patrick.net

bmwman91 says

Just out of curiosity, how do you know that they are investors, versus people looking for a house to live in?

Talking to neighbors and watching houses in the neighborhood get bought and then resold. Property shark and the assessor's online web site.

There is definitely something going on with RE. The inventory that is at least decent is gone days after it hits the market (OC), and multiple bids on everything. We've been looking but nothing is available to even bid on.
One thing is different from the bubble years: homes that are overpriced are sitting until they lower price. People aren't stepping up for substandard inventory either. But the premium stuff is flying off the shelves!

edvard2 says

Its literally the difference between night and day between here and there.

Yeah, but can you surf there?

1sfrenter says

Yeah, but can you surf there?

No, but you can water ski, hike, bike, go tubing in the river, camp in the Appalachians, eat GOOD southern food, see tons of live music, go to lots of newer microbreweries popping up all over the place ( friend of mine is starting one too), go muddin', take riverboat paddlewheeler cruises, and so on.

Lastly, you can buy 5 acres with a nice house- even a nice older house- with a barn and enough room for a HUGE garden for under 200k.

Course' you could also go surfing. Its a 1.5 hour flight to Miami and most beaches in FL...

ih8alameda2 says

That's just crazy @ptiemann.

Living a normal life and buying a house should not be such a bend-over and take it up the ass experience. Realtors are really the scum of the earth.

Ask what you want and think it's worth and take it when you get it. The upside of all this is because of my frustrations, I'm actually become an even happier renter.

(sigh)

You're not gonna live a normal life here. If that's what you want, you need to move.

It's not the realtors. It's the market. Talk to the old people, listen to what they have to say. The Bay Area was always high and now because of Silicon Valley and all the moneyed foreigners (Chinese and otherwise) who want to live here, it's even higher. If you go down to the Beltway area around DC or up to Boston, it's the same way. It's not cheap in the better suburbs of Columbus anymore. Westerville is high as hell compared to twenty years ago, and that's because of the schools.

Patrick and I just had this discussion. If you're content to rent, fine...but understand what it's costing you. If you have a family or you're not dual income or the single income isn't $150K or more, you're gonna move. The guy who works for the vendor that maintains our tape library lives in Tracy. Most of the people who work for the software company that wanted to interview me several months ago also live in Tracy. The guy who owns Ahart Aviation lives in Tracy. The lady who was my project manager when I had a contract with a local retail chain lived in Tracy and commuted to Walnut Creek every day. She had a late model BMW 3-series with almost a hundred thousand miles on it.

This is the way it's going to be. Some people will have the income or have rich parents or a trust fund to front a down payment. Life isn't fair.

It's northern California. There's a lot of money around. We knew before coming up here that the place was Disneyland. Two and two are still four, no matter how many people tell you it's five. The laws of physics, economics and common sense haven't been repealed by some dork who's spent too much time in school and runs around in a turtleneck sweater. We are strong and he is weak. So far, those values have served us well.

As for the million dollar condos or dinky little houses in Palo Alto, forget it. If you don't work for Facebook, Google or Apple and you're not coming here with corruption money from China, it ain't happening.

wthrfrk80 says

DukeLaw says

Try living in Houston and see where you'll climb, swim, cycle (much less board/ski).

True, but in Houston you wouldn't be living in voluntary serfdom like you would be in the Bay Area.

Not sure what your point is. I can afford to live here by choice. A lot of people can. I don't want to live on a small farm in North Carolina or in a cheap city in Texas. I've actually lived in both of those states already.

Pretending in your mind that everyone that buys in the Bay Area doesn't (a) have financial sense or (b) has mommy and daddy help is just an exercise in boosting your own self-esteem.

DukeLaw says

wthrfrk80 says

DukeLaw says

Try living in Houston and see where you'll climb, swim, cycle (much less board/ski).

True, but in Houston you wouldn't be living in voluntary serfdom like you would be in the Bay Area.

Not sure what your point is. I can afford to live here by choice. A lot of people can. I don't want to live on a small farm in North Carolina or in a cheap city in Texas. I've actually lived in both of those states already.

Pretending in your mind that everyone that buys in the Bay Area doesn't (a) have financial sense or (b) has mommy and daddy help is just an exercise in boosting your own self-esteem.

