As expected - exurbs are showing cracks (Mountain house, Lathrop, Tracy +)

[Chittoorodu]

2 hours ago, ARYA said:

Last week mountain house lo pulte gadi opening ki 1k members vacharu…5.6% edo offer istundu anta konthamandiki..

bay area gurinchi em fikar kavoddu…people here have a lot of cash in hand and waiting ready for rates to drop just by 1-2%..

I am not worried at all lol. Merely pointing out that what people were predicting is somewhat going to be true.

2% Property Taxes - with extreme traffic, scorching temps, 2+ hours to work & million dollar homes. Recipe for ultimate disaster.

These are also not investor friendly either - Your PITI is $5k, you rent out for $3k. Losing out $2k per month - LOL a very wise decision.

[Chittoorodu]

2 hours ago, ARYA said:

Last week mountain house lo pulte gadi opening ki 1k members vacharu…5.6% edo offer istundu anta konthamandiki..

bay area gurinchi em fikar kavoddu…people here have a lot of cash in hand and waiting ready for rates to drop just by 1-2%..

1k Members endho already unna 600+ new construction houses unnay ga - konachu ga just asking

There are exactly 647 new construction houses available in Mountain House, Tracy, Manteca & Lathrop area without even considering other surrounding areas.

[Chittoorodu]

1 hour ago, ErraBook_monagadu said:

First these are not Bay Area. They are in Central Valley, cow belt with dust and smell, windy, hotter than Bay Area 10 degrees.

Problem is that there is no monetizing of the investment in Tracy. Zero rental demand. Idiotic thing is Tracy houses are faraway from Tracy also. no one from Tracy wants to live there.

Investor purchases the property, it is vacant . Most of houses listed for sale now didn’t rent for a year. Many more rentals on market over 6 months. Soon they come up for sale. In addition, builder is building crazy. Year end ki Pennies on dollar sale cheskoni vellipotaru andaru.

 

Exactly - there are close to 100 properties in Mountain House alone for Rental.

Ippudu mountain house, Tracy lo konalakunna vaalu antha 2010 nundi 2020 varaku emayyairo 🤔

[ErraBook_monagadu]

8 minutes ago, pandugadu999 said:

Investment purpose kadu uncle..primary home..illu konakunda rent e better antava aithey..

Manaki past investment analysis cheyatam vachu. But future gurinchi parrot astrology chepatam radamma. Adi FAFO

[pandugadu999]

2 hours ago, ARYA said:

Last week mountain house lo pulte gadi opening ki 1k members vacharu…5.6% edo offer istundu anta konthamandiki..

bay area gurinchi em fikar kavoddu…people here have a lot of cash in hand and waiting ready for rates to drop just by 1-2%..

5%

[Chittoorodu]

2 hours ago, Chittoorodu said:

Housing correction seems to brew, starting with exurbs (Mountain House, Lathrop, Manteca, Tracy +)

House bought in 2022, for $1.325mn over asking by $125k, Listed to sell for $1.393mn and 2 price cuts to $1.235mn

https://www.zillow.com/homedetails/564-W-Piedmont-Dr-Mountain-House-CA-95391/94697016_zpid/
 

2/7/2025	Price change	$1,235,000 -4.9% $444/sqft

1/25/2025	Price change	$1,299,000 -6.7% $467/sqft
1/8/2025	Listed for sale	$1,393,000 +5.1% $501/sqft
5/26/2022	Sold	$1,325,000 +10.5% $476/sqft
4/19/2022	Pending sale	$1,199,000 $431/sqft

Simple calculation entante - Ivi anni modest numbers low range lo vesa

Prop Tax - $42k
Interest Paid (5%) - $140k
Buying Cost - $35k
Closing Cost - $40k
Maintenance - $20k
Sell at price - $90k

Total - ($367k) so far if sold

Rental saving - $3k per month for 2.5 years - $90k

Looking at $277k loss if sold today for the listed price

[ErraBook_monagadu]

Interest on $1.3M home for 2.5 years, at 5% is 200K. You lose interest earning on down payment as well.

5% is low number actually. Most loans are 6.5%

[citizenofIND]

2 hours ago, ARYA said:

Last week mountain house lo pulte gadi opening ki 1k members vacharu…5.6% edo offer istundu anta konthamandiki..

bay area gurinchi em fikar kavoddu…people here have a lot of cash in hand and waiting ready for rates to drop just by 1-2%..

Tracy mountain house Bay Area?

[pichhipullayya]

51 minutes ago, citizenofIND said:

Tracy mountain house Bay Area?

Bay area ki dooram gaa 

towards central valley

[pandugadu999]

54 minutes ago, citizenofIND said:

Tracy mountain house Bay Area?

avunu bay

[ErraBook_monagadu]

Not towards, it is Central Valley. San Joaquin county is Central Valley.

[basha786]

1 hour ago, pandugadu999 said:

new houses kuda na uncle..ipudu konudu waste aa aa areas lo

Yes bro unfortunately its a bad news - wait for pullback - if federal and gvt employees dont have job what corporate jobs ? AI bubbled busted trust me common man knows at the end stock market knows first .  Real-estate dose not fall like stock it takes 2 years .

[ARYA]

2 hours ago, Chittoorodu said:

I am not worried at all lol. Merely pointing out that what people were predicting is somewhat going to be true.

2% Property Taxes - with extreme traffic, scorching temps, 2+ hours to work & million dollar homes. Recipe for ultimate disaster.

These are also not investor friendly either - Your PITI is $5k, you rent out for $3k. Losing out $2k per month - LOL a very wise decision.

Doesn’t matter for them coz most of them live in expensive shithole apartments for 4-5k rents in south bay and wanted to get a house with good school…thats the trade off they are ready for..

[ARYA]

58 minutes ago, ErraBook_monagadu said:

Not towards, it is Central Valley. San Joaquin county is Central Valley.

Yes, very hot and very cold…anduke aa prices…25 mins south same 2k sqft sfh is close to 2 mill in dublin

[ErraBook_monagadu]

For 5k you could rent luxury apartment or sfh in Cupertino with top schools. You would still save all the bokka expenses like closing costs, selling cost now, depreciation on the price , drone video and Olympics opening ceremony expenses, extra additions, property taxes, extra heating cooling costs for large house,  sleepless nights with falling property prices etc