.”
That’s about all you need to know.
“A growing number of people employed in the Bay Area have RSU plans; lending officers say an increasing majority (of buyers) are qualifying by including these plans as income. The borrower qualifies based on an average of 24-month prior receipt of RSUs in addition to their vesting schedule going forward.”
That part worries me. If people need RSU income to qualify, then what happens when a stock downturn happens, layoff happens, or the company gets stingier on refreshes? Most people get the biggest grant when they hire on. If they are using that to qualify for a home, then that could get dicey. Remember when people qualified for loans based on unvested stock option value? That didn’t end well.