Bay Area home prices soar with suburban boom

Bay Area
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East bay?

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Cupertino

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Low for CU. Lot size is small?

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I personally know some one who got 2% on 4.5M purchase .

When I was talking offers on North Los Alto’s sale . I got 2 offers and one was all cash and the 2nd one’s pre approval had once again 2%.

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Which bank finances their 2% mortgage?

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Curious on whether 7/10 ARM and bank as well.

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If I had to guess I’d bet it’s First Republic again. Its motto seems to be lending money to people who don’t need the money.

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Looks like we are entering an era of no interest banking at consumer level. How will financiers make money? If seller is also a financier, money can be made by selling at higher price but discounting interest rate, much like cars at low interest loans are sold at dealerships. How do pure financiers make money?

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BA area contractor bought this house for $2.1m in November. Remodeled interior. Painted outside. New landscaping in progress. Just turned down $4m. Wasn’t even on the market.

https://www.redfin.com/CA/South-Lake-Tahoe/1727-Venice-Dr-96150/home/167282266

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Remodeling costs are skyrocketing and appliances are in short supply. so people are grabbing the remodelled home. that is boosting prices. but that is short term events. Pool of buyers are shrinking thats why inventory this time of year is much higher.

Its matter of time when cost blow out happens in various projects and that is shifted to consumers.
unless there is rise in rents. there is too much risk to downside at inflated price levels.

City Of Millbrae Defers Water Rate Increases To 2021

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He should have sold it for 4 million. At least there was a chance of buying it again at 2 million down the road.

Added Later: I found the rule I wanted to quote: Never leave profit on the table. Or take the profit off the table.

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Let your profits run :grinning:

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I agree but the capital gains tax would be huge. He spent less than $3m total

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Yes, with a property of 4 million, I cannot say how liquid the market is. Anyway, you are never wrong with taking profit.

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Actually quite often is wrong. Many traders take profit too early and cut losses too late, for them, “win a little, lose a lot" :wink:

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@manch It was WF and @Boolean It was 30 years fixed

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Wow, that was good rate for 30 yr fixed!

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Wow. I was quoted for 2.5% at wellsfargo at some point this year but that was with a special discount (0.125% discount for every 250k within wellsfargo) and they capped it. I tried to buy few more points too but they wouldn’t let me. I bet you can do some competitive pricing with the bank of america though.

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They kept over 1M in bank for additional discount so that might have affected to get 2% .

2% is practically free money

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In saving account? Or stock account? Both?