🔴[LIVE] San Francisco House Prices Plunges! Buy Now? SELL NOW? answers to your questions

San Francisco housing prices are plunging. Who would have thunk that? That and let's see, the California insurance market rattled by wildfires. We're talking about that insurance today in a little bit. What the Department of Insurance is saying and how that might help. And then mortgage rates might hit 8% and what that means to us.

Sales volume over 23000!

All right, so wow these numbers there were no clubs. There were no homes closed last week. I don't see that Let's see. Hang on a second closes

last week suspect here.

They're very suspect. Yeah, let's check a look at this here

Anyway, let's just talk about really what's going on We went over 23, 000 homes last week. That's huge. That was over 500 houses that sold. Typically we're selling about 700 to 800 homes a week. In the 10 counties, which is a lot now, this is just single-family homes, right? It doesn't mean anything other than

Oh, the numbers were inverted. That's what happened

There we go, we'll fix that up But the numbers are there the numbers are coming back strong and our sales prices are coming back strong outside of San Francisco, of course, because san francisco is just Kind of a hard place to live right now. Hard place to be. People are deciding to move out in droves and that's what's going on.

Period. If you look at Contra Costa, we're doing really healthy. We're doing really well in Alameda and Santa Clara. 500-foot view. We're at 98% of where we were last year. We're almost at 100%. As a matter of fact, I think San Mateo is reached, last week we reached over 100%.

San Francisco House Prices Plunged Faster (-29%) in 16 Months

All right. Let's talk about the news a little bit. San Francisco home prices plunge. And this is just a medium price, right? Now this might seem concerning all things considered. This is the median price three-month average. The red is the median price and then the three-month averages are coming down as well.

I want to show you that I did the same thing here. In Santa Clara County, in case you live in Santa Clara County, you might be concerned. The prices aren't plunging here. They're just not. This is the same chart the same data set, just Santa Clara County versus San Francisco County. So you see the mass, massive dump.

It's mostly because people are just getting out of San Francisco. They don't want to live there anymore. And it has nothing to do with politics has everything to do with. I want to work at home. I don't want to work in a city. I want to, I want a larger place to live. And that was the story that we had going on over here for a very long time.

So if you look at downtown San Jose, if you look at downtown Oakland or Seattle or St. Louis. Tampa you're seeing people moving out of condos and moving into single-family homes because they want more room because they are working in there

That's normal. San Francisco's got to change their focus and what's going on over there

a second

California insurance market rattled by the withdrawal of major

Let's go back to insurance companies Now. This is back in June So we've known this for quite a while. This has been an issue for quite a while. The problem is Again, it's not political. It's the way the government acts. It's this is the way we've always done it.

The mentality of the government. And it's not just the California government. It's not just the United States government. It's the local jurisdictions. It's everything. It's just, that's the way we've done it. And then they you say we're changing things. We're not changing things for the better.

We're not taking care of our forest lands. We're not taking care of our wild lands is what we should. And we're supposed to be doing control burning and all this other stuff. I know we have droughts going on, but

it's not just California. I can tell you that for a fact. I know Oregon's having issues. Colorado is having issues. Louisiana is having issues in all places. I think I saw it here earlier. We know. We know Florida is having issues. It's the same thing because they have the hurricanes and by the way, It's all those affected by the hurricane that we're seeing right now Hurricane Hillary our hearts and minds go out to you our prayers everything.

We hope you make it through I know it's not super bad, but it is bad in certain situations and in baja california. We've had one person killed in the hurricane. So we don't want any more of that. I know we're making a lot of us are making light of it. Not us, not, I haven't because I think it's serious.

I do know that we need the rain, but we need to we need whatever. What happens if you get canceled? Actually. You're not allowed to be canceled right now. There's a moratorium on any nonrenewals unless you've been like abusing or you're caught with fraud, which we never ever, think you should do.

