How would the new buyer of $2m Sunnyvale house feel?

67 Replies

@Diane G. Well when your buying a 850sf house that is shattering sf records the buyer is either an idiot or super wealthy and just wants to brag about buying a house the size of my garage for $2M. I have built high end condos and it is very common for these buyers after they move in to then compete against each other on how much they can spend. When you start putting tv’s in your kitchen backsplash with frames around them custom made to match the tile and tv’s that come down from the ceiling by piano wire so they look like they are floating it’s not about ease of use but bragging rights

Diane, looks like someone purchased Yorktown for $1.75 million in September 2017 and is now flipping it. It will sell for much more than list of $2M as it is just the teaser price is my guess. The buyer for the $2M house is probably going to add a lot of square footage with their large 6k lot for the area. 

@Johnson H. - I live like maybe 10 houses from Yorktown and did NOT notice its sale in 2017...Lol... Well, it is now on the market for 3 weeks with another open house today... I am not even sure it will get asking price... market is very different now from just 1 months ago....

How big was the lot? That is the big question. I am seeing townhomes in Sunnyvale selling for 1.6 million. They were priced at 700k in 2011. 640k in 2009. But then again we did not have the Facebook, LinkedIn, Apple and Google dominate our lives as they do now, and they are all within very comfortable driving distance of Sunnyvale. Also the 94087 zip has some solid rated schools and 10 minute commute to the new Apple campus.

@Sam Josh

1 is 846 sqft with 6033 lot, sold for $2m.

1 is 1130sqft with 5992 lot, sitting for $1.8M...

Two properties are literally within steps of each other.. only diff is timing, 2 months apart...

Only thing going for Sunnyvale is commute to tech and schools. Otherwise its a pretty boring suburb with boring tract housing. 

Unfortunately I feel we are in a very unsustainable market. As a property owner in SV I should be rejoicing but frankly this is a bit scary.

I lived and worked in Silicon Valley from 1987 to 2017; what an amazing place if you were in tech! If you happened to buy at the right time you were golden; if you were forced to sell at the wrong time not so much. When people buy these high priced homes typically they are just using gains from stock option exercise of over priced shares anyway so who really cares all that much-right? It is literally money found in a ditch. If you can maintain control of your life and finances it can be a very rewarding environment; but California is an expert at swallowing you up and spitting you out naked if you have overstayed your welcome! When my wife and I were driving away for the last time we were literally giggling!

The house on Yorktown for 1.9 million is not taking offers until Tues April 10.

The house on Lexington for 1.8 had a sale fall through so it is back on the market, not continuously on the market for 18 days.

As of now the market does not seem to have made a radical shift. It may at some point, but in the trenches it has not yet.

For current  Sunnyvale listings the average days on market is 11.

Pending sales the average days on market is 9

Sales closing since April 1 is 7

egg

on

face?

———

wait

few

days

3x2words

@amit m. - we will see whose face is the egg on in 3-6 months...

The last debate between you and me, on San Francisco rents, I won...

Originally posted by @Sam Josh :

How big was the lot? That is the big question. I am seeing townhomes in Sunnyvale selling for 1.6 million. They were priced at 700k in 2011. 640k in 2009. But then again we did not have the Facebook, LinkedIn, Apple and Google dominate our lives as they do now, and they are all within very comfortable driving distance of Sunnyvale. Also the 94087 zip has some solid rated schools and 10 minute commute to the new Apple campus.

and when I lived there those were starter houses at 180K.. its all relative to the time in space 

Originally posted by @Anish Tolia :

Only thing going for Sunnyvale is commute to tech and schools. Otherwise its a pretty boring suburb with boring tract housing. 

Now be kind Anish growing up there in the late 50's and 60s Sunnyvale and Cupertino were pretty cool spots..

cant be that bad ????

@Jay Hinrichs
In all honesty, did you ever regret selling your 3+ houses in Palo Alto? You could be sitting on 10m by doing absolutely nothing in the last 30 yesrs... Lol

Originally posted by @Diane G. :

Jay Hinrichs
In all honesty, did you ever regret selling your 3+ houses in Palo Alto? You could be sitting on 10m by doing absolutely nothing in the last 30 yesrs... Lol

 In all honesty  " everyday and twice on Sunday"  but you know the saying hindsight.. and you have to remember I made about 500k tax free everytime I sold one and moved to the next so I used that money to build my business's

but for sure there is one I sold and did not make as much on and would sorely like to have that one.

