Home Buying in Sunnyvale>Question Details

Kwoksmusic@…, Real Estate Pro in Cupertino, CA

What is the demand like for a 3 BR house in Sunnyvale, now that the school year has started?

Asked by Kwoksmusic@yahoo.com, Cupertino, CA Mon Sep 3, 2012

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Another issue affecting the rental market is that the income tax liability of debt forgiven on a mortgage is scheduled to come back because the current regulations are still set to expire. There are people trying to sell their homes who don't know where they will move to but don't want to face another huge cost. I've personally talked to people who've moved to the fringes of the bay area because they couldn't find rental properties.

One of the first places I look when discussing the rental market is craigslist.

This year has seen a few twists and turns ...

Juliana Lee
650-857-1000
0 votes Thank Flag Link Tue Sep 25, 2012
Thank you Flavio - this link was very helpful to me.
0 votes Thank Flag Link Wed Sep 5, 2012
Thank you Robert - appreciate the tip!
0 votes Thank Flag Link Tue Sep 4, 2012
Irene - For advertising your rental, you can list on Trulia and list on craigslist for free. Sometimes free postings are just as good as paid postings.
0 votes Thank Flag Link Tue Sep 4, 2012
Also - what is the best way to advertise that one has a house for rent? I guess Trulia would be a good start? How much does one have to pay to list a house for rent, does anyone know?
0 votes Thank Flag Link Tue Sep 4, 2012
Diane - what are the more rentable areas in Sunnyvale that would be attractive to someone willing to pay $4K or more for a rather nice home?
0 votes Thank Flag Link Tue Sep 4, 2012
Hi Irene - When I look at homes the first thing I look for is the school district. I would be looking most likely for Homestead High School in 94087. I would look for a 900 API elementary school. Or Cupertino schools.
But your best investment may not be going with a $4k rent. As prices go up for example a $350,000 condo may rent for $2000 while a 1.5 million dollar home may rent for $5000 and a 2 million dollar home may rent for $6000.
Padmapper.com is one site where you can get an idea on what people are asking for rents. However, as you get into this level of detail you really want to work with an agent you can trust who can help you find the right property. One thing I would strongly recommend is finding a home that you can fix up. There is a huge premium being paid (in my opinion) for attractive remodeled homes. There is a lot of flipping going on with properties right now and I think this is an excellent time to be doing it if you can and know what you are doing.
Flag Wed Sep 5, 2012
Right now with inventory so low I am not seeing a problem with getting renters. You may want to contact some property managers but I am constantly getting emails from agents who are looking for rentals for their clients. There are some locations I might recommend over others and I do think you want to look at your cash flows but from a rentability factor in Sunnyvale I am not seeing an issue at all.
0 votes Thank Flag Link Tue Sep 4, 2012
Thank you everyone for your answers again.

Michael - I would like to understand about the timing better. Why would mid-October be a tough time to rent to good renters? Again, is this related to the school year or just because it's past the end of summer. When is the next good cycle to rent then?
0 votes Thank Flag Link Tue Sep 4, 2012
Our inventory is still dropping and the demand is high.

We are still seeing multiple offers.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Tue Sep 4, 2012
If you haven't bought the house, then it makes more sense to wait. If you get into contract in the next couple of weeks, you'll end up closing in mid-October and start your rental process in late October to early November. So, while right now is still a good time to rent out homes, by the time yours would get to market, it will be tough to get a good-paying tenant.

Of course, if you price your rental rate right, you'll still get plenty of good prospective tenants. But, with the rental returns on Sunnyvale investment properties already very thin, you may find yourself with negative returns for a while. (Definitely don't expect cash flow on a financed 3 bedroom unit.)

