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🔴[LIVE] Silicon Valley Bank- What does it mean to real estate owners what is the 500 foot view
Silicon Valley Bank- what is the 500-foot view? pain across stock for regional banks
What does it mean to real estate owners
FDIC Fed late Sunday announced
What could it mean to businesses?
armchair quarterbacks will tell you
pain across stock for regional banks
Monday Bay Area Reports Sales Price last 12 months. 10 Bay Area Counties
San Mateo, Marin, San Francisco, Santa Clara, Napa, Santa Cruz, Alameda, Contra Costa, Sonoma, Solano CLOSES LAST WEEK CLOSES YTD
San Mateo 60 421
Marin 23 169
San Francisco 35 243
Santa Clara 134 863
Napa 9 99
Santa Cruz 19 150
Alameda 107 923
Contra Costa 141 943
Sonoma 50 426
Solano 74 520
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"Now is the time to ask sellers for concessions. We have a system that helps our buyers buy homes for less and with terms that work for them. Buyers are still buying, and we're still putting people into homes. Sellers need to sell and smart ones know that they have to give a little today. "This isn't April 2022 anymore. Inflation, higher rates, Stock uncertainty, higher cost of living, and Unemployment loom. This wasn't the case a few short months ago. Today if you need to sell, sell. If you need to buy, buy. Contact Info@abitano.com to learn how buyers are turning into homeowners on their terms today"
The SKY is falling!
Silicon Valley Bank has failed.
Silicon Valley Bank has failed. That's the first to come, I believe there will be a few other ones that get un. Unpeeled and see what happens. We're going to have to see what's going on. But if you saw last night they did a massive bailout, whatever they want to call it, they, it's a bailout, right?
We have to do whatever we have to do to keep the economy floating as much as it's been floating. So the sky's starting to fall. . What does that mean? That's the whole point of what we're doing here today. What does that mean to you as a real estate homeowner or a real estate owner? Or investor? Or a possible buyer?
Probably nothing. It might mean making it more difficult for you to close alone on a house, but they still have houses that sell right? Silicon Valley Bank was a totally different type of bank. They did mostly cash flows for businesses, et cetera, and they invested in the paper, in real estate paper, which I understand especially when it was one and a half percent or so.
So that's part of the problem, but that's the problem that we America, the government. that protects us dead to keep the economy floating. I'm not saying it was right or wrong. I am saying it was wrong, but that's why we have this massive inflation problem now, right? The fact that we're bailing them out, that's probably going to hurt them in the inflation problem as well.
But that's just my guess too. Let's take a look and see what last week's sales were. This is important because we need to know. We need to keep an eye on what's going on as far as sales volume is concerned, because when it starts to dip, then we have a concern when sales start to dip. Now, these are closes, these are 30 days past on average, right?
SALES ARE STILL STRONG
Closes are still pretty consistent, right? Alameda County. Contra Costa County. They're still the top, volume sales, right? Not its top, the top price, but look at that. Almost a thousand homes a year to date. This is actually today, so let's change that to the first month.
March 13th. San Mateo, Marin County, San Francisco. Still tops in prices Santa Clara is close. But look at the number of homes being sold in Santa Clara, our volume is just so much higher than the rest, we have the best of both worlds. Napa, I don't know what the hell's going on in Napa. 9 sales in one week?
I don't know what other major in the industry other than wine up in Na, Napa. I'm sure there are a couple VCs up there, but there's not a lot of volume going on up there. So if people want something nice and country-esque, Napa's the place to go. Also up here, Sonoma County, it's really beautiful up there.
Okay, so let's go back to Silicon Valley Bank. What does it really mean for real estate owners? I don't think you have a lot to worry about because of this, because people are still writing, and banks are still writing loans on real estate. You might get to the point like it was in 2008 where everybody was afraid to write alone because all of a sudden they had to start crossing their T's and dotting their I again, making sure everything was done right because over the last couple years, you have to understand that certain things loosened up.
Certain things weren't so aggressively focused on as far as the rules and regulations to make sure that we can continue with the volume of sales that we had, which. Crazy amount, right? Here's a little number right here, or a little chart just so you can get an understanding of the number of sales versus the number of active homes, right?
Everybody was crying. Oh, we don't have inventory. We don't have inventory. But only a few times in the last couple of years do we have a lack of inventory where sales outpace the number of homes that were actively open for sale. We still had homes for sale. We still had homes that were on market for 30, 40, and 90 days.
But for the most part, whatever was sold, whatever was put on the market was bought, whether they wanted it or not, mostly because there were 30 home buyers for every property. Versus today where you have one buyer for 25 to 30. I don't wanna say it's that much because there are still homes that are selling, right?
