Read conflicting news about Bay area housing markets in 2020. How many of you think it will go down in 2020. At least in South Bay and your sources?
Many of my friends keep hoping for a crash! I don’t think there will be a huge crash for Bay Area but there might be a correction. Many couples who buy houses in Bay Area are all cash surplus either through stocks or savings and many of them took mortgage to save tax.
> many of them took mortgage to save tax. This is not true after tax reform 2018. It is a big FU from Trump Admin to home owners in states like CA or NY. 1. Interest rate deduction is capped at 750k. 2. Capped on SALT.
It’s simple: do they make anymore land?
Everyone gets paid by stocks. If you don't see the stock market crashing, don't expect house market crash. Housing lags stock market 2-3 years, so even if there was a huge stock market crash, you won't see a housing crash for another few years.
Housing is already down 5-10% in almost every part of bay area compared to peak of 2018.
It'll crash when people are deep in debt and have no cash left.
Refinance
Prices have picked up massively in the last 2-3 months. Thanks to the stock market. At least 15 offers on a sub 2M house in Sunnyvale and folks are paying 200-300K over listing in Cupertino >2M houses.
For houses with good schools, looks the it has shot right up. And folks are swarming the limited inventory with literally bags of cash and stocks. Apple stock has doubled, google breaking records. Most of tech has done really well.
Question becomes will stock market correct and more importantly will trump let that happen this year. There might be minor pull backs but I see an upward trajectory from here. The stock market drives the US economy.
Correlate it to number of open jobs !! Only investors fuel these news so that people don’t buy and they snag anything on market or force people to sell out of fear !!
This. And also related to stock market.