Three things you need to know @SiliconValleyLiving Inventory slightly up, Home Values staying health

 Three things you need to know @SiliconValleyLiving Inventory is slightly up, Home Values staying health


Inventory is slightly up, and Home Values staying healthy Residents don't want to retire in San Jose. Why bother buying a home in San Jose? San Jose home sales are slumping. Financial Intelligence https://bit.ly/AbitanoHomeValuation NAR.Realtor Stats. https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales
Podcast

  It's one of those days where I don't think there's enough coffee in the world to keep me moving forward. Oh, my goodness. Welcome back. Today is Wednesday, July, June 28th. Why do I have this? Here it's Thursday. I was already working on Thursday, then I got on a call. Here we are; inventory is slightly up.

Today's three things you need to know. Inventory is slightly up. Home value, staying healthy. Residents don't want to retire in San Jose. It's a good opportunity for me. But how do you discuss that with your adult older parents? We're going to go through a series called How to Talk to Them. And it's all about talking to your elder parents and making sure that they're safe and resolute.

But also, if they're not financially stable or they're not, their faculties are not stable. How do we help them? And then sounds as they slow home sales are slipping. But I can tell you that's not, yeah, it is, and it's not. Okay. And then let's go into, let's go into the numbers real quick.

Because they're really quick. nothing major is changing other than volume is down. Volume has been strictly down since 2021, and this was 2005. And then we started slumping even before, but this is just units per year, right? We're still down. The number of closes that we're seeing is far less than the last year.

We're down 57%. Last week we were down 76%. Let me see if I can make this bigger for you. There we go. I think you can see that a little bit better. So volume is down. Absolutely. It's we're going to talk about that real quick in a minute. Average sales price, though it's still holding after we had eight months, eight or nine months of downturn.

We saw the con of the market contract. This is just San Jose single-family homes now, right? I don't have all the Santa Clara County that's on another day. We're down 162,000 from last year. Last year we averaged 1.7, and this year we're averaging 1.6. So yeah, we're down a little bit, but we're catching up.

Pricing is coming back up pretty quick. The list price of sales price ratio is now, on average, over a hundred percent this year. Last year it was 114% over the year before that. Because that was the wildfire time right now, remember, this was when we started acknowledging that the market was slipping, was contracting.

I was saying it back in March that the market was going to start contracting. We knew it was going to happen. We knew. I knew because the number of people coming, through open houses, through my open houses, was down. I know that because. The number of offers I was getting was a lot less. I would average 2025 offers per listing, and then I got down to three and four.

So you have to switch strategies, you have to know what was going on, and then we saw it come coming down and. Some people didn't believe you. Meanwhile, I'm running around with my head chopped off selling houses, and there's, I have one house telling me that the market, their house is still one, 1.7, 1.8, or it's really 1.3.

And I, what am I supposed to do? Everybody else is buying and selling houses, and this house is staying on the market for seven months. I don't know. What can I tell you? I'm not a market maker. I'm just a market reporter, and I work with those tactics and strategies that make sense at the time.

That's the whole purpose of why I do these numbers. I don't tell you the individual numbers. I want you to understand what's going on. Last year we had an average of 11 days on the market. Today we're at 22, right? It's taking longer to sell houses. Period. My condo just went into contract after two and a half weeks of being on the market.

That thing would've been chopped up, sucked up in four or five days.

It's just a different market. It's slower, it's a lot less competitive, or it's a lot less competitive. There are fewer buyers in the market, but there's a lot less inventory. So I think that's a good way to segue into the San Jose. Home sales are slumping, and guys, San Jose Spotlight is great because they have a lot of great real estate articles that really hit home.

I don't really like to go into the politics or what have you, but the whole thing is, yeah, we've done, we're down 31%. I don't know where this And, so I have never heard of that. There's a saying the housing market has shifted in the last two years. Absolutely. We have markets here that talk about it.

Yeah. We're going to have layoffs. And here's my theory on these layoffs, right? Facebook is laying off a third round at 10,000 people. Yeah, but those 10,000 people already have another job before they get terminal, right before their actual contract ends. Because there's so much desire and need for engineers and software engineers and professionals, those 10,000 people have already spread out their wings and said, Hey, I'm looking for a job, and they're not going to work for a Facebook, Google Fi, apple, LinkedIn, whatever.

They're going to work for tertiary companies. They're not going to make as much, but you know what? That was their heyday. Now they're going to work somewhere else. And when you look at the corporation, they're getting rid of the bottom 10% or the chaff, and it's just a natural progression, right? This is a good time for large, huge companies and corporations to shake themselves loose.

Not the top 10, not the top performers. And if you did get laid off and you are a top performer, it's no indication of you. It could have been somebody on your team, maybe your leader, or what have you. That's just the way it is. Maybe they knew that layoffs were coming, and you said something wrong to him or them.

