WEBlue

Because many of us don't have that much cash on hand to offer?

E3only

If I earn 50K a year, 100K a year or 500K a year...I don't see holding that much cash (except if I am in the middle of buying and selling).

I want my money to work for me.

Anywho - never will have 700K spare change to buy a home In the meanwhile, the sad story for us continues!

E3only

Agent says two theories
1. Folks liquidated homes around or before cricis and sat on that cash. Now coming out to buy properties
2. Folks are drawing down on HELOCs on existing homes, to buy second homes

Cape Blue

Didn't realize there were so many of the working poor on BE.

I was joking about how many times you are getting gazumped by cash buyers - I saw the same thing.

WEBlue

Yes, even all the way across the country on the northeast coast, my husband & I do get the feeling that houses are definitely selling. We don't see nearly so many 'For Sale' signs--there used to be at least one SFH for sale on every block here, sometimes several. That was last summer, now there are fewer, maybe one every two blocks.

Inventory must be decreasing, yet I keep hearing on the news that there are more foreclosures "waiting in the pipeline"....

Giantaxe

Here are the August figures for the Bay Area. Pretty clear there's been a strong rebound - from very low levels in some parts of course - in the last year:

http://www.dqnews.com/Articles/2012/...Bay120914.aspx

Giantaxe

That would be me

Not sure how much of a factor in general the "sell and sit on cash" scenario is though. I think it's more likely that people have simply delayed purchases in general they otherwise would have made over the last few years. Now they see such low interest rates and feel that with prices rising over the last year, and feel now's the time to buy.

Bink

I think that's probably true too. Interest rates aren't likely to drop any more and the market only looks like going up.

I can't comment on the Bay Area but certainly down here in Houston the housing market is strong right now. I'm in a new development and they are having no problems selling, far from it.

RICH

Different Bay Area, but here's a theory....

Bootle

Actually there is a reason why this is happening in the bay area. It's the IPO and Tech Bonuses which whilst not in cash can be cashed out at a discount very easily. The share bonuses are effectively locked up but the potential buyer takes out a personal loan against the shares at a deep discount, buys the house and then refi's using the proceeds to pay of the personal loan.

E3only

I have heard that before also.

For San Ramon (where we are looking) it's particularly true. Asians are bidding crazy even when it's 60-70K above market AND 1.8% property tax.....We can not compete against that....and then have to compete on waiving appraisals and inspections and cash offers...

We are losing interest very quickly!

Bink

Only 1.8% Count yourselves lucky! We're at 3.3% but our house prices are lower (fortunately).

On a more serious note, stick at it. If you're interested in staying here long term it's worth the stress you're going through at the moment to put down roots and have your money going towards something. If property prices rise in the area, then you can guarantee rents will too and from what I've seen on here they are already high up there.

You can't compete with crazy bids but just keep your eyes open for new listings, and get your bids in as soon as you can (no doubt you are already doing this).

If there's a bid you're going to lose on an appraisal, can you go ahead and have an appraisal done (though this is a financial risk and a cost it is insignificant compared to the investment in the house and it's not unheard of in other areas - don't know the specifics for you thought)? Then appraisal waive becomes irrelevant as it's already done.

Again, I don't know the specifics of the area but most appraisers are aware that if they don't value a house close to the sale price unless they have very good reason to, they won't get many recommendations for their services in the future.

Good luck though - I hope it works out for you.

Giantaxe

Only Asians get stock options and bid above asking

Look further north in places like Danville and Walnut Creek. I'm very unconvinced there's much of a "facebook effect" going on in those places.

Sally Redux

E3only

Try and visit Windemere and tell me what kinda crowd you see at the open houses.

May be I generalized a little....yet.