Welcome to Silicon Valley Living! This is a community-based blog focused on events, updates, and things that are happening in the Silicon Valley!
Abitano– is a community based real estate company that is involved, experts, and gives back in order to make all our lives better.
– Local Family owned business since 2003.
🔴[LIVE] THREE THINGS YOU NEED TO KNOW - Thursday US REAL ESTATE INVENTORY WATCH.
🔴[LIVE] THREE THINGS YOU NEED TO KNOW - Thursday US REAL ESTATE INVENTORY WATCH.
🔴[LIVE] Thursday US REAL ESTATE INVENTORY WATCH.
Your home is worth... https://bit.ly/Abitano
HomeValuation new market video https://youtu.be/iEnlrURFx3s
REOs are leveling off. San Jose, Real Estate Sales, are moderate.
All these questions and more are unpacked in this edition of Silicon Valley Living! We’re talking about affordability right now. FHA and VA are big options right now. Map tour of Willow Glen https://www.youtube.com/watch?v=LQgOUjf2QCc California Housing Market Trends | Real Estate Inventory is spiraling across the US. Get out and buy now. If you think the market will fail, then don't. If you wait and rates go lower, you will see 2021 all over again.
🔴[LIVE] THREE THINGS YOU NEED TO KNOW - Thursday US REAL ESTATE INVENTORY WATCH.
Hey. Hey, he, welcome back. It is Thursday. Thursday. It's almost the weekend. This is awesome. July 6th. Today I'm shooting this a little bit early because I have to get my dog to the vet, and I just don't, you know, how vets are. If you're late, you're screwed, so you have to be there early and any who, three things you need to know.
Today we're talking about. A million-dollar mansion in Southern California. Yeah, imagine that. You get to see what you get for a million dollars in Santa Clara County. Foreclosures are up a little bit, and there's one other thing. What is it? Oh yeah, I just found it. The Airbnb saga continues, so let's talk about that.
All right. First of all, I wanna show you this cool shirt that I got, bod, kinda like a dad bod but with more back pain.
All right, let's start with Airbnb. Last week, I think, last week I talked about Airbnb, and there was a 40% decline in sales and all this other stuff. It was very regional, and it was misreported. And we talked about the supposition of what would happen if that actually came through. Now one of the guys I follow.
Ryan Lundquist, who's an appraiser appraisal, Sacramento appraisal blog.org.com. He talks about all sorts of stuff, and I gotta tell you, this guy's amazing because he really helps level up my charting, my graphs. So I really appreciate him. He's an awesome guy. But here's something that I want you to show.
There's over oh, not doing that okay, lemme bring it over here. Let's see if I can, there, where bigger is better, right? Got fluff in my eye. There we go. And we'll go with that there. So there you go. The number of listings right now is at a dismal 554, and we're, going to talk about that, right?
Across the nation. We're going to talk about that today cause that's Thursday. We talk about inventory across the United States, but also the number of homes and properties that Airbnb renters or hosts use is o almost a million. Rentals. There are a million units out there. Okay. That is helping us with substantiating our price, pricing, keeping the prices up, and I wanted to show you this.
Little thing right here. I just started working on this. Now I'm going to work on this and do a little bit more research, but this is a great way to not visualize and understand where we are. Why? Why is inventory so low? Airbnb they have a million units being used that other, so that can't be used for living, right?
That's taking a million of the 30 million; I think it's 30, 33 million. Yeah, homes are off the market, right? And then we used to, we had, for a year, we had 2% loans, right? If you have a 2% loan on your house right now, you're probably not thinking about selling it; even if it's not the perfect house, you probably think, you know what?
I could just keep it and rent it because I'd be foolish if I sold it. It's foolish for me to ever refinance it. All my lenders right now they're got their hands in their pockets saying, I am broke because I haven't had a loan or a refinance in a long time. After all, the refi market is dead. But also, there's not a lot of inventory because of that, either.
There's, I wanna say it was 65 or 70% of the houses that have a mortgage on it in the across the United States, have something around two to two and a half, maybe even 3%, a very low-interest rate. So why would anybody in their right mind sell a house like that? It just wouldn't make sense. Large corporations, Black Rock.
Zillow, Redfin, all these companies, they're offering to buy your house. There are REITs and syndication. REITs are real estate investment trust that builds out money tens of millions of dollars, and they go out and buy property. Typically it's commercial, typically it's apartments, strip malls, that kind of thing.
Lots. And then they improve on them. But now, because the values of homes have gone up so skyrocketed so much. Large corporations are buying it. So they're your competition, right? Yeah. There are not just big corporations like BlackRock and what is that big bond company. But anyway, they're buying them and holding them, so you have less inventory.
Population is growing faster than we can build. So there's an upward demand in upward pressure, in demand over the supply. You have more people coming into the United States trying to find a place to live, which increases pressure, unlike the automotive market. All right? That's why we have, oh my, what did I do?
