🔴 Renters losing MORE than Rent! (Bay Area Median Home Prices)




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🔴 Renters losing MORE than Rent! (Bay Area Median Home Prices)

  

Introduction: The Cost of Renting


If you're a renter, you're Losing way more than just rent. We'll get a lot more into this in a minute. And then while we're talking about 12 Bay area counties, medium prices, Monday's Bay area luxury house of the week, and Willow Glen house of the week. And 10, 12 County, we used to do 10, 12 County marker reports.


Let's get moving, get started real quick. 


All right. Let's take a look at this right here. Now I'm going to open it up so you can actually view it a little bit better. Let's see if I can make it bigger for you. There we go. All right. 

Renters losing MORE than Rent!

The Hidden Costs of Renting


If you're a renter and you're paying, I don't know, something crazy to your landlord, helping pay off your landlord's mortgage.

You're not losing just that rent. You're paying 3, 000, 5, 000, 7, 000 a month. On top of that, for the average of Santa Clara County, you lose 377 a day. Point that out to you real quick.


Right here, this number right here. Put an orange for you. It's 377 over the last five years. If you're paying rent to somebody else, to a landlord, to the apartment, whatever. If you bought five years ago, your equity would have built that much on average. Not saying that you're going to get that exact money dollar amount, but you're losing that kind of money.


Every day, let me explain to you, that's the value of real estate, right? Yes. You have to pay property tax. Yes. You have to maintain it. Yes. But when you're a renter, you don't know if your landlord's going to decide to sell the house or evict you or have their buddies move in or whatever. So you have this insecurity of, am I going to stay here long-term


top of that? You're probably getting. 5 percent and 10 percent increases every year on top of everything else. Standard, right? You're expected to do that and every year you pay more and more. And then five years later, 20 years later, you've lost a lot of equity. 


The Benefits of Homeownership


When you become a homeowner, you also get the opportunity to increase your equity.

Now this isn't guaranteed, but if you look at the numbers over the last, I don't know, 50, 70 years. You'll see that on average, you're making money now during certain times, prices went down. That's okay. You hold in for the long term. This isn't an investment. It is, but it's not right. This is a place for you to live back in the nineties and the early two thousand.


Texas used to say you bought a house because that's where you want to live. It's not a place where you can get a lot of equity out of it, outside of there. Here, it was a totally different mindset. Now it's pretty much nationwide, if not global.


If you're buying a house, it's going to hurt. But if you wait five years, it's going to hurt more, right? 


The Risks of Waiting for a Market Crash


Oh, I'm going to wait for the market to crash. Yeah, good luck with that. So am I. So is everybody else. And what happens when you're waiting for the market to crash and the market actually crashes? Guess what?


There's ten times more competition. So don't wait. I'm not saying you shouldn't buy right now, or I'm not saying you should buy. 


Understanding the True Cost of Renting


I'm just saying understand what you're losing every day. Every month you lose 11, 000 on top of the rent that you're paying to equity on average. I'm not saying this is going to happen every year, every day, or every month.


It's not a guarantee. There's never a guarantee in anything. But I just wanted to put it into a different perspective so that you understood. Good. 


Our First-Time Buyer Program

So that you can visualize how much you're actually throwing away by being our renter and we have a first-time buyer program down there You can learn about it.


You can click on it. We don't follow up with you. We don't we're not hard sales people We're not gonna annoy the hell out of you. I don't believe in that. We're here to serve and educate and deliver what you need That's our purpose, right? If you want to get, if you want to work with somebody who's going to hammer you and call you 50 times a day until you say yes, go right ahead.


I'm not here about that. I'm here to educate you. Think about it, alright? 

Bay Area 12 County Report

The Importance of Location in Real Estate

If you live in Cupertino, you're losing 529 a day. 520, that's that's crazy. Even if you're in, I don't actually get Morgan Hill or Gilroy, those values are going up every day too. If you're going to live here, don't rent, buy a house.

I know it's going to be painful and I know your payments are going to be painful. 


The Dangers of Renting


I have a friend who I see at my park every couple of days and we talk he rents and he just went to, and his landlord just said, Hey, I need you to move out by June. So now guess what? He's scrambling. He's got a big dog. He's got two dogs.


He's got a big dog and a little dog, but the big dog is going to make it hard for him to get placed into a house or an apartment or townhouse or whatever. And they just can't afford it. I understand that. It's not on my plate. It's not my fight, but I have to educate him on what he's losing every day by not doing it.


So yeah, I told him 377 a day you're losing for not buying a house by not owning a house. 


The Importance of Property Condition in Pricing


Okay, enough of that Every week I talk about the 10 counties, right? I added Monterey and San Benito So now it's really 10 12 counties and we talk about this really fun report right here But I thought I'd put it into A graphic for you.


So you understand what those numbers mean right now. The numbers are in the graphic itself. It's inside the map. Those are medium prices and these are average prices. So there's a little bit of difference right there. San Benito is 838 13 and San Benito. The median is 765. That's the difference between the median and averages.


