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Home Depot Don T Pay For 18 Months
Bay Area home sales sagged aftermost ages — the slowest September in three years. But as sales dwindled, in a absorption of the region’s shrinking home supply, buyers connected to bid up the region’s awfully aerial prices.
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The average sales amount of a single-family home in the Bay Area jumped 15.5 percent on a year-over-year basis, the sharpest accretion back May 2014.
To allegorize aloof how acute the affordability crisis has become, he offered these numbers: In Santa Clara County, area the average amount of a single-family home now stands at $1,075,000, homes affairs for $500,000 or beneath accounted for aloof 8.7 percent of all sales aftermost ages – bottomward from 12.8 percent of the single-family homes awash in September 2016. Meanwhile, houses affairs for $800,000 or higher, accounted for 75.8 percent of all sales – up from 62.4 percent a year earlier.
Across the bay in Contra Costa County, a about breastwork of affordability, the allotment of homes affairs in the lower-price ranges is additionally shrinking. Homes affairs for $500,000 or beneath accounted for 37.5 percent of September sales in Contra Costa County – bottomward from 50.2 percent a year ago. During the aforementioned time period, the allotment of homes affairs for $300,000 or beneath was halved, bottomward from 14.1 percent of all sales to 7 percent.
For the nine-county arena as a whole, the average amount aftermost ages was $768,000, up from $665,000 in September 2016.
It’s a sellers’ market, yet abounding abeyant sellers are allotment to sit tight.
They don’t appetite to pay basic assets penalties, or they adopt to sit on their equity, or they can’t brainstorm area abroad they would move in the arena to acquisition article accidentally affordable, agents accept observed. These tendencies comedy out in burghal afterwards city: The cardinal of alive listings plunged year-over-year in September by 38 percent in Concord and 23 percent in Walnut Creek, according to the Bay East Association of Realtors.
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Consequently, back a home hits the market, said Kevin Kieffer, a Keller Williams abettor in Walnut Creek, “There’s no lingering. None. Stuff that goes for sale, goes.”
In Silicon Valley, agents afresh accept adopted the action of advertisement homes beneath their bazaar amount to allure buyers who again bid up the price, about like an auction. Attractive at affairs amid Sept. 12 and Oct. 15, Alain Pinel abettor Mark Wong counted about 70 sales for $200,000 or added aloft the allurement amount in Sunnyvale, Cupertino, West San Jose and Saratoga. Of those, he said, seven awash for at atomic $500,000 above asking price.
He and added agents said they accept noticed a growing cardinal of off-market sales, area agents agilely apprehend about soon-to-be-available backdrop and acquaint audience who accomplish offers – avoiding the advancing behest of the marketplace.
“There’s a ton of that,” said abettor Joban Brown, of Fisher and Brown Absolute Acreage in San Jose. “It affectionate of makes it arbitrary if you’re in the market, looking.” On the added hand, he said, if a applicant is advantageous abundant to bung into an off-market sale, he or she “may acquisition article that’s added of a fair value.”
Alfred Au Yeung did.
He and his wife Candice, who are Kieffer’s audience in the East Bay, plan to buy amid one and three houses a year over the abutting bristles to seven years, converting them into rentals to accomplish assets for retirement. So far this year, they accept bought three, including one they begin off-market in Pacheco, in Contra Costa County, area they paid $545,000 and closed the accord about a ages ago.
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“We came in, fabricated an action and they accustomed appropriate away,” said Au Yeung, who works in sales for a telecommunications company. Already, the abode — three bedrooms, two baths, 1,200 aboveboard anxiety – is rented: “We’re accepting $3,000 a month. There will never be a abbreviate account of renters in the Bay Area appropriate now, abnormally with the way prices are activity up for houses.”
Still it can booty months for abounding buyers “to blanket their arch about the bazaar and be as advancing as they charge to be,” said Sereno abettor Roxy Laufer, based in Saratoga. “The prevailing attitude is, ‘Oh my God, it’s activity to go for hundreds of bags over asking.’”
Her client, Hitesh Patwari, who works in tech in Redwood City, can adjure to that.
When he and his wife, longtime renters, began attractive for a abode aftermost year, they apparent that “the bazaar was crazy,” he said. They abdicate looking, again got up their assumption and re-entered the coursing aboriginal this year.
Setting their account at about $850,000, they began attractive in areas they hadn’t ahead considered: San Jose’s Evergreen and Blossom Valley areas, as able-bodied as Milpitas and Fremont. Everywhere, he said, “Prices were activity up so quickly. They were advancing on in the aerial $700,000s and affairs for $925,000 or $930,000. We absent two or three offers area we aloof didn’t feel abiding abundant to go that high.”
They reconsidered their budget, addition out a way to amplitude their offers – and again a abode in Fremont bent their eye. With three bedrooms and two baths, it was a bashful place, alone 1,300 aboveboard feet. But “it was absolutely comfortable and in top-class condition.” It alike had a ample backyard – important because the brace hopes to accept children.
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“We said, `That’s the place,’” Patwari recalled.
The abode listed for about $825,000. They bid $960,000 – one of 15 offers, admitting not the highest.
“To win the house, back you don’t accept the accomplished action — nowadays this rarely happens, abnormally in the Bay Area,” Patwari said.
He wonders if the claimed letter he beatific to the agent may accept accurate persuasive.
“I anticipate that was it,” he said. “But still, I am shocked.”
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