Timing is important to good investment returns. I've got all my investors set with their rentals for the year already. I'm getting them lined up for the next round.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Tue Sep 4, 2012
After helping my buyers buy their homes, I help them rent them out. I get flooded with renters who want to rent and end up practically spending days in a row shuttling back and forth to show the house to the prospective renters.
0 votes Thank Flag Link Tue Sep 4, 2012
Hi Irene,
You should have no problem renting out a house in Sunnyvale. Sunnyvale is centrally located and thus appeals to more than just families. High-tech professionals will want to rent your house in Sunnyvale too.
0 votes Thank Flag Link Tue Sep 4, 2012
If you are looking to sell in Sunnyvale, right now it's a Seller's market due to high demand and low inventory. Multiple offers are common in today's market. If you are looking to buy, have cash or your financing in order BEFORE house hunting so that you are in a position to compete with other offers once you find a home. If you would like me to send you listings in Sunnyvale, please contact me through my Trulia profile. Kind regards.
0 votes Thank Flag Link Mon Sep 3, 2012
It is more or less the same as before the start of the school year... Actually, people who need to get their kids registered for school buy/sell during the spring. This allows them sufficient time to move and register in the district.

Right after the labor day there is usually another spike of activities as summer vacations are over and more people are in town. We are experiencing a shortage of housing in Bay Area right now and, I think, there no really bad time to list a house.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Mon Sep 3, 2012
Hi Marcy,
I agree that prices should continue to go since our supply is so low.

I find that the market has heated a bit since the end of July but it is a bit uneven. We continue to have very little supply and homes priced right are going very quickly.

In my market and with my buyers some of them took the summer off and went on vacation. Now they are back and looking more seriously.

I was involved in two offers this week. One, I had a client make an offer on a 3 bedroom townhousein Sunnyvale. There were 11 offers and I expect it is in contract for well over asking price. It was not up to its 2006-7 prices but getting close. In some locations, I am seeing homes now get close or surpass their 2007 highs; especially, in excellent school districts with homes that are in good condition under 2.4 million.

The otheroffer was multiple offer situation as well but the number of offers was less. But it too is under contract for over asking price.

In Sunnyvale, as of last week there were 40 Active Listings 86 Pending contrast that to a year ago with 98 active and 87 pending. I sold a home last year in August and it was Cherry Chase schools we had a couple of offers but now there is nothing close to that price.

What I am seeing is a very tight rental market with rentals going on and off the market almost immediately.
Web Reference: http://www.drewketeam.com
0 votes Thank Flag Link Mon Sep 3, 2012
Irene,
The rental market is very strong with many more people moving into the area every week than moving out. You should not have a problem renting a 3 bedroom home at any time of the year. I got 3 applications this week-end on a rental and this was a holiday.
Marcy Moyer
DRE 01191194
Web Reference: http://www.marcymoyer.com
0 votes Thank Flag Link Mon Sep 3, 2012
Hi Irene,
I would agree with Marcy that the market is a little less buoyant now than it was a month or two ago.
That's fairly typical at this time, as people are getting themselves back into their school and work routines, so home-buying takes a bit of a back seat.
I would expect things to pick up a little over the next month or so, then taper off again over the holiday period.
As Marcy says, this doesn't mean that home prices have pulled back, nor that they necessarily will. It is normal for most of the increases in a year to happen in the second and early third quarters, and for people to take a bit of a breather at this time.
From a rental point of view, I think you'll be fine no matter what the sales market is doing just now. There's a shortage of good, clean rentals, and we live in an area where people move around a lot, and don't always buy.
Good luck!
Aileen
0 votes Thank Flag Link Mon Sep 3, 2012
Thank you, Marcy. I'm thinking more in terms of the rental market. I don't want to be stuck with a house I can't rent out. So yes, it's better for me that there are less buyers to drive prices up, but will my house be rentable afterwards now that the school year has started? I'm just new to the rental market in this area and anyone with experience willing to share some advise, is very much appreciated.
0 votes Thank Flag Link Mon Sep 3, 2012
Irene,
The market stayed very active through the summer, but not as crazy as last spring. Historically this is the best time of year to buy. There are not as many buyers as in the Jan-June time period, but just because that has been true in the past it does not mean it will be true this year. What we are seeing is that homes are not appreciating at the same rate they were a few months ago. The prices are not going down, they just aren't going up either.
Marcy Moyer
DRE 01191194
Web Reference: http://www.marcymoyer.com
0 votes Thank Flag Link Mon Sep 3, 2012
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