Corporate investment in residential real estate set records in 2021, with private equity and public funds snatching up nearly 1 in 5 U.S. homes by the end of the year. But the Bay Area? Nope. Investors bought up just 4% of the homes sold in the San Jose metro area, and 6% in San Francisco and the East Bay last year – about the same level as 2015, according to an analysis of data from online broker Redfin. Investment ticked up at the end of the year but did not match the overall U.S. rate. The analysis refutes a common complaint from homeowners and slow-growth activists – that corporate real estate giants are pushing into the Bay Area, gobbling up property and driving up home prices. Instead, real estate agents and economists say the region’s high prices are being driven by near-record-low numbers of homes for sale and strong demand from wealthy tech workers and millennials. Bay Area home values rose almost 20% last year, and the median price for a single-family home has topped $1 million in recent months, according to CoreLogic data. Local agents say Bay Area landlords have been more willing to sell and invest in out-of-state properties. Bay Area mortgages on single-family homes typically exceed potential monthly rental income – meaning investors’ long-term gains are only realized when home values increase and they sell the property. Santa Clara broker Myron Von Raesfeld has opened an office in North Carolina to serve Bay Area investors looking to relocate or shift their real estate portfolios. He hasn’t seen a lot of investors rushing to buy single-family homes in the Bay Area recently, but he’s served tech professionals looking to trade in some of their stock holdings for out-of-state property. original: https://www.mercurynews.com/2022/02/28/big-investors-are-snapping-up-homes-but-not-in-the-bay-area/#:~:text=After%20dipping%20in%20the%20early,of%20%24990%2C000%2C%20according%20to%20Redfin.
Because the yields are shit.
but blinder are saying the bay area home price is mainly driven by investors. blackrock want their 2million dollar shoebox so so much..
My belief is low rates and inflated tcs in 2021 caused this sudden rise. Also people who owned home upscaled but kept the previous one by refinancing, thereby generating some cash flow. Some of them are trying to time the market as well. So once, if, down trend begins, it's going to be steep.
i feel bay area realesate share some feature of these high flying tech stock.. no yield , valudation based on interested rate...
Yeah, see what happened to stock market. Imagine the same steep downfall with home prices.. I don’t feel comfortable in buying home at this time. I feel jobs are not secure as well and there is a inflation on other side.
Lot of investors have been saying it’s dumb to invest in Bay Area houses at sky high prices. These numbers show that.
These assholes have made homebuying unaffordable for the majority of people in certain places. People are literally trapped in their homes because they can't afford to leave. The government needs to stop this.
Institutional investors are not interested in Bay Area RE because it’s overpriced with low future returns after 2020.
That photo! That’s where I live.
I would be more worried if investors were the ones driving home prices higher than actual families wanting to live there. See China‘a ghost towns. Mostly folks bought home as investments and a lot of them were abandoned ghost towns
Investors mostly don't give a shit except for yield. And yield in the bay area among the worst and growth in price lags nationally. It's mostly driven with Nasdaq gains plus delay. Buying here is for your own use not as an investment.
Prices up up up in Bay Area 2022 ... price are up atleast 10 year to date in the first 3 months
for those who said investors are investing bay area... this place seems like an big casino right now... if weathy tech people could not afford their home.... i guess investor would not help