But the thing is, if you're in a high fire zone and you get a letter of nonrenewal or you're being canceled or what have you, you have to go to this site right here and it's. The links are down below Make sure you take a look at it. And if people are affected by it, please send them the blog It's right there for you to take a look at and how you can get access to help for it Now I sell a lot of houses in the hills and I can tell you that pretty much No insurance carrier is going to touch any of the houses up there in the hills So what we're looking at is anything on septic, it's an indicator.

Mortgage rates might hit 8%: Here's what that means for you

If you're in septic, your insurance is going to cost a lot more period on top of 8% rates on top of this, on top of that, this is a transitional phase, right? This is like the same mindset that if you're going to buy a house if you have to buy a house, this is the time to buy a house. Go buy a house. You're going to pay a lot more but when things shake out You can change your carriers or change your mortgage refinance and get it down a little bit more We have a state fund.

What's it called? That you can pay into in case there are no insurance private insurance carriers There is a publicly owned insurance corporate company that will take care of your Your, house and you can get insurance, but understand it's two or three times more expensive than standard commercial real estate or insurance.

Just get that in your head, get that in your mindset. All right, so let's close that out. Mortgage rates might hit 8%. Here's what that means for you. It's going to be a whole lot more expensive. Period. What's going to happen in my mindset.

Mandatory One-Year Moratorium on Non-Renewals

There's not going to be a freeze. There's always going to be people that are buying and selling houses.

It makes it a little fairer for buyers. Will the prices come down? It depends on your area. Are you going to be able to negotiate better terms more than likely? And again, it depends on your, area, right? 8% that's a lot of money. Hey, can you help me out? Mr. Seller I, need help. Can you help pay some points to lower this?

We actually did that. We went from seven and a half percent down to four and a quarter. By having the seller pay points and that's up to your agent to know how to negotiate that, how to work with that, and how to make that work for you as the buyer. Is it fair for the seller? It is when it's time for you to sell.

If you're empty nesting, if you're divorcing, if you're being relocated and you don't want to be a landlord, those are, that's what's going on, right? It's just, that's how the market is. There's nothing really we can do about it except to learn how to work around it. Are we going to see price rates go up?

Yes. We already see rates going up I know this is something that we talk about on Thursdays, but I thought I'd pop this up Anyway rates are climbing and they're going to continue to climb going to continue to climb

They're the highest it's been in 20 years now And it's all because they're controlling inflation. Some experts say that they don't know what they're doing, that they, the Federal Reserve, don't know what they're doing. Some say that they're doing it because they need to stave off inflation. I have no opinion on that.

Pro's and Con's off-market selling

I'm not an expert in inflation. I'm not an economist. I can just understand it and see how that goes. So there you go. It's going to hurt. Tuck in. Be on the lookout. I am actually scraping the internet right now for potential purchases. So to me, it's a good time for me to buy. I understand that rates are going to go higher, but you might find houses that Are on the market for a long time and you'll find a motivated seller.

This is the time to do it I've been working on the pros and cons of selling off the market. I think I've never been a fan of selling your house off the market I'm going to practice with you just for a few minutes and then I can jump So if you want to you very well may jump so there are pros and cons of selling any which way right?

This is just selling your house off the market. What does off-market mean? We just recently introduced, I'd say a year and a half, two years ago, we introduced something called it's basically coming soon. And it's members only, we call it, which I don't know why they call it members only, but that's just the way it's called.

It's basically it's coming soon. So we put it on the market and let people do it. And then sometimes you're allowed to do it. Sometimes you're not allowed to show. I don't agree with it because I think it's superseding the market and it produces a vacuum of specific buyers and it doesn't really allow you to segment or show off your house to the entire market.

And. While there are always pros to this and you're seeing it right now, there are a lot of cons to it So the pros right you only have a couple really interested people. They've been vetted. They're serious buyers They're gonna come through your house and it's only one or two instead of a couple hundred or maybe 20 or 30, right?

You don't have to schedule Showings and walk your dog and clean up and do the dishes and clean the house. I get it It gets sold really quickly and doesn't even go on the market. So very quickly zero percent or zero days on the market What does zero days on the market mean to you? Nothing, it doesn't even help you in your ego.

