🚨 🔴🎧 Housing staying on market longer - State of the Market SAN JOSE 40DOM. 🦅 🌎 ⚓️




Financial Intelligence

 Houses are staying on the market longer than earlier this year, but it's not anything to worry about. Three things we need to talk about today on top of houses staying on the market longer homes for salary needed to buy a home in San Jose as well as the rest of the United States, San Jose sewer grant.

Something we have to talk about that's becoming an issue is median sales prices, and how of houses sold we'll go into that as well. Let's get going. The first thing up on the talk docket is our real estate WTF of the week. Thank you again, Brian Lou, for bringing this beauty to us. Look at that thing.

#REWTF of the Week

Isn't that amazing? Yeah, I just, I don't

speechless. All right. Homebuyers workshop. If you haven't done so already, there's one coming up, register for it. There's a link down below. We'll talk about the state of the market here pretty quick. Oh yeah. The home's under a million dollars. We'll talk about that here in a minute too.

Salary needed to buy a home https://www.visualcapitalist.com/what...

The salary you need to buy a house. Where is that? There it is. I sent this out yesterday. I thought it was pretty interesting. I thought we would talk about it. Look, you don't have to make a hundred thousand dollars to own a house, but you do in San Jose, you need 373, 000 a year in income to be able to afford that house.

 So we're obviously the most expensive. It also will go into the cost of your monthly payment as well. Look, in Oklahoma City, Oklahoma, you can buy a house. If you make 62, 000 a year.

All right. The least affordable, most affordable cities to own a home. San Jose is the least affordable. We have two houses coming up in San Jose. One will be listed at 1. 3 and the other one will be listed around 750, 800, depending on the market at the time. Both are in original condition and we'll need a little bit of work, but for the area, the comps come in right below right above where we're going to place it for sale because we're not going to mess around and wait for the buyers to decide that they're going to sell.

Or buy and I'll show you that in a minute. I have some really good information here Your monthly payment will be eighty-seven hundred dollars at seven percent That's not including the eight percent that we're seeing right now. It's crazy right now We're going to see the market stall which was expected, right?

So what's going to happen? There's going to be concessions. There's going to be a rate buy-down. There's going to be Credit towards closing costs. There's going to be a lower cost We're going to see our numbers go down below 100 percent list price to sales price ratio, which we'll get into in a few minutes.

So stick with it. Yeah. Here's the thing, right? San Jose is the most affordable city in Santa Clara County. Sounds like a couple cities. Everything is west of San Jose, Cupertino, Las Gatos, Saratoga, Campbell, and Sunnyvale. I think this all comes into that same average, but when you go to the west of San Jose, you're paying more because the high-tech jobs are in Palo Alto, Mountain View, Santa Clara, and Sunnyvale.

By the way, I'm trying to get my contacts in and it's kicking my butt all over the place. If you want to learn more, now look, it doesn't mean that you can't buy a house, right? There are plenty of houses out here that are available for sale for under a million dollars. Look, the criteria is all these 10 counties that I track under a million dollars.

There's one right here. It's not super bad. Remember my tactic is you wait for houses to stay on the market for 30-plus days. This one's been on the market for 93 days. I tracked 90-plus days as well. This house is close to Santa Clara. We'll look at this real quick. Santa Clara's right here. It's right here in the Burbank area.

And it's going to be right near the Apple, Googleplex that's being put in. So it's actually quite a good buy. If you're okay, buy a two-bedroom, one-bath, 984 square foot, 84-year-old house for 950, 000. Let's not say you can't buy a house under a million dollars guys. There's all over, this is the Bay area, right?

This is the 10 counties of the Bay area. There are plenty of houses out here for you to look at. And yeah, you might have to drive a little bit, but at least you don't have to. Make all that kind of money. 

San Jose Sewer Grant https://www.sanjoseca.gov/your-govern...

Sewer grants,

Morgan Hill, a couple of years ago, created or passed a law saying that for every house that transfers, you need to have a sewer lateral inspection done, which sewer lateral is simply the pipe that goes from your house to the main public sewer. You're responsible for it. And in San Jose, you're responsible for it.

And if there's anything that happens where you might need. Help with that, fixing it. You can get a grant of up to 3, 500 for that. Now, what happens if let's say your sewer starts backing up, God forbid, knock on wood, right? San Jose requires you to fix it, even if it's right on the street, even if it disconnects right here, it's your responsibility.

This is your responsibility. You can call your water company and ask for the insurance. It's 25 extra a month, but it's better than spending 75 to 10, 000 for this. Now we'll 3, 500 covered this if it happens no, but they're there to help out. They're saying, yeah, we understand it's still your responsibility, but we're going to help out.

If you want more information about it, the link is down below. Call them. There are phone numbers down here somewhere. You can talk to Ben when in San Jose and call them and ask questions about that. So please be sure you're aware of that. If you have any questions about the insurance program, call your water company.

I'm happy to walk you through the process and I have a video in my channel somewhere about that. Just look at the sewer lateral. All right. I saw this yesterday. I thought it was quite eye-opening. Now this goes back all the way to 1963 and is something to be aware of because everybody's talking about this oncoming recession and our pricing right now is super, super duper expensive, right?

