🔴[LIVE] 🚨 How Much House Can I Afford? | Santa Clara County 2nd most expensive U.S. housing market | Gas at $3.91
- How Much House Can I Afford? Income needed to purchase: 617,323 Median Home Price $1,750,000
- Santa Clara County has the 2nd most expensive U.S. housing market - | Palo Alto Online |
- Divorced Couples Stuck Living Together After They Can't Afford to Move https://www.theguardian.com/society/2012/nov/20/trapped-couples-partners-relationships
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- 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
🔴[LIVE] 🚨 How Much House Can I Afford? | Santa Clara County 2nd most expensive U.S. housing market | Gas at $3.91
How much house can I afford? That's a great question. On top of that, Santa Clara County has the second most expensive housing in the market in the U. S. today. Crazy, right? Divorced couples are stuck living together after they can't afford to move. Now, this isn't just in Silicon Valley. This is global.
We'll look at a report from England as well. And then we'll talk about highs and lows, but let's jump into the hot, the. In the hottest market, a substantial increase in property values can signify an influx of higher-income residents, which could lead to improvements in local schools and decrease property rates over time.
Income needed to purchase: 617,323 Median Home Price $1,750,000
So what they're doing is pushing out the have-nots, but it's not just happening here in Santa Clara County or Silicon Valley. It's something that's been going on for a long time in all the metropolitan areas now It says the median price is 1. 41 back in 21. I can tell you that it's 1 million 750 thousand dollars or 500 it's 1 million 70.
What is it? 1, 750, 000. 1, 750, 000 is the median price today for a house. That includes condos and townhouses. So if we took that out, it's a lot higher, it's closer to 2 million.
I could tell you that locally they probably don't want to mess with that because of the tax rolls. The property tax rolls are over 500 billion. I think so. I'll check that out and talk to you about it in the next week. At the same time, it's just really impossible for a lot of people to afford that so much so that those that are getting divorced are staying together.
Divorced Couples Stuck Living Together After They Can't Afford to Move https://www.theguardian.com/society/2012/nov/20/trapped-couples-partners-relationships
Because they'd rather not move out and pay rent extremely high rent and then have to split the family and have to buy another house and pay that out. So what they're doing is they're just doing that. Now. There's a repercussion of that because the children are going to watch what's happening.
They'll, yeah, there we go. They'll they'll have issues long term. So obviously they're going to have to go through therapy. But even though they have a divorce, they'll probably have to go through therapy on that too. Cause I did when I was a kid uh, in the past, we had a dip and then a recovery. But now we're in unknown territory about, how long people are going to have to cope with that job insecurity, pressure from work, and the mounting cost of childcare.
I've been fortunate that when my children were young, I got to stay at home. So I did a lot of the work at home. We did have a daycare provider. But we had it negotiated so that it would be every couple of days so I could get work done. But I'd pick them up, and drop them off at school every day.
It was a. Great thing. Now that they're in high school, they don't need me so much, it's tough. I understand that it's tough. And how much house can I afford? So the median price of a house is 1. 75 million in Santa Clara County. Silicon Valley isn't cheap, right? We all know that. That means half the people, half the houses that are uh, that are for sale at any given time are below that number.
It also means that you'd have to make 617, 000 with a 10 percent down payment. What would it be if it was 24?
You can actually afford a little bit more. So let's see, let's just do quick numbers here. 550.
So you'd have to make 500 and about 60, 000 to afford it. Yeah. Look at that 5,
000 in monthly debt. Now these are not quoted rates, right? You can obviously afford more if you're making that. If you're working with a loan broker, there are a lot of other things to look at, but think about that though, right? Not very many people make 560, 000 a year in even Silicon Valley, the median. The median income is 181, 000.
That's dual income. That's a household income. So if you made 181, 000,
how much could you afford 50?
Let's just assume 100, 000 down. That doesn't make sense. Oh, that's because this is monthly, but that would probably be a little bit more. So affordability-wise, you'd be able to afford 450, 000 purchase amount. It's not much available for 450, 000. Again, this would go down. You'd have to buy points, et cetera, and work things out.
These are not quoted. These are just rough numbers, but at the same time, telling as to why people are sticking together, even though they're not together. And there's, It's still the most expensive place. The government, the local government doesn't. Really care how much money you make or what have you.
They just want their taxes. Now look, a medium sales price at Sunnyvale is 2. 4. So where are people like that going to go? They're going to go down to Morgan Hill, Gilroy, San Martín, Hollister, Los Banos, Salinas, and those areas to afford a house. And even there, the medium price is about. 800, 000, 900, 000.
So affordability is out the door unless you have a big payday or what have you to be able to buy a house. And in the meantime, rents are going to continue to go up. Now, yesterday we talked about the when we talked about yesterday, we talked about legislation trying to get rid of the hedge.
Hedge funds buying single-family homes. And if this passed, they would have a few months to get rid of all their houses. Now that would increase the supply, which would be great, which would lower the price unless they trickled it out. But again that's still a supposition. We're not saying that this is law.
