Rent going up, housing prices not signaling spiral -3 things you need to know.


Rent going up, housing prices not signaling spiral -3 things you 

need to know.

  • Crash? there's no stinking Crash? 
  • CalHFA pauses CA Dream 
  • Rent going up, and housing prices not signaling spiral

Vito Scarnecchia

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 Can you believe that it's Monday already? What happened to this Easter weekend? It's like it just flew by. It's just I, didn't even get a chance to like sleep in, cuz I was doing that camera thing, but it felt like it.

Was a regular weekend almost. We did go see Dungeons and Dragons. That was cool. That was fun. That was a good, fun movie. And we did that Screen X where it had the, vi the video. Projecting on the side walls, which was cool, but when I'm talking about volume, holy cow. It was like 13. It wasn't even 11.

It was it was dialed up to third. It was so loud. I'm glad I brought earplugs because I mean it, my ears have been ringing ever since. Great story, and great fun. Chris Pine is in his prime. He's freaking hilarious. Everything about that. Great. But today we're talking about the crash. We don't have a stinking crash technically we do.

Crash? there's no stinking Crash? 

It's supposed to be on its way, but it's, it hasn't really shown up. I don't know. People are still buying houses. Look here, let's take a look. Let's take a quick look here. Let me get this over here. Put my big fat head here. Santa Clara had 300 closings last.

Three, let me let that sink in. 300 closings and we're coming up to a crash. We're coming up to a recession. People are still buying. Maybe it's because they're pulling money out of the stock market and putting their cash into gold and real estate. Maybe that's it. Because where else are you going to put your money?

This whole threat of the electronic dollar is going to screw everybody up and all the conspiracies thing going there I, don't know. 300. But that's not single-family homes in Santa Clara. Let's take a quick look. It was 142 homes. Santa Clara closed last week, single-family homes, so 142 of them were single-family home.

The rest were condos, townhouses, farms, ranch, mobile homes, you name it. Look at that sales volume. That is crazy. That's a million. That's almost 3 billion in the first three months. Wow. And just look at last week's. We closed 600 million. 600 million in that's crazy. That puts the average at about 2 million.

That's crazy. Yeah. If you go back to see all the houses, see where most of the houses are. Remember I was telling you, most of the houses on this side are not going to hurt as much as houses on that side. And just look at the number, how dense this nu the, these look just like a graphic. Right?

And you could take and then look how sparse these are. It's because of the people over on the west side of 87, I'm not saying it's the haves and have-nots, so I'm just. If you have it, if you can afford it, you can buy a house here for 4 million or 3 million or 2 million or 6 million on the west side of 87.

I think that's our media right now. That's our median line because look how sporadic that is. And these people over here, they're buying 1 million, 2 million homes. Which is nothing to sneeze at. That's crazy that you can even do that. This is the villa. Nothing closed in silver in the Wow that says something.

Nothing closed in Silver Creek. That's crazy. But that's where the market is. Okay.

Now you look at everything, we're all doing well except for Port Napa. Napa last week had 15 closes. We have 183 million homes sold. I mean in volume, sold average price. I think Napa's a great buy. If you're going to move anywhere and you're going to buy something somewhere, I think that's really where you should be looking.

Napa Contra Costa Sonoma look. A million dollars for a home. They sold 115 homes last week. It's crazy. Okay. I know. I've been pushing this Kel, H f a. I've been mamby pamby about it because there's this onset of giving somebody something for nothing. Yes, they earn equity, I get that, but when you give somebody something for nothing, they don't appreciate it as much.

CalHFA pauses CA Dream 

They put it on pause last week. They're claiming that there was just too much demand and they just couldn't handle it. And the people that were administering had to go in their safe space and, take a break and just, I don't know, it's just ridiculous. Come on guys, if you're going to do it.

It just shows that there's zero resilience in our government and I have zero trust and confidence in this government anymore. And again, I don't care what political side you are, it's the government that's ruined this country ruining this state. So you know, Now is a great time to buy. Yes, the crash might happen, right?

The crash might happen. We've been saying the crash might happen for five years and we've really been saying it for three years, especially since Covid and now that Covid is over and the market's kind of doing this and that. We're saying we're expecting this recession to happen. I don't see it. I don't see it because people are moving into places.

Rent going up, and housing prices not signaling spiral

They're finding it difficult to find rentals to rent. There are 25 rental applications for every open vacancy. That's for rent right now. Residential vacancy, that's for rent. That's just in the Bay Area. I don't know what it is like outside in Kalamazoo or St. Louis, or Miami. I'm telling you right here, right now, it's difficult to find rent.

It's actually easier to buy a house right now. I think in the next couple of weeks you're going to see the rates come down a little bit more. And we're going to get back to what we see. And here's the big problem, we don't have enough inventory. Basic economics 1 0 1, there's supply going up and I'm sorry, supply going meandering and supply and demand is going up.

That forces prices out of equilibrium and increases them as basic economic. And there's my microphone arm that I just dropped. I was playing with it this weekend and I decided still to stay away from it. I have all these toys, all these different gizmos.