This is, I think this is,
So anyway, this is a good indication. This is across Santa Clara County, single-family homes, only single-family residences, not condos or townhouses, mobile homes, lots or apartments, single-family homes. Right now,
what in the world? All right. Sorry about that. This is to June. The end of June. We had 4,400 units for sale. That's dangerously low. Guys. That is dangerously low. I think I pulled that from this tab right here. Yeah, so look, right now, we're supposed to be at 1200 single-family homes, and right now, we have 800 homes listed for sale.
Even if we call that 1100, we're still dangerously low. We've been dangerously low all year. Going back to this whole thing, that's exactly why we have this problem right here. Why did I do that? So I just upgraded that.
Okay. Let's go back to this. I dunno why I'm here. Okay. Something completely different. This weekend's events. First, I wanna say that we have a veteran standdown at the county Fairgrounds Saturday and Sunday, and you can do anything. There are a bunch of resources there. I'll be there Saturday. My team will be there Sunday.
One of my lenders will be there. We're talking about talk. We're just talking to people, handing stuff out, talking to them about home loans. But it's not just about home loans and VA loans; it's about getting jobs. It's about getting a haircut, getting stabilized. It's about reaching out to those that don't have the capability of being there or being. Getting a job, so people are offering haircuts. I might even get a haircut. We'll see. We're doing all sorts of fun stuff, so if you're a veteran, Or a spouse of a veteran, or a child of a veteran, come and ask. We have a ton of resources, and if you have an ailing veteran, let us know because we would love to be able to reach out to them and help them out.
And it's not just the Veteran Service Office outta Santa Clara, which is on Winchester, but there's a bunch of other organizations out there that help outreach to veterans to get them off on their feet if they need help. Okay. 34 fours. Tulley Road, San Jose, 95 1 11. It's the county fairgrounds.
You know where it's okay. Also, Finding Nemo. There's
the Montgomery Theater. It's a child's musical theater. They have Finding Nemo. I'd love to go see that. I don't know anybody, okay. Wherever I gotta go see it. But my girl's, my daughter's friend. Used to play in the juniors. Now she's in the seniors, but it's always fun going to see a little 45-minute show that these kids put on.
There is. Also, I wanna point this out, if you want to get some nightlife, there's the San Pedro Square Funk. I guess that's me. I guess we're running right here. Right here. Now. There's the Art and Wine Festival. And Los Altos. Always fun, right? And what else? The Carnival Bay areas. Favorite Santana tribute band at Mitchell Park.
Dude, that'd be awesome. I might go there on the east side. Funk San Pedro Square. Go there Saturday at 6:00 PM and go grab a burger or a nice dinner. I wanna say it's a spaghetti factory. Cause that places jacked up. But anyway. There's a job fair for veterans in San Jose Meridian Ave. Jet. Oh wow. That's good to know.
Train rides at now Canyon Railway. And okay. Enough of that mansion. There's a million-dollar mansion for sale in Santa Clara, in San Jose, in Southern California. Now, don't get all crazy. I'm going to buy it. This is just a starting bid, but. Eight bedrooms, 13 baths, 1100 square feet. They think it's going to go for about four $5 million.
They supposedly upgraded it, but let's take a quick look and see what they're looking at here. Look nice looking, right? If this was in Palo Alto, this would be 30 or 40 million. I don't care for the felt there. Yeah,
opulence. Here's the thing. God, that's awful.
I hope these are before pictures. I'm not talking about the actual look and feel. I would love to have a house like this. I would just get rid of all that wallpaper and those curtains. Those are god-awful. So this house definitely needs to be remodeled a bit.
30 days on the market. So what they're doing is they're, pushing it out, getting a lot of space for it, a lot of talk about it, getting the buzz out. I want to, I wanna see where it's, in Diamond Bar, so if you know where Diamond Bar is, grab a map real quick.
It's north of Valencia. Oh. Oh, wait. Actually, it's in Orange County. I didn't even know that. I thought it was up here in the Santa Clarita area. Diamond Bar. Oh, hey, guys. I'm going to put my, I'm going to put a bid in for a million dollars. See what happens, because why not? Be the envy of everybody in that area.
So there you go. Yeah. The last thing I want to talk about is foreclosures are slightly up now. I talk about this every week. Foreclosures just really aren't a thing right now. There are a lot of protections that are over that. The government's putting it in place that if you are not making your payments, we're not going to foreclose on you.
We'll work with you. We're going to reach out and proactively help you get back on your feet. We don't want to get the whole 2008 debacle going on again. Just not going to see it. It's not going to happen. What might be happening is commercial properties are going to happen. What's what? The reason why we already talked about this, right?
