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Goran_K
2013 Aug 5, 10:16am
I could see prices going a lot higher if wages went higher or credit standards became less stringent.
Do you see either of those happening?
I think that we have to be getting close to the top of this wave. I think there's more chances of negatives for prices now (rate and/or inventory increases), than there is for positives. That's why I'm looking at selling my house in Palo Alto.
I can see why you would want to sell. Prices seem insane, but then with rents where they are, they start looking more reasonable. And the economy is barely getting started up again at this point. I just can't imagine prices going any higher, but that is based on gut instinct and not statistics.
Heraclitusstudent
2013 Aug 5, 11:14am
Where is this all going to end up?
Of course it is a bubble.
There is no difference between a stimulus and inflating a bubble.
The only question is: when is the peak? Tomorrow? In 2016?
That's the $500K question.
Say thank you Ben, for turning us all into speculators.
I know a lot of additional housing stock (rentals as well as ownerships) will bestarting to come on stream - that is really going to speed up starting next year (Milpitas, Fremont Warm Springs - generally the whole Bart Extension corridor to San Jose), Pleasanton (close to 3.4K units), Ardenwood patterson ranch, Berryessa area.
I have also noticed that a lot of Properties (rental) that used to formerly accept month to month rent - are insisting on year long leases (or pay a huge month to month premium) - wonder if that is in anticipation of soon to be increasing choices for renters.
evilmonkeyboy
2013 Aug 5, 12:23pm
I can see why you would want to sell. Prices seem insane, but then with rents where they are, they start looking more reasonable. And the economy is barely getting started up again at this point. I just can't imagine prices going any higher, but that is based on gut instinct and not statistics.
I rent in a nice area of San Jose and my wife works in Palo Alto, it is a 25 minute commute if are smart enough to beat rush hour. Our rent just went up to $1880 for a nice 2 bedroom condo with 2 car garage. Yes you will pay a outrageous amount to rent right next to your job in Palo Alto, but you can find pretty cheap rentals in the Silicon Valley.
I am curious what others think. I just can't imaging prices getting any higher, but I say that every 3 months. I have seen several recent sales that posted near or over $1000/ sqft in parts of the mid-Peninsula in the Bay Area. This is excluding Palo Alto and Menlo Park - for example, Burlingame and west-side San Mateo. Houses that appeared to sell for a ridiculous amount 3 months ago now look like bargains. Granted, a huge difference now is that rents have skyrockted, so that supports high prices better than the previous bubble. Where is this all going to end up? I read stories of things slowing down, but the latest stats don't reflect that at all.
#bubbles