I just took a look at Millbrae. Don’t seem to see any significant price cuts. What’s the deal here? Anyone noticed any price reductions in the Bay?
Sunnyvale/ Cupertino: SFR prices heading up.
Rental rates dropping sharply with 2 months free, if you sign a 1 year lease etc. I saw some inlaw suites (bed and private bath, but no kitchen) under $1000 on CL!
These smaller spaces were rented by students or single tech workers, and they used to get close to $2k. This particular customer base can move easily.
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Current rents are down to rent values which prevailed 4-5 years back(Sunnyvale), plus upto 6 weeks free.
Good houses are being snapped up quickly above asking since last couple of weeks(Fremont). My guess is - probably due to low interest rates + no big layoffs YET.
Sell your SFHs while you can before is widely known that WFH is permanent.
So rent is coming DOWN but price is going UP. Those meager cap rates are going to get even lower.
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Not so fast. Still below ATH in Oct 2018.
Prices in Tahoe insane.
540 Alpine sold for $1.248m 7/2/20
Just resold for $1.6m 21 days later
Actually went pending in 4 days after first sale.
https://www.zillow.com/homedetails/540-Alpine-Dr-South-Lake-Tahoe-CA-96150/18571682_zpid/
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@Elt1-- what is your prediction for the Bay Area? Rental prices are plummeting and SF inventory is at 2009 levels. Interested in hearing your thoughts.
I think the school price premium will go down. This will hurt PA and benefit RWC for example. Also longer commute areas should benefit … many people will be able to commute less often. WFH rules.
The East Bay like Lamorinda and Trivalley should thrive. Big houses will become more popular and the hills, traditionally the most desirable areas around the Bay, will be in vogue again.
I also think Discovery Bay will benefit. Boat ownership is very popular again,
I don’t see a huge price crash. SF will always be desirable especially for newcomers. A vast majority of sfhs are owner occupied not rentals… so a rental rate drop won’t mean much.
Rents are increasing in the exburbs.
Thanks @Elt1. I really appreciate your insight. I’ve been on this forum long enough to know who has a good track record of predicting the future!
“ Washington state has the highest quality of life in all 50 states. When it comes to the economy, residents of Washington state enjoy no state income tax, a thriving job market, and great international business opportunities. Additionally, the state has the ninth-lowest poverty rate in the U.S. of 10.3%. Washington ranked second for infrastructure, third for economy, and fourth for health care and education. Washington is one of the healthiest states in the country with a life expectancy of 80.3 years.”
I’m so confused. The state heavily relies on sales tax revenue which is supposed to be regressive. How on earth can those policies result in lower poverty? Some how infrastructure is second without needing an income tax to fund pet projects.
I’ve been trying to get my wife interested in Orinda for years now. I could see myself living in a house like this.
A family friend bought a 15 acre house in the Los Gatos hills last year for ~1M with about 5 acres of level terrain and the rest were slopes. The second time I visited them they had a small tractor with all the required additional equipment. It’s most certainly not for everyone as you’ll have to do a lot of contingency planning (radios, guns, stock up on supplies, etc) and be prepared to encounter the odd mountain lion or two.
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The economy may be shaky
But remember the Great Recession. Things seemed worst then.
From 2011…
The economy is so bad that I got a pre-declined credit card in the mail. CEO’s are now playing miniature golf. Exxon-Mobil laid off 25 Congressmen. Angelina Jolie adopted a child from America. Motel Six won’t leave the light on anymore. A picture is now only worth 200 words. They renamed Wall Street " Wal-Mart Street". Finally, I called the Suicide Hotline and I got a call center in Pakistan and when I told them I was suicidal, they got all excited, and asked if I could drive a truck. 
- RE prices are same or growing in spite of being in bubble territory. Means property taxes continue to grow.
- With skilled labor shortages n trade war maintenance cost will continue to grow.
- Rents are coming down and will remain depressed even after recovery due to remote work.
- Interest rates will eventually get back to normal within next 3-5 years meaning mortgage payments will go up.
Doesn’t this mean RE as investment is a terrible choice ATM?
That’s an architectural monstrosity
He wants to make it corruption based. “Merit” = how much money you put in my pocket
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RE is long term. Current issues will pass
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