The cooling Silicon Valley real estate market


#102

#103

I presume you didn’t click on the articles linked :slight_smile: in the article.
For SFBA where most of us are in, it is cheaper to rent :slight_smile:


#104

I was thinking of digging up and old topic to post it in but opted for a current one. There’s a lot of talk about affordability being low at the national level.


#105

San Diego and Tampa have the worst price reductions


#106

Time to load up in San Diego?


#107

If you have too much cash after selling stock :joy:


#108

Too early


#109

I’m not sure how many times Fed will raise rate next year. That’s the most important question


#110

He should distribute to us :slight_smile: as forumend :grinning:


#111

San Diego does have a problem with price reductions, but the problem is owners asking for to much when it comes to their homes. If they priced them reasonably they would be selling. Those homes that are priced according to comps sell quickly.


#112

The house in the article was sold for $850k last May. Now they want $1.1m
Delusional seller.


#113

Are San Diegans more greedy than others? :joy:

Still the same greedy people did not need to reduce prices that much in the previous years. Market is slowing.


#114

Goldman Sachs: housing market will have a slowdown, not a crisis.

Reasons:

  1. no overbuilding.
  2. lower tier wages increasing rapidly while high tier wage also increases. Income equality is improving

https://finance.yahoo.com/news/goldman-3-reasons-us-housing-market-slowing-134832181.html

The overall economy also provides a tailwind to the lower end of the housing market. Among workers at the 25th percentile of the income distribution, wages have risen 4.1% over the last two years, faster than the 2.6% pace of growth for those in the 75th percentile of the income distribution. The improving fortunes of lower earners should bolster demand for lower-priced homes and is also a sign that consumer spending should remain strong despite concerns about the health of the overall U.S. economy.

Goldman also notes that this lack of supply of more affordable homes is already being reflected in the path of home price appreciation, with houses in the lower-third of their respective city’s market up 10% over the last year while those in the top tier have risen in value by 5%.


#115

That’s all lies. Everyone knows the only way to improve income inequality is to increase taxes on the rich and give that money to lower income people. There’s no way income inequality is being reduced after giving tax cuts to the rich.


#116

Market now seems like its ticking back up. Right after thanksgiving, I started hearing about ridoculous offers being thrown at in multiple listings.

Fortunately, we did manage to land on a nice place at decent price. Now we really are going to live in boring old south bay and decided to grow old. :wink:

Thanks all on this forum for yrs of neat tips. Will continue to swing by, but now more as a more nimby than before. :wink:


#117

Congrats. However, please don’t tease us with minimum info. Where in SB? Price? Square footage and lot size? SFH or TH or Condo?


#118

It’s good to know that housing market is coming back now in November and December.

Mortgage rate is having a nice dip. Fed may stop raising rate.

Maybe we will have another 2 good years.


#119

Just heard about a house in San Bruno that sold over asking near $1.5m with 4 offers. Seems like the under $2m market is still a sellers market.


#120

Notabene likes to tip big time, he is not as cheap as you guys are. :sweat_smile::sweat_smile::sweat_smile::sweat_smile:


#121

By the way, this morning I will have a conference call with a Realtor in Sacramento and a group of people I educate on financials. He will tell me what’s going on.

The last time we had a conversation he and his other partner were seeing only Americans, or people working in this country buying homes. The rest were afraid because of this fiasco of tariffs hurting both national and international economies. Those were their explanation.

The end.