It means nothing to you. It means everything to us as an agent Oh, I sold that house off the market in zero days and that helps me with my numbers. I don't care about my numbers I care about making sure you have the best terms and the highest possible price right now. There's not a lot of destruction.

We already talked about that. You don't have a lot of people saying, Hey, can I see your house at 1 30 today or tomorrow or Saturday? Can we have an open house? It's stressful for two or three weeks. And if it's marketed right, it's two or three weeks, right? If you insist on having a high price, your house isn't going to sell and you're going to have to go through this for two or three months and think that I'm the idiot and it is what it is.

Yes, there's a lot less stress. And if you're not into stress, I completely understand that. You don't have to worry about cleaning. You don't have to worry about moving your pets somewhere. You don't have to worry about everything. And there's one offer to contend with. Now, here's my negative to that.

You don't really know what the market really has to offer. You don't go through a bidding system. You don't go through the entire market. You're not putting it out to thousands of people and letting people come through and put offers on and you don't get it into the bidding process, which allows you to go up and get that extra two, three, five, 10% as a good negotiator.

That's my job is to get you that extra two, three, four percent. Maybe 10%, sometimes 20 depending on the market and how we price it, how we market it, right? So the cons, are hundreds of buyers won't see your house, right? Your house will be sold in a week or two or three sometimes. Right now we're on 20 days or so average on the market.

There's a lot of disruption in your life. It's selling a house is a very personal pain in the butt for a lot of people. They don't like it. You have to walk your dog. You have to clean the house. Make sure it doesn't smell like pets. Make sure it doesn't smell like fish. Make sure there's, a lot more stress, not just a little.

There's a lot more stress. And then you have to clean every day. You have to clean right before the showing and you have to escape the house before they show up. And sometimes they're late and it's a total pain in the butt. I understand it. And then you have to deal with multiple offers, but that's a good thing.

It's not a con. That should actually be switched around now that I'm thinking about this on the market you know what your house is really worth at the time because you know what I can't tell you I don't have a Crystal ball. I can't see your house is worth 1. 8 million dollars I just don't know that but I do know that if I have five or six or seven offers I can take those five or six or seven offers and push them to the breaking The brink where they break and that's what I say is I break buyers I break buyers.

If I get seven offers in, I'm going to break six of them. I have to push them to the edge until they're like, no more. I'm done. I'm done. I'm done with you. Stop. I'm going to go find another house. And then we still settle with the one house with that one offer. And that's your highest price. So when you have off-market, you go coming soon, you have a couple of people come through and then you get a really strong offer at 1.

8. How do you know your house isn't worth 1. 8? Nine or 2 million.

So I'm not trying to do this out of hubris or ego or out of greed. I'm just telling you that those are the things that you have to think about when you're selling your house off the market. And every, almost every time I get a new house on the market or coming soon. I have it listed. I don't let people.

Put offers on sometimes they ignore me. Sometimes a buyer's agent will ignore me and throw in an offer. I'll go great Thank you. We have it. We'll keep it in mind. I'll let you know when our offer due date is Because I want to be able to take that offer and shop it and yes, I'm going to shop It's my job to get you it's my job to protect you as a fiduciary I have a fiduciary duty to make sure I get you the best terms and conditions and price for you That's what you hire me for not.

Oh, let's make it easy and that's the difference between selling off the market and not so Okay, that's why I'll be practicing this for the next couple of weeks because I think this is important. Okay. Let's see. Today we talked about, where am I? Insurance rates,

insurance rates, San Francisco house prices are plunging and sales volume is over 23, 000. Guys. It's not where we were last year. It's 70% of where we were last year, just about. I think we're in a healthy market. I think it's good that we're going to see prices go up to eight or rates go up to eight. We need to slow down the market a little bit and make it more fair for buyers. Affordability is another thing. And we'll talk about that in the next couple of days. All right.

Hey, I'm Vito with Avatano. Thanks for watching. We'll see you out there.

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