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This is not happening only in Sunnyvale. We've been looking at houses in the Willow Glen area for the past 2 months and have experienced the same thing.
Seller's agents have told us (during open houses) that there have been multiple bids (up to 15K over asking price) even before the open house was posted.
We've been outbid twice (on $520K offers) by cash buyers!
What boggles my mind is that these houses are not worth 600K+! The schools aren't that great in that area either. Why would someone pay more than $525K for any of those houses?
BayArea
2012 Apr 22, 10:49am
I have made several offers in Contra Costa County in 2012.
I'll admit that I am being selective, but each one had multiple offers and going above asking price.
Part of the reason is that these have been REOs that are originally being priced too low by the bank to create frenzy, but the big reason is discussed in the link below (lack of supply):
http://realestate.patrick.net/?p=1211201
The Bay Area is down 35% in invetory compared to this same time last year, the number of homes sold is up 9%. Although this is creating multiple offer situations and homes aren't sitting on MLS as long as they did last year, the selling prices are remaining flat.
BayArea
2012 Apr 22, 1:21pm
Let's take it a step further regarding Bay Area RE:
Inventory down 35% compared to 1yr ago.
Sales are up 9%
Prices are flat
With supply down and demand up, anything other than prices being up would be an indication that the real estate market in the Bay Area is still sinking (at least relative to a year ago)
With supply down and demand up, anything other than prices being up would be an indication that the real estate market in the Bay Area is still sinking (at least relative to a year ago)
Its more that as of now, homes can only be bought using "real" financials. In other words, buyers not only need good credit, but they also need numerous forms of proof of their financial well-being. You need cash. You need savings. You need good jobs. And so on. Prices are either flat or slightly sinking because what people can really afford is reflected in the prices and the prices from the boom were not reflecting reality. What people in the BA can 'really' afford is far less than what many might have assumed.
bmwman91
2012 Apr 23, 1:21am
In other words, buyers not only need good credit, but they also need numerous forms of proof of their financial well-being. You need cash. You need savings. You need good jobs.
Great! It's about time.
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I'm a happy long-term renter, but my fiance and I just saw a house in Sunnyvale, quite randomly, that we'd like to live in. The price is ludicrous, but we can afford the down payment and loan, so we thought we'd bid, since renting something comparable is maybe only 20% cheaper per month.
Houses sell in less than a week in most parts of Mountain View, Sunnyvale, Cupertino, etc. Often, they sell without even going on the market, or sight unseen by buyers, sometimes with no contingencies! Getting a couple dozen offers isn't uncommon on a nice house, and even horrible housing next to dumpsters goes over list.
What the heck is going on? I have not seen a frenzy like this since the peak of the bubble in '05. Realtors are citing the "Facebook effect" and "google Effect", but I don't buy that, since that can't apply to such a large geographic region.
#housing