WorldTraveler, Both Buyer and Seller in San Francisco, CA

I think things are getting way overbid and the house prices are over heating. As quick as they go up they can go down.

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

Sure over the long run prices go up usually in many markets, but there are no guarantees. With the mess this president is making of our economy with all his garbage who knows where things will be. People will have less discretionary income. We will need to send more and more of it to the Feds for crap that we personally don't need or want.

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20
Not everybody agrees with you;
Of course; not everybody agrees with anything!
2 votes Thank Flag Link Wed Apr 24, 2013
World...

Is there a question hidden away in here? Or would this commentary be more appropriate as a trulia blog?

Bill
1 vote Thank Flag Link Thu Apr 25, 2013
You know what - even if you like the president, there are no guarantees; that's life - especially in the big city.

Basically, WT, if people don't want to buy houses, we can't stop them. At the same time, if they want to buy houses, we can't stop them, either.
1 vote Thank Flag Link Thu Apr 25, 2013
Use a Realtor who can do a valid CMA for you. Zillow valuations are a joke.
1 vote Thank Flag Link Thu Apr 11, 2013
Every market is unique in its own way, but the bay area is not so unique is it? There are other very well placed and high demand cities in the world. The prices are going up even more there and RE is much more expensive than in the bay area even.
Flag Thu Apr 25, 2013
Problem is you can't that without obligating yourself to someone. One realtor I talked with a couple weeks ago got VERY push when I suggested I might want to list my Sunnyvale home. She said what she had to offer was her "knowledge and data" and that she is not going to give it away. Then she kept telling me how much she wanted to list my home... I told her to take a hike lady. She was only focused on her needs, not mine. Poor salesmanship because I was actually considering listing with her before she started getting pushy.
Flag Thu Apr 25, 2013
Do you have a question?







.
1 vote Thank Flag Link Thu Apr 11, 2013
Sounds like you're making a statement as opposed to asking a question. House are increasing in price...

For a little perspective, we are only 50% of the way back to the prices of 2004-2006. And, today's buyers are FAR MORE Qualified than they were during the last boom.

We're definitely on an upward movement...whether it's good or bad remains to be seen.
1 vote Thank Flag Link Thu Apr 11, 2013
Inventory is low and there are still people looking to move, relocate or invest and thus prices have risen. I've seen a 30% drop in prices from our peak and now I see a 12% rise from the bottom. No longer are there ample loan products that allow no down payment. Appraisals are based on sales going back 90days and financing guidelines are super stringent. I would buy into this market and the stability of home prices much more now due to this fact.
0 votes Thank Flag Link Thu Apr 25, 2013
Bravo boys. Glad to see some reality on this thread. I was moving on. Probably still will.
0 votes Thank Flag Link Thu Apr 25, 2013
World traveler,

I do not see the Bay Area prices going down. Possibly the increases slow down. The buyers today are different than in the last boom. They are coming in with larger down payments, stronger credit history, fixed rate principal and interest loans vs. option loans or interest only and teaser rates, and they are truly capable of making the payments. Our economy is very strong combined with low interest rates is fueling the current boom. Today is the most affordable time in 30-40 years to buy a home. Home ownership is often less expensive than renting. Check our my recent blog concerning the lack of homes for sale in the Bay Area. http://leesellsmore.com/RealtorWebPage?template=embed&cu…
0 votes Thank Flag Link Wed Apr 24, 2013
I'm still trying to wrap my arms around this thread.
0 votes Thank Flag Link Thu Apr 11, 2013
What site do you think has the best estimates for values? Zillow seems to be well behind the times.
0 votes Thank Flag Link Thu Apr 11, 2013
And if the point is not the 750K what is the point?
0 votes Thank Flag Link Thu Apr 11, 2013
What do you experts here think about activity in different price ranges... for example, what's going on at below $400K, vs. what's going on at above $750K. Do buyers at the higher price ranges truly have more choices?
0 votes Thank Flag Link Thu Apr 11, 2013
Read it here:

http://www.standardandpoors.com/indices/sp-case-shiller-home…

Keep in mind, Case Shiller reports on a national level, not a local level. The Bay Area is an entirely different market when compared to the rest of the nation.
0 votes Thank Flag Link Thu Apr 11, 2013
What does Case Shiller have to say about all this?
0 votes Thank Flag Link Thu Apr 11, 2013
I agree. Real estate is such a local phenomenon. Even 50 miles away can be a totally different story. I just wonder with the multiple offer situations whether the offers being chosen are at the HIGHest high and the rest of the offers are lower. For example, if something sells for $500, maybe that was the highest offer. But other offers may not have been near that. They could have rather been centered around the $450 mark. Just one crazy offer was $500 but the rest were all more or less $450. This makes it look like the values have gone up to $500, but once those super rich buyers are satisfied and exit the scene, the prices dip because all you have left are are the $450 buyers. Make sense?
0 votes Thank Flag Link Thu Apr 11, 2013
Don't count on the prices going down in Bay Area that fast - check local market prices for 2007-2012. Don't read national or even state-wide news.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Thu Apr 11, 2013
Every product is about supply and demand. The market was hot for years and then 4-5 years ago it came to a stop and for the past 4 years buyers had the upper hand over the sellers. Then around Jan 2012 someone flipped the light switch on again and now the sellers have the upper hand again.

These are called cycles and they are here to stay. If you are purchasing real estate, it's not just how much you pay it's also how long your in it. For those who are financing, money is almost free at these interest rates. If rates go up one percent, you will lose 10% of your buying power. There is also a ton of cash too.

Real estate has a track record over 200 years that you can see on a flow chart. Some companies that you invest in on the stock market are no longer in business.

At the end of the day, everything in life is a risk, enjoy the ride while you can. The ride is very short.

Lastly, (OPT). Only positive thoughts. Everything else is a waste of energy.

Best,

Tap
http://www.DavidTapper.com
http://www.TeamTapper.com
0 votes Thank Flag Link Thu Apr 11, 2013
Except for some very important factors not considered in that statement: 1.) None of the prices now being paid in the Bay Area are the result of 100%+ financing; 2.) Jobs are being created and very little housing is being built; 3.) Commuting is getting more expensive and taking longer and people are willing to pay higher prices to live closer to their work.
0 votes Thank Flag Link Thu Apr 11, 2013
You are beating this horse to a bloody pulp!
Or is that your intention?
0 votes Thank Flag Link Thu Apr 11, 2013
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