My Realtor just sent this message to me saying that Bay area, CA market has slowed down and this summer the prices will go down by 20% to 30% in prime locations and up to 50% in certain locations like Tracy, Mountain Homes, Brentwood and Antioch areas.
16 replies (most recent on top)
We sold a couple years ago (just before covid) and moved to another state that's less expensive and more livable long term.
Was shocked at what we sold our old house for, and for how much house we then bought for less money. Our new house would cost millions if it was where our old house was. Seriously.
Parents are still on prop 13, and have been in the same house all their lives. Cheap living for them, but their neighborhood has turned into a war zone, and homeless camps everywhere. They want to move, but financially never will.
While I think that percentage is pretty extreme, I understand the sentiment. The housing market is bound to cool down between the decrease in demand and the increase in interest rates. Investment companies can’t just keep taking up inventory assuming people will rent homes. A majority of people who want to live in a suburban home want to own it. If they’d prefer renting then they’d likely choose a more attractive location. Also we have to remember most home owners associations have covenants restricting the number of rental properties in the community. Believe it or not a high volume of rentals brings the property value down.
Basically covid made a lot of people pay a lot more for overvalued assets that they’ll be stuck with through a recession
Pffffffftttttt. Ca lost around 150k, people wise, in the past 6 months because they can't afford living here. But plenty can afford the prices, and supply and demand are still through the roof. And the fed increasing interest rates doesn't mean a thing to people who can afford 2-million-dollar homes.
Not seeing it in the Walnut Creek / lamorinda / alamo area…. People are relocating here yet inventory is very low.
I am starting to panic. Just checked my Zestimate and it did not change since yesterday! I still take comfort in the 28% YoY increase and 167% increase since we bought 12 years ago. Our plan has always been to move out of state upon retirement, though if CA were retiree-friendly, we’d stay in a heartbeat. If we go into a serious recession, sure prices could drop in the core Bay Area, but as a lifelong resident, sorry, but the bottom just isn’t gonna drop out. Mock us SF employees all you wish - after I’m laid off or retire, even if our $1.4MM in equity has taken a bit of a hit (And yes, we’ll have some cap gains), spouse and I will have a pretty nice chunk of change while also being able to trade up home-wise.
Your realtor is clueless.
Lamorinda? Clayton? WC/PH? They are not going down.
No inventory. High demand.
Desiravke locations continue to do well.
LOL… funny to read people poor mouthing it after experiencing 50 years of the hottest price appreciation in the country. Here’s a clue… sell out and live like a king anywhere else in the world.
Get a grip peoples, really
Stop that madness!
LOL… folks living in by far the greatest area for property appreciation in the USA for 40 years poor mouthing it. Incredible isn’t it…?
Your relator is one of probably 500k Realtors in CA
The only thing going down is the buying power of the dollar.
It will still be expensive to finance with increased rates even if prices are down - which I doubt will go down since there will always be investment groups grabbing up homes as they hit the market.
I am in Orange County, checking prices daily. Prices are still going up.
There is no inventory.
The interest rate on the 30 year conventioal is about to hit 6%, probably will hit 7% before EOY. This is the brand new world, nobody knows what will happen.
Relax and enjoy life.
assuming I don't move out of state, if I sell my CA house tomorrow and take the 100%+ equity I've gained in the last 10 years, what can I buy? I'll get something of similar or worse condition that will double or triple by priority tax. like many in my situation who don't want to leave CA or the Bay area we'll just upgrade our existing homes if we can afford it or just stay as is and keep our original tax basis. imo this is one of the main reasons inventory is so low, especially in the bay area, no ability to move up at least not cheeply.
Your realtor is just trying to make some extra paychecks and scare you into putting your house on the market.
slowed down? It never spend up. Inventory in the "Real" Bay Area is abismal and never really picked up this spring. Once summer hits it will get even worse. Until supply creeps up prices will continue to rise.