We're seeing this, right? Just this last week we had this many homes sell in each of those counties. So homes are still selling. Like Santa Clara, we had 134 homes. Second to contra cost. Homes are still selling. Contra Costa is over here. I was up in Fairfield yesterday. That's more Cal Town.
Very, relaxed. There's Travis Air Force Base, which is the main industry, and then you have Vallejo. But mostly these areas right here, these areas are commuters to come down here to Oakland, Richmond, and some people actually go into San Francisco. So this is a commuter area right here. That's why Contra Costa is so inexpensive, relatively speaking.
Sorry, Solano is relatively speaking. It's inexpensive. All right. So what does that mean to you? Look, houses are still selling, right? I have four homes that we're getting ready for, right? One's in West San Jose. We just got that. We just got one up in San Lorenzo. We have two in, actually five, sorry, two in Hayward and then one in North San Jose.
Those are all going to sell. I'm working with buyers. Buyers are actively looking right now, mainly because they know, they can get good deals. Right now, what's a good deal? Are you talking about 30% off the list price? No, You can get a couple percent off a list price. You can. Closing costs you.
Last week we sold a house and we got three points, 3% of the sales price credited from the seller to the buyer for closing costs, and that went to points and it bought their rate down to below, five and a half in that range, which is unheard of. So going back to, yes, you can get deals, but keep in mind, let's go back to this. Keep in mind, your options are opening up. Now is the time to go find the house that you want to fall in love with the next forever home for the next seven to 10 years, right? We used to say that it was five to six years.
People moved every five to six years. That's not so true anymore. It's every seven to 10. But now you have the option to release that house or buy, keep that house rented out, and then find the other house that you really want because you don't have to compete. You don't have to put two, three, or $400,000 over.
That might be coming back depending on the area. When we talk about that on different days, right? Depending on the area. If you want to move to East West, San Jose, or Cupertino, you will have to bid over unless you find a house that needs a little bit of work.
GOOD TIME TO BUY
So now is the time to come in and get those deals. Are you going to get a fantastic deal? 50% on or 50 cents on the dollar? No, the market's not crashing. We don't know if the market crashes. Look at what they're bolting on right now. Silicon Valley Bank they're, keeping it up against the wall, giving it the little compressors to keep its heart beating.
They sold off a part of it. They're bailing it out, making sure it stays alive so that the businesses don't tank. Now the reason why I'm sure you've seen a hundred reasons why right? The 250,000 F D I C, they don't have the cash flow. So if the cash flow, they don't have enough to pay their employees, that means they will have to start laying off.
That's why they pay bailed out Silicon Valley Bank, right? And every bank does it, and every finance. Person in every corporation. I don't wanna say every, but most say it'll never happen. The bank will never fail. Guess what? It's failed. It fails every couple of 10 years, so be careful if we have dramatic layoffs because of this, which probably will not happen because they bailed the bank out already.
Then you can see some homeowners having to sell or force sellin'. Will we see stocks dive? Yes. I'm not a stock-buying expert. I'm not a financial advisor. I don't know anything about that. Saying that if you're looking at buying, now is the time. Maybe buy two or three other houses.
Rates are not great
Yes. , In real estate, the rates will suck for a little bit longer, but then once rates come down again, you can refinance. But now is the time to buy some investment properties or your first.
Should you sell in a hot market or sell in a cool market? Totally up to you. If you have an acc, an ex, or an extra house that you want to unload, obviously sell it off. But if it's your home and you need to move from one place to another, you need the equity out of that house. Selling it in the cool market is much.
Lower Home Buyer Competition
And guess what? I don't have to compete and give $200-300-, or $400,000 over this price. My next house that I buy, if I go down to say, I don't know Hollister, or you go to outta state, or you're moving out of the Bay Area, now's the time to do it because you don't have to play the. Overbid thing and you pay me less, you pay less than property taxes.
You pay less in your payments and everything. So now is really the time to sell, which means we have to go back to this inventory chart and say, Hey, houses are still being sold at a pretty good clip and we have a lack of inventory. This means housing pricing will maintain where it is right now, not what it was in April of 2022.
It's what people are willing to buy. Sellers set the list price, and buyers decide what they are willing to pay. So if it's a hot market, they pay more. If it's a cool market, they pay less. It's just the way it is. It's human nature. It's not us.
What we can do is if we list the house lower and bring in multiple offers, then we can list it a little bit higher or find a settle on a higher price. Cause I can negotiate, I can go back and forth and push buyers until, all but one breaks. And that's my job. That's what you hire me for. When you have it listed up this high and the market's really here, you're going blame me because you're not getting any offers.
Happy Monday. We'll see you out there.
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