We lived in Texas. They had absolute top drawer shopping, brand new gorgeous infrastructure, new schools, we lived in a gigantic house, everything was very affordable...

...and we were sick about half of the time from allergies. It's a common problem for relocated Yankees. If your immune system wasn't built living in that bowl with the mold and spores, you're gonna have a problem. We had one.

So, when the opportunity came to move here we accepted it. We made it work even if the politics don't always fit us but we're also not going to deviate from the value set we acquired so many years ago in a place that's far away. Two and two are still four. If someone asks you a question, you look them in the eye and you answer it. Don't buy things you can't afford. God made Adam for Eve, not for Steve...and there's not a damn thing anyone can do about it.

rootvg says

. Two and two are still four. If someone asks you a question, you look them in the eye and you answer it. Don't buy things you can't afford. God made Adam for Eve, not for Steve...and there's not a damn thing anyone can do about it.

Hey pal, I used to believe in Santa too, but then I turned nine. Can you please keep your religious speculations out of the real estate forum? Thanks!

rowemoore says

rootvg says

. Two and two are still four. If someone asks you a question, you look them in the eye and you answer it. Don't buy things you can't afford. God made Adam for Eve, not for Steve...and there's not a damn thing anyone can do about it.

Hey pal, I used to believe in Santa too, but then I turned nine. Can you please keep your religious speculations out of the real estate forum? Thanks!

It's not religious, it's philosophical.

And no, I'm not gonna shut up and there's nothing you can do about it.

robertoaribas says

Homes are anything but commodities, each and every one is different, and each transaction has a number of variables: credit strength of the buyer, timing of the close, repairs before close, specifics of the home not observable before inspections, specifics of the neighborhood, home location etc, etc, etc.

Credit strength of the buyer is absolutely meaningless if it's a cash buyer (and even if not, the seller still receives the selling price in cash whether it's handed directly from the buyer or through the lending bank).

Specifics of the neighborhood and location are also freely knowable independent of the buyer and seller's personal details.

The only things that might influence the validity of an offer price are specifics not observable before inspection, and even those can only influence the ultimate price downward, since RE listings generally presume that inspection will be passed and that the home is livable.

For every other item in the world, an offer to sell at a price is an offer to sell at that price. The seller shouldn't even get an opportunity to wait and hope for a higher bidder.

You go to the store to buy that specific toaster.

And you go to an open house to buy that specific home. Homes are even more specific than toasters, since there are a limited number of identical units. (With single family homes, there's typically only one unique unit.)

If they want to run things auction-style with an unstated "reserve price", fine, do it that way. Just don't list a price that basically has no meaning.

Inventory is usually the number of unsold homes at the end of a month divided by the same months sales rate. For example if there are 100 unsold homes at the end of april and during april 10 homes sold then there would be 10 months worth of inventory.

robertoaribas says

Phoenix closed sales last 30 days: 9369

A simple search for Phoenix on Redfin, no constraints, last 30 days of sales, the number is 2,897.

rootvg says

God made Adam for Eve, not for Steve...and there's not a damn thing anyone can do about it.

Go back to Texas.

1sfrenter says

rootvg says

God made Adam for Eve, not for Steve...and there's not a damn thing anyone can do about it.

Go back to Texas.

We bought in Danville. We like it. It fits.

1sfrenter says

fizbin says

Isn't it just possible that the other committed buyers willing to spend more also happen to be nice people with perfectly lovely families, too?

Letters are useful if you have a situation where the seller has to pick between two roughly equivalent offers.

*Almost* all of the buyers are Chinese investors in this neighborhood, and the seller explicitly told us she did not want to sell to them.

Our offer is 19K over asking. 6 months ago, it would have been a done deal, but now, this spring, I don't know.

I just want to make sure our offer gets seen...if it's way under, oh well, nothing lost. But if it's in the ball park and she wants us and asks for more, then maybe...

Look, it's none of my business but why don't you go someplace where you can actually afford to live? Lafayette is progressive and certainly not cheap but it's also not nuts like San Francisco. It's right on BART.

rootvg says

rowemoore says

rootvg says

. Two and two are still four. If someone asks you a question, you look them in the eye and you answer it. Don't buy things you can't afford. God made Adam for Eve, not for Steve...and there's not a damn thing anyone can do about it.

