https://www.redfin.com/CA/Palo-Alto/470-Ruthven-Ave-94301/home/867973 $6m to $5m TC 400
At 6mil and at the prior 2.5% mortgage rates someone was putting down 1.2mil (20%) and paying $10k a month in interest on the 4.8mil mortgage. At 5% mortgage rates that same person can still put down their 1.2mil but that $10k/m in interest only gets them a 2.4mil mortgage. Assuming that people were stretching to the best house they could afford that person is now priced out of the market even at 5mil, where they used to be able to afford $6m. Monetary inflation of 10% would bring that back up to 4mil but that's still $1mil lower. We haven't seen bottom yet. I think it'll drop another$1mil at least, more if rates keep going up
I just queried houses sold between $5m to $5.5M in Palo Alto. Last year, you got a lot more than this for that price. That house is ugly with some backyard and it has a “discount”? My wife would’ve killed me for that interior alone. Look at this one. Seems to have sold around same range with a pool 🏊♂️ https://www.redfin.com/CA/Palo-Alto/816-Bruce-Dr-94303/home/1069536
So it’s over priced to begin with
I thought San Jose was overpriced when I bought my house. Nothing like Palo Alto or Menlo Park. All of these cities are overpriced and then list it to see if someone takes the bait. Then lower it a little over time to get it off the market.
imo, fed in combination with high stock values created a major bubble
The fact that It was on the market for 184 days as of this writing before the rate hikes suggested the house has a ton oF issues to begin with.
Inflate listing price by $2m then give $1m discount.