Getting depressed...mortgage=no home, cash only wins (San Jose, Gilroy: sales, apartment)

[TheGreatCurve]

Originally Posted by mysticaltyger

Housing supply here is always short of demand, partly because of all the red tape required in building new housing.

That's exactly right. There was just an article in The Mercury News the other day that a whopping 75% of the land in the Bay Area is protected and hands off to developers. So it's no wonder that housing here is chronically in short supply, and the astronomical prices reflect that, and yet, companies keep hiring new people into this area. So you can thank all the environmentalists and tree-huggers for our current plight.

[rimmerama]

We lost out to a few cash buyers - just have to keep at it, eventually you'll get a house.

[HDL]

Heck, I grew up in the South Bay and it has really changed . It is a place unlike any other that I've ever lived in and I believe that most folks would do best to rent first before buying here . Good advice , but tough for most folks to do and very hard to swallow . But hopefully you will be much happier in the long run if you go this route !

Originally Posted by RCLL

I bought a home a couple of years ago around the time the economy hit rock bottom. Even during that time there was multiple offers. I imagine now that the economy has picked up this will be more the case, with even more multiple offers. This is not unsual. The beauty of buying at the time when I did, was SELECTION. Had it not been for the economy taking a dip, and folks scrambling, wondering if the sky was falling, there is no way that I wouldve landed this home. I knew that the probablity was high that the home would go down in value given the state of the economy, but it didnt matter to me. What was important, was the selection available. It did go down in value, but has since gone up and has stablized. My thinking was always long term for this property. I have no regrets and would do this again in a heartbeat.

Nothing wrong with renting, once your here and are familiar with all areas, opportunities do crop up, just be patient and expect multiple offers. With a high paycheck, youre in good position, it will just be a matter of time.

Originally Posted by StandingRoomOnly

I personally think it is better to come here and rent while looking for a house to buy... buying into a neighborhood you aren't *really* (or even somewhat) familiar with may be a gamble...especially in many parts of San Jose. And as many said, yes, some people do have a lot saved up ready to pounce on a house with all cash (or so the rumor has been among a lot of people I talk to), but it certainly isn't the majority of buyers (or so I'd like to believe! ).

Good luck with your move and don't be too desperate to buy before you come, you may appreciate taking a bit of time before settling into a house you are solely responsible for (maintenance, remodeling, etc etc) and making sure you are able to pick the exact areas in San Jose (or outskirts) where you and your family feel most comfortable. It takes a bit of time to get a *feel* for a place.

[Nell Plotts]

Originally Posted by TheGreatCurve

That's exactly right. There was just an article in The Mercury News the other day that a whopping 75% of the land in the Bay Area is protected and hands off to developers. So it's no wonder that housing here is chronically in short supply, and the astronomical prices reflect that, and yet, companies keep hiring new people into this area. So you can thank all the environmentalists and tree-huggers for our current plight.

I don't think the environmentalists and tree-huggers are the primary reason for the lack of housing... it is the city zoning folks responding to the demands of the residents. They don't want higher density.

Think you have it bad, consider for a moment the plight of technical and service workers.

[oldtrader]

You are looking in the lower end of the price curve in decent homes, in decent areas. There is not much supply in your price range, and this makes the good ones a hot commodity. You are going to have competition, and as someone in the real estate business since 1971 till I retired, and having raised a family in the Silicon Valley I understand your problem.

Cash always rules in home purchasing, and if the sellers want to move quickly the ability of those with cash to offer a quick closing will often get the sale even at a slightly lower price.

Question: Have you been pre-approved for a loan? If you have, you can move quickly, and have about the same as a cash buyer ability to buy.

If the answer is no, you will find it difficult to find a home to buy in that area in your price range. If you have not, get pre-approved so you can move up the desirable buyer scale quite a bit before you go out looking for another home.

[Ultrarunner]

Originally Posted by oldtrader

Cash always rules in home purchasing, and if the sellers want to move quickly the ability of those with cash to offer a quick closing will often get the sale even at a slightly lower price.

I always thought cash As-Is would win every time...

Was surprised to find out friends that offered all cash subject to a home inspection lost out to another buyer that is using the Bank owner as their new lender...

They both came in at the same price on the same day... Broker explained the Bank would net more by also being the Lender...

I'm looking at a bank owned home right now... it's on my street and very familiar with the home...

It is being offered by Bank of American and the Listing Broker said all offers must be submitted with a B of A loan application... even for cash buyers...

I'm not a cash buyer... I do have a great Mortgage Broker that is no non-sense and delivers...

Surprised the Bank would make a cash offer subject to a completed loan application?

[mysticaltyger]

Originally Posted by Ultrarunner

It is the age old dilemma of Location, Location, Location.

Six years ago the story was the same for just about anywhere in the Bay Area...

Three years ago the story changed 180 and people were walking away.

Today... the area you are looking at is has crazy demand...

Demand is what keeps the market tight.

Not all the Bay Area is the same... the farther out you go the less competition.

I drive by homes that have been sale in the East Bay for months... I live in Oakland...

But who wants to commute 1 hour or more one way for a still overpriced place to live (or a dumpy place)? With $4 gas, plus wear & tear on your car, not to mention no time for anything but working and commuting, that isn't really a great life.

It also turns out long commutes are linked to poor health (as if we needed a study to tell us this).

Long commute time linked with poor health, new study shows

[mysticaltyger]

Originally Posted by TheGreatCurve

That's exactly right. There was just an article in The Mercury News the other day that a whopping 75% of the land in the Bay Area is protected and hands off to developers. So it's no wonder that housing here is chronically in short supply, and the astronomical prices reflect that, and yet, companies keep hiring new people into this area. So you can thank all the environmentalists and tree-huggers for our current plight.

It's the tree huggers plus the suburban NIMBYs who don't want high density housing on the remaining vacant land (although I suspect the two groups overlap).

Then there are the tax disincentives created by Prop 13.

[mysticaltyger]

Originally Posted by Nell Plotts

I don't think the environmentalists and tree-huggers are the primary reason for the lack of housing... it is the city zoning folks responding to the demands of the residents. They don't want higher density.

Think you have it bad, consider for a moment the plight of technical and service workers.

It's not an either/or, but both. Basically, people are selfish and only think about what's on their personal priority lists and not about the good of the whole. People who've bought their own houses or who can comfortably afford the rent don't think about the struggles of moderate and lower income folks and/or because regulations and zoning are invisible, they aren't aware of the full implications of all of these laws.

Personally, I sometimes wish all of the people in retail and similar type jobs would just boycott living in this area. That would be the only thing that would get the attention of the area's power brokers. But it will likely never happen. They can always import desperate people from some third world country to take low paying jobs.

[mysticaltyger]

Originally Posted by StandingRoomOnly

Good luck with your move and don't be too desperate to buy before you come, you may appreciate taking a bit of time before settling into a house you are solely responsible for (maintenance, remodeling, etc etc) and making sure you are able to pick the exact areas in San Jose (or outskirts) where you and your family feel most comfortable. It takes a bit of time to get a *feel* for a place.

I have to say I agree 100% with this. I really think buying a house in a place where you haven't lived for at least a year is a bad idea. Not just in SV, but anywhere. Especially when you're talking about the super high prices we pay for real estate here, it makes it all the more imperative to take your time, do your research, and to not try to force things to go faster.