Two banks pre approved our max buying power around 3.4m. That’s maxing at 43% DTI. Also that’s was based on interest rate 6.5%. We def don’t feel comfortable maxing out DTI, but what is a reasonable DTI ratio for ppl in the Bay Area? Also looking at the interest today it’s all 7+% which means our budget will be lower than 3.4. We are targeting good school districts area like cupertino. Should we wait and save up for more down payment since the interest rate is so high? What would you do? HTC: 800k
We also have similar pre approval getting horrible homes for that price
Sad. With a 3m search range in cupertino it’s like 2-3 houses right now and I know ppl will bid you over
True going way over. We bid couple of houses and got beaten pretty bad. People have full cash offers 👀
It’s likelier Bay Area home prices decline further, more so than rates continuing to climb
Nobody really knows. While demand may be down cause of rates, supply has also plummeted cause of rates -- nobody can afford to move. You can't time the market -- buy what you can afford to stay in 10+ years.
there will always be a min supply caused by - life events and - folks moving to LCOL pays cash using bay area house equity who are unaffected by rates This is min supply is a small number but I argue that we are already at min supply because given the current high rates. More importantly, the min supply is less seasonal (life events do not wait). So very little room for supply to drop further but there is more room for demand to drop just from people realizing current rates+price = f*u prices. Note your cash earning >5% from treasuries is also nice.
All good homes have people queuing up
And have been for a long time now, can be crazy
As long as you want to pay more for the same home, you should wait.
We are in similar boat and we decided to wait .. Paying 20k in interest and property tax per month didn’t seem prudent … I do believe either the interest rate will come down or housing price will come down but again market can be crazy … We just started splurging on current living by expensive getaways, vacations, getting help for current house etc and loving it so far. One option se are considering is renting out a good house for 12k per month and putting our current property for 5k and paying the difference..
Thanks for sharing - we are incline to wait but our RE agent also mentioned when rate goes down the price will up…
Yeah .. They would make anything up to make you buy .. They can’t predict what will happen .. Technically we all thought price should come down if interest rate went up to 7% but it didnt budge .. Go with what you feel rather than some real estate agent advice with vested interest in getting you to buy …
Better to rent and stack that 800k tc
Out of curiosity what kind of sq ft you getting for 3m in Cupertino for SFH?
1700 to 2k
Jeez that small. Wow!
You need to look beyond Cupertino and Mission, those areas are pressure cookers for kids anyway. Look at LG, Campbell and nearby cities. If commuting is not a huge deal, look at Pleasanton, LIvermore and WC. You can buy a beautiful house in 3M, but not where Asians including Indians roam around with truck loads of cash.
Lamorinda has some really nice stuff in the high 2 low 3 range.
SF prices dropped iirc. Now might be a better time to buy if you're serious long term and can afford it. Personally, I'd say hell no to SF properties
South Bay seems like a different market than SF. Still steadily going up AFAIK since supply is scarce
the key metric is not raw supply but weeks of supply to normalize for low demand. How many weeks does it take to sell current supply at current sales rates?
Please go ahead. We need some bag holders
Only an idiot advises someone to time the market