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🔴[LIVE] week 24 Monday Bay Area Reports Sales Price last 12 months. 10 Bay Area Counties
🔴[LIVE] week 24 Monday Bay Area Reports Sales Price last 12 months. 10 Bay Area Counties
Analysts Warn of Pending Crisis in Commercial Real Estate Market | San Jose Inside Report Indicates
Crazy weekend. Long weekend. Lots of, I actually took a nap yesterday. I had to because I had very little sleep the night before, but that's okay. Lots of stuff going on. Three things you need to know and we're going to talk about. Pending sale pending doom of the commercial property market.
misdirected articles out there saying that the market is crashing or hurting, and I wanna put a little bit of a cap on that and then talk about a new project that's coming in that's going to bring in a thousand new units or a thousand doors is what we call it. And I'm excited about that.
But first, let's talk about the fun stuff. Numbers. Numbers, nerd. There we go. All right, so last week we had 850 closings across the 10 counties that we track. That's awesome. Prices are still remaining pretty decent. The average sales pricing, in Santa Clara for single-family houses is 2 million, right?
So if you look at what it was last year, that's a little bit higher, 2.1-ish, right? Same thing in Solano Solano, we're actually seeing an increase over the last year. The last few weeks have been down, but overall I think that number will come back down once we figure out, that your Best Buy again is in Napa, 87%, 88% of value.
So if you buy a million-dollar house, you can go in and say, I'll pay you eight 70 for it. That's pretty dang go. Good. San Mateo obviously holding very well. Marin County holding very well. The reason why Marin County is just because it's far away from San Francisco, it's across the bridge. You have to pay seven $15, whatever to get across the bridge to go to work if you're going to go there.
But nobody really wants to go to San Francisco anymore, which is why that price is declining. These are all the averages. Year to date. These are the last weeks. We're on week 24. June 12th is the date and this is last year. So you can use that as a tracker. And I'm going to make a quick snapshot of this so everybody can have it and I will
There blank. Okay, so there you go. So let's talk about the news. Three things you want to know. Silicon Valley Bank. Of course Signature Bank, course herding, but that's mostly because of the residential houses, or residential loans that they put in. But now they're talking about commercials being a process, a problem.
We've been talking about this for a long time. The industry knows about this. This is something that's looming and coming and has been coming for a long time. Commercial properties are going to become more expensive on the rate side. Fewer people are going to commercial property. Fewer people are buying or renting brick and mortar, Salesforce, or there's another company, I think it was Twitter or something, just walked away from a ton of money.
They just gave it to the landlord, and said, yeah, we're canceling the lease. Here you go. Ton like. Millions of dollars. Hundreds of millions of dollars. There was another one where the, so these banks, they're going to be suffering because they're, going to, they're held holding these loans. Ultimately, it's going to hurt us because it's, they're going to go to the Fed for a bailout, but it's also going to help us because maybe.
This comp, these cities will start modifying the zoning and put multi-residential into this corp, these commercial places. Now there's a lot of talk about you can't do it. It's not built for it, it's da duh. I've seen many men are many retrofits from a massive warehouse down to commercial retail.
I've seen all sorts of different things, and yes, you might have to redo the plumbing, but if you have to redo the plumbing, you have to redo the plumbing. It's far crying better to rezone it, and redo the plumbing, instead of waiting for permits to build a whole new thing. And with land being so tight, my argument is let's just do it.
Let's go fight some warehouses and convert them into condos or townhouses or what have you. And for that matter, why don't we. Have the city buy some warehouses and convert them into temporary living facilities for the homeless. I don't know. Common sense versus why can't you one day we'll have our council members on and maybe we can discuss it.
That would be fun. But that's something to be aware of. I think this ultimately is going to help local residents. A little bit better because, after we start focusing on commercial, residential will just continue to get normalized again. Okay, so let's talk about this one right here. Bali inside.