So you have an idea. This visual, I think, helps point out The differences in different counties and where it's more affordable. Now, if you go on this side, in the Central Valley, it's going to be a lot more affordable starting with Solano and Contra Costa. I think those numbers are wrong. One of them is wrong because there's no way that there's, they're both the same thing, but I don't track that.


We'll fix that. Okay. 

Luxury HOME home of the week

Luxury Home of the Week

Monday Bay Area luxury home of the week. One of the reasons why I added San Benito and Monterey is because there are a lot of them. Beautiful houses and Monterey and I go to Monterey every couple weeks, try to do it every week, especially during the summer, and go down to Carmel with my friends, and my dogs, and we go hang out.


We walk the beach there. This house right here is in. Pebble Beach and the 17-mile drive, seven bedrooms, 10 baths, eight baths, eight full baths, two half baths, 7, 500 square feet. Look at this gargantuan beauty. Now this is a really well-done house, right? Let's see if I can,


there we go. There we go. We have this nice and pretty. Now this is how I want my house to look when I grow up. Everything about it is gorgeous, right? As a little guest house, the front house is the living area. It's a gorgeous house and you're really close now. You that's the golf course right there So you would have to get out of the 17-mile drive and then drive over there I'm sure there are places you can hike to but that's a pain in the ass.


It's a gorgeous house Just everything about it just isn't fighting. It's fun enjoyable beautiful and it really tells people now if I lived there I would clear out this entire area right here and put a helicopter pad because there's no way I could afford this, I could afford a helicopter. That's just my thoughts.


What do you think? But look at this beautiful. This is luxury. Well done, right? Everything about it is just comfortable and comforting. Immaculately beautiful.


I would write a check for this right away. If I had the money, I think we talked about this one already, but I just, yeah. Gorgeous house. Okay. It's Macomber drive in Pebble beach. This is not my listing and neither is this. This is not my listing. 

12 County Report Median Price

Understanding the Market: Comparing Properties


I wanted to talk a little bit about this on an educational level.


Now this one has been on the market for 12 days, and it's already decreased in price. 2. 8 to 2. 7. You're like Vito it's Willow Glen. It should go for more. Okay. First of all, the photos are less than spectacular. And then when you look at the condition of the property now, not saying that it's in bad condition.


I say it's in its original condition. You're looking at the 1980s, right? And the difference between. iPhone photos and professionally taken photos are this, right? You look at this and you see it's the full screen and maybe this guy did it because he wanted to optimize the photos. Guys, data is cheap.


Memory is cheap. Let's just put those big-end photos in there. Hire a professional photographer. But when you're asking 2. 7 million for a house. You need to be at the immaculate almost perfect stage and this house has dated wallpaper looks like they have the original sash windows, right? Look at the bathroom.


It's original and there's nothing wrong with selling Excuse me, and there's nothing wrong with selling original Condition homes. You just have to understand the pricing stature, right? It's original, fixed up, maintained, modernized, and completely turnkey. And the one that you just saw was completely turnkey.


This one is original. In good condition, mind you. I'm not saying it's in horrible condition. I'm saying it's original. They probably had their parents pass away. They lived there for 60 years, 70 years, right? There's nothing wrong with that. I sell those all the time. But let's take a look at this.


First of all, originalist price 2. 8. Now it's down to 2. 7. It's a three bedroom, three and a half bath, 3, 100 square feet. The only reason why is in that range is because it's 3, 100 square feet. I did comps for it. This is what we would do when you asked me to sell your house. We look at your house grade it and compare it to other comparables or sales that are being done or have sold in the last 90 days.


And I do a 10 percent variance on the square footage. I want to see what's out there. This one's a three bedroom. This is the one that we're looking at. This is the subject property. That's what we're looking at, right? Subject property. It's a three-bedroom. Everything else is four or five and six bedrooms.


Now, I want to point out that this is within walking distance of downtown Willow Glen. So there is some value in that. If I were to buy in Willow Glen, which I'd love to live in Willow Glen, I would buy right around here so I can walk to a restaurant, have some drinks, and stumble home.


That's. You could have amazing restaurants. There's Michelin five-star Michelin restaurants there and grub hubs and all sorts of fun little restaurants. There are some really great places. And well, that's what Willow Glen is all about. It's a very beautiful little suburb of San Jose. Now let's compare pricing to everything else.


You round it up to 2. 775, which is about three-quarters. Everything goes this one goes up to 4 million. Clintonia. We're not going to look at those though. We're going to look at what's sold. Let's take a look at what sold Crescent Drive, Camino, Harmel, and Minnesota. And you look at the pricing here and Hamel is by far as the closest comp and then Crescent.


So let's go take a look. Minnesota. Harmel


is gorgeous. Completely turnkey. Everything, dual pane, brand new everything, can lighting, brand new kitchen, updated floors. Looks like that's the original floor and they just did it, which I love, that's my preference painted white kitchen, brand new kitchen, granite countertops, painted dual colors, stainless steel, everything.


