Home Value Cooling Is More About Changes in Demand Than Supply (March 2019 Market Report)

Economy & Finance
23

I would change the wording to “a peak”. There will be more peaks during the next decades.

6 Likes
25

South San Jose (near Los Gatos) traditionally had houses owned by skilled trade people. The prices of the houses in the area has reached enough to entice almost all of them to consider “banking” the gains. Many of my neighbors who have lived in the area for 30+ years are putting their house for sale and moving to a low cost area. I think there will be a huge spurt in inventory this season. This will also increase choices for buyers and likely lead to a lot of price reductions.

3 Likes
26

May not be relevant.

Retire :grinning: According to Redfin, yoy reduction in median prices in Santa Clara county is 16%. Have prices reduce in SSJ?

27

Prices have definitely reduced over last spring. Around 10% reduction. Many desirable houses staying in the market for multiple weeks with price reductions. Seemingly huge spurt in inventory over the last one month - many many choices for buyers.

2 Likes
28

How long would the cooling last? 1 year? 2 years? 5 years?

29

It’s already heating back up.

30

I don’t see any cooking in SF or DC. A lot of buyers out looking to buy at this moment

31

I just read a report on core logic that the six county southern California region sales price was down from last year. It was down by only .1%.

1 Like
32

Bullish

https://www.redfin.com/blog/uber-ipo-san-francisco-real-estate/?utm_source=facebook&utm_medium=earnedsocial&utm_campaign=1014840

33

Distribution is very uneven. Majority of the RSU money might be concentrated with a small number of employees. The impact will be small but positive

34

The article presumes Uber employees are renting or stay with parent, and would prefer to buy houses instead of putting into stocks or OOS rentals. This is not 2009-2011 when it is no brainer to buy houses.

35

Wasn’t a no brainer. Many people held on to their cash and didn’t buy. Many people actually sold instead of buying.

36

Here in South Bay we will know by end of May what the situation is like. If homes on east SJ next to sound proof walls sellers are asking $1M+ and they are NOT moving after 1 month. I expect further price erosion. Condo/town homes are out of popularity because buyers can find a SFH with 3.75% interest 30 year mortgage not need to pay HOA dues.
Sam Shueh

2 Likes
37

They are for people not wanting to pay the extra $300k for a backyard.