5.5 million less homes built than in the previous
20 years. Prime due to the Great Recession. But nymbies and zoning is responsible too.
The problem with the builders is that they insist on building in someone else’s backyard or in a land that is not zoned for building homes. Are/Is there not enough land to build homes?
Buildings are needed where people want to live. Plenty of buildings where people have left like in the MidWest. Lots of land where there are no jobs and no demand. No sane builders building there.
Yes, but people need to understand that they cannot just build in someone elses backyard, just as they would not want someone else to build in theirs.
Nymbies rule. But there is a housing shortage and they will howl when kids have nowhere to live.
NIMBY rules are there for a reason. Not to harass the builders.
These 2 houses were sold at the same time in same neighborhood of Sunnyvale. One sold for $3.1M, the other for $2.3M. The slightly larger square footage and slightly larger lot of the one house does not seem to justify an 800k premium.
Did the buyer of the $3.1M home get ripped off? Or Did the buyer of the $2.3M home get a really good deal?
The second house had the Eichler discount?
Here is another house, also in the same neighborhood, sold for $2.3M. Not an Eichler.
Is there really an $800k premium for 400-500 extra sq ft?
3.1M is far too much for Sunnyvale. That’s entry level Palo Alto price. Or alternatively, one can buy a pretty good house in the Lynbrook or Monta Vista areas, with far superior schools.
I definitely agree. I would rather find 3M house in South Los Altos or PA.
Yes, I think the buyer of that house overpaid by about $400k. 1900 sq ft house in Sunnyvale is probably worth about $2.7M, but not 3.1…
Did you notice the bonus room?
If 1900 is worth $2.7M, this home has extra 5th detached room 18x12=216 sqft which comes appx 306k worth !
This home at least fine.
My friend bought $900k San Ramon home during 2012 snd sold it last year for 1.6M.
Recently, the same home was sold to $2.1M which my friend could not even believe ( accept the fact ) it after seeing it !
Market is crazy at present. Sunnyvale kind of location, no wonder going such premium !
NY below is can be replaced by any big city such as SF.
Across Manhattan, 18.7 percent of all office space is available for lease, more than double the rate from before the pandemic, according to Newmark, a real estate services company.
Kathryn Wylde, the president of the Partnership for New York City, an influential business organization, said that New York City was facing its biggest crisis since the 1970s, when half of the city’s 125 Fortune 500 companies moved out.
“This is as close as we’ve come to that type of scenario where there’s an exodus from the city, and the recovery took 30 years,” Ms. Wylde said. “The city has to attract people for reasons other than going to the office.”
There are signs that the situation in New York could get worse. A third of leases at large Manhattan buildings will expire over the next three years, according to CBRE, a commercial real estate services company, and companies have made clear that they will need significantly less space.
Convert surplus office space to housing. 6-10 million housing units shortage nationally. Meanwhile there’s a surplus of office space and empty shopping malls.
1 Like
Office building landlords will lower their price until market clears. The surplus of space won’t last long. I won’t read too much into a one-off freak event.
PA house sold for 3.2M. 9k lot. Why overpay for Sunnyvale?
https://www.redfin.com/CA/Palo-Alto/4127-Wilkie-Ct-94306/home/813030
This one even sold for below 3M.
https://www.redfin.com/CA/Palo-Alto/985-Colorado-Ave-94303/home/1762086
2 Likes
On north 1st street + also parallel to 237 in San Jose there are a bunch of offices empty for the last 2-3 years. They have been renovated and “displayed” for a while. This is in front of Micron. Micron incidentally has sublet it’s offices out to Zscaler and Zscaler has moved out from it’s existing full scale office.
In the same area, One of the offices has/d rented out their parking space for Amazon shipping. If you work in that area you can see lots of Amazon shipping trucks. Soon offices+ empty shopping malls will become Amazon warehouses 
I would rather see offices and shopping mall conversions Than see 8x8 shacks put in parking lots for homeless cages.
It may be driven by scarcity. A search shows only 6 active existing SFH listings (with lot size bigger than 4500 sq ft) in Sunnyvale 94087. This is summer, when inventory should be at a peak.
So, those people who really want to buy in Sunnyvale, are forced to overpay, sometimes by a huge amount over list price