Year-over-year prices soared throughout most of the nine Bay Area counties: increasing 19 percent to $1.73 million in San Mateo; 18.6 percent to $1.34 million in Santa Clara; 18.6 percent to $770,00 in Contra Costa; and 13.4 percent to $975,000 in Alameda. The pandemic has continued to cool demand in San Francisco, where prices gained 3 percent to $1.55 million, according to DQNews.
The number of Bay Area homes sold grew by about 9 percent from last August, as traditional spring buyers waited until summer to tour and close deals.
But the Bay Area is expected to counter that national trend. Professionals in tech and other fields have been able to work remotely, sustaining a stronger economy than regions dependent on service workers like Las Vegas, Hepp said. In recent years, home prices in both regions have climbed. But CoreLogic now projects Bay Area home prices will rise 7.8 percent, while Las Vegas prices will fall 6.5 percent by August 2021.
Agent Jeff LaMont of San Mateo said low interest rates and strong employment in software and biotech industries have driven millennial couples into the market. His advice to buyers: “Don’t overthink it. Grab the cheap money while you can.”
The typical interest rate for a standard, 30-year fixed mortgage is 2.9 percent, according to a Freddie Mac October survey.
Looks like the forum bears are full of bear crap again
So STFR? Plough into stocks?
Also, how come both Zillow and Redfin estimates of my CU house still below Oct 2018 by a large %?
A realtor I know has been overselling SFBA for last 6 months. If Harris won debate last night, I have no problem in accepting SFBA reality appreciated 100% during the same period. The only way real prices of real real-estate keep climbing up is : 1. more population, and 2. more real money (no artificially created money)
Too much theory. What is the point? Win a debate? Get a PhD? What is your response to Fed induced asset inflation?
It doesn’t matter what real prices do. My loans are in nominal dollars. As long as nominal prices climb I am making $$.
It is a bad situation full of uncertainty. You can come out a winner or you can be a looser. In a way you are gambling. So, if asset inflation continues and you are able to quit out before it bursts, you are fine, else you are doomed. So, the question is how do you play this uncertainty (or risk).
Grab the bull by the horns.
Or, you can choose to stay away from the bull. Remember my two rules:
- buy at profit
- buy from a seller. (Added for Clarification: Do not buy from another buyer).
So fight the fed by staying in cash? Good luck with that.
Where did I say to stay in cash? Need to take English comprehension classes?
Best advice. Don’t think in terms of macroeconomic theories or geopolitics whatever. Interests rate is at historic low. Just go grab it.
So what is your strategy?
So are buying gold, guns and bullets?
Low interest rates mean house price inflation. Relax and enjoy it. If inflation comes broad based real assets are a better place to be than cash.
If that is true, Real Estate all over america will appreciate just as it has over last 10 years. No point in getting into a competitive bidding for SFBA real estate. (do not buy from (or outbid) another buyer)
With low interest rates, a borrower may not have to pay much in interest , but the borrower will still be responsible for paying back the principal, which is usually the greatest part of payments.
Some data points:
A house nearby - brand new construction > 3000 sqft has gone contingent. Builder asking 1100$ a sq ft.
I know someone who bought a similar new construction for more than 3.5m$ last month.
Before the stock market lift-off in May, I would have thought higher end homes will stay longer on the market. Doesn’t look like it anymore.