Hey pal, I used to believe in Santa too, but then I turned nine. Can you please keep your religious speculations out of the real estate forum? Thanks!

It's not religious, it's philosophical.

And no, I'm not gonna shut up and there's nothing you can do about it.

I'm just saying I find your philosophy offensive and definitely not appropriate for the real estate forum.

rowemoore says

I'm just saying I find your philosophy offensive and definitely not appropriate for the real estate forum.

I would avoid this line of discussion with him. He has some good points with respect to housing and affordability in the Bay Area from time to time, although it isn't necessarily what some want to hear. However, he thrives on getting under the skin of folks with a sensitivity to political correctness. It's best to just ignore those parts of his posts that you disagree with (his whole shtick is that "progressives" are too narrow minded to tolerate a different POV and will wage war on him for not buying "their agenda").

I grew up here. I've lived here for more than 30 yrs. It definitely has not always been retarded unaffordable. My dad was a professor and mom a stay at home. We bought a house and lived a middle, maybe even upper middle class lifestyle in a city very similar to Danville.

Both my wife and I have advanced graduate degrees and make a decent living, having money and wanting a normal life are two separate things. We in fact could not afford now the house I grew up in. Retarded.
rootvg says

(sigh)

You're not gonna live a normal life here. If that's what you want, you need to move.

It's not the realtors. It's the market. Talk to the old people, listen to what they have to say. The Bay Area was always high and now because of Silicon Valley and all the moneyed foreigners (Chinese and otherwise) who want to live here, it's even higher. If you go down to the Beltway area around DC or up to Boston, it's the same way. It's not cheap in the better suburbs of Columbus anymore. Westerville is high as hell compared to twenty years ago, and that's because of the schools.

Just for reference, prices in Cupertino have shot up appreciably.

http://www.zillow.com/homedetails/10296-Plum-Tree-Ln-Cupertino-CA-95014/19619579_zpid/

Listed for $1,248,800, sold for $1,452,000, new ATH, higher than peak achieved in 2007. Zestimate $1,256,900.

Here is competition for domestic cash buyers. Chinese.

http://www.usatoday.com/money/economy/housing/story/2012-04-03/us-homes-lure-chinese-buyers/53977638/1?AID=4992781&PID=4166869&SID=1ti0x2cqzonm1

REpro says

Here is competition for domestic cash buyers. Chinese.

Sounds like the China RE bubble has made it's way across the Pacific.

wthrfrk80 says

Sounds like the China RE bubble has made it's way across the Pacific.

Economic prosperity and high RE prices in Japan brought Japanese investors to US in previous US RE bust. So motivation was similar. That exodus however, did not have happy ending.

REpro says

Economic prosperity and high RE prices in Japan brought Japanese investors to US in previous US RE bust. So motivation was similar. That exodus however, did not have happy ending.

Chinese and Japanese have major cultural differences.

Yet, unlike the Japanese, who were criticized for overpaying for high-profile U.S. assets in the 1980s and 1990s, many Chinese investors "do not care about the image of a building and usually do not want to pay a premium for such image," says Allen Wu, chairman of Wu & Kao law firm, which represents HNA Group.

hanera says

Just for reference, prices in Cupertino have shot up appreciably.

Interesting data point. Not many same home sales from the 2000's in the last month in Cupertino. I looked through the redfin data and here was the only one actually from 2007:

http://www.redfin.com/CA/Cupertino/1240-Bubb-Rd-95014/home/1119209

Just barely under 2007....

I don't know why anybody would want Cupertino Schools. I think a lot of folks are ignorant about the differences between being a revenue limit district vs basic aid district. Cupertino is underfunded with only their parcel tax helping to salvage a bad situation.

2 cents says

Good article on the front page of the WSJ today about the bidding wars and supply issues. I was surprised that even Phoenix has limited supply. Guess some investors jumped in with both feet there.

Wow, that just ruins the credibility of the WSJ. Sort of depressing that even the WSJ won't tell the truth.

Phoenix has HUGE inventory. GIANT NUMBERS of houses for sale.

Like 12,851 houses for sale right now according to Zillow:

http://www.zillow.com/homes/Phoenix-AZ_rb/

Dept of numbers indicates over 15K houses for sale in Phoenix, but still, I dont find an inventory number that is down -43% on a year over year basis "huge".

http://www.deptofnumbers.com/asking-prices/arizona/phoenix/

I can understand Cupertino, but Phoenix, no way.

