I would think it is healthy if we have a couple of down years in RE, esp in Bay Area. Prices going down about 20% will not lead to mass foreclosures, since most homeowners have 50+% equity at this point. It will just deflate the bubble, and allow for normal appreciation to resume in a few years
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Agree.
I really wonder how non tech ppl survive here. Even single earning tech ppl will never be able to buy. It’s a shame. Both parents are forced to work leading to terrible family life.
It needs to deflate by 50+% to become anything rational but I bet Fed won’t allow that to happen.
All of those have good amount of money. It’s become a trend now. There’s more waiting/ failed in bidding to buy because of low inventory.
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House buying is a goal for most people. Zillow says average up yoy @17% by Dec 2022.
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Don’t forget Canadian 
Housing 
market. People has been saying it’s a bubble for like a decade now but it’s still going strong
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exactly. When it becomes a trend can’t control it. People were comfort/ lazy renting before, not anymore. WFH has boosted home buying extensively.
The articles states:
"It would impose a 25% tax on an investor’s net capital gains from the property’s time of purchase until final sale or exchange.
This could deter housing investors from sitting on properties, which drives up home prices and reduces inventory."
I don’t get it. Wouldn’t the tax cause owners to buy and hold?
According to the bill, 25% if sold within 3 yrs after that it gets reduced by 20% and eventually to 100% by end of 7 yrs. So it deters.
.
I think @jk88cal is correct. I am puzzled too.
The bill incentivizes investors to hold to 7 years i.e. sit on the properties.
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what they need to do is remove prop 13 for investment properties (one that you don’t live in). lots of inventory would open up quickly.
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Selective removal of prop 13 is complicated. Better to just increase the property tax (say 4 x) if the house is rented out. Revert once owner re-occupied.
I think the article might have worded wrongly. Bill is to incentivize home buying by families instead of investors who flip short term before raising the price. They say SD home market went wild because of this phenomenon.
I’m sorry what? My family life is better because both parents work and are home at a reasonable time vs one parent working ridiculously hard and the other doing the domestic work - that type of thinking is so outdated. You guys are seriously aging yourself on this platform with comments like this consistently…get with the times.
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Actually the house prices in SV are not that bad. Most home owners buy houses that are 7-8x gross annual salary. In Singapore, we spent ~15x, so we often joke about being house rich cash poor.
Real estate listing sites estimate that Marchionna’s home could be worth some $1.3 million. She said agents have advised that the sale price could be significantly reduced if a tenant is still living in the home. It’s a stalemate that has left her regretting ever getting into the rental business, and especially trying to be flexible with would-be tenants.
“I’m the kind of landlord you want to find,” Marchionna said, “and I never want to do it again.”
Rent out their ex-Primary and rent a place? Why so cumbsersome?