We already talked about why we're probably not going to see the inventory get up anytime soon. It also has to do with this, right? Because Airbnb's holding strong because of 2% loans because large corporations are buying up swaths of. Real estate, residential real estate, not commercial real estate, and populations growing.
We're probably not going to see a ton of foreclosure inventory. We're, and we still will; we still have 30 in the entire Bay Area right now, or 230 in the entire state of California, which isn't a lot. We had almost a million at one time across the United States.
The reason is that people will do whatever they can to hold onto that 2% loan. I'll tell you that right now, even if you're laid off, and you haven't worked in six months, you're still going to make that loan. You're still going to make that payment because you can't afford to back when you overpaid, and rates went up, and everybody bought those toxic loans, the pick a pays, and all of a sudden the rates started going up because it was a fix for a certain amount of time.
And then it went to adjustable, and rates went up. People started freaking out, and they jumped out. Most of these loans got converted into fixed 2% or 3% fixed loans, so that's probably not going to happen anytime soon, or that won't hurt anybody for a long time. What we are seeing, though, is commercial property, and commercial property is different.
The loans are structured differently. Because typically, a REIT or syndicate is a group of investors that can go out and buy commercial property; they buy short-term loans. Typically they're five-year loans, and then you have to refinance 'em. They're not even fixed for 30. They're like a five-year balloon payment, which means that end of five years, you either have to refinance it, sell it, or yeah.
And then. Because right now, people are buying on the auspice of that 2% loan or very low rates at three and 4%, 5%, even now that they have to refinance. They're at seven and 8%. And if they bought on the idea where there's a certain amount of profit because of the interest rates being so low and their interest rates now costing them money, there's going to be a lot of foreclosures.
I dug around. I tried; I promise you I was looking for 2 million. There are 200 million apartments that are REIT or syndication. I don't know what it is, but I. They're, they just closed, or they just went into default because they can't refinance it. We hear a lot of this happening, especially in San Francisco, because of the way they're treating their people. They're just walking away from it.
So Westfield Mall is left holding the bag of all these big mall malls. They're just going to get rid of that property because they're, it's not making them money. It's costing them mon money every month to hold it. So why would they hold it? So they're just getting rid of it. Here you go, San Francisco.
It's what you get for not being business-friendly. There you go. All right. What do you get for a million dollars in Santa Clara? Oh, you know what? Before I do that, I want to do this real quick cause I gotta get going. Inventory is down. Look at all the reds in this column right here.
There's these ones are up just slightly. Knoxville went up by 40-30. Jacksonville went up substantially over a hundred. Phoenix went up by two, but the rest of these guys are going down. Massively. Mostly because of the weekend, because of the July 4th weekend. Everybody's, you know what? This is not a great weekend to put our house on the market.
I'll guarantee you that. A lot of these ones will pop back up, and you'll see a flood of inventory. I wouldn't say a flood, but a bigger pickup is due, pulling the slack up from this weekend to next week. So let's talk about that anyway. What do you get for a million dollars? I saw this one. Was it this one? No, this one is right here.
I wanted to pick on a little bit of Roader Road, which is an avenue. It's a busy street, and I can guarantee you that if you drive down this street, there's not one parking spot left; it's a busy road. This is typical; let me get this so it's bigger, so you can look at this there much better. Red flooring, that was so 10 years ago, right?
And then look at this fan; that's an outdoor fan. This is a million dollars, guys. It's been on the market for 30 days, so it's probably, you'll probably see a low a, decrease in price here pretty quick, but, Wow, that's a lot of pictures of the dining room. That's that; it looks like it's virtual staging.
Red cabinets, dark brown cabinets. You have a listing that I'm working on right now, and I'm fighting with the guy to get it painted because he has dark brown. Not even this. It is darker than this dark brown. It was built in 19, it's 48 years old, so the house needs to be updated. I give you the options if you wanna sell it as is.
This is what your price is if you update it a little bit, And he's I don't want to paint it white. Don't paint it white. Paint an almond, paint a beige, paint a gray, paint something else other than dark brown. Get rid of the counters, and put in stainless steel. No, I don't wanna do any of that. My house is still worth x.
No, it's not. It is what it is. If you're not going to make an attractive house, you're not going to get an attractive price. Right? Paint these things. There are these; colors today are dated. I hate to tell you that. And that's probably not tile, but what do I know? Can't see it that close. Nicely updated bathroom.
But again, paint the counters, the cabinets. Yeah. See, that was virtual staging. They did the very minimal staging. Hey, let's have cables everywhere. Oh, my goodness gracious. Oh, my goodness. All right. That's what you get for a million dollars in Santa Clara County. Guys have a fantastic weekend. I know it was a short week, and I skipped the 4th of July on purpose.
Be safe out there. If you're a veteran, come out to Santa Clara County fairgrounds. I'd love to see you. Shake your hands. I'm Vito with Abano. We'll see you out there.