7% interest rates what does this mean?


 7% interest rates what does this mean?



  • 7% interest rates what does this mean? 
  • Fraud on the rise 
  • rates won't go back to 3% anytime soon 



 Welcome back. Holy moly. What a week.

Yeah, it sucks getting sick. Really sucks when you get old. But you know what? You learn to live and you learn to survive. That sucked. Tell you what. I messed up. Here we go. Hang on a second. I am Yeah. Okay. We're going to play differently today. So I was sick last week. You probably didn't even notice that I was gone.

I didn't do any lives, when you're sick. And man, jeans we're a bunch of wussies. And that's just how it is. I, when I go down hard. But I go down for a shorter amount of time because I just want to get better. And then when I get back into it, I start hiking and getting my lungs back into shape.

And yeah, but I tell you my daughter went down about the same time. She's still a little, and then my wife went down yesterday. Two days ago, she went down and she's been hurting ever since. And yeah, she's got the credit. So today we're talking about three things you need to know. 7% interest. What does that even mean?

Why are we talking about it still? And then fraud is on the rise. We just did a video with my title people and they're so amazing. I love it. And we'll talk about what title fraud is and then rates won't go back to 3% anytime soon. Let's get moving.

Oh, there we go. Let me send her up a little bit Okay, so just did the numbers.

No, we want that a little bit bigger. I want that bigger. There we go Alright, so you're to date we have some Santa Clara has 4, 800 homes sold 4, 800 single family homes sold so far year to date by far. We're over 10 billion dollars Is that the number? Yeah, let's take a look at that number. It is big. It's fat is gargantuan.

That's a hundred thousand million, 10 billion. We're over 10 billion in sales volume so far this year. So yeah, I don't think we're hurting. Granted we're down 75% of where we were in 2022, which means that was the peak of the market. But before that. It was even faster, harder and hotter and crazier.

It was a firestorm then, and we saw things cooling and now we're coming back to normal. So 75%, the market's crashing. No, it's just coming back to normal. It's a normal market. Even at 7%, we're still selling 500, 700 units a week in this, in the Bay area. So one thing you need to know is these are the week to weeks, right?

And these are the ups and downs from last, from compared to this number right here. But these are the numbers that really make sense, right? I'm sorry, this is 22 averages. You look at these numbers right here and Solano is not 103. Don't listen to that. That's because they had a mix up in the numbers.

We're all coming back strong. Santa Clara is 97% of where we were back in 2022. And that was even when we crashed a little bit. Alright, so we're not doing bad at all.

Sales volume, I should say, over 10 billion. Okay. 7% interest. What does that mean to you? It doesn't mean a whole lot considered the fact that people are still buying houses. It doesn't really matter. Yeah. It was great at 3%. And yeah, it was really great at 2% and two and a half percent. When we had a mortgage, we were at four and a quarter percent or four and a four and three quarters.

Maybe it doesn't matter, right? If you can afford it by a house and you're like, 7% is so expensive. Yeah. And the house price of housing is expensive here in the Silicon Valley, in the 10 area, the 10 county Bay areas, right? Bay Area. 10 bay area counties. But think about it. If you're struggling to buy something, think about Solano, where it's 667, 000, or if you want a nice place where there's not a lot of volume, you can probably get a pretty decent deal because look, even though you're getting it still under 10% on the average, less than this price, Napa is floundering right now.

So there's deals to be had. Silicon Valley, while it's the place to be, if you can't afford it, look at commuting, look at telecommuting. Okay. You need to buy a house and the reason why is because landlords can evict you, not so much in California, they can raise the rents, they can be horrible landlords and not fix things and they can treat you horribly and they can say I'm selling the house and or the apartment and there's nothing you can do about it.

So you don't know you have that. I don't know what's going on. I don't know where I am going. Life's falling apart. When you buy a house, you have all that, and then you get economically locked into that payment every month, which I know it's going to suck, but at the same time, it's better than seeing your rent go up 5%, 6% every year.

So consider it. Also in California, we have proposition 13. That means when you buy your house for a million dollars or 600, 000, the property tax will only go up. 2% max every year versus outside in different states, like in Texas, where you saw property values swing up a hundred percent. You had a house that somebody bought for 200, 000.

Now it's worth 500, 000. That the neighbors get screwed. Because they have to pay property tax on the 500, 000. Now there's no protection there. So you get that one massive amount of protection in California, which is why people are swinging a buy here. It's a great place to buy. Fraud is on the rise.

Let's take a look at this. There's a video. I did it with Suzanne Borg. She's amazing. We walked through the entire process of understanding it. If you don't want to listen to us, you can read the transcript here. It goes through and details everything about it. And honestly, Suzanne's a much prettier than I am.

So she's a lot better to look at than I am. So there you go. That's one major sales point, but honestly The people at Cornerstone Title are amazing. They're not paying me for saying this, and I don't get any favors for doing this. They're just consummate professionals. And the people there are all amazing.

So they're always there for you or they're always there to watch out for you. But if you have any questions about it, learn more about it. It's happening, guys. It's going to happen. It's not if it happens, it's about if when it's going to happen to you. So be on the lookout and that video will tell you how to protect yourself.

Serious. Race won't go back to

3% anytime soon. That's what I was saying before. might not go back. But even if it doesn't matter because here's the thing right now is very difficult to buy a house because 7% even upwards of 8% depending, right? It's unaffordable. And if you've minded your P's and Q's and you've kept your nose in the grindstone and you've saved up and you're trying to figure out how to make it work, this will make it right now.

It's going to make it so that you can afford less house. And I understand that completely, but if you buy a Napa, if you buy in Solano, if you buy in Monterey County, there's not a lot of volume going on right now, that means. It's not a seller's, it's not a buyer's market, but it's not as tricky as the seller's market that we're experiencing here in Santa Clara County.

So you can go in and negotiate and there's houses that are sitting on the market here in Santa Clara County for a long time too. But if you're looking at buying a house, look at houses that have been on market for a little longer than a day or two. Because if you're struggling with down payment, if you're struggling with rate, if you're struggling and you can't do.

Completely as is, and you're trying to buy in Cupertino, good luck, right? Houses over there just fly off the shelf. And that's crazy because it's two and a half to three and a half million dollars on average.

This article here goes into talking about why, and it's just, it wasn't smart for us to go down to three percent in the first place. Period. I said it, line of the sand. It was foolish for us to drop the rates that low, right? It's holding up our inventory. It's making it difficult for us to find more listings.

Volume is down. It's not that the desire to buy houses are down. It's the inventory is down is why. And it's because rates are so low for so long. I know it's only a year, but still that was a long time. 60% of the houses that have or have 60% of the houses in San in America have mortgages on it, and I think like 70 or 80% of those houses that have mortgages on it have it less than 3% or three and a half percent.

So it's foolish for you to sell your house unless you absolutely, positively have to in that point of view.

I think we're gonna see four, five and a half percent. That's gonna be our new normal. It's got normal to it. But once we get past this recession in 2024, we'll see what really happens. So there you go. All right. Also, we have a home buyers workshop. And the links are down below. You can go to the blog and listen, watch this blog, read my blog anytime you want.

I know it's super exciting to read, but each blog, most every blog that I have up there has a video attached to it. So it depends on how you want it. And I have a podcast too. So if you want to drive and listen to my podcast and listen to me talk about whatever, that's a great time to spend some time. And listen to what's going on in the world of real estate.

So you can be a better, smarter person. Yep, that's it. All right. I'm back. Hopefully I'm stronger than ever. We'll see when I go on my little hike on Wednesday. Happy Labor Day. I'm Vito with Abitano. We'll see you out there.

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