Open houses are crowded . Overbidding is common and houses are gone in one week.
Prices for decent SFH with good schools i ~1.8 m.
How soon will 2M be the new normal ?
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Which zip codes in particular?
Some Moreland school houses in west San Jose can be had for less than 1.5M. No need to compete with the priciest.
I don’t get how Sunnyvale is almost the same price as Cupertino. The schools aren’t close. Sunnyvale feels like a suburban, strip mall wasteland. When do you ever hear someone say, let’s go to Sunnyvale for xyz?
I agree. Even San Jose used to be more expensive than Sunnyvale (back in the 80’s). This shows the true nature of Sunnyvale as compared to Cupertino and Mountain View.
Sunnyvale & Mountain View is picked up last few years by many tech companies came up very well. Traffic nightmare makes the owners to stay near by locations. No matter whether the school is good or bad, people started bidding homes near by location to reduce commute.
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If FANG keeps going up, 2M will happen. I met friends over the weekend. In the last year, lots of them have traded up - either Sunnyvale townhome to SFR or Sunnyvale SFR to Los Altos/Cupertino SFR. The latter trade up is people selling for 1.5m and buying for 2m+. People are not batting an eyelid when thinking about paying 20k+ in property taxes.
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2 years ago is already like that. Tod date, yet to cross $2 mil.
Btw, prices in Cupertino had declined, https://www.zillow.com/homedetails/10354-Colby-Ave-Cupertino-CA-95014/19619280_zpid/ sold for only $1.3 mil. Also, refer to the price trend, prices had started decline since Apr 2016. Trump’s victory has started a re-bounce but transacted price is nowhere near mid 2016.
https://www.zillow.com/homedetails/10712-Larry-Way-Cupertino-CA-95014/19618262_zpid/ again sold below price trend.
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I don’t think prices are declining at all… it’s coming back with a vengeance as we speak. I know because I’m in the process of acquiring more homes…
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Yes, I agree. I bid many homes, non-cupertino sunnyvale and mountain view, since last Aug 2016 and I see the competition with more and more buyers. Recent times,since Jan 2017, it is crazy.
Still the market is red hot in Sunnyvale and Cupertino.
Cherry chase neighborhood is hitting 1.9M to 2.M + .
Monta Vista is hitting 2.2M+
Sunnyvale:
I can’t believe that someone has paid for 1.9M for this home.
Cupertino
I suspect the Colby Ave house is a teardown. No data on it on Redfin. Looks like someone got a deal without it hitting the market.
The Orange Ave one was a good flip. It appears someone made out like a bandit.
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I don’t think it was actually sold at all. Maybe the owner just moved it to a trust and the transaction showed up in public record?
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Yes, it looks like trust to construction company. Not a real sale.
94087 . 95051 ( Santa Clara but cupertino schools)
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Look like market becomes hot since Feb 2017, after AAPL made a big leap forward, almost 20% up; 56% from mid Jun 2016, 36% since Trump… transacted prices in mid Mar all higher than mid 2016’s high. Many sold AAPLs to buy RE.
Many? How many actual transactions over 2 months? It has to be a tiny amount compared to the number of AAPL employees. That’s what keeps driving RE higher. There’s so little inventory that you don’t need many buyers.
Many is a relative term of course 
There are hardly any SFHs for sale in fortress that you need only 1 transaction to push all the transactions up… is like that since I arrived in 2002. Multiple bids a norm… remember I told you when I bought the condo in 2003… kind of a bottom, 3 bids. Again in 2011, 20+ bids. If I’m buying an owner-occupied SFH now with AAPL at new ATH, I would overpay by at least $150k to the estimated bid of the second highest bidder. IMHO, $150k is nothing, AAPLs had shot up way more since mid Jun… 56%… no problem to overpay… I believe enough of people who think like me, don’t have to be many, about 3-5 at any one time, will do… those who want to pay slightly at market wouldn’t win even at the bottom… because people like me will overpay $50k at the bottom.
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Not only Sunnyvale, Cupertino, Mountain view, there are parts of San Mateo county it is Sellers market everywhere.
See this location, schools are not so great.
https://www.redfin.com/CA/San-Jose/2942-Fruitdale-Ave-95128/home/837584