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BoomAndBustCycle
2020 Jul 14, 2:26pm
So glad we bought in the burbs in 2011... sitting by the pool, working from home, as much as I hate what quarantine is doing to society... I’m atleast super comfortable. Couldn’t imagine being in a condo paying HOA for unusable shared amenities close to a job I don’t commute to anymore. I have A few of friends who are renting who have been told they have to move when the lease is up because landlord is selling. They are hoping to buy, but I don’t think they realize home prices will be sticky in the burbs for years. No one wants to live in congested cities anymore.
We started looking in 2009 and the market didn’t bottom until 2012.
We started looking in 2009 and the market didn’t bottom until 2012.
http://housingbubble.blog/?p=3648
The Bay Area Newsgroup in California. “Prices for one-bedrooms in techie hives near major Silicon Valley companies have plummeted from last July: San Francisco fell 11.8 percent, Mountain View dropped 15.1 percent, Menlo Park fell 13.5 percent, San Jose slid 8 percent, and Cupertino 15.7 percent, according to Zumper. Economists doubt lifestyle changes are the only reason behind plummeting prices.”
“Two other big forces have changed the supply-and-demand equation in the housing-short Bay Area: owners of short-term rentals, including Airbnb vacation stops and furnished corporate housing, are now listing those units as long-term rentals, adding new supply. And surveys and interviews suggest many renters are taking shelter-in-place seriously and extending their leases rather than risking a move, quelling demand. The increased supply and falling demand have pushed down prices.”
The San Francisco Chronicle in California. “Median condo prices have dropped 4% from June 2019, dipping from $1.25 million to $1.195 million, according to Patrick Carlisle, chief market analyst for Compass. The second quarter saw 389 condos close, a 57.7% decline from the second quarter of 2019, and 504 units put into contract, a decline of 42.3%, according to Vanguard, another brokerage. The new challenges come as San Francisco has more new condo buildings opening than any year since the 2007-09 recession. Currently, 842 new condo units are on the market, and 637 resales, about a 61% increase over 2019.”
“The greatest weakness in terms of pricing and sales volume has been in the downtown and South of Market neighborhoods that have the highest number of new buildings coming online, according to Carlisle. ‘Everything that everybody loves about the city is closed right now and people are thinking, ‘Maybe I should move somewhere where I have a little elbow room,’ said Carlisle. ‘Areas where many buyers are younger high-tech people have struggled.'”