How the Coronavirus will affect Bay Area Housing Market

Apparently many figured out a way. One way is to do it step by step. First get on the appreciation train by buying a condo, then trade up from there. A $2.5M SFH is not so daunting if you are trading up from a $1.5M townhouse.

True, that kind of hopping from TH to SFH is probably what is sustaining the high prices of SFH.

Problem is that in recent months, SFH prices are appreciating faster than TH/condo prices. This makes the leap from TH to SFH more challenging in the Bay Area.

A guy I know, who is an MBA working in one of the big FAANMG companies (I.e., highly compensated guy), owns a TH in RBA. He wanted a SFH for his growing family, but rather than trading up in the RBA, he decided recently to move to Seattle. Says it will be easier to afford a SFH there…

.

Please give credit to the originator. Changing the dollar value doesn’t mean there is no plagiaries.

I upgraded from a $650k townhouse to a $1.36M SFH. A price difference of $710k. $1.5M to $2.5M is $1M difference. Slightly harder?

My thinking is upgrade when price trend is bottoming. Downgrade when price trend is peaking. I know I did the opposite, is not my decision :grinning: other considerations over-rule that thinking.

This is a common technique in RE-crazed Hong Kong. In fact I used the word “train” in my post which is the exact same word used in HK. We describe the folks who start their RE journey by buying a low priced property as “getting on the train”. Once you are on you can start hopping to the next, better and faster train. You can never get on those from a standstill.

Here in America people seem to be much more impatient. They want their McMansion and they want it now. Many made the Faucian bargain of moving to places with less opportunities just so they can scratch that itch right there right now.

3 Likes

.

Read your statement again. Condo is not TH :slight_smile: I am very detailed. Anyhoo, just messing with you. Ofc you mean condo/TH.

America may be too broad. I think is SWEs :slight_smile: especially those in Bay Area.

.

Below is one of those 4500sqft house. Transacted at $1.32M recently. +80%.

does the same rule apply to non RBA SFH (Oakley) → RBA SFH or it’s only RBA TH → RBA SFH?

You deserve credit for trying to beat the forums over the head about Austin.

1900 Floresta is a weird house, very narrow and tall on the left side and then it falls away the further to the right you get.

Yes it sure does. In fact it doesn’t even have to be RE. Any asset with good appreciation will do.

1 Like

Very perceptive.

Is not narrow, I think frontage is 90 feet. 90x140, 140/90 = 1.56 which is pretty close to golden ratio of 1.618.

From Feng Shui perspective, prefer either same height or the right should be the taller one. Taller left is not preferred.

I think some of your perception is due to lens aberration… the way the photo is taken.

The fact that buyer is laughing to the banks makes up for design flaws. You do not want to see what kind of homes get sold in bay area for top dollars.

1 Like

Its i believe the third one in Palo Alto.

Although rents remain among the highest in the country, they have fallen during the pandemic, as professionals quit higher-end properties and choose cheaper, more spacious accommodations to work remotely. The outward migration has pushed Bay Area residents into less expensive regions of California, usually outer suburbs and the greater Sacramento area.

Bad news for landlords. So can only count on future price appreciation.

San Jose Mercury News has become a leftist rag over the years. My friend ( same one who said a person pumping gas could afford a home in bay area in 60s) says San Jose Mercury used to be reasonable.
I have not renewed the subscription to SJMN for several years and I am doing well.
And you will understand why by reading the link below.

.

Then, I heard a factory production worker in Detriot can afford a SFH (big one not BA shack) + 2 cars. Time has changed :slight_smile:

Finally, US Supreme Court stands up for the property rights. But, why did it allow rent moratorium, that itself is a property right violation of a worst kind.

U.S. Supreme Court rules California must pay private businesses to allow union access

1 Like

They probably can afford a home today in a decent suburb of Detroit.

ADUs are catching on nationwide. CNBC article on ADUs :point_down:t2::point_down:t2::point_down:t2:

The article above assumes there is a housing crisis in America? Really?