Bay Area RE cooling faster than rest
I was in the market for sometime now, but now I am more inclined to wait longer. Can never time the market but I think we are far from bottom since RE market takes much longer to slide to the bottom. During 2008, prices hit the bottom only by 2011 (no one has the crystal ball when that will happen this time). Redfin Article: https://investors.redfin.com/news-events/press-releases/detail/752/redfin-reports-bay-area-housing-market-is-cooling-more Someone also wrote this article on good schools in Bay Area: https://siliconvalleystories.blogspot.com/2022/07/recession-proof-sfh-school-districts.html?m=0 Good school districts closer to job locations might be the safer bet if you can afford. Thoughts?
silicon valley stories
During 2008 there was a financial crisis that directly impacting housing. The last time that happened was in 1930. During most recessions housing appreciates. You cannot time the market. Buy when you want or it cash flows.
>During most recession, housing appreciates. What are you trying to say? In 2022 recession, housing hasn't appreciated... End of discussion.
Historically, during recessions real estate appreciates. In 2022 we don't know if we are in a recession and housing prices are rising (don't confuse list prices which are meaningless). The data doesn't lie...end of discussion rofl
I know many people here who are waiting for a housing crash since 2003.
Didn't they get what they were looking for in 2007-2008 then? :)
If they didn't buy around 2009/10 then they are never going to buy in their lifetime. 🤦🏾♀️
If you are looking to buy investment properties, sure you can have fun trying to time the market as you're doing right now. Worse case you miss on potentially good investments. No big deal. If you are looking to buy your primary home, then it's a different story. Buy something you like when it presents itself and you can comfortably afford it. Otherwise you might live with regrets.
now is best time to buy. fewer competing offers and sellers are reasonable. also interest rates are still low low, they’ll go up more once FED increases the interest rate by 1% point
also stock market might correct more, so liquidity for down payment will be affected. Unless you are sitting on cash.
But if the rates go up, won't the prices correct even more. Assuming my affordability isn't an issue, I should be in a better position? Some articles seem to suggest that FED will be forced to cut the rates once we are in recession and inflation is under control. Isn't then buying at higher rates and refi later is the way to go?
As someone in market long time and recently bought a primary home, one thing that stands out is the inventory. People with good homes are fine with taking the home from the market and renting out to weather the slow down. I don't see it changing in Bay Area. Most people have enough NW that selling is not priority for them. So I don't think you can keep waiting for a primary home. It also begs the question of what you are waiting for. Do you think we will hit pre-pandemic prices in good neighborhoods even if we exclude school district? I doubt it though, simply due to people's NW they have built to weather a slowdown in economy like this one, in Bay Area.
There are now hiring freezes in a lot of places. If the next 1-2 earnings are bad which is very likely, I won’t be surprised to see mass layoffs & that can have a pretty big impact on local housing market. NW has definitely gone down by a lot in the last 2 quarters. Some tech stocks are now trading at 1/5th of where they were in 2021 - PayPal, Roku, Docu etc
Right! If it comes down to that in Bay Area entire US will be in a terrible state though.
People are scared to buy right now. Inflation, recession, etc. This might the best time to buy when everyone is scared. Same was in may 2020, sellers got desperate, buyers were scared. Just find a desperate seller, you can see if they are doing price cuts, were on the market for too long and then make a low offer. Fed is slow to react, truth is they already did too much to the economy to slow it down. It just takes time for the economy to absorb all of this. I think they are going to overdo it. Soon they would have to lower rates and boost it again to fight recession.
Dear tenants, We hope you continue your fantasy conspiracy theories and keep renting forever and help us pay down our EMIs. -Landlords
This.
Lol..funny bagholder probably
When did blind become a place to plug a shitty blog?
BA went up a lot so obviously it would cool down more. The problem with waiting for the crash is people don’t like to sell at a lose unless they have to, like got laid off or divorce, and crashes only come from an inventory flood due to defaults from unemployment. The main reason Bay Area may have a crash is stock price collapse, and it will be a lesser crash than 08 due to tighten standards since then. If it really crash you may have a problem borrowing or you may lose your job. It sucks either way.
Folks waiting for a crash will keep waiting. People need to understand the difference between correction and a crash.
When you see a downward trend do you jump right in and buy or wait/watch? Just curious. No one knows whether this will remain in the correction territory or crash eventually.
@Google: OP never said it's crashing. He/she said it's cooling off.