So the Sunnyvale market blew up quite literally in the last 12 months?
The entire South Bay blew up in general, but Sunnyvale especially.
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Good news for me. Grading for my 1st townhouse project starts Monday. Delayed since 2015 
Edit: we purchased in 02/2014! Per seller and realtor âready to build in 4 to 6 weeksâ. I knew that was an exaggeration. ⌠did not expect 4 YEARS though.
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Yes, it is not Sunnyvale alone, entire south bay like that.
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I started to look at rental property in South Bay recently and am in shock. With 40% downpayment my cashflow would still be horribly negative. There are tons of rental homes yet very small number of homes on sale in the market.
If everyone wants to hold and rent out, i guess rental market would crash first.
In my neighborhood, same size/lot homes are selling with 300k-400k price difference. I am not even sure what is proper market value now.
One 1280sqft/6000sqft home was sold at 2.65million. 1.15million profit in less than 2years.
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Already started. I mentioned this moon ago. After a change of tenant and one month vacancy (first time, previously 2 to 3 days for cleaning & minor repairs), rented out at 2014 rent.
Only in South Bay, my Austin rentals are strong, easily rented out/ renewed at increased rent.
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Just curious, I thought you already owned in 95129 ?
Not so. Rental market will not crash. South Bay rentals are for landlords with deep pockets only. Or people like me who have shallow pockets but have other cash flow sources that can balance out the negative.
I own my primary home in 95129.
I am looking for rental property now but canât afford to buy one more in 95129. Thus, i am looking at cheaper area including condo/townhomes.
However, i am looking at sold prices for broader south bay market including my neighborhood just to understand overall market trend better. Yet, i canât comprehend this crazy market.
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South Bay crash = 10-15% decline 
after 150% appreciation 
In any case, I signed a 2 year contract instead of the usual 1 year contract, giving discount to tenant of course. Win-win. Tenants happy, I happy. I sense fast declining rent, and slow declining (may be even no change) house price because of cash rich folks like tomato waiting in the wing to buy.
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Imagine if rents kept up with the price increases.
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Unlikely, although I wish it did. Usually rents hit a wall. Look at the Asian countries or even Vancouver for that matter.
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Thanks for sharing @Jane. If at 40% downpayment you are still looking at -ve cashflow then i think south bay makes no sense. Belmont or Fremont perhaps?
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Exactly same here, outside market is really, really crazy.
Belmont ? Tough to get it, it is so crazy as 95129/94087. Fremont is not easy, but affordable level.
Thought the entire Bay Area is crazy. Recall either an article or some one here said that un like previous rally, the prices of houses in Bay Area appreciate at the same rate in % term. Those who canât afford in Fortress, move to periphery of Fortress pushing those who want to buy there to exurbs 
Similar effect as previous RE bull market, the difference is the speed of spreading is so fast that there is no time lag.
Jane has not been looking for rental until recently. That could be Jane is either a Johnny come late holding the bag or there is still some steam left in the RE bull market. In addition, RSU rich techies may be scared out of the unstable stock market into buying RE. One last gasp for RE bull?
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Not too late @Jane, I just bought one in WSJ. Negative cash flow for sure, but you can always turn it into a flip if you canât deal with it anymore. Thatâs want I plan to do.
This is the case for me.
I have thought RE is slower and more stable investment than stock so far although you need big chunk of money to begin with. However, todayâs market doesnât seem stable at all.
I am surprised to see how rich people are in this area. 3 million house means $40,000 propety tax per year. How can so many people buy such expensive houses without hesitation?
My sense is that price went up 30-50% in most of south bay during the past 6 months.
SWEs are very rich, richer than those during dotcom. You may have miss this thread, Software Engineer salaries
Rich as in their purchase power is high⌠ratio of their salary over price of house is comparatively higher than those during dotcom⌠is why prices of houses can be chased so high.
Have I retired too early?
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