I've never heard of this place before. This what? The website, I, apparently it's a news outlet, but it's saying that the. The Bay area is declining at the fastest war rate in the country. And okay, look, this is Q4 21. Q4 22. That's a lot of supposition. And they say this, came up four days ago. So the numbers are older.
Guys, be aware of what you're watching. Be aware of what you're reading and find out what the purpose is of this. Yeah, we saw a decline last year. I could show you all sorts of charts. Where? Where, Thursday. This one right here, right? Yeah. We saw a decline. This is just Santa Clara County.
Median price. Single-family homes. Yeah. We did see a decline, but now it's coming back up. Look, and then I can show you without a doubt.
Is this one right here? Yeah. This is across us.
So whoever wrote this, Madeline Beaumont,
my feeling just reading into this, was that you want to use old numbers to not support what's really going on. You're using history to make a, a. A point, and I think you're off base, okay? You have to look at history, then you have to look at the last, I don't know, year, and then the last 30 to 90 days, and then you talk to experts.
And lenders and you find out what's going on, what's hit what, are the streets saying? I did an open house this weekend. I had 20 people come through on Saturday and I had, and it was a condo in Morgan Hill. I had actually turned out to be 16 sets of people coming through on Sunday. We have a ton of traffic on there.
And we had another unit, two doors down. Granted it was bigger and more expensive, but we were sharing information back and forth and, there were a lot of people coming through. That one had 40 people come. Sets of people come through. The market isn't hurting this, is not a timely article. Madeline Beaumont.
And I don't want to pick in on you. I'm just saying what I would suggest you do is look at what the numbers are saying and what they're trending at now. Yes, rates are higher. Yes. It makes it less affordable, absolutely. But using numbers that are two years old in a market that's real-time now, doesn't work for me.
Does not work. All right. Another thing. A thousand units coming in, right? Guys, I'm excited about this. Look at this right up a Tasman, that's Levi's right there. This whole area is right here. Oh, we all know what that is, don't we? We all know. I think that used to be a golf course, but we all know what's going on there,
All this right here looks like we'll be putting a thousand units in. I'm excited about that too. We have, we, so I remember hearing something and I wanna say it was when Google did a community outreach on their big, massive project. For San Jose, right next to the airport, Google Hill, whatever they're going to call it.
They said that they had. San Jose was tasked with putting in 40,000 units by 2020, I don't know, 24, right? And part of the answer was trying to get single-family homeowners to put multiple units in there and rezoning it for that. And that's a failure. That's just a non-starter. You have parking issues, they're turn San Jose's willing to turn the other way.
They have ADUs, which that's a non-starter. I don't think it's the right answer. You can do it. You can absolutely do it. You're going to upset neighbors. You're going to have more parking issues. You'll have, yeah. So it's part of the answer. But for big projects like this, we need a whole lot more of this. We need way more projects like this.
And we do have. A ton of space and we have a ton of empty warehouses that we can change. We have a ton of empty offices that we can change, and that's the answer guys. That's the answer to our housing crisis. That's the housing. The answer to housing affordability, that's the answer to homelessness. If the city really got into it, if it's not the city, it should be the county that really takes care of that issue.
Where they have, I don't, I wanna say the last time I looked, they had 650 million in revenue, a billion. Something like that. Billion million in revenue. They just have a surplus and they can invest that money into something that gets federal support and people pay into it. If you're homeless, you can have affordable housing and you do it the right way.
You can actually make money off of those units, not a ton. You have to make it affordable and then allow people to stay there for two years. Pro program until they get on their feet and get housed in a normal place, in a different place. There are a lot of different opportunities. The city's just not doing it because it's not.
They, don't get value out of it for them. So anyway, that's not for that. I'm Beto, SIA, it's 9 34 June 12th, Monday, just as a FYI. Probably won't be doing it Wednesday or Thursday. I'm driving up to. Chico to help my son move. I'm Vito Scar with Alba. We'll see you out there.