Stuff like this was happening before the last peak. Now you have a celebritywith no flipping experience trying it as a reality tv show.
Flipping peak. @wuqijun watch out.
There are peaks in every profession. No need to be scared.
I have noticed some hot non ba re getting price cuts lately.
Near high tech job center probably not. Other parts of south Bay I think it is fairly close to it after mortgage interest gets up to 5-6%…
Mortgage interest was at 5-6% in 2002 but housing didn’t crash until 2008.
Where? Any sample listings?
The real issue is inventory. Still extremely low nationwide
The mechanism of a crash was subprime mortgages. This time it is an affordability issue. Back in 2002 median mortgage was less than 400K. Today many carry 1M or more mortgage. A Qualcom employee last week complained to me his option is a wash and he has none to exercise for downpayment. The overvaluation on stocks can take a turn making many company stocks worth a lot less. When that happens (deja vu) down payment source will be greatly impacted.
Wait, aren’t you a realtor? You’re supposed to pump RE rather than pour cold water all over it…
Maybe he is looking for sellers…Being a buyers agent is a nightmare…Have to make 30 offers to get one deal, fugetaboutit…Much easier to find a seller in a weak moment…I get letters all the to time from realtors who have buyers for my apartment building…Not one 5+ multifamily listed for sale in South Lake Tahoe…
I feel weak after reading his comments. Sam, I might have a house for you to sell!!!
Qualcomm is San Diego company and its SC/SJ campus is not big.
Besides, the company has been struggling since 2015.
You should look at how FANG engineers feel about affordability to gauge SV market.
What percent of BA population are engineers at FANG companies? That’s not enough people to prop up the entire real estate market.
It worries me thst people can use RSU income to qualify. It’s the lessening of lending standards that leads to trouble. If it takes dual income with RSU income, then there’s no margin for error. They can’t withstand a stock market drop, illness, jobless, etc. Even changing employers and having to wait to start vesting again could be bad. The margin of safety is razor thin.
Everyone here talks about how quickly engineers peak in comp then burnout. What do people think will happen when couples hit that point, and their mortgage requires FANG income and RSU vesting to keep up with the bills? People are signing up for a 30 year mortgage based on peak income. The assumption is there will always be someone following willing to pay more for the home.
Good ones will leave for better pay at one of the other fang’s, or get a match. but majority will suffer.
Feel so weak… Sam, sell my house already!
Another one. Learned that the sellers were expecting 4. It’s a trust sale, and trustees heard los altos market was crazy.
Part of housing bubble is definitely realtors propping up prices by feeding greed and fear.
FOMO FOMO FOMO, buy buy buy! Pigs flying high!!!
Owner of this is expecting 4.5M