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.
🚨 🔴🎧 Housing has SLOWED - NAR is in trouble, Who cares? - State of the Market 🦅
Three things you need to know. Living in Silicon Valley, real estate homes are for sale near the Apple campus and they are in trouble. Nobody cares. Hope the California housing market forecast for 2023 and how fast is the available home inventory climbing now. These are all news reports that are coming in across the country, not necessarily what's happening in Silicon Valley.
And I'm here to show you the difference because the difference is very important. Here we still have a lack of inventory and prices are maintained for the most part. We'll go into that in a minute, but let's get into the news reports. The first thing we're going to do is R E W T F. Let's get this thing set up right.
There we go. So years ago when I was in the Marine Corps, we went to this place called Bridgeport, California. This young PFC Lance Corporal decided to do something like this with a chili can. You can go to this REWTF, and look at it. It's funny. He wound up blowing up a chili can inside of our tent and blew up.
Chili everywhere, including my clothes, whatever. That was years ago. Who cares? I wasn't pissed off. I was laughing about it, but he was freaking out. Yeah, guys, you don't, you gotta be, yeah, be careful. Okay. That's the next episode. Next article and they are as trouble and nobody cares.
, our National Association of Realtors has been going through some tribulations. I talked about it yesterday. The problem here is that they have been the second most powerful union in the United States for 50, 60, and 70 years. They make millions of dollars off the backs of real estate agents. They do provide some lobbying, making sure that our regulations stay in check, and that our, we're protected a little bit.
But here's the thing, they protect some that don't need to be or don't deserve to be protected. It's almost become a toothless tiger where the whole purpose of protecting one's own instead of the consumer kind of avails itself into what? I don't know. I've had run-ins with. Horrible, unethical real estate agents, whether they're realtors or not, are totally irrelevant.
They have done some really shady things and when you go to push them through to get them into trouble, and yes, I've dropped a dime, I've snitched on people. The associations tend to try to flatten it out so that everybody Is Okay. And at the demise and the worsening of the consumer. Without going into any stories.
This other thing is that the president has allegation, and has been alleged to have sexually assaulted and preyed upon other people within the association. And now they're going through a lawsuit about commission and they're bending over Redfin re max. And Coal Banker Century 21, Corcoran Group, have all made it aware that they are not going to be renewing with them next year.
I think this is a big awakening for unions all across you can't just operate in a silo. You can't be part of, Oh, these are my people and I have to protect them, which they really don't with the NAR, but there's, then the national, so an RA and there are other unions that are coming down and striking for more wages, et cetera, but you have to understand the bigger picture.
And I think NAR. I don't know, feel like they've lost their touch as to what they're for. Have they helped the consumer? Not recently. Have they increased our prices? Yes. Have they done better for us as a whole? I don't know. They always ask for extra money for lobbying and for advertising.
That's optional. So I always say, no, I've never given them money, but my MLS, MLS listings. com requires. We are a part of that. And if they require me to do it next year, I might go to another reciprocating MLS so I can detach myself from the badge of a realtor.
This California Association of Realtors every year or every couple of years requires that we go through an ethics class, which I'm completely happy with. Again, the CAR is part of the toothless tiger problem. I think as far as making sure that we hold to these standards of ethics or code of ethics.
So anyway, there's another broker that lives in Jersey. He's calling for requiring that all local MLS is offered. reciprocation without undue cost or without cost and have our keys operate all across the state. Now in Jersey, it's much smaller than California. I personally don't want to sell down in San Jose LA, Orange County, or wherever.
Have no desire to go down there. Have I done it? Yeah. My mom moved, my mom and dad moved down to Signal Hill and I went down there and helped them buy a house, but that was because I was trying to help them buy a house, make sure that they were protected and they a little sneakier down there too. So anyway, I think we're going to see a lot more.
upset with NAR before we see them survive. If they do survive,
how fast is the available home inventory climbing again? I think we just saw almost 8 percent yesterday for interest rates, which that's going to stall the market, right? Oh, but back in the seventies, it went up to 16, 17 percent that was when houses cost a hundred thousand dollars.
We're talking about 10, 15 times more expensive houses. It's crazy.
I can tell you for example, that the market's not going to stall or stop tomorrow. I think what we're going to see is the market's going to slow down. I don't think we're still seeing houses sell. Across the nation, we're still going to see houses sell because people still need to move. They need to refinance.
They need to, refinance. They need to relocate. They need to move to another place to be with their parents or for whatever reason they have to move. And that's really the crux of it. Crutch of it. Crux of it. Now that brings us back to a more balanced market, which is fair. The problem is we never have, or we haven't in the last two decades, we haven't had the inventory to justify a balanced market and a balanced market makes it fair and equitable for both sides.
The last two decades, the last three years, especially have been massively favored for the buyer or the seller and the seller has taken advantage of it. They've sold crappy houses, poorly maintained houses. They've got a premium price for it. They've gotten all sorts of incentives for them to sell their house.
At the behest of the buyer and when you get caught up in the industry or the buying mode, you get sucked into it. And three years ago when we had the firestorm, people were throwing in 400, 000 over the list price. I don't know how they could afford it, but that was the norm. And here's the thing I've been in good markets and I've been in bad markets and I understand how things work for both sides.
And I always try to make it fair and equitable, but. When you hire me to sell your house, my job is to sell your house and make as much money for you with the best terms possible. Cause I'm a fiduciary, I have a fiduciary duty to you. Inventory. Is tending to take up in Santa Clara County.