It's, that's life. Okay. So again, don't take that negative I. All right. Why bother buying a home in San Jose even in May 2023? Come on, guys. I know it is. Here's the thing. We were so expensive. I get it. I told you I feel for people, right? I have a guy that wants to back out of buying a house right now because he's realizing how much his payments are going to be.

He makes a ton of money, right? So if you have this kind of money, If you are making, if you're making, I don't know how much this guy makes, but let's just say you're making $500,000. You're going to be paying a lot of taxes, and if you're renting, you're going to be paying a lot of taxes. And if you're not, if you own a house, you have a lot of write-offs, you have depreciation, you have an appreciation, you have all sorts of reasons to own a house.

This, I understand that right now, if you come from Cleveland and you're only, and you come here, and you're only making a hundred thousand dollars, it's going to be difficult for you to buy a house. I understand that. Where everywhere else in the world, practically, a hundred thousand dollars is a lot of money.

It's not here. As a matter of fact, when I'm at San Jose State doing my talk on the veteran and the VA loan, I go into a five 10 minute diatribe of what your expectations should be. If you are here in this market, if you decide to get a job, once you graduate, you're going to get an entry-level job. But in five, 10 years, you should be expected to get to a certain level and where you're supposed to be.

And that's part of the parcel of what's going on. And they don't teach that at school. And obviously, then I pitched the financial intelligence program that we have where we bring in; we just brought in a trust lawyer who's a veteran. Awesome. Freaking excited about that. But we have home finance, we have home budgeting, we have financial advisors, we have insurance people come in, we talk about all this other stuff that they don't teach in school.

Typically your parents can't talk to you about that kind of stuff. So you learn it from your friends. And sometimes it's good to have somebody that's just here; we've been in the business for so long, we just want to give you the information. There's no pitch, there's no hard hustle.

There's no slam you into a room and not letting you get out until you sign something. We don't do that. It's all education, and it's all about it. Educating the masses. So anyway, getting back to this, your salary has to be 250 even, and you need $250,000 a year, and you need $200,000 for a down payment.

That's absolutely normal. Unless you're a veteran. Then we have strategies for that. You can also buy U S D A. You also have F H A, which is three and a half percent down, but also, a conventional can be all the way down to 3% depending on your income, but your income. See, it all depends on your income, right?

It's not an easy thing to buy a house, but if you're making a lot of money, you need to spend a lot of money to write off that, that thing that, that your income tax and everybody does it. Don't think it's just Trump. Hillary Clinton said that he doesn't pay any taxes. All people with a lot of money, they know how to use the tax code to their benefit.

And this is one of the reasons why we do this type of stuff. Residents don't want to talk to, to retire in San Jose. As a matter of fact, I just pulled out an old book, and I'm going to be reading it. A chapter, parts, and parcels of it, and I want you to buy it because it's a great book. If you have ailing parents, elder parents.

It's about how to have these discussions, and it gets into the mindset of understanding. Sorry, I gotta go back here and pop it up here. It goes back into. Their mindset versus your mindset. And your mindset is you're still in a growth mindset. And there is. This is the way we've always done it, and a lot of those are World war timeframe people where there is a lot of scarcity, right?

And it's hard for people to let go. I'm dealing with a gentleman right now; he's a Korean bet. And he can't let go. He's just I'm just overwhelmed. I don't know where to start. So yesterday he called me up. He's I gotta get rid of my, get rid of my TVs. I'm like, okay, that's a start, right?

Absolutely. Let's go do that. He's got 48 years of stuff in his house, and we tell him one thing at a time. Let's do one room at a time. And if it's one day or three days, let's knock out one room and just box it up. And in his mindset, he doesn't wanna let go. But he already has a wife that's in a care facility.

He has another house up in the Sacramento area, and he's gotta move up there because this is now no longer his home. His home and his life have to be up there. He doesn't wanna let go of these  48 years, half a century of memories in a home, right? So understand that people are tending to move out. And it's expensive to live here.

Even the cost of gas is less expensive. In Santa Cla, it's like Sacramento. You go somewhere else. Cost of everything. Everything is less expensive. He has; the house that we're selling is a two-story. He's older, and it's hard for him to get up and downstairs. So he is living downstairs right now.

And the new house is a single story. So there are ways to talk to them about where their problems are, where their pains are, and relay that to how to do that. And we help coach our clients with older parents on how to have those discussions. And that's what this whole book is. Every, there's a whole bunch of reasons why it's hard to live here when you're older.

If you become, if you have fewer faculties, anywho, that's that.

We went through the stats. We went through three things you need to know. Vito Scarnecchia with Abitano. We'll see you out there. 


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