🔴[LIVE] 🚨 Future of homeowners Insurance
- Fannie Mae forecasts an average rate of 6% by the end of 2023 and 5.4% for 2024
- Property Insurance and Its Impact on Consumers
- NAR forecasts an average rate of 6% by the end of 2023 and 5.6% for 2024
- Hi & Lo Santa Clara County Sales
http://blog.abitano.com/2023/09/live-future-of-homeowners-insurance.html
Homebuyer Workshop https://event.webinarjam.com/register/6/8oz4kcg
HOME SEARCH https://www.onereal.com/vito-scarnecchia-1
TITLE THEFT IS ON THE RISE WHAT IS IT, HOW DO YOU PROTECT YOURSELF AND WIRE FRAUD http://blog.abitano.com/2023/08/title-theft-is-on-rise-what-is-it-how.html
stock market, Silicon Valley real estate, real estate crash, Bond yields,
🔴[LIVE] 🚨 Future of Homeowners Insurance
Good morning. Three things you need to know about living in Silicon Valley. We're starting right now. Hey, I'm Vito Scarnecchia with Abitano. Today, we're talking about three things you need to know about living in Silicon Valley. One is interest rates. Interest rates are probably going to come down about 6% by the end of this year.
At least that's the thought. That's the idea. That's the projection. And where are we going with the impact on consumer insurance or homeowner insurance? What does that mean to us? Etc. And what Freddie, NAR forecast, also 6%. But also we're talking about fraud and the top 1%, let's just jump into 1% real quick.
I thought that was pretty interesting and this is important because we always talk about averages, right? We always talk about people. What the average American makes is 40, 000 a year, and how unaffordable it is. A majority of people who live in the western states or the coastal states can afford a whole lot more like Connecticut For you to be in the top 1% you have to make almost a million dollars a year.
It's right there. Boom, California 850, 000 to be in the top 1% it really depends on where you live. Now, let's talk about Mississippi. You only have to make 380 Which again, it's the top 1%. Now understand the top 1% caters to a different lifestyle. And we're not just talking about 1%. We're talking about the top 5%, the top 10%.
And when you're at. 844, 000. If you're in the top 10% in California, you make, I think it's 360 or something like that. And it just makes it for why or how people are affording these million-dollar-plus homes. And I want to jump into that really quick, show you the top. the top most expensive house sold in Santa Clara County this week is in Palo Alto on the Lincoln app.
Now, again, these are not my listings. If you want to take a look at these listings, I will give you the MLS numbers and you can take a look at them, but this one's nice. It's in Palo Alto. Palo Alto has a different little style to it. It's not the stylish gray and what have you. It's every house has a different style to it.
And this one's more country as their colonial style. This right here, even though it has a portico walkway, which isn't necessarily an attribute of colonial, but that's what makes Palo Alto special, right?
Pool, a very porous portico-type style walkway. pavers. It's a little hangout room, sunroom.
Now this isn't the most impressive house. I want you to hold on for a couple of minutes. It's a beautiful house. It's large. It's 6, 100 square feet, six-bedroom, and six and a half, two half baths on a half acre. Yeah, pretty big in the middle of Crescent Park, which is one of the pre, pre preeminent areas to live in Palo Alto.
Let's take a quick look at this guy right here. Its lowest-sold house is $850,000, which came in at 20%, 106% of the list price. Short. Rich, let's go back over here real quick
there. Okay. So you can see a little bit more. 758 square feet. 758 square feet. Crazy. Right? 1100 square, $1,100 per square foot. That's just the way things are now, where is this? I believe this is south of Stevens Creek, San Carlos
, and Google Plex will be right over here. Yeah, that's about right. No, I think it's like we're here. So anyway. 850, 000. That's what you get for 850, 000 two bedrooms, bath, and 758 bungalows. Crazy.
All right. The highest list price over sales price ratio is three bedrooms, one bath. It's New Yorkton listed with 2 million sold for 2. 5. Now this is over technically this is like the Saratoga area. Right?
So Saratoga's proper is right here. This is still San Jose, still paying San Jose taxes. Standard,
standard ranch house. Depends on where you live, right? I sold one of these earlier this year. This one's rather updated. Doesn't have the Saratoga or Cupertino zip codes. So it's San Jose proper, which if this was Cupertino, probably would have sold for closer to three million dollars. Because look at, okay, so this is the house I want you to look at.
This is beautiful inside. Look at the flooring. Completely updated. Light, bright, airy. You have the lights coming in. I know it's gray, but that's the standard shtick. Look at the tile backsplash. Beautiful cabinets.
This is a beautiful house, guys.
Nice professional range there. Built-in refrigerator. Everything was customized on this house. You can just tell. This is a beautifully updated house. All right. Eight days. So 1, 700 square feet, three bedrooms, two baths. That's what you get for two and a half million dollars in West San Jose.
Beautiful. All right. The last one, let's take a look at this one. Oh yeah. Morgan Hill is my favorite little town. I just drove through it yesterday. It was 88 degrees. Took my daughter down to look at it. Monterey Bay at us. I don't, I remember hiking through there during my reserve days. Good times. We used to go blow that place up.
Anyway, we walked through, went through Morgan Hill, went from. 65-degree weather, we're beautiful, still sunny, but cloudy to 88 degrees and it's a little tiny ranch. Everything's original on it. So here's the deal, right? When you have a house that's in original condition, yeah, you might put up, might've updated the floors, but look at the tile, look at the cabinets.
