Predictions for Sunnyvale, Cupertino

South Bay
1172

Not only Monte Vista area, City Center area in Cupertino is burning hot too:

https://www.redfin.com/CA/Cupertino/10195-Avocado-Pl-95014/home/1451287
https://www.redfin.com/CA/Cupertino/10212-Parlett-Pl-95014/home/1739724

Both houses are ~2000sq ft, sold at least $1M above list price, closed above $1799/sq ft.

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1173

This one closed at almost 2000$/sq ft. Boggles my mind!

https://www.redfin.com/CA/Cupertino/799-Stendhal-Ln-95014/home/664737

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1174

Meanwhile Sunnyvale is also chugging along strongly. 2000 sq ft houses are selling for $3.6M such as this one:

https://www.redfin.com/CA/Sunnyvale/1137-Revere-Dr-94087/home/1351350?600390594=copy_variant&231528114=control&utm_source=ios_share&utm_medium=share&utm_nooverride=1&utm_content=link&utm_campaign=share_sheet

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1175

Wow, itā€™s not even in West Valley part of Sunnyvale :sweat_smile:. May be because itā€™s built in 1992? Also recently renovated?

Another crazy one in Cupertino:
https://www.redfin.com/CA/Cupertino/10218-Mira-Vista-Rd-95014/home/1382775

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1176

Welcome back

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1177

Walking distance to all the schools. Some buyers value that more.

1178

Wow, that is a crazy high price - nearly $2k per sq ft for 2000 sq ft home!

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1179

Well staged.

1180

Fair point. I will further give it the benefit of doubt the interior is extremely nice, otherwise I still think itā€™s hard to justify $3.62M.

[Update]
With the magic of google I found a youtube video slideshow of the listing: 1137 Revere Drive Sunnyvale, CA | ColdwellBankerHomes.com - YouTube

I would say the renovation is nice, but not $3.62M nice, given the location.

That said, I understand the craze of the burning hot market, I am sure the valuation would break even in medium/long term :slightly_smiling_face:

1181

@caiguycaiguy How do you think this will affect Cupertino market?

1182

Buuubbbble :scream::scream::scream:

https://www.redfin.com/CA/Sunnyvale/775-Cathedral-Dr-94087/home/1471573?600390594=copy_variant&231528114=control&utm_source=ios_share&utm_medium=share&utm_nooverride=1&utm_content=link&utm_campaign=share_sheet

1183

~$1.3M over list priceā€¦ Bay Area home listings are hilarious. It is 1600 sq ft, and it says 4 ample bedrooms. Maybe if you only want to fit a twin size bed in some of them. Itā€™s crazy how people also put super high end appliances in small homes. I guess that distracts from how little home youā€™re actually getting.

I wouldnā€™t say bubble though. Thereā€™s only been one housing bubble, and it was caused by a lack of lending standards. Every bubble has easy credit at the root of it. We probably are due to flatten out for awhile.

1184

Sold price is worthy of this emoji. Exceptional price on this one, i think most houses are around 3.5M. You probably could buy in South Los Altos or even Palo Alto with this price. Maybe a lot of people are scared by renovation process and timeline, move in ready one are fetching premiums.

1185

Hereā€™s another one above 2000$/ft

https://www.redfin.com/CA/Cupertino/10279-S-Tantau-Ave-95014/home/1314033

1186

This does strike me as frothy, if not outright bubble. Even with large lot in the best part of Sunnyvale, 1600 sq ft house should not have sold for more than $3.5M

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1187

Youā€™d think a $3M home comes with a fence NOT propped up!

1188

You think 14% is a bubble? Thatā€™s just a correction. How much have home prices already increased while youā€™ve been calling them over valued?

1189

With rising interest rates, I would not be surprised if home prices fall by 25% by this time next yearā€¦

1190

I donā€™t think so many people are relying on massive mortgages to buy these houses.

Probably will have a bigger effect on outer Bay Area vs central.

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1191

This is truly redfin blog mutation now !!! Yes, exact such debate started realestateforums.net when redfin blog was closed.

BTW: For reference price comparison, use median price of the homes in these cities.

Mark my words or you can screen shot this and tell me when it happens with Cupertino, Mountain View and Sunnyvale in next 20 years. Yes, next 20 years !

Even the worst period of real estate recession 2008-2011, there were multiple cash offers when no banks were giving loan to anyone. The home prices hardly went down below 7%.

Okay, here is your https://www.redfin.com/CA/Sunnyvale/775-Cathedral-Dr-94087

I have similar home, but lenders denied giving me any loan more than $650k as the replacement cost of fire insurance was $430k (max loan is $650k possible). Banks never give loan for land or land value last 25 years to my knowledge.

With this, 775 cathedral would have max $750k loan, balance full cash payment. Buyer must have north of $20M wealth to safely hold long term, and he may soon build 4000 or 5000 sqft mansion in 10k lot, quiet neighborhood in Sunnyvale like Los Altos/Saratoga.

Simple engineer in tech company would have saved around $500k using espp/rsu over 10 years which is more than 20 times esp true for AAPL, GOOGL, FB, TSLA, NFLXā€¦etc.

Year 2022 going to be rocking year for stock market and real estate until the last interest rate is applied by FED.

ā€¦No more updateā€¦take it or leave itā€¦

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