Terrible bad news! Someone let the air out of Bay Area Bubble 4.0’s tires! Tragedy!
By Pete Carey, San Jose Mercury News
Posted: 07/04/2013 04:00:00 PM PDT, Updated: 07/05/2013 08:44:05 AM PDT
The Bay Area’s frenzied housing market, marked by soaring prices, short supply and a scramble for homes, is showing signs of cooling.
Some buyers, fearful of a new bubble or worried about higher interest rates, are putting their plans on hold, while new listings of homes for sale have been increasing since March, which should put the brakes on spiraling prices.
"It’s a welcome break in the trend, even if it ultimately means prices start to cool off a bit too," said ZipRealty CEO and President Lanny Baker.
Real estate agents in Silicon Valley, where homes have commanded offers hundreds of thousands of dollars over asking price, say bidding is less frenzied than a few months ago, although it’s still one of the hottest markets in the country with a median of 10 days to sell a home.
This can’t be! The party isn’t over just because mortgage rates are going up, or more homes are being put up for sale. Not in the Real Bay Area, anyway! The above map of Santa Clara County real estate sale prices per square foot says so. The spiking rental market keeps pushing buyers forward as well. Besides, It’s Special Here! (It’s so special we have to tell you that red is county, green is city.)
And that median of ten days to sell a home proves that things can’t be cooling off. Everyone knows the smart agents wait 10 days and get all the overbids all at once. Houses could sell in 15 minutes if the sellers wanted them to.
The housing frenzy isn’t cooling off. This is wishful thinking. Mortgage rates don’t affect the Real Bay Area, because every single house in it was purchased by suitcases-full-of-cash-wielding foreigners, who, HELLO, don’t care what the mortgage rates are because they have, HELLO, suitcases full of cash on hand. And more houses being listed? That just allows more people the opportunity to lose out to overbids on an excellent property.
We don’t understand why anyone would be allowed to print something this misleading, although the quote from the president of a county Realtard association (in the East Bay, yet), makes us glad they did:
While the steep climb in median sales prices for single-family homes in the East Bay, Peninsula and South Bay has made some buyers nervous, it doesn’t necessarily mean there’s a bubble, said Robin Dickson, president of the Contra Costa Association of Realtors.
"Clients say they are just not going to buy at the top of market, but really, how do you know this is the top of market?" Dickson said.
Other things we don’t know is whether the sun will rise tomorrow morning, when the San Jose Mercury News will admit it’s just a website, and when real estate writers will stop asking realtards for economic analysis knowing damned well all they’re going to get is cheerleading and happy talk.
Really, how do you know this is the top of the market? It could actually be the floor of the NEXT market, Mr. Negativity!