Investor · Cardiff By The Sea, CA · Member since 2015 · 14 posts · 5 votes
Hi All,
We own a 2 bd/ba condo in a luxury high rise in downtown San Jose. We purchased it when we lived up there, and then have had it rented for about 5 years. We are living in San Diego now and we are trying to get a sense of what is happening in the downtown area of San Jose. I know there is a lot of construction starting for rental and sales of condos. We were wondering if there was about to be a glut in the market and property values and rents would go down? Or if San Jose downtown would finally become a more desirable place to live and property values would start climbing? I was wondering if anyone who is up there has a feel for the direction things are headed in the downtown area?
The downtown market has definitely become a lot more attractive for people looking to live in a more urban environment. Whatever you bought it for, I'm sure it's appreciated a pretty good amount.
Feel free to reach out directly, I'd be happy to give you more accurate data on your condo.
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
9y
There has been a glut about getting high rent since late 2015 in SFBA. Tons of small condos, flea market condos off 95131, 95133 coming up. Tenants pick on the property condition haggling for a rent reduction. Many want new flooring, new stainless appliances. I had a two months of vacancy recently because the owner wanted his old rent price. After two price reductions it finally rented out not to his ideal perfect tenants. Only one taker after 20 showings. Right now I see brand new condos offer free rent for 1-2 months from 20% of new releases.
Having same issues across Apple New Spaceship in CU, the owner also reduced the price and decided to rent to 5 single engrs work nearby. That took several weeks, price adjustments and many showings. Same in Saratoga on homes.
As for home price increase in Silicon Valley this is the tail wind of the current momentum. Most investors are unloading their Great Recession steals. Downtown- PWC, Adobe, Samsung, Paypal are not really hiring. Most local companies are not coming up with new technology. If anything I anticipate a slow down in housing demand with gradual mortgage interest increases. Price increase is modest if anything until the next momentum which can be a recession. Bottom line is it is hard to justify stellar housing cost. Nothing lasts forever. Timing to market is everything.
Investor · Cardiff By The Sea, CA · Member since 2015 · 14 posts · 5 votes
9y
Thank you @Sam Shueh. What you described is what I was concerned about. Was trying to decide if I wanted to take the hit, and hold for next wave of increases (probably 5 years away!). Thinking probably not :-)
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
9y
Just a few high rises complexes have lives. Close to 4th Street, Santa Clara is still full of homeless, crimes. I think if there is recession coming First Street office buildings will be awful quiet again. Not sure how desirable these condos near 237 will be. People still prefer Mountain View, Newer part of Sunnyvale because of proximity to high tech jobs. 1.2-1.5M for a condo in some parts neighborhoods sounds a bit far fetched. The membership dues are still an overhead. People still prefer SFH with no yard 3 story new tree houses with no hoa from light rail. After this summer I expect a slowness in non-SFHs esp when interest hike is announced.