WorldTraveler, Both Buyer and Seller in San Francisco, CA

Are we in a bubble in South San Francisco? I

Asked by WorldTraveler, San Francisco, CA Thu Apr 11, 2013

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So where did Shannon sell at?
0 votes Thank Flag Link Fri Apr 12, 2013
Well technically thanks to RE I don't have to work anymore :) :)
0 votes Thank Flag Link Fri Apr 12, 2013
No, we are not. Why? Because buyers are purchasing homes as fast as they can get them and there are multiple offers.

Example, 2501 Shannon in SSF was listed for $549,000. It was under priced in my opinion, I thought $599K or $619K would be a good start. It had 4 beds and 2 baths, 1800 sq ft. It needed a new kitchen and the baths were OK, but dated and needed a new roof in a couple of years. They got 60 offers. SIXTY!

Is there a bubble? I would say no when almost every home is getting multiple offers if it's priced correctly.

Food for thought. What's fueling this market? 1. Fear. No one wants to lose out on a great opportunity, rates and home values are down in the same time period. 2. If you understand the cost of money, it's almost free. 3. There is a ton of money coming from overseas. Why? Fear of a residential bubble.

Where is it safer to invest? In the U.S. where we are on an up cycle after we just saw the closest thing to the Great Depression or in China where they over buildt and the gap between the rich and poor is too great?

It's simple supply and demand. If you coul figure out why these cycles and bubbles happen you wouldn't have to work anymore.

Be grateful you were able to get into contract. If you have second thoughts, please contact me so you can assign the contract to one of my buyers.

Best,

Tap
Coldwell Banker
http://www.DavidTapper.com
http://www.TeamTapper.com
650-403-6252
0 votes Thank Flag Link Fri Apr 12, 2013
Find yourself a good local Realtor who will run all the numbers for you.
0 votes Thank Flag Link Thu Apr 11, 2013
Yes, I did read that. Good stuff. I want more though - stuff with equations and models and numbers!
0 votes Thank Flag Link Thu Apr 11, 2013
Pricing is an art, not science :)
Flag Thu Apr 11, 2013
Read the link to the post I gave you in the previous answer - it has a very thorough explanation of what is currently going on. We are in a free market system. Many models out there.
0 votes Thank Flag Link Thu Apr 11, 2013
I guess it's a mystery to me why things go up and then go down. I wish I knew how to tell. The same goes for rents. There has to be some smart economist that has figured this out...or some models out there. I just haven't seen them yet.
0 votes Thank Flag Link Thu Apr 11, 2013
Yes, we are in a bubble. But not the type you are implying. Bay Area economy is currently over-performing the rest of the country and as a result the housing market is red-hot. We are in a market that has very little to do with national and even state-wide trends. That is what I call a bubble - us being insulated from the surrounding areas, living in a bubble. I think that we are still at the beginning of the housing market recovery and not in a pricing bubble.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Thu Apr 11, 2013
Read this post - may be helpful:

Current Bay Area Market NOT A Bubble: Top 5 Buyer Recommendations
http://bit.ly/1460Yzt
0 votes Thank Flag Link Thu Apr 11, 2013
See your other question/answer.
0 votes Thank Flag Link Thu Apr 11, 2013
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