I am planning on buying a second home and have been going to open houses for past 3 weekends. There is a definite pause/slowdown in real estate activity. Houses are staying on market for long and few realtors I spoke to mentioned that offers have really dried up. All of this in summer is a good sign for buyers! Don’t know how long it will last.
It is seasonal. Last year was an exception when summer was hot too.
No sign of any slowdowns. And anything short of 50% correction is not enough to return to normality.
50% correction ? Normality ? Do you live in your own world :)
No much chance of this happening, I know. All I am saying - it's not normal. Not everyone works for FB or GOOG, and not everyone has a wife working a professional job. So fuck this place - I hate to uproot my kids from their school / friends / etc, but I will not be here next year...
Really? I saw the opposite...open house last weekend a few blocks north of Japantown. Absolute shithole - no maintenance for last couple decades, messy inside and out, termite problem - and they already had an offer for 900k as-is. It was a 3 bedroom on busy Hedding...couldn't believe it. I say the market is still crazy.
Summer is the lull in the Bay Area. Been this way as long as I’ve been here. If you’re a buyer, this is when you get your best deal. Spring is when it’s best to be a seller. I don’t know if real estate in general is drying up in this area. Certainly supply is shrinking even more as people either can’t or don’t want to move up and upgrade. Everyone I know is renovating because it makes no sense to sell and buy up with the tax policy and current prices + mortgage rates.
This is exactly what I have been saying. Summer is slower than spring.
What? San Jose is going goddamn bonkers. Where are you looking? We tried buying an investment property in downtown San Jose and offers were over $900k, all cash, for 100 year old never updated pieces of shit. Investors are going wild for this “new Google campus” crap. We bought near Happy Hollow instead in a quiet Viet neighborhood. We beat out over a dozen offers. Will rent it out soon. Closed this month.
You bought it for appreciation right? Would monthly cash flow be positive?
Cash flow will basically be neutral / slightly negative (-$300/mo)
We are in contract for a property at 95116. How does it compare to 95122? We are new to the area and I feel like we quickly jumped on it.
This is for a potential rental property
How much did u buy it for? And how much is rental?
I think 95116 and 95122 are comparable. 95122 is a bit newer than 95116.
They both have a mix of good / awful neighborhoods. West side of 95116 is more popular as it has more transit options.
I think this happens every year. May is an active month and June, July are a little slow. Agents make it look like recession every year but it’s mostly around promotion payment and holiday cycles. April and May are the most active because annual bonuses, increments, promotions all are announced in Feb or March. Having said that, talk to your banker about it. I have seen that bankers lie less than agents.
I don’t think it happens every year. My first home I bought in summer and had to compete with a lot of offers. Summers are usually high traffic and huge bidding war season. Something seems different. And one years promotion cycle or bonus is not going to change anyone’s house buying decision :)
It changed mine, I got more money for downpayment and monthly mortgage so quickly bought a home. You might have a lot of money and hence 20k-30k cash might not make a huge diff to you but to others who are trying to hit 20%, it could mean a lot. Plus I am pretty sure summers are a little slow in real estate.