We’ve made the call on Bay Area Bubble 4.0, now we’re just lining up the evidence. Palo Alto began heating up and blowing past peak pricing last year. The proof of another housing bubble, though, is when the increasing prices and the bidding frenzy and the sales velocity measured in Hours on Market rather than Days and the large number of listings marked Pending/Do Not Show start overwhelming the Not So Special parts of the region.
Here is Evidence For a Bay Area Housing Bubble #1,726: Frenzy for condos. CONDOS. In MILPITAS.
The Bay Area’s market for condominiums and townhouses has seldom been hotter. Existing units are selling in record time with multiple offers, and new ones are being snapped up before there’s even a model home to see.
Just ask Niha Singh. Last month, Singh, a 27-year-old Silicon Valley computer engineer, and her husband tried to buy one of 12 units in a new townhouse development under construction in Milpitas. Even though they’d car-camped outside the developer’s office, they ended up on a waiting list.
Across the Bay Area, buyers are fighting for a limited supply of new and existing condos. Investors have already snapped up many foreclosures and short sales and are renting them out, while owners who might sell in a typical market are either still on the sidelines watching prices rise or are underwater and can’t afford to sell. And demand has been growing.
Wasn’t it just a couple of years ago we were reading about condo complexes that had reverted to all-rental buildings (also known as apartments)? Why yes, it was. But obviously Milpitas is Much More Special than Downtown San Jose. Also Three Sixty is Five days short of even a Regular Year.
People camping out for five days in front of a Milpitas development not enough? Want more evidence of Bubble 4.0? You think a seller’s market in Milpitas condos is reaching? At least Milpitas is in the same area code as Google.
Condos in Castro Valley sold in 11 days in December, compared with 82 days in 2011, the Bay East Association of Realtors reported. In Pleasanton, the average number of days on the market dropped from 52 days in December 2011 to 10 days last December.
Castro Valley. You know, Gateway to Hayward, City of Diversity. We’re putting in our sell order when Stockton comes back.