Price reductions in Hillsborough… what is this world coming to???
HB is too expensive area in BA, multi-millions market, always goes through such issues during tough times.
but… what tough times?? Stock market at record highs, 0 unemployment… if these are tough times, wait until a recession!
cupertino has around 20+ new listings in last 2 weeks too.
mainland chinese needs money to save their business in china, save the country maybe
but i thought the “chinese money” propping prices up was a myth and it was all about FANG? I’m confused…
Don’t think it’s a myth. Our realtor said that spring and summer had been low-demand and that the cash buyers from China weren’t buying.
One (FAANG) started the fire, the other (China buyers) is adding oil to fire. Without oil, fire no longer burning so fiercely
cupertino has pre-foreclosure too
Do you mean to say real estate is going up? How many people in this forum are actively seek buying homes now?
When mortgage rates are high, real estate will see the impact. Even though HB is high-end, buyers will stay from market for potential price reduction to buy at low.
See HB homes how it was during year 2001-2003 and year 2009-2011, they were on high DOM during these periods.
I just think the buyer pool is smaller now.
we’ll see what happens in the next couple months.
I am just saying that these are not “tough times”, like you described them. Very far from it! You are seriously comparing now to 2009, the year after the worst economic disaster since 1929?
Interest rates, even at 5%, are still historically low. People’s stock portfolios are at all time highs (the kind of people with stock portfolios that would buy in HB).
If “tough times” happen based on a 2% jump in interest rates alone, it shows you how unrealistic the market had become. Imagine something even just half as serious as 2008… what would happen to BA RE prices then? Imagine if those RSUs people have used to get their entry-level houses in Sunnyvale and Cupertino are suddenly worth 25%-50% less (or far worse, layoffs take place)… Hillsborough could be a canary in the cold mine… it’s supposed to be a jewel in the BA, and RE is all about location-location-location… these houses are not “on the wrong side of El Camino”
yeah , at 5% is still pretty low, i remember when i bought in 10, it was 5.25. and it was consider very very low rate back then. we’ve been having historic low interest for way too long. people just forgot
Does new money want to live in HIllsborough? My guess is no. There’s no downtown or city living amenities.
25-50% drop? You can keep dreaming. Get out the historical price chart, and check exactly how often that happens.
if you read my post again, you will see the 25-50% drop refers to the RSUs
Stocks drop 25%-50% all the time
Prices went up a huge amount pricing out even techies. A correction is not unreasonable even with a healthy job market. Agreed stocks/IPOs make a huge difference on what people can and will pay.
The rich counts even penny, while poor is not. When market slag is there, rich won’t pull a trigger as they can get easily 100k level on bargain.
Comparing HB is not the right at this time. If you are really looking at HB, you know the mechanics.
Once you cash out for home down payment, then people are less sensitive to RSU price drops. It’s still pretty difficult to use RSU income to qualify for a mortgage. You need a long history of it and/or significant reserves. in other words, those people aren’t going to default.
sounds to me like the smart money is talking, and it may be good to listen
Big expensive homes are not in vogue. Even Zuketman bought in PA instead of Atherton
Hillsborough hasn’t been trendy for 20 years. Hilly windy roads. Lots of old tired houses. Dark north facing lots. Overhyped. Often bought by foreigners that know nothing about the BA. Lots of overseas owners that are never there.
i would love hillsborough. but i’m out of reach. haha