We'll go into that in a minute, but I don't think we're going to see that anytime soon. I haven't read this. I just saw this. And then I started, I thought we should look at this, but here we go. Price growth for all property continued upward trend. Now these are just percentage trends, right?
And we saw that dip stopped in April. Now it's coming back up. We're definitely not here. 30, 40%. That's ridiculous. That was unattainable. And in 13 we saw that happen again and again. We saw something happen like that. 2008 to 2009,
price of living is going up in every part of the world. Every part of your world, right? From food, gas, milk, school, books, everything. Everything's getting more expensive, and that's just. Due to that inflation that we're dealing with
these numbers here where you see negatives It's only because the inventory is lower and we'll get into that really quick Cmas or these are the last year's and this year's comparatives and we'll go into that really quick
really quick fraud is on the rise. I have a link down below for you to take a look at Please do read this if you have not seen it yet Take the time to read and be aware of what's going on if you're in the market to buy or sell a house We'll get to this in a minute if I remember.
Now I missed last week cause I was in Knoxville, but we went up just a tad bit. Tends to happen when rates go up. Houses tend to sell and take a little bit longer to sell. As a matter of fact, it takes 14 days to sell instead of that we're still doing really well with that. REOs are still doing nominal.
Yeah. San Jose, nothing major, right? Inventory is still short-sighted here closed last week. We had 47, and 47 closes last week, and that's when it was at 7%. So let's see what it looks like a month from now, a month from now, because a month from now is when we are going to realize how effect how much the 8 percent interest rate versus the 7 percent interest rate will affect us.
This is good guys. Let me explain something to you a little bit real quick. When interest rates go up, the market slows down, it slows down. That means there's more inventory. How's the stand on the market a little bit longer and sellers become a little more desperate. There's a certain percentage that will not.
Bow to the price change and they will take it off the market, which I understand, but there are a certain few that want to sell, need to sell, and just have to sell. I have a listing coming up. That's it's a trustee sale, meaning the person passed. I'm dealing with the children selling their house.
What's going to happen is incentives are going to start happening. We're going to start crediting for closing costs, and crediting for points. We're going to start doing repairs, and it's normal to see that. So you're going to see deeper discounted houses based on the quality, location area, and market conditions.
We're also going to see houses take longer to sell, and buyers are going to be able to take advantage of this. Now, are you going to be able to take advantage of it, of this on a house that just listed yesterday or a couple days ago? No, the seller's not in that mindset. The seller's still in the mindset is let's see what the market's going to bear.
Hopefully, I can sell my house in seven days. And there are a lot of houses that are selling in seven days. Look at this. This is we take a look at this real quick, bring it back. And then we'll look at this last week's CMA. This right here, these are the numbers you want to look at. There are still houses that are selling in less than seven days, right?
There's a lot, a majority of them are selling a lot under seven or eight days. There's a lot of them. There's taking a lot longer, but look, that's where when they take longer to sell, that's when you come in under price. So the strategy is to find a house that's been on the market a little bit longer. It's not going to be perfect and you can ask for credits.
That's the news. Wait to buy houses last year. We had 84 closes this week. We had 47 we're down about half, which is huge. And don't pay attention to this. Cause that's not right.
The average list price is 1. 7. The Average sales price is still above. 1. 8 on the average. We're getting really close to the average complaint compared to last year. We're damn near close. Are we going to get to it? Probably not because of the 8%.
So we're, that's this last month. We're actually still 55, 000 away on average from last year. Medium price is 1. 4. List price sales price ratio average is still one 104 last year. We were seeing a one Oh nine, but. This is when we saw the market slow down completely and we started seeing prices averaged down below a hundred percent.
So for the next year, you're going to see this number below a hundred percent highs and lows last yesterday. I think we saw one at 180, 191%. Crazy, right? Days on the market were 14 last year. This last week was 31. But again, you look at the averages on average, because the market picked up again, we were at 15, 49 pending, which is a far cry from what it was.
Oh, sorry. The last couple of months. We're seeing 70, 60, about six, about 70. We upped it up to 90 or somewhere 95. That was a good week, right? The prices for a week, the demand is still there. People are just struggling too. Make that decision. I get it. I totally feel it. TFT is back on the market. Nothing's out of the ordinary here.
So there you go. Okay. Let's get back up to houses near. I'm
not going to be able to show that to you this week.
Financial intelligence. We're interviewing a guy here pretty quick that helps you with claims. We'll go into that. So if you ever have an insurance claim, your Insurance company will have an insurance adjuster come out and tell you how much they're going to give you.
It's always better to have somebody come out and check his review. The adjusters review come through and argue it for you on their behalf. And I think I don't know how they pay. We'll find out more about that, but I'm excited to learn more about that. The home valuation that's for. HomeBot. HomeBot is a great little service that gives you a monthly little update of what your house is worth and just lets you keep track of it.
That's it. And we have Willa Glenn's 5 Most Expensive Houses. Alright, that's it. I kept it at 17 minutes. Today we talked about... NAR is in trouble.
California housing market forecast and how fast available home inventory is climbing. That's across the United States. Nothing really to worry about yet other than rates are high and unexpected.
Expectedly, I don't know how sustainable that rate is going to be. And the idea is next year rates will come down, but we'll find out. All right, that's it. I'm Vito with Avatano. We'll see you out there.
Campbell, San Jose, Silicon Valley, retirement, empty nest, Financial Intelligence, Best Realtor Santa Clara County, Google Jobs, Apple Careers, Apple Jobs, meta jobs, Hewlett Packard, Oracle, Intel, Cisco, Facebook, Broadcom, Adobe, eBay,