Provide a unique bear case other than thinking you’re super special and should be able to afford to live anywhere you want. That’s literally the single constant in bear case arguments. They all start out as would-be buyers. When they can’t afford the special home they think their special self deserves, then they become a bear. They can’t conceive of a world where large numbers of other people can afford things they can’t. That leads to being a bear and hoping prices crash to where they can afford them. There’s no math or logic behind it. Just the emotion of not being able to afford the house they think they deserve, so that means things are over priced.
assume much? thanks for the free psychoanalysis and financial review!
Many people park their money in the stock market waiting to buy RE. The recent crash will at the very least decrease their buying power. Why would it not have any effect on RE price? If you just remove those last one or two high bidders that set the final sale price, house price will come down.
Use to be China people, Googlers and Facebookers. Guess these three groups are not able to bid high now.
Anyone monitoring MV and Menlo Park prices?
Its not just google and Facebook. Nasdaq is down for the year. The whole semi conductor sector is in bear market. Sellers in Santa Clara are asking themselves “Where are all those Nvidia people?”
These people still need a place to live. So the drop can only be temporary until stock prices recover.
They already have a place to live. Are you saying they are homeless?
They need to buy their rentals…
Both RE and rental prices are softening fast. Any landlords here have lease expiring or expired?
My SB rental is 1+ year away.
Austin is between Apr-Jul.
So I don’t have a feel of the current market… just what I heard and read.
My tenant moved out last week. I immediately found a new tenant the next day. Same rental rate but I promised to throw in a couple new appliances.
So that’s like one month rent free?
new or replacement?
They’ll be new stainless steel ones. A stove and a dishwasher.
Those have lifespan anyway.
Your stove is very old? I have yet to replace stove. Usually dishwasher and oven. I find replacing oven is easier to rent Guess Americans love to cook using oven. Putting in a brand new is appealing to them. Btw, I am referring to Austin. In SB, I think tenants hardly use oven. I hardly use it.
Dishwasher normally need to be replaced 7-8 years (with abuse, 5 years ). I hardly use mine, so still operational after 10 years.
They’re not old. Clean and functional. Except the stove is the old fashioned electric one with coils. So I’m getting one of those new radiant heating types.
A year ago you’d be discussing how much to increase the rent. When we were looking at rentals in 2017 you had to rush to get it, full price (increased from last tenant), with no updates.
Now you are keeping rent the same, losing to inflation, and buying new appliances to keep the tenants happy.
Things are indeed changing…
This rental price I have have been constant since 2014. Because I set the bar very high 4 years ago after I renovated it. It’s the same price 4 years later due to wear and tear and also the rental market has been flat for the past couple years.
A year ago, I have to reduce rent by 10% to rent it out. You can search this forum… I talked about it.
When stock price is high and going higher, people say RE price will only go higher because people have all those extra money.
When stock price is crashing down people say RE price will also go higher because people will park their stock money into safer assets like RE.
So the conclusion is RE price will go higher no matter what.
That’s for sure. Inflation will eventually lift all boats.