Buying a house in East Oakland (Sacramento, Stockton: luxury, living in, prices)

[Tallysmom]

Originally Posted by etsiegel

we moved to the east bay from ny about 3 years ago, just as the market in the east bay was really taking off. I think the best piece of advice on this thread is that the prices you see are totally bogus. Expect to pay AT LEAST 30% more. For whatever reason, in "desirable" areas like rockridge, that is more like 50% or even 60% more. All cash. You won't have much of a shot at these houses with bank financing, and inspection contingencies and all the rest of the normal real estate strategies. It is flat out insane.

The second best piece of advice is that the market will decline again. It always has, and it always will, and those who say it wont have a vested interest in the psychology of constant rises in price. It will lose 10-20% on average. But that average masks a very important fact for the first time buyer. Edge areas (with undesirable schools, safety issues, etc) will lose much more value than established areas.

We're renting in Rockridge, and we keep looking at houses that seem interesting, but we are disinclined to buy at what feels like a market peak.

I think renting for at least a year is a smarter way to go.

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I’m seeing signs of a market change now. In my neighborhood, a few years ago a house would be well priced and sell for WAY over asking. Then sellers upped asking prices, houses sold over asking.

Past six months, a small number of homes were priced high in my opinion...and those houses sat. And listings were closed. And the homes that are selling that are well priced are selling for a little under asking.

[Ultrarunner]

I think the interest rate hike and winter are responsible... several I know have put buying on the back burner... they are worn out and stepping back.

[Tallysmom]

Originally Posted by Ultrarunner

I think the interest rate hike and winter are responsible... several I know have put buying on the back burner... they are worn out and stepping back.

I’m getting cold calls daily from the “We’re looking for homes to pay cash for!” People. That’s also a clear indication we’re at the top.

[Ultrarunner]

^^^I have never used LOL but you are spot on... it happens in every cycle.

[Shelacious]

Originally Posted by Tallysmom

I’m seeing signs of a market change now. In my neighborhood, a few years ago a house would be well priced and sell for WAY over asking. Then sellers upped asking prices, houses sold over asking.

Past six months, a small number of homes were priced high in my opinion...and those houses sat. And listings were closed. And the homes that are selling that are well priced are selling for a little under asking.

A house just sold in Millsmont with an asking price of $799K for $973K. Another Millsmont property's ask was $759K and just sold for $850K. The market is not yet softening in that neighborhood. But this is not sustainable, that's for sure.

[Ultrarunner]

It really does boggle my mind... there are homes that have tripled in value in the last 6 years...

That said... there still can be sleepers out there with operative word being relative... but they are under contract immediately.

Part of me is really happy that Oakland has finally come into its own and people are finally realizing it...

Almost all of my "New" tenants in the last 5 years left San Francisco.... SF loss is the East Bay's gain.

I'm not naive enough to say Oakland prices are not tied to SF...

Funny thing is those I know that left SF have no intentions of going back... parking and easier to get around is a big plus.

One family that rents a 3 bedroom home for the price they were paying for a oversize 1 bedroom in the city got lots of flack from friends... moving to the East Bay... it has been 4 years and now the family in Oakland are the favorite for Holiday gatherings...

[likealady]

Honestly, I don't see a slowdown either. Several homes in my area have sold in the past months well over asking prices. Rarely would a seller reduce the price unless they need to sell immediately for financial reasons. The smart seller will just take it off the market and reintroduce it back in later.

[Ultrarunner]

I'm certain there will be a reset... there always is but it could just as well stay flat and even if the market turns I'm certain the meltdown was a once in my lifetime event... barring some natural disaster, etc...

[nowhereman427]

When the BIG ONE comes Hayward Fault or San Andreas earth quake faults prices will collapse.

[Ruth4Truth]

Originally Posted by nowhereman427

When the BIG ONE comes Hayward Fault or San Andreas earth quake faults prices will collapse.

A Medium One already came and went, and collapsed a freeway that crushed people, in the process. The market was unfazed. IMO, before any Big One comes, the Bay waters will come. Don't buy land too close to the Bay in Fremont/Union City/Newark, or anywhere else Bayside or Sacramento-River-side. According to analysts in Canada's coastal areas, within 30 years, sea levels will have risen over a foot. They're planning on it.