Do you know how hot last summer was?
110 degrees for 60+ days.

Also, FWIW, it looks like Phoenix once had over 48K houses in inventory - now that was a "huge" number.

http://www.deptofnumbers.com/asking-prices/arizona/phoenix/

But 15K now...Down over 67% from the bubble peak of 48K is still "huge"???

http://www.usatoday.com/money/economy/housing/story/2012-04-03/us-homes-lure-chinese-buyers/53977638/1?AID=4992781&PID=4166869&SID=1ti0x2cqzonm1

Right there it is, in black and white. We're seeing it in Danville now.

fizbin says

I don't know why anybody would want Cupertino Schools.

Then you must not work in a tech department in S.V.

B.A.C.A.H. says

fizbin says

I don't know why anybody would want Cupertino Schools.

Then you must not work in a tech department in S.V.

LOL

Sad but true. I have, on a couple of occasions now, heard some of my Indian coworkers bragging about how they bought in Cupertino and the whole discussion centers on the schools and which Ivy League they want their 4th graders to go to. My god, it should be a crime to rob a child of their childhood like that. But hey, gotta chase that money & "prestige!" Then again, that's better than the white parents that name their kids things like Braden, let them dress androgynously and pay $40k/yr to study Creative Writing.

rootvg says

Right there it is, in black and white. We're seeing it in Danville now.

Although I think that a lot of this "immigrants are swarming here" stuff is just a scare tactic, I do get a little concerned about it. I don't give a damn what color my neighbors are, but I do worry about massive numbers of wealthy Chinese people bringing their nasty culture over here. Not Chinese culture, but WEALTHY Chinese culture. There is only one way to get rich over there, and it isn't pretty. Those are also the people that can afford to move here, and the thought of them moving here en masse is a bit disturbing. People here rightfully complain about our political & business leaders behaving immorally, but the people that strike it rich over there are on a whole different level. Again though, I don't think that enough of them are coming here to really "ruin" us or anything. It seems more like NAr scare tactics & a talking point.

50% Chinese want to come to US.
That is 500 million people.
US only has 300 million people.

I expect US house price and RENT to triple.
Can you afford 300% rent increase?

You really think US immigration policy will allow half a billion chinese people to immigrate to the US?
Rent will rise with inflation. Inflation is not going to rise 300%.

The realtor for the people who sold our house to us said if there's a deal where the other side is Chinese, she'll simply not get involved. They can't be trusted. When they agree to something, it's meaningless. They'll wait until the last minute and attempt to change the deal. When you object, they throw some politically correct bullshit in your face and call you a racist.

Mind fog, shades of gray, everything's a puzzle...to hell with them. There's enough other stuff to go around.

B.A.C.A.H. says

Then you must not work in a tech department in S.V.

rowemoore says

rootvg says

When you object, they throw some politically correct bullshit in your face and call you a racist.

So? They call you a racist and you clearly are a racist so what is your problem?

I'm here and I'm staying here and I'm not going to change and that's it.

Everything I've said is true. I see it on a daily basis.

It's not the United States of San Francisco!

rootvg says

rowemoore says

rootvg says

When you object, they throw some politically correct bullshit in your face and call you a racist.

So? They call you a racist and you clearly are a racist so what is your problem?

I'm here and I'm staying here and I'm not going to change and that's it.

I get what you are saying: "We're here! We're queer! Get used to it."

robertoaribas says

my agency opts out of redfin and zillow, and I detest it when buyers call saying "I found a home on redfin or zillow" invariably, that home sold 3 months ago, but those stupid sites have it as active...

From my understanding majority of listings don't make it to redfin/trulia.

hanera says

Advertised price = Invitation to treat, is not an offer to sell at that price.

Legally, an advertised price is definitely an offer to sell under most conditions.

* toasters

* stocks

* cars

Why should real estate be any different?

Because toasters, cars and shares are exact copies sold by millions. Each house seller has one, unique and individual house to sell. Even if mls listing was a promise to sell at the list price, how would you handle more than one buyer for the same property? And, even if a seller had only one offer at full price, they might still not like contingencies.

You say their houses are unique. Really?

rowemoore says

robertoaribas says

Homes are anything but commodities, each and every one is different