This is just up on the dartboard to be shot at and looked at and discussed which would open up and alleviate a lot for us. Okay, the rates are 710 right now. Where is this right here? 30-year fixed conventional, 30-year fixed jumbo 7. 55, VA loan is 6. 44, right? And gas is 391. Last week I paid 389, so it's hovering.
It's coming down, but it's hovering. And we have 112 total listings sold this last week, 112 on the average. That's much lower than what we're seeing. The over-list price is 59, which is just over half of the listings that are coming in over the list price. My listing that I have right now, I have seven offers. Offers are due tomorrow.
I think it's going to be just a crane. I think we've priced it right. Remember yesterday through the last couple of months, I've been talking about how you create marketing. You attract buyers through a low price. They know in this market, not maybe in Sacramento or wherever, but in this market, you list it low and you get.
As is much better offers, you do the due diligence as a buyer's agent, you have to show comps and where it is and where prices should be for that specific house. And then it's up to the buyer to decide if they're going to pay that or not. When you look at how many houses actually sold, a great majority of them are just over the list price.
Some sold for over, for example, this one in Clemson and Saratoga sold for 130 percent over the list price. The highest price sell price is Palo Alto 4. 3. Have these up for you? Yes, look, I'm going to do this real quick. Full Elmdale. It took 82 days to sell original price is 404. 9 million. This is Palo Alto, even though it says it's, Oh, it's brand new.
So they did make it brand new for bedrooms, three baths, two and a half thousand. 2, 500 square feet, 4. 3 million. So what happened was it was sitting on the market. They had it overpriced and sat on the market for too long. They dropped it down to attract the market and they sold it back where the market should have been.
Should have listed it at 4 million, 82 days before. It would have been done. This is a nice house. Look at that. It's beautiful. Drop me out of here. There we go.
Yep. Brand new everything. I'd love to do a project like this. This is, that would be a fun thing. The lowest sales price is in San Jose on Dover. Get this thing.
Yeah, that's what a couple of my listings looked like before. You never put it on the market like that. That's ridiculous. Three bedroom, one bath thousand square foot. It is 71 years old. Original list price, 8. 50 sold for 8. 65 took eight days to sell. And look, it's right next to me. Right next to the capital expressway.
That's a busy area. There's a lot of loud noise there. All right. The highest list price sales price ratio sold for 30 percent over the list price in Saratoga.
Nothing super fancy about this house. Just updated, put some lipstick on the frosting on the cake.
So this is a standard home. It's just. Basically updated. It doesn't look, maybe they redid the kitchen. Can't tell. Nobody cares about that. It's not a magazine you guys. Got a walk-in tub there. Nice. Took five days to sell. Why? Because they underpriced it. They listed it low knowing that they would not attract more eyeballs and get, bring into the market.
They will attract the market. Yeah. Show you this real quick,
right? If you list it lower, you get way more. Showings, you get more disclosures through 5 percent below average. You're getting 50 percent of the buyers. If you're above average or at the market, you only, you're only attracting 5 percent of the market. So you're hurting yourself. You're hurting your ego.
You're hurting. You're going to get pissed off at everybody except for yourself because you didn't listen to the agent. You list it a little bit below market. And you're going to attract more people. This is the way that works with us in Santa Clara County. All right, let's take a look at this guy, this bad boy right here.
Original list price, 1. 8. I have no idea what happened to this guy other than they listed it. Let's take a look at the history.
Oh, I see what happened. They originally listed it, popped it off, waited a couple of weeks, and then,
yeah, waited 30 days to reset the count. And then there you go. That's what happened. So original list price, not really. They probably had it on the market for way too long.
They made a mistake. Yeah. So that's the value of where it is now. It couldn't have sold for more, but let's take a look at it. If you had listed it correctly and let it sit for a couple of days and attract the right buyers. You would have been able to sell it, but look, it's in original condition. You're not going to get a premium price for that fixed up, dolled up, new kitchen, new appliances, new cabinets that probably would have gone for one, five, one, six, maybe a little bit more, but it's an older house and older neighborhood.
And, maybe it was just like a trustee sale, who knows.
Okay. So there you go today. That's highs and lows in Santa Clara County, the house, Santa Clara, Silicon Valley's hottest housing market loses residents. People are actually moving out. And if you're getting a divorce. Of the people who are getting aborted, some are opting to stay in their house
with their ex-partner And that's just part of life, right? Especially now. That's how things are. All right Yesterday I was supposed to talk about this Aurora Del Mar. This thing's gorgeous. It's in Carmel Not a lot of pictures to see, but look, this thing is just gorgeous. I go to walk my dogs on Carmel by the seat as often as I can.
I try to do it once a week, but this is a showcase home. That's beautiful. I would love to live there. That's stark and beautiful. So if you know anybody that has an extra 25 million hanging around and they want to buy something in Carmel, let them let me know. All right. I'm Vito with Abitano. Have a great day.
We'll see you out there.
Realtor®, Broker, Veteran, Dad
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