Bay Area Real Estate to Topple $55BN in 2023 | 3 Reasons to Buy Houses That Aren't Selling



Bay Area Real Estate to Topple $55BN in 2023 | 3 Reasons to Buy Houses That Aren't Selling

Merry Christmas. Happy Monday.  Last, second to last week of the year. Lots of stuff going on.  Santa Clara County as well as the other 10 counties are going to topple 54, 55  billion this year. That's not good news.  We'll also look at a luxury house that's for sale down in Carmel.  Fraud is on the rise.

Your local housing market has three reasons you should buy a house that's not selling and mortgage rates are almost back to 7%. Let's get moving. Okay. First things first, let's get the numbers out of the way because everybody's excited about this.  So we're at five points 54. 5 billion aggregate for the year so far. 

Bay Area 10 County Report

That's out of the 10 counties, Santa Clara to Napa. And that means we're still down from last year on the weekly average.  We closed 598 units this last week. That's crazy. We've gone 35, We might hit six.  I think we'll hit 36, 000, but we'll see. We could put a dollar on it.  Last year's average volume per week was 1.

46. This year's volume is 1 million, 1 billion 68. So we're down quite a bit, but if you look at last year's. Actual volume, 22 volume is 74 billion, almost 75 billion. So we're 27 percent off the numbers. That's a lot. That's a lot of,  um, lowered expectations for the entire market. On top of that, lenders are struggling with refinances.

That's because that's where we are, right? That's our market. That's just what it is. People are holding onto houses. They're not putting them up on the market. There are still people that are selling, but. Just not the large amount that we saw the last couple of years. And we're down considerably over the last 20-year average. 

Bay Area 10 County Report

Luxury House Spotlight: Carmel

Oh, Lido Road. This is not my listing. I wish it was selling for a mere 29 million. Let's take a quick look at it. Gorgeous.

Cause where I've driven by this house before  I try every Friday to go down to Carmel and this.  Is on the 17-mile drive, but look at that view.  Just gorgeous, right? Old style Spanish revival,  just purely rustic, gorgeous house.  It is eight beds, 11 baths, 2. 6 acres, and a mere 10, 000 square feet. 

If you know anybody that's looking it's only been on the market for 129 days.  All right. 

Luxury HOMES
Luxe 1463 Oleada RD

Mortgage Rates and Market Impact

Mortgage rates fall back to 7%. This is actually good and bad. And it's Bad because it brings more buyers into the market, which means more competition means higher prices.  So affordability doesn't really get impacted.

It's still unaffordable to buy a house. You still have to make about 517, 000 to buy a median-priced house in Santa Clara County. That's just the way it is.  What happens if you make 200 or 100, 000 a year, you can still buy a house. It's just not going to be the median price, right? The median is the middle of the road and that's okay.

Some houses are below my house. It isn't worth 1. 7 million. I wish it was,  but there you go. You can take a look more deeply, or you can take a deeper look into this on the link down below.  So we were at 8 percent just a few weeks ago.  And again, this is not going to help buyers.  I know it might say it will, I know other articles might say it will, but there's just more competition here in Santa Clara County than there are houses for sale.

That's how it's been for a very long time.  

Mortgage Rates Are Almost Back to 7%

Title Theft: A Rising Concern

Title theft is still on the rise, guys. Take a look at this video. It will walk you through the whole process. And please give me a call. Let me know if you have questions about where your title is, or your parents, or what have you. I'm happy to help out.  

Fraud on the rise

Price Reductions and Market Strategy

Price reductions, not every house sells. 

Not every house sells,  mostly because of price. Sometimes the seller thinks that it's still April 22 and the house is worth, let's say, I don't know, 1. 6 when it's really 1. 3.  I can't tell you what the market's going to bring you until we get the, get it on market. But I can tell you on average, if we list it a little bit lower, your house will sell faster.

For example, regarding the houses that I just sold, we listed below what we thought and it far exceeded our expectations on both the houses. If you have it listed low, higher than what you're thinking, it's going to sit on the market period. You can take a look at this one right here. This one right here is  Las Gatos Fairview Plaza.

It's a beautiful house, but it's overpriced.  It has an ADU. It's less than an acre, and 76 days on the market. Listed originally at 1. 2 million,  right? And it's downtown. So technically it should um, have sold, but you're chasing the market right now. When you're on the market for that long, you're chasing the market. 

The best thing would be to do is to attract buyers. You could have had it listed at 1. 6 and bid it up and see where it landed because buyers know what a house is worth. And a house isn't worth 2 million or 1. 8 million.  It's not going to sell. And you're going to get frustrated. And this is only a two-bedroom house, right? 

Three Reasons to Buy Houses That Aren't Selling

Three reasons to buy houses that aren't selling. Let's take a look. I haven't even read that. Minor fixes can turn a beast into a beauty.  It's true. The house I just sold, it needs everything. We priced it accordingly compared to all the other comps that were out there. We priced it lower than what everybody else was.

We had 15 offers. People see a diamond in the rough and they know that they can make it work, right?  Location Our location wasn't special. We got it in not the one that just closed But the one that we just got in a contract we put it according to comps relative to that area  Location guys if you can't afford it,  if you can't afford a median-priced house, that's the median price is really Cambrian Campbell, Willow Glen, and some of Almaden, anything on the western area of that is going to be below the median price.

So you can get stuff like 1. 6, 1. 5, 1. 3 over in Blossom Valley and Santa Teresa.  You can find houses that are above that too, right? So just be careful what you can do.  It's always better to buy for location and if you can't afford a fully turnkey house in Los Gatos, buy a house in Blossom Valley and then move up in a couple of years.

The main reason why a house doesn't sell is for inflated asking price, potential buyers skip overpriced homes because there are more competitively priced houses and they can go after that. So we actually use this as a strategy for buyers. We let them buy and look at houses that are brand new on the market, but I can tell them unless they're willing to overbid and get to where the comps suggest. 

They're not going to win their first couple of bids and that's okay. I'm willing to do that a couple of times just so that they can get an understanding of where the market is.  But then we go and look houses, look at houses that are 30 plus days on the market and we can go back to them and say, Hey, look, let me put an offer on this house.

It's not going to be what your expectations are, but we're willing to work with you and we're going to close this because I'm not going to work with you unless you're ready to buy a house. If you're mamby-pamby about it.  Then we're just wasting everybody's time and we don't want to do that.

Especially when it comes to putting a house on the market, getting in a contract, and then pulling out because you just don't feel like it, or you're not feeling it, or something was wrong with the house. So there you go. Price, location, and repairs. Condition of the property. Been telling you that for the last couple of months.

3 Reasons to Buy Houses That Aren't Selling

Last couple of years. So there you go. Let's see. Fraud is on the rise. Price reductions.  There you go. That's it.  

We looked through everything and it was less than 10 minutes. I'm Vito with Abitano. We'll see you tomorrow. We'll see you out there.

Vito Scarnecchia

Realtor®, Broker, Veteran, Dad

DRE#: 01407676



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