Median Sales Price of Houses Sold for the United States/Personal Income per Capita https://fred.stlouisfed.org/graph/?g=...

This is. Cost of a house, medium price of the house based on your income, our income, right? So at 6. 8, it's very unaffordable. It's the highest it's been since 1963. But one thing I want to point out is these gray lines are all recessions, right? This is the 2008 recession. This is our little COVID recession.

This is the dot com recession. It's the SNL scandal. It's the inflation. So what happens, look right before the recession happens, prices start to dip the most, right? They continue to dip. They continue to dip. They continue to dip making it more affordable. That's another reason why we're saying that prices or housing is going to stall.

We want you to hold off unless you absolutely have to buy a house. But also, don't be the soccer player, the little league soccer player. Remember we talked about it yesterday. If you're, this is the soccer field right here, right? And the ball goes over here, you're supposed to play position and...

But what happens is just like in little league soccer, if a house goes for sale here, everybody comes over here and rushes and tries to buy it. It's brand new on the market. The tempo is one to seven days. If you don't sell it after seven days, then there's something wrong with it. Condition, price, location, right?

What we're looking at are these homes right here that have been on the market for a long time. 30 90-plus days almost two years on this guy right here. Would I buy a house for 199, 199? No, it's in Sonoma. It's a wreck.

I don't, it looks like a shed. I have no idea what they're doing with this. So it's probably just a shed. I have no idea. You can, I think the idea is to buy And then tear it down and use that property. Oh, look at that. That's nice.

One bedroom, two bath 900. Huh? I wonder what the storage fees are on that. Anyway, you can buy a house for under a million dollars guys. This is the perfect search for you. If you think about it, right? It's over 90 days. It's not Santa Clara. So don't even look at that. I have to save it as the 10 counties, but you can buy houses that have been on the market for over 90 days.

And they're not bad, right? You don't have to play the game. Now, do you have to drive a little bit? You probably have to drive a little bit

at the end of the day. If you're working over here, there are houses over here that you can buy. You can live up in the hills. You can live right here. Let's take a look at this guy right here. Oh, this one has an easement from the County. This is why it's been on the market for a really long time. And this guy's trying to pass it off on the square footage, but the square footage, not including this lease.

SF Public Utilities Commission owns the front lot part of the lot. So that's why that one's not selling. So you have to be picky. They're not going to be perfect houses, but if you're struggling to buy a house in Santa Clara County, maybe look outside and look for houses that have been on the market for, I don't know, 90 days.

Under a million dollars. So there you go. Let's take a look at the numbers real quick. Right now we have 602, which has stepped up over the last couple of months. If you look, we were over the summer we're a hundred, 150, 160, but last year we were at 300, 400. Right now we're at 600. So I think what we saw was the first wave of a tidal wave coming 237 houses over 90 days.

That's multiple counties. Yeah, look, you can see that's the highest it's been since we started tracking 57 bank-owned properties. This is a new criterion. I reset it, I think I deleted it, so, I couldn't find it. And we have 208 all throughout California. Now, should you buy a bank-owned property that's a topic for another day, 291 homes.

291 homes. I

had this. There it is. This is Santa Clara County, right? So understand that the numbers that I'm telling you right now, it's just for San Jose 291, but right now we have a very low inventory. So based on the number of sales, right? We're almost even when we have actives overflowing like we did here. Prices will come down just like we saw here, right?

This is what happened right here. Prices came down and they came back up because in San Jose, Santa Clara County, Silicon Valley, and the Bay Area, people want to move here, so that will take time. If you're thinking about buying a house, talk to a lender. If you don't have a lender, let me know. I have three great ones.

They're ready to talk to you. Let's go back to Wednesday here. Sixty houses closed last week. Again, that's pretty normal.

We have, how many pending? With 60 pending this week. Nothing really crazy to look at right now. Last year we had an average of 108. This year we're at 102. We're seeing the market stay healthy right now. We're still seeing houses sell 65 70 percent of the houses are selling over list price. If you want to look at that right now, you can see that, right?

These numbers are right here, this is from the last week. That's pretty much what we're seeing. And I think the number came in at 16. 65 percent over the list price this last week. So over the last year, it's been, it's 60%.

So over the list price. And that could be anywhere from 0. 001 percent over all the way up to, I think the highest was one 23, 123 percent this year, this last week, 60 pending. We have a 65 decrease in price list price. We have 25 back on the market. That's cumulative as well. And the last day, seven days, we had 14 houses.

Now this is telling you right now, we're our market's still very healthy, right? Nothing is going wrong, nothing bad, nothing horrible yet, but we are seeing a slowdown in the market, which tends to be because we're at 8 percent for interest rate. If you see a house that's been on the market for a few months, We can go on and negotiate for you and get you a better deal, a better price.

We can ask for concessions, repairs, upgrades, and new carpet, and we can ask for points towards lowering that 8 percent down to five, five, or I don't know whatever your credit is. So there you go. We talked about today, we talked about the market slowing, sewer, lateral. Grant the median price and how much money you need to buy in San Jose.

If you're going to buy an average house, I'm Vito with Abitano. We'll see you tomorrow. We'll see you out there.

See Also:
Fraud on the rise http://blog.abitano.com/2023/08/title...

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