Stainless steel. There's no stainless steel here. You need, all the appliances to be white. You're going to get, you're not going to get a ton of people that are jumping through the hoops to buy this house. Look at that lamp.
Nothing wrong with the house at all, right? Single-pane windows, probably don't have cooling. It is 1900 square feet. Let's say that one, one three took 54 days to sell because they didn't price it right. Probably because the seller said, no, my house is worth 1. 4, 1. 4. And. The listing agent said, Hey, let's list it low and see what happens.
And nothing, they got crickets because condition market condition location. It's on a corner of DeWitt, even though it is DeWitt. DeWitt's a busy streets and Avenue. You get a lot of traffic through here, right? Take a look here. This is the library here.
So you're going to get a lot of traffic here. Again, nothing wrong with this house other than it's in its original condition. So just keep in mind when you're pricing out your house when you're pricing out your house, remove the ego. You have to look at logic and you don't say my house is worth this much.
The buyer will tell you how much the house is worth. I can't tell you that a hundred times, but it seems to be every time I talk to somebody about selling their house, they think their house is worth X because the house down the street, which is completely updated, brand new pool, brand new coping and paving and brand new kitchen.
So for 1. 8, your house is still in its original condition. It's dependent on the condition of the house.
All right, let's talk about numbers. Insurance guys, insurance.
Where is it? Property insurance and its impact on consumers. Now this is coming down the pike. We're going to have a report in two days about what's going on with the insurance. Now look, I'm not siding with the insurance companies, but understand the insurance companies are for-profit companies. They need to make a profit.
And when they have cost of living, cost of repair, cost of labor, cost of materials going sky high and inflation is going sky high. That means your insurance has to go sky-high to match. It's just like when you say, Hey we want to have a minimum wage at 17 an hour while your sandwiches are going to cost 17, 18.
Per sandwich. That's because they have to pay rent. You have to pay utilities. You have to pay labor. And every time you increase one thing, labor, everything else goes sky high. Every time you print trillions of dollars, inflation goes sky-high. So it is what it is. And,, in Florida, I'm not sure this is what I heard and saw.
Hurricane insurance is like 10, 000 a year. It's just not tenable, right? It just is. They're looking at losing possibly hundreds of billions of dollars in the latest hurricane. We don't know yet because that'll come out, but hurricane Ian last year, I think said it was like 41 billion, which was a lot of money, right?
So I'm
not sure what's going to happen. We're going to find out more about this and I'd love to talk about it and have a debate on what's going on. Okay. Fannie Mae and NAR forecast 6% by the end of the year. And NAR says 5. 6. And Fannie Mae says 5. 4, so that's actually good, but it doesn't matter because what's going to happen is there's still a lack of inventory.
It's not the problem. The problem is there's a lack of inventory. Now, if we are granted, we still have houses that are sitting on the market for 100 days, right? Those houses are overpriced for the location, for the market conditions, for the condition of that property. It doesn't matter. There's still a chunk of properties that will consistently go and sell fast.
And that's what we're talking about. It's the majority of the houses. Look, we just closed 116 houses in Santa Clara County this last week, 81% of them were over list price. I'm sorry, 81 of them 69% of them were over list price.
So you, There's still a huge number of houses that are on their price correctly and in good condition and will sell well because of the location, the condition, and the way they're marketed
the Santa Clara County. Sorry, I'm trying to find my thing. This number is right here. This should be about 16, 17, 1800 to have a good balanced market. And we've been under a thousand for the last two years. That's the problem. That's why it doesn't matter what the rate is. If it goes down to 6. 3, if it goes down to 5%, it doesn't matter because people are still going to buy what's going to happen is the seller's going to make more money.
On the house because when the interest rates go lower when interest rates Buyers enter the market which means there's more competition and when there's more competition Prices go high bank. When there's more competition, prices go higher. When there's more competition, prices go higher.
So while I hate having some for 7%, I think it's smart for us to keep it at 7% until we dwindle this out. There's another reason that we're going into an election cycle and we have to have low rates. We have to have low inflation. We have to have a low cost of living to make the.
happy. That's just the way there you go. Three thing
Does it mean waiting means this is the time to buy now because there's less competition? Now, when the rates go down, it's too late. When the rates go down, it's too late to come because people will enter the market. More competition will enter the market and prices will go up. We don't want that for you. If you're struggling to buy a house now, I say buy a house now.
Oh, but Vito, what happens if the market collapses? It's a chance you have to take it doesn't matter because in 10 years it won't matter if you want to look at the rates that I show you there, these are not quoted rates You have to talk to my lenders about real rates get qualified, etc Get a better value of rates, but rates right now are coming down just a tad bit They're going to continue to come down and gas is going sky high.
I don't know what to tell you. Let's just take a look. What is that?
It says the lowest rate is $4.59, but I didn't see it.
Okay, here's a little map of everything and I could tell you just looking at here 4.
69 at San Tomas here $4.69 on Redmond.
That's the cash price
4. 89 4. 75. Oh the ARCO that one's always low. Costco is 4. 89. It's crazy, right? All right. Prices are going up. The cost of living is going up. Title theft is on the rise. Guys, it's going to be my mission this week to continue to push this. It's a blog, it's a video, it's a podcast. Listen to it. Listen to it.
Please take the time to listen and protect yourself if you're a homeowner. Hope
that helps. I'm Vito. You heard and learned three things you have to know about living in Santa Clara County, Silicon Valley. I'm Vito with Abitano. We'll see you out there.
stock market, Silicon Valley real estate, real estate crash, Bond yields,
🔴[LIVE] 🚨 Future of Homeowners Insurance
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