Houses way more expensive than the median is gonna suck in appreciation. What’s the median SFH price in PA nowadays?
3.5 i guess?
There is some kind of glass ceiling for house price. Any hypothesis?
Excluding RSUs, assuming 20% downpayment, ceiling is when PITI = 1/3 of the annual pay of the 1% percent-er?
the ceiling is 3.2M even including palo alto. above that gets really slow.
1/3 of Annual pay… before taxes?
1 Like
That’s a lot of dough, no?. What’s the annual earnings for a 1% er?
1/3 is too low. If you make 400k at least 1/2 before tax is doable.
I think many closer to the 3M price range may be putting in more than 20% down.
I’m well aware of that. But ceiling price (I don’t mean won’t be higher) is not governed by those guys.
Any other proposals? I was throwing out a hypothesis for discussion and hopefully someone can give a rock solid alternative hypothesis. Don’t tell me everybody accept my hypothesis with caveats?
Not necessarily, many SWE/techies have a large amount of RSU. Since the stock market has been doing so well, many are able to put more than 20% down. Also, many people buying in the 3M+ price range are not first time home buyers. They are people moving up with tons of equity in their homes.
So what is your exact alternative hypothesis?
Regular techies with no significant RSU, first time home buyer and dual income is probably around 2 - 3. Anything more are people who made a nice chunk of change from RSU, move-up buyers and people with their own businesses.
My point is that at any price range, there will still be buyers. The glass ceiling only applies to certain group of people, but there are others that can afford more. Also, as the price moves up, supply reduces as well.
So no price ceiling?
Price ceilings for certain groups of ppl but no broad ceiling. There are other buyers apart from millennial techies that can afford 4, 5, 6 million dollar homes. There are less buyers at those price ranges, but also less supply. Those homes do sell.
“Do I get your attention now?” <- What Listing Agent is playing with the price drop? 
Probably the same one that listed 999k renovated mtv house.
Edit. Ch3cked they were differebt.
2.2M price cut
https://www.redfin.com/CA/Palo-Alto/161-Bryant-St-94301/home/1178294
| 10/17/2018 | Price change | $4,488,000 | -10% | ||
|---|---|---|---|---|---|
| 9/12/2018 | Listed for sale | $4,988,000 | -22% | ||
| 7/30/2018 | Listing removed | $6,395,000 | – | ||
| 5/8/2018 | Price change | $6,395,000 | -4.6% | ||
| 4/2/2018 | Listed for sale | $6,700,000 | +201.8% | ||
| 6/12/2014 | Sold | $2,220,000 | +53.1% | Loveless Team |
I saw this house when it initially hit the market. It a nice and unique house. It was custom build by the owner and the agent said they spent 3 years building it. It was listed quite high for this part of PA especially for the lot and house size.
https://www.redfin.com/CA/Palo-Alto/1070-Moffett-Cir-94303/home/707839
This is probably the nicest deal I’ve seen recently in Palo Alto. Is this area not considered good?
It’s not a bad area of PA, but it’s an eichler style neighborhood. Those areas tend to have a lower price point. Also, a reflection of a high price point for the neighborhood.
Barf on the curb appeal! It’s similar to 823 Burgoyne 94043. They are much higher off the ground with stairs to climb to enter the house.
1 Like
Interesting. I like eichler homes a lot (so do many younger folks).
I dont like those circular blocks in PA. It often reduces the garage space so everyone is parked on streets in chaotic form. The backyard is also in weird shape so not very usable…
1 Like