https://www.bayareamarketreports.com/trend/bay-area-market-survey
I think if you buy a house for a mill ur making a bad investment
You can not buy a house for a Million here in any district with respectable schools. A million would be a phenomenal deal!
Define best schools? Top tier schools in areas like Menlo Park and atherton have exceptionally high suicide rates. Pick your poison.
Best schools - Cupertino, Palo Alto, Saratoga and Fremont. Respectable would also include Los Altos, Los Gatos, San Ramon (and a few others I’m sure). Palo Alto is the only one I’ve heard of suicides. (Also Menlo Park schools are not very good.) From the above list, only in San Ramon can you get a House for about a million. Fremont is $500K higher and Cupertino is a million higher. The rest are much higher still. I agree prices are insane today but prices will need to drop by 50% to get to a million. If you say you don’t care about schools, you could go to Campbell, Mountain view, Sunnyvale etc. you still won’t get anything in a million there. Unfortunately.
It is likely that the economy and real estate will go down together instead of behaving differently. So when house price becomes affordable, the rsu value will also go down and folks will be scared about their jobs. In general, few folks will rush to buy houses and in general will nit be able to mitigate the much more powerful forces of a downturn.
What’s the age group of ppl with that much cash
Folks who joined FANG linkedin splunk etc 2-3 years ago would have that. Most of them joined at 300-400$k TC and today with stock appreciation if they cash out RSUs then they all will have 400-600k$ (or may be more). Right ?
Any of the thousands of SF tech workers who have been here for 8-10 years and rent
If they want to be wage slaves for 30 years I suppose. It's awfully aggressive to assume you can maintain a super high mortgage for 30 years, it isn't a guarantee that these types of incomes will always be available
This is true and a sensible way to look at it. Most buyers don’t though m, which is why real estate prices are where they are.
I think so, too. Renter in SF here. Got the money to go to 1.8m, but got what loss in flexibility. The only thing I’ve seen working is guys buying cheap selling high, rinse and repeat several times to build down payment etc. Too stressful for me, my place is for living more permanently.
If there are a ton of people with cash looking to enterer at any slight slowdown or dip there won't be a slowdown or dip. People at the margin will always be hopping in. Prisoners dilemma. What are they gonna all do? Hold out on the dip together?
More like the real estate dip will lag the dip in overall economy by 1-2 years.
Maybe when companies move away from the area. Then less demand for houses in the area.