Just got off the phone with the Sotheby’s agent marketing my mom’s home in Stanford. In April he saw 15-20 groups through open houses in Stanford, Palo Alto, Woodside, and Portola Valley. Now it’s 2-3 groups. He attributes it to the tech stock downturn and interest rate rise. The Stanford situation is a bit unique; on the one hand it’s limited to Stanford buyers who can get preferred interest rates through the university bank. On the other hand Stanford is doing a housing lottery which ends Nov. 30; that may be depressing things for now. But even he has been taken aback by the speed and magnitude of deteriorating market conditions in his area. With regards to Stanford those faculty who think they might get a crack at off-campus homes are eager. The new Stanford ground lease agreements are a nightmare and appreciation on campus is much lower than surrounding areas.
It means many folks are over-extended. Prices can tumble in a flash… very steady for a long time with sellers resisting to lower price and then avalanche.
It’s ok, I’ll just grow a beer belly and start wearing shorts and Google T-shirts all year long. And bike to work. Or drive a Prius. And shop at Costco. Get the $2 hotdog while I’m there.
Before only I was commuting down to South Bay, but now my wife also found a gig down there. We love sf, but its probably cheaper to live near work and rent a hotel up in sf every other weekend.