Same thing with the look and feel of the house. It's not original. It's turnkey. It's, you don't have to lift a finger. So yeah, why wouldn't you pay a premium for that? Buy it for 2. 8. Oh, wait a minute. This one is 2. Almost 2. 8. Okay, so let's take a look, let's take a look at the next one, which is Crescent Drive.

Willow Glen home of the week

Okay. Crescent Drive.

There it is. Oh my God. It's gorgeous. Right now. I can't go inside because they only have one picture. It's sold a lot of times sellers or buyers ask that they remove the pictures for privacy or whatever. I think that's a stupid rule because how do you comp it? But whatever. So it's a gorgeous house and it's walking distance to Willow Glen.


I get it, but still, it's sold for 2. 6 million. So would you rather buy a turnkey house or an original house for the same price? Okay. So let's go to Camino Ricardo or Minnesota


Camino Ricardo. Okay. This one, it's a little bit wonky. It has a little bit weird of a design. It's like. Somebody came in and said, this is what I want, right? Like REWTF, everything semi semi--updated, but it's not. It looks very dark and you get it. You have the optimized photos guys. Memory's cheap. Bandwidth is cheap.


Original photos. Okay, so what did that sell for? Three. And then the next one is Minnesota. And this one's not really a comp because it's older. Much older. And it's colonial, I believe. But everything inside that is old world. The styling inside it is old world. It's antique. It's Right. Historical society rehab, beautiful, gorgeous.


And yet they still only sold it for 2 million.


So let's go back to this one. 2. 77. Okay. It's proximity. Yeah. Original condition. No, I would have listed it much lower at 2 million and let buyers bid it up. Get that thing sold because when you're in original condition, you can't ask for a premium and you can't be a market maker. And you can't expect to get a premium price for a house.


It's an original condition for that thing. So understand when you sell houses, buyers are going to look exactly at how we just did or what we did. They look at the variables of the house, and the subject property. And then they look at the comps that are actively for sale. And if you're on the top tier.


And granted, Hicks and Clintonia, are two totally different houses, two totally different houses. Those are all brand-spanking new, right? Richards. It is brand spanking new. This one is original and it's going to sit on the market for a bit. We'll talk about it next week. All right. 


The Current State of the Market

I added Monterey and San Benito.


So all these numbers are not going to be completely accurate. So please forgive me, but I thought we'd add it to the mix because like I said, here, I go down here and I look at these houses here too, and. Quite frankly, San Benito is a very affordable place for you to live unless you want to move up to Contra Costa or Solano.


Solano and Napa are where you're in, to get the best deals. I haven't really analyzed San Benito's. That's why I added this, but it's something I want to make sure that we add to this mix so that we can have that conversation. So we're actually getting up there, guys. Remember I told you we need to be. Santa Clara County needs to have about 18 to 1900 homes, maybe 2000 homes for sale at any given time.


And now that we're getting into March, we're seeing those numbers bump up. I don't think we're going to get to 2000. I don't think we're going to get anywhere close to 18. But our numbers are coming back, right? What does that mean to you as a buyer? There's more to choose from. More supply equalized demand means prices might come down, but my feeling is rates are going to come down and there's going to be more buyers in the market, which means still going to be a lot of competition and still houses that are priced appropriately for the condition location and comps.


Just like we talked about in California, they're going to sell correctly. They're going to sell fast. They're going to sell for what the market is willing to bear. So keep that in mind, if you're struggling on budget, let's talk about San Benito. If you can afford to live here, you have to play the game.


All right, same thing with San Francisco, everything. You're seeing numbers come up. This is the year to date. We've had, I don't know how many we actually had sold this last week. I guess I don't track that number. But sales volume is all the way up to a billion now. Already. It's crazy. Eight weeks. We're at a billion.


Tracking is pretty hard, but if you look at 2021, the average closes per week, it's 1237 versus 456, right? Average volume per week.


That was 1, 800, 000, 800. We're at 500 million. So the volume is slowing down, but that's because supply is low. I think the demand is there and we'll see how this thing plays out. So it's, and that's all across the 12 counties. All right. 


Conclusion: The Urgency of Buying a House


Today we talked about if you're a renter, you better buy a house today because prices are just going to go up and you're losing equity every day.


377 we talked about the median price as a graphic, so you can visualize it. And then the Monterey Bay luxury home. Of the week, although it's the Bay Area and then Willa Glenn, we took a little snapshot into that and understood the whole process. All right, guys, I'm Vito with Abitano. Look forward to seeing you out there.





Small business help https://youtu.be/lg-ppyCH2rg?t=54
Five Biggest Buyer Turn-offs



Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Vito@abitano.com If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Website: www.abitano.com Get your Equity and Investment report here RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia Free Homebuyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg?sub_confirmation=1



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