🔴[LIVE] Three things you need to know! California HOME Insurance is a huge problem!
🔴[LIVE] Three things you need to know! California HOME Insurance is a huge problem!
State Farm exits California property on rising cat risk & reinsurance costs Home Ownership in up Half the country is experiencing price declines. LAWRENCE YUN, CHIEF ECONOMIST, NATIONAL ASSOCIATION OF REALTORS HOMEBOT https://hmbt.co/bT7qRJ Homebuyer Workshop Allstate also pulls out of CA
BLOG http://blog.abitano.com/2023/06/live-three-things-you-california-home.html
Podcast
Welcome back to the channel. Today we're talking about the 10 counties in Santa Cla the Bay Area and what's going on. And three things you need to know and the most important thing that is boggling my mind, and I don't have an answer for you right now, is insurance companies are not, we're halting the homeowner insurance programs that they have, so they're not canceling anything yet, but.
There are any, new policies they're not allowing, and now California or the Department of Insurance is putting an injunction into preventing that, but it's very telling. It's very, telling. When you have, let's see if I can do something a little more fun here. Do this. No, I wanna try that. No. See, I'm trying to play here.
See what I like the most. Maybe like that. Nah, I don't like that. When you have, insurance companies wholesale, just pulling California out of a state, that's very telling about how your government is very inefficient. And we've known about this for. Decades. The way they treat our water, the way they take care of our, and I'm, bipartisan, I nonpartisan.
I don't care what side of the aisle you're on. It's the government. Okay? The government is not doing what they're supposed to be doing. Look at our roads. Look at the filth and graffiti that we have, and I know that's local, but on the state level, a lot of things are being ignored. Oh, but there's not there's, no excuse for this to happen.
They need to start taking care of our forest. They need to take care of our water. They need to take care of our infrastructure, and the government is to blame for this. And I don't care what processes they used before or how they've always done it, it needs to change. And again, I don't care if it's blue or red, or liberal.
Cause I don't care. I don't care which problems are there. The government needs to fix this. I talk to people all over the United States and nobody's having these issues. They're pulling it out of Florida because of the hurricanes. But that's a natural thing that's not preventable. Forest fires are preventable.
The droughts that we're having are preventable. The management, the land management we have in California is despicable and they need to change that. And yes, I'm calling them out. Okay. Enough of that. Enough of that ash whooping. On the bright side, home ownership is up again after 2020 when it just went to a screeching increase to 67.9% of the entire United States pop population.
We retracted again down to 65%. So it's not like a huge number, but 66 we're back. Going back up now you would think. This is telling because people just didn't want to play the real estate game. But the only way to really increase your, Legacy. Your value is by doing things on a mass scale and real estate is the first and foremost way to do it.
Johnny Carson's done it. Arnold Schwarzenegger's done it. Hundreds of thousands of people have done it through real estate. Created wealth through real estate, and yes, you can. There's a point where you can say you're, a waitress where you're making 60, $70,000 a year. You can still buy real estate.
You don't have to buy where you live if it's expensive. Just buy somewhere else or buy, put money into a REIT or syndication, depending on how you need to home. Ownership is the number one way people come from all over the world to the United States to buy property and increase their, legacy, their wealth.
So that's why it's going to continue to increase. And even this guy right here, our economists at the National Association of Realtors, and everybody knows how I feel about Nar. But he's saying that prices are decreasing, but it's also something where it's probably not going to crash, right? It's one of those things where people are saying, I'm staying put.
I don't ha. And there's just not enough inventory across the United States. People are buying new houses in droves. Investors are coming in and buying huge swaths of new homes to tie up. And when there's less inventory for the demand, that means prices will continue to move forward. We'll move upwards.
Shameless plug. Put your address there. There's a link down in the, in all of the platforms, get your home value and I'll do a these, are automated. These are like Zillow and Realtor and all this stuff. They're all automated. If you want me to do one specifically for you, that's human and more specific and tighter.
Might not like what you get, but at least you'll have a little dose of reality there. Check out home bot.com. It's the links down there. Oh. Yeah. And we're doing a home buyer workshop. Yeah, that seems like I was throwing this whole thing into a pitch. It's not because I can tell you right now, this is going to be a problem.
Allstate and State Farm right now are going to make it really hard for us, you the consumer, to get. Real estate, you are not, if you put a loan on a house, the lender is going to require that you have insurance on that house, period. So what do you do? What we're doing up in the mountains is we're going to the government-sponsored insurance programs, which are really expensive, one and a half to two times more expensive than what State Farm and Allstate were paying or charging.
Sure. Because they stopped. Putting policies on homes up in wildfire, land up in the hills a long time ago. And that's something you have to take into consideration when you buy in the mountains. In any of the mountains because you're in the forest and the land management over there is just not taken care of anything.
And you have massive acreage just being destroyed every year because of poor management. I don't blame them for doing that. They owe loyalty to their stakeholders and stockholders. I understand that completely. But All State, State Farm, I can almost guess the next one, right? Geico. The one, the li the lizard.
Not saying that they are, I have no idea. I don't know them from anything. We have State Farm I have no problem with that. I understand their, plight. But again, That's that. Okay, let's talk about the numbers. Numbers are still crazy strong. We had 220 closed, single-family homes. These are all just single-family homes.
These aren't townhouses, condos, or what have you or land or commercial. W you name it. And let me move this there. So we had 220 closes last week just in Santa Clara County. That's crazy. We're almost at 3000 closed homes so far now. It's not as crazy as it was two years ago, but still, we're healthy.
We're very, healthy. I think I want to point out San Francisco where they had a 33-hour like a couple months ago. We had a couple other counties reporting weird numbers. I think this is a weird number because if you look at San Francisco's averages, it's about 2 million. At any given time, and if you have 731 closes and all of a sudden you jump up 50%, there's something wrong there.
So just take that out of the equation.
Okay. So San Mateo doing really healthy for themselves, because they're, one of the most expensive housing markets in the Bay Area. 1200 versus 2,700 or 2,800, and then down here, Alameda County, which is Fremont, et cetera. I think the South Bay is still doing very strong. It's not indicative of the entire United States.
As a matter of fact, I can tell you 50% of the states, 50% of the metropolitan areas, and 50% of the markets right now are hurting in the United States. Here. We're healthy. Here we're seeing a ton of business coming through and just chomping, People are still healthy. I know lots of engineers that are getting laid off, but they're also landing before they even leave their company.
They get another job offer before they leave their company. So when you hear Facebook and whoever is, or is it Facebook? Yeah. Facebook canceled. Did their third round of ca of, terminations of. Layoffs and I could tell you that there is so much demand for engineers and marketing people and professionals here in the Bay Area that it's not really an issue.
Everybody that I've spoken to that has been laid off unless I wanna say most everybody that I know, one guy that's still struggling but There are so many jobs here. That's why this market's doing so well because the jobs are doing so well. Now, if you are in, I wanna say Reno or St. Louis and, that market collapses because the job economy there collapses the housing market's going to collapse there too.
So if you're looking for a place to have a good investment, find places where employment is an issue. Not the national number of 4% or whatever it is, if it's over 10 or 15%, that might be a good place to watch and scope out. All right, that's it. I'm Vito with Abitano. Thanks for watching.
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