Is the market still cooling?

Bay Area
41

Being right is a lot of fun, but I hope I’m wrong on my 2017 prediction. .afterall the prediction is 5 years old…Wait till February. …it the market doesn’t pick up, then we are in for a downturn…Right now we are in wintertime blues…Although in Tahoe we are seeing dropping Cap rates and rising prices…Used to be 6 caps now we are seeing 4 caps…crazed BA buyers are chasing yields far from home…I am ready to ride the cap wave…lol

Was at a 4plex today for a showing…The other buyer was Chinese from Palo Alto…saw my Redwood City license plate and asked I was from the BA, then told the listing agent he was ready to make an offer…Trying to psyche me out…Turned out it was a bluff…didn’t make an offer…I will maybe make a low ball bid…The investor seller is trying to make a quick killing, bought in 2012 for 40% less than asking…wants a 4 cap price

42

Keep an eye on the exurbs. Places like Morgan Hill, Mountain House, Vallejo etc. They should be hit first as buyers retrench.

43

Exburbs are still going up…The doomsday predictions are premature. .Even my Stockton connection is very optimistic. …

44

So 2017 is gonna be hunky dory?

45

Wait till February. …Lets see if Trump really fucks up…Notice Dow today vs NASDAQ. …Silicon valley might suffer while middle America prospers…Trumpsters fantasy. …

46

Or create an opportunity for someone to load up for cheap.

47

I was thinking about this the other day - anybody has experience getting a mortgage for foreign properties? I don’t think local banks do this but I’d be interested to know.

48

You can ask on Zillow forum. There are lenders who gives money to foreingers to buy in US. http://www.zillow.com/advice-thread/Im-not-a-U-S-Citizen-and-i-dont-live-in-the-Uinted-States-Can-i-get-a-mortagage/677561/

49

Another recently sold. Sold 350k more than list price.

Look at the property history… what a turnaround.

50

My guess is the 1.35m sale was when the project was only partially completed.

51

Another Sunnyvale house just sold. I think it’s comparable are in the 1.8M range, not at 2.0M range that it was sold. I was at the OH and it was busy.

52

Is Sunnyvale more expensive than Cupertino now?

I’m pretty surprised by Sunnyvale price. What has changed in the last 6 years? Are these 2M homes purchased by Indian families? I heard that Indian families love Sunnyvale.

I think these Synnyvale neighborhood might have seen the best appreciation in the whole Bay Area, excluding the low priced area.

53

$/sqft is higher in West Sunnyvale. However, lower absolute price as Cupertino has larger square footage houses. WSJ is targeted by Apple, Google, and Facebook employees because of short commutes plus fairly good schools.

54

I never thought Sunnyvale can be so desirable. What’s the current demographics in the hottest part of Sunnyvale? Is it true that mostly Indian families are moving in?

55

I do feel that Sunnyvale is exceeding Cupertino prices. I don’t feel the market is cooling down in any sense. The price are the highest ever and OH traffic is crazy even in winters.

56

Lot size is 0.319 acres (=14000sf).
With this lot size, I guess Cupertino home is way more expensive than 2 million?

57

Yes, I do not know exact demography, but Asians are buying. Sunnyvale 94087 is Cupertino union school district, homestead high school, is completely changed in last 6 years. Google, Facebook, Apple, Netflix and school district are the reason for it. Seems to me that Doctors or high cash buyers (techies) are buying those area. The homes jumped beyond or at par with Monta Vista/Lynbrook school homes.

58

I used to rent a room in SV by apple for $500. Share bath with one other tenant. How much do those go for now?

59

Yea, big lot, but it is triangle so usage is kinda limited. Also house doesn’t have separate family room, just living room. But it is nice cul-de-sac and good schools!

1 Like
60

I see. I first thought that they may be able to divide them into two 7000sf lots and build the second home there. However, sounds like that is not feasible.