Bay Area

[sfsfr]

I think I've just seen the first listing that made me really think "bubble".

http://www.redfin.com/CA/San-Carlos/148-Chestnut-St-94070/home/1433565

$1.3m, $300k over asking, $800/sqft, for a very basic looking house with a single car garage on a small lot in an area that is hardly upscale. Crazy.

[sheriff]

Don't forget, pending in one week sold a week later.

I also noticed they are serving refreshments at open houses now.  Maybe you will make a better offer if you are not hungry?

http://www.redfin.com/CA/San-Jose/359-Casselino-Dr-95136/home/1720610

[Buyer567]

Yep. Somebody was probably tired of losing bidding wars and made a wildcard offer. Such house would normally sell for $200K less, at least. The area is nothing special indeed, but good schools. I wouldn't call it a bubble based on this one sale, things like that happen all the time. Besides, bubble or no bubble, who cares? US dollar steadily loses its value and real estate holds its own, it's as real as it gets, that's all what matters. It's been a "bubble" here for as long as I remember: people were complaining about super-expensive and unaffordable real estate 15 years ago.

[bld999]

Holy Cats!  I will guess that the fog of regret might creep in soon on that buyer.

  The same thing is happening here on puget sound, and likely in other costal cities. One listing agent sent a mailed card with a fresh listing,; the next day it showed up on refin for 35% more [quick second thoughts] In my zipcode there are 4 sf homes for sale, one over 1.1 mil, unheard of since about 2007 [the current median is 525]. I fear a buyer's strike is coming. The two nearby 1+ million houses are spec builders, they look sad and pathetic to boot.

[elt1]

The shadow inventory of buyers who been on strike since 2007 is way larger than the shadow inventory of foreclosures and is growing at 1m families a year

[sfsfr]

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elt1 wrote:

The shadow inventory of buyers who been on strike since 2007 is way larger than the shadow inventory of foreclosures and is growing at 1m families a year

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LOL, very true. It must be worse out there for buyers than I imagined. If this doesn't make sellers come out of the woodwork, nothing will.

[sfsfr]

Maybe we'll start seeing the crazy "Make Me Move" prices on Zillow again soon.

[bld999]

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elt1 wrote:

The shadow inventory of buyers who been on strike since 2007 is way larger than the shadow inventory of foreclosures and is growing at 1m families a year

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The next 6 months will be a bit of a circus. What a ride we've had in the last 12 years...

[Jil]

2013 is cash offer ERA!              Even if the house goes to $1, they can hold on to it as people paid full cash....

So far these are all full cash offers, I came to know.....

http://www.redfin.com/CA/San-Jose/2823-Cardinal-Ln-95125/home/1792044
http://www.redfin.com/CA/San-Carlos/868-Cordilleras-Ave-94070/home/1487537
http://www.redfin.com/CA/San-Jose/1088-Hyde-Ave-95129/home/1531796
http://www.redfin.com/CA/San-Carlos/148-Chestnut-St-94070/home/1433565
http://www.redfin.com/CA/Dublin/7776-Crossridge-Rd-94568/home/1177404 (True, this is full cash offer!)

I repeat my old post: My friend has offered 12 different homes (SFH & TH) in bay area, range 600k to 750k, in cupertino, sunnyvale, Almaden Valley,Fremont, Pleasonton, San Ramon and Dublin. He started the first offer during second week of dec 2012 and lost all the 12 offers. Appx 4 offers are gone out of his hand by full cash offers, he lost 5 with high down payment people who absorbed appraisal contingency, rest he did not increase the price due to 20% down payment amount restriction.

[Adam070]

another on Castle Hill in RWC last month, probably 30% in PA/MP are cash as well.

Our agent said the next highest bid on the Chestnut was supposedly 1.15M, so it was just a case of a crazy bidder.