I don't see house pricing spiraling any more than it already has. I think we've seen the dunk in the market, which was last year. I think we're going to see a tighter market this year. I think we're going to see the rates going down and the supply staying down is going to continue to push pricing back up, especially in places like Silicon Valley.

Let me just look at San Mateo, which is just, let me bring my little map. You map over, right? San Mateo, right here. This whole area actually had, they had 118 cells and 1.5 billion in volume. But look, the hour, the average cost of a house is 2.4, which means that there are a lot more homes up there that are five 10 million versus down here in San Jose and Morgan Hill and Gilroy and Mill Pettus, which will keep us our averages down.

We saw over here you go pretty much anywhere over here and you're over $2 million. For the most part, right? This one is probably an original. This one's not going to last long,

right? And that's in Sunny Bell. Three bedroom, two bath, and yeah, I sold a house over here last year. 1100 square feet. So yeah, that house is probably in. Okay. It decent shape hook over here by Willow Glen. 1.9, 2.5 1.6 guys, there's three houses for sale or three houses sold in Willow Glen. Let's see what the octaves are right now.

We have 724 homes per sale. Santa Clara now, like Vito, you said 343. Yeah, that was for San Jose. Remember San Jose's one part of Santa Clara County? That number is 3 0 4. 30 of 'em going to went to contract. Assuming no more came on, but I know more came on. So we probably had, I don't know, a hundred. So let's take a look.

How many more homes are over here? If you're struggling with down payment? We have other programs other than Cal h f a. We have other programs, right? Look, million

9, 990 $8,000. Oh my goodness.

22. Been on market 50. So look, there's so many homes that you can pick from. You know my suggestion is,

huh? Some pins could not be mapped. Why? Because it maxed out at 500. I get it.

So there's, a ton of homes for sale and all price ranges all over the place. You don't even have to go down here. So many houses, so many options. You can buy guys, there's tons of houses. I don't see this as being critical as a mass. I think what we're seeing is the market is just consuming what we have on a natural direct.

Let's take a look at the results in single line and how many days on market. Most of 'em are, look, some of 'em are coming on market, right? These ones in green. Let's get rid of these. I hate these. Not boom. Okay? And that did drop the number quite, considerably, right? Let's say, honey, you've been on Market Way.

Oh my goodness. San Antonio Valley, San Jose, 4.399 million. Yeah, so that's Wish pricing right there. Calhoun. 591 days. Oh cuz it's an eight bedroom. Nobody wants an eight bedroom house.

Look at that. Probably done poorly without permits and they're still expect, look at that. That must be me right there. That looks like somebody dresses like me. Kincaid, they're still house, they're still deals to be made. Guys, these houses are overpriced. Look at this one right here on Vermont. It's two bedroom, two bath, 1,130 square feet. Original was $1.8 million.

Why kills me. It kills me now down to 1.2 on market. 254 days.

Guys, this is going to be a great project house for you. If you're a first time home buyer, get rid of those stupid gray floors.

Oh wow. Wow. Look at that. They put plastic counters and cheap stove. Okay, let's talk about stoves. Lemme find one real quick so I can show you. You're going to, if you're going to ask for a premium, For a house, you better put some premium product in there. This was on sale at Home Depot probably delivered.

I bet you could find a ding in it somewhere. Or one of them just because look, these things back here, these little control panel things back here they're, they signal general. Not saying it's bad quality. I'd never say that those, I don't even know what brand that is, but I can tell you straight up, when you see these controllers up here, they're designed for low end homes.

Low end homes, general quality homes, right? And these are kit cabinets. Look at that. These are kit cabinets. They were put together at the house. You can see because you see these little bracket. We're going to do some extra work here. I'll show you this one here. Airport appliance. See how there's no controller in the back?

All the controls are in the front. That shows, oh, sorry. Let me show you this. Boy. This is airport appliance. I don't make money off of them at all. I, buy most of my appliances. If I can, they're decently priced. I'm not going to say that they're the best price, but they always have a ton of stuff in stock.

In stock. They don't have to go two or three weeks. They're not volume selling like Home Depot and Lowe's. Their people are good. They're not going to slam you into the warranty, which of course I never buy the warranty, but see how there's no control. In the back compared to this,

compared to that's just screams. Apartment that, that's commercial, right? This thing right here is commercial that has the air intake down, down. Push. But look So even if you want some like this all the controls are on the bottom on the front here. There's nothing in the back. You're not going to burn yourself. You're not going to do anything. This still isn't the highest quality. I don't even know what brand that is. Gena. I don't know why they would do that.

They're just cheaping out. They should have put so stainless steel there.

But yeah, so there you go. Don't cheap out on houses there or on, on appliances. If you're flipping a house, look at that. All right, let's take a look.

Las Gatos, I should do some walkthroughs at some of these houses just so you can see what they look like.

Days on market three, mark my words. These things will be gone. Three. Where is that okay? Enough of that. It's been 18 minutes. I hope you all had a great. Easter. I'm Viro Scar with aba. We'll see you out there.