Gah! Bay Area real estate is going nuts again!

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Feb 7 24 Comments

Put an offer on a place this past weekend. Had to compete with two other offers. One all cash. Both 8%+ over asking. When will this craziness stop?

Maybe we need to tax foreign buyers who don’t live/work in the Bay Area (like Vancouver)?

https://www.marketwatch.com/story/will-a-blockbuster-year-for-tech-ipos-lead-to-even-higher-home-prices-for-san-francisco-2019-02-05

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TOP 24 Comments
  • LinkedIn void 0
    It will never stop. NIMBYs hold all the power over here. The tidal wave of IPOs coming will definitely register a bump in prices while I anticipate double digit appreciation for the next decade.

    Also FWIW, Vancouver’s vacancy tax aimed at curtailing foreign speculators hasn’t really worked all that well. These people are loaded, they’ll pay the tax or dodge it.
    Feb 7 4
    • Uber Rocco69
      It's actually working in Vancouver. My brother who sat on the sideline for 3 years prior to that just bought a house and said housing is "much less crazy" now. Many of the speculators were Chinese and they have been curtailed both by the law and a slowdown in the Chinese economy after the Trump trade war
      Feb 7
    • LinkedIn void 0
      Interesting, well I can see one scenario for a housing market decline as a part of a broader economic decline. If China blinks, the global economy will go to shit. I just want the Chinese gov to actually try to crack down on capital flight for once. You made your millions in a shitty authoritarian state, you stay in your shitty authoritarian state. You don’t get to buy up all our homes because you know the very government you used to get rich also wants to take your money.
      Feb 7
    • Bayer ndmz64
      What’s a NIMBY?
      Feb 7
    • Google / Eng hooli.xyz
      Not In My Back Yard
      Feb 7
  • Amazon I'm fawked
    My friend from Hong Kong visited me this past weekend and kept talking about how cheap the homes are in the bay lol
    Feb 7 2
    • Oath / Eng xxxcd
      Yup, SF medium home price to medium income is at around 9x. Hong Kong is at 20x.
      Feb 25
    • Uber / Eng ycej4h
      Not just that. Hong Kong's "3 bedroom" home is only 700 square feet..
      Feb 26
  • New eQjn37
    You think it’s IPOs or just foreign investors ? The problem with Vancouver is that salaries and income is nowhere near being affordable but in the Bay Area the medium income is a lot higher granted still not very affordable but Vancouver salaries are shit
    Feb 7 0
  • Microsoft DumplingDu
    Asking price is set by seller and has no direct relation to property value. Often they will low ball the asking price in hopes of getting more offers and possibly a bidding war (happens more often in hot or competitive markets).

    Instead use the comparison your realtor will provide based on recent sales of similar properties to base your bid on. That will give you a better sense of value.
    Feb 7 0
  • New / Product
    cipher

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    OP
    Well, I’ve bid as high as 6% over asking and lost out to other offers. Put 6 offers in the last 2 months. Sellers still list price lower than what they expect but alway try to bargain up. Lots of nickeling and diming happening. We’ve dealt with sellers who are Asian (3), Middle Eastern (1) and American (2). Way too much back and forth with the former two.

    One seller put a clause that allowed him to back out with 48 hour notice to perform — our agent thought this was to go with another higher offer if it came along. Another asked us to pay transfer taxes because the price was lower than he expected and then went with someone else.

    Lots of people in open houses. Nice properties moving quickly. Where we see a lot of inventory is in the $1.25M+ range but we’re looking at a 2-3 bed condo under that range.

    YMMv
    Feb 26 3
    • Yahoo k_
      Condo? For 1.25?
      Feb 26
    • Facebook public2
      Sounds right
      Feb 26
    • LinkedIn spark1234
      SF?
      Mar 8
  • Yahoo k_
    How are things now
    Feb 25 0
  • New / Product
    ʕ•ٹ•ʔ

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    ʕ•ٹ•ʔmore
    3 offers? That's cute. Compared to 2015-2017...
    Feb 7 0
  • Facebook public2
    Markets aren't crazy, they are supply demand driven. There is no supply and high to insane demand. Buy off market or have all cash.
    Feb 7 2
    • New / Product
      cipher

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      OP
      How do you find off market homes? Appreciate the tip
      Feb 7
    • Facebook public2
      Through your agent and/or by going door to door.
      Feb 7
  • Which area ? Do you have a link to the house?
    Feb 7 0
  • Oath / Eng xxxcd
    Don’t we already do that? You only get tax advantage if the home is your primary residence
    Feb 7 0
  • Google 1234-/:;(
    There are many h1b and greencard holders who will have to pay the foreigner tax because they are not US citizens should a tax be proposed.
    Feb 7 0
  • Uber / Eng uhd
    Clearly a down trend. Used to be 10+ offers for each property. Now it's down to 1-3 offers
    Feb 7 0
  • Mphasis / Project WaitbutY?
    I love IPOs! Markets going up again, notional gain for homeowners! Yeah!!
    Feb 7 0