I am all for doing whatever it takes to buy a home on the peninsula.. I know its mind boggling thinking of these numbers but in 1976 when I bought my first home in Milpitas for 70k  it was mind boggling to think that houses in Cupertino were now at 100k and climbing that was mind boggling how can anyone afford 100k especially starting out.

@Jay Hinrichs

Any lessons learned from your Palo Alto/Milpitas/Cupertino homes in 1976, that can be applied to Summerlin in Las Vegas, where you live now or one of places you live now? Like buy and hold in Summerlin?

Terry

Originally posted by @Terry Lao :

@Jay Hinrichs

Any lessons learned from your Palo Alto/Milpitas/Cupertino homes in 1976, that can be applied to Summerlin in Las Vegas, where you live now or one of places you live now? Like buy and hold in Summerlin?

Terry

NOPE  I don't think there is a correlation unless Google  Stanford Intel  facebook and Cisco Apple all decide to move into Vegas.. I think Vegas is going to get some over flow for those that are looking to minimize tax and don't mind living there like us. 

@Jay Hinrichs

So Zapatos doesn't count? Raiders? 

In other words, high paying jobs like 100K plus? Only thing in abundance in Las Vegas is gamblers.

Terry

Originally posted by @Terry Lao :

@Jay Hinrichs

So Zapatos doesn't count? Raiders? 

In other words, high paying jobs like 100K plus? Only thing in abundance in Las Vegas is gamblers.

Terry

Raiders add to the over all economy for sure but remember its only 8 home games and 2 pre season games and maybe 100 or so employees and not all the players will buy in vegas 

Silicon Valley is its own animal ergo 2 million dollar homes that in most parts of the country would not sell for much over 100k. if that in some rural areas. 

@Jay Hinrichs  

@Terry Lao

Hey guys, your comment about California overflow got me to thinking of the closest populations between Nevada and California. 

Did either of you ever look at Reno/Lake Tahoe? Or has the Nevada side basically become part of California at least price-wise? I’ve only been there a couple times and it was years ago but it was a nice break from Vegas. 

Originally posted by @Jay Hinrichs :
Originally posted by @Anish Tolia:

Only thing going for Sunnyvale is commute to tech and schools. Otherwise its a pretty boring suburb with boring tract housing. 

Now be kind Anish growing up there in the late 50's and 60s Sunnyvale and Cupertino were pretty cool spots..

cant be that bad ????

Haha.  The better part of the SB in my opinion is Campbell. Much more lively, younger demographic, better food etc. But still boring tract houses built in the 70s. Berkeley has a lot more charm in architecture, a more urban feel (without the SF concrete jungle), hills and views. Housing prices in the valley are driven by employment and schools. The crazy prices in Cupertino/Palo Alto and Sunnyvale is primarily schools while Mountain View, Campbell, Santa Clara etc is primarily employment. The quality of life in the Bay Area has deteriorated tremendously over the last 10 year in terms of traffic, pollution etc. Still has the great weather though...cant beat that anywhere.  Anyway, I am not even living in the US at the moment so what do I know? 

Originally posted by @Anish Tolia :
Originally posted by @Jay Hinrichs:
Originally posted by @Anish Tolia:

Only thing going for Sunnyvale is commute to tech and schools. Otherwise its a pretty boring suburb with boring tract housing. 

Now be kind Anish growing up there in the late 50's and 60s Sunnyvale and Cupertino were pretty cool spots..

cant be that bad ????

Haha.  The better part of the SB in my opinion is Campbell. Much more lively, younger demographic, better food etc. But still boring tract houses built in the 70s. Berkeley has a lot more charm in architecture, a more urban feel (without the SF concrete jungle), hills and views. Housing prices in the valley are driven by employment and schools. The crazy prices in Cupertino/Palo Alto and Sunnyvale is primarily schools while Mountain View, Campbell, Santa Clara etc is primarily employment. The quality of life in the Bay Area has deteriorated tremendously over the last 10 year in terms of traffic, pollution etc. Still has the great weather though...cant beat that anywhere.  Anyway, I am not even living in the US at the moment so what do I know? 

at some point I thought I would go back to Silverado in Napa but boy the traffic and crowds just aint the 80s and 90s when I lived there so wont be going back.. only to visit friends and family.  

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