Bay Area housing bubble

Cisco
gmefkRH

Go to company page Cisco

gmefkRH
Feb 9, 2021 72 Comments

Recently have been putting offers on Bay Area houses but with the crazy offers and sellers asking more and more money don’t know how long it’s going to last.

E.g check this house. Listed at $998k. Redfin estimate around $1.1M. Seller increased price to $1.5M in couple of days. Not sure how much more bidding will happen and if appraisal value doesn’t come difference will go out of pocket.

https://www.redfin.com/CA/San-Jose/360-Cypress-Ave-95117/home/144453874?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

72

comments

Want to comment? LOG IN or SIGN UP
  1. TOP
  2. RECENT
  3. OLD
 TOP 72 Comments
  • VMware
    : (

    Go to company page VMware

    : (
    It’s been a bubble since the last 10 years
    Feb 9, 2021 8
    • A wealth "effect"? The money seems real to me. Yep no reason to sell a home and imho one should never sell real estate. All of these things are why housing has nowhere to go but up, the question was what is the something that will reset the market?
      Mar 23, 2021
    • You seriously didn't hear "wealth effect" from Fed chairs? I think, I gave all the answers just above.
      Mar 23, 2021
  • PayPal
    sand3

    Go to company page PayPal

    sand3
    This is like buying stocks in their highs...why not just continue renting
    Feb 9, 2021 3
  • Google
    zsdskejd

    Go to company page Google

    zsdskejd
    I hear claims of a bubble but it seems less and less likely from what I see. Stock values are going up making a lot of people in this area richer and sellers know that. It’s not like people here are buying a house 10X their income/NW. If that were the case, then yeah I would agree it’s a bubble. You just seem salty because you’ve been waiting for this big crash that never happened and are still trying to bet on it. If house values go up 30% and then drop down 15-20%, your crash will have come but you’ll still be paying at least the price now or higher. I say this as a person who is currently renting btw.
    Feb 9, 2021 9
    • Cisco
      gmefkRH

      Go to company page Cisco

      gmefkRH
      OP
      Yep! That’s the unfortunate reality.

      GME story in a nutshell. Just hope people don’t end up holding highly overpriced old homes in the end.
      Feb 9, 2021
    • Google
      zsdskejd

      Go to company page Google

      zsdskejd
      I think if you sit down and actually dig into the details, you can see how the housing market here is justified. It’s just really unintuitive. At some point you get in the game or you just keep betting against it. Unfortunately, I haven’t seen too many people have success with the latter. So, IMO, your best bet is to learn the game and play it accordingly. You’re gambling either way you decide to go, with rent you’re shorting the real estate market. Otherwise, you’re long.
      Feb 9, 2021
  • Current owner bought it at 1.4m so if they are not going to sell it at 1.5m they will lose money. It was bad decision to buy in the first place.
    Feb 9, 2021 0
  • Time in the market beats timing the market
    Feb 9, 2021 5
    • Google
      gigle

      Go to company page Google

      gigle
      @OP: Homes in good Bay Area locations only dropped by 25-30% in 2008. If you look at the property rates since 2015, they have already increased by more than 30%. So even if we have a 2008-level recession now, all the homes purchased pre-2015 will be fine. The question for you is, do you think the property rates wont increase by another 30% in the next 5 years?
      Feb 9, 2021
    • So don’t sell if you want profit rent it out till it is worth to sell
      Feb 9, 2021