Silicon Valley real estate market: The bidding war is back – San Jose Mercury News
The affordable end of Silicon Valley’s housing market has taken off, with homes often attracting dozens of bids in a repeat of the overheated days of the dot-com boom and the housing bubble.
But despite prices that are in some cases half of what they were at the peak of the market, first-time buyers are being shut out, outbid by investors willing to pay cash for houses they think will bring a good return on their money as rentals, and eventually appreciate in value.
During the dot-com era, the frenzy was for high-priced homes. This time, the homes that are selling briskly are lower-priced bank-owned foreclosures or sales by distressed borrowers. Those homes are sometimes fetching 50 bids or more. But even homes in more expensive areas such as Willow Glen and Cupertino are getting multiple offers, agents say.
Bill Powers, a broker with Coldwell Banker, said he represented a buyer who made an offer on a home on Willowbrook Drive in the Cambrian area of San Jose that received 73 other offers.
“The very low end is so attractive for investors,” Bracamontes said. “You get a $220,000 to $250,000 home, and you’re able to rent it for $2,000 or $2,100 a month, and you’re getting 8 percent on your money, after expenses.”
Thanks to Burbed reader Ev (and others) for sending this my way.
This is most excellent and fantastic news. It’s true! The good times are back!
And with a vengeance! $220,000 homes are now renting for $2000 a month!
Can you believe that? My god! Every aspect of real estate is on fire – from home sales to rent! The long awaited Summer Soar has finally arrived!
Next up… Fall Frenzy, followed by Winter Winners, then Spring Bounce, with the cycle restarting again.
$2200,000 homes are renting for $2000 a month! Shocking! But if a realtor said it, it must be true!