Patio Appeal May Add Value To Your Home, Silver Tsunami challenges Cost Of Living Calculator (Los Gatos Home of the Week)



Patio Appeal May Add Value To Your Home,  Silver Tsunami Challenges Cost Of Living Calculator (Los Gatos Home of the Week)




Patio Appeal May Add Value To Your Home

Diving Into the Silver Tsunami: Boomers, Aging, and Housing

 Here we go again, Silver Tsunami. We're actually talking about more of the boomers and the aging out and all that stuff. On top of that, we'll talk about patio appeal. And if you're thinking about selling your house or thinking about putting a patio in, there's a value to that. So let's talk about that too.

And then we'll talk about Los Gatos home of the week and list price reductions and the highs and lows. Let's get moving.

All right. 

Silver Tsunami challenges

Exploring the Economic and Social Impacts of Aging

The first thing is the silver tsunami thing that we're talking about. It's, it goes a lot deeper than housing shortages. It's more because we're living a healthier lifestyle. We're living longer. And it's just a facet that we've known that's been coming. It's not a problem. It's just something that we're dealing with on top of that, people tend to live longer and they're more active in their older ages and they're economically more inclined, meaning they continue to work if they want to, or if they have to, mostly because it's a social gateway, right? It's a social way. It's a way to be social and be present and keep your brain moving instead of retiring.

So people continue to work. However, a majority of those people are choosing to retire and move to Offshore or different places like, I don't know, Florida, who knows the the positive side is again, there you go. So we started talking about this in the early two thousand. Now it's coming to a head and I want to show you a graph in a minute, but our population continues to grow.

Our population continues to get older. It means a few things economically. We're not massively growing right now. We're actually shrinking. And growth, but people are living longer. And that means a couple of different things. There's an economic point to this. There are higher health care costs. The body wasn't meant to live 85 to a hundred years old.

It's just one of those things. So we see. My people in my world, in my sphere that is older, they're, they have failings, right? They're, they have dementia or they have heart problems or they have different parts of the body failing. It's just a normal part. So that means higher healthcare costs, right?

It also means lower-skilled labor in the old days, in the sixties and seventies, everything was done by their hands, everything was done manually and everything was done in a way so that we had a certain skill tied up in our sober tsunami, we have those experiences and it's hard for us to take.

That and teach the younger generations, all these different things, all these different skill sets. So we are going to lose a little bit more of that. That's part of life though. That's how things go. There's a lot more aggregate knowledge and wisdom in the older ages, as far as doing work, as far as technology, as far as everything else is concerned.

So that kind of will go off on the wayside for the most part because America and its. The corporate mindset is we want younger people because we can make them work longer, but not necessarily work better. So also the thing is, when you're older now, people tend to stay more active physically, mentally, socially, and spiritually.

When I go to church, I see a lot more silver hairs like me, then I see younger people, but there are, there's still a lot of young kids, young people that go to church. So the opportunities here, the opportunities are when you do social things as an older person, you're taking from your retirement, you're taking from your savings, but you're still putting into the economy, which is good.

In the old days. We put you off in a little senior community and off you go. That's it.

The Future of Aging: Expectations and Real Estate Implications

What to expect in the future? Slower economic growth. We're not going to see the massive boom that we're seeing today. However, I do believe that other technical technological advances like AI are coming and that will sweep and do major things, but only for a few. Not for the many.

Again, we talked about healthcare spending. The older you get, the more health care you need. And that's why our health care system costs more. Period. It's just part of the problem. Changes in housing. Most senior citizens I know tend to want to live in, sorry. Tend to want to age in place, and that means they're staying in the home that they raise their Children in unless it doesn't work for them anymore.

If they they have problems getting upstairs like I'm going to have problems getting up my stairs, I'm going to want a bedroom downstairs and a master bath downstairs or a full bedroom. Or a full bathroom downstairs. Just kind of part of life, right? There's nothing you can do about it. It will end, the silver tsunami will end with the boomer generation.

Now, 2025, no 2030 the youngest boomer will be 64. That means the next generation, which is my generation, I think it's Gen X will be in place to senior out.

That doesn't mean that we're going to age out. This silver tsunami will not end. And let me show you a, there you go. See, this is night 2060. I want to say that, this is what it looked like in 1960. We had far more children than we had seniors. And now that's exploding out where you see a huge portion of our population growing to age out.

And it's just a normal thing, right? It's not a negative thing. It's not anything that we have to deal with. Let's see if we can look at this age structure thing here real quick. Okay. There we go. 20, 000 to eight, 2018, we had 15 percent of our demographic or our population over 65 in 2048, 25 percent of our population will be over 65.

So it's continuing to grow. We're, we believe that those numbers will continue to grow. People are going to continue to age or grow older. As a population, what does that mean for us in the real estate sector? Again, people tend to want to age in place. That's a normal thing. They want to do it unless they have failing health or they just decide that they need to move out.

I keep telling my children, that as soon as they're out of high school, I will put them in college, moving to a Caribbean island. I don't know if that's ever going to happen, it's one of those things I want to live in a place where I can enjoy life a little bit more freely and not have to worry about the cost of living, et cetera.

So I don't know where my plans are going to go, but typically what I see and all my older friends, tend to want to stay in place. And that's actually a good thing. The way their tax structures are set up, the way things are set up that if you sold today and you have Over 500, 000 in equity in your house, you're going to have to pay capital gains on that.

And typically, which is more of a concept I tell people to wait until one of the two people in the household passes on, and then your tax basis comes up. That hurts us on the supply side, but it helps them and their estate and their family to live a better life because they don't have to pay that when you die, your tax basis, when one person in the household dies, the tax basis goes up.

To the day that person died. So if they bought a house for 20, 000 and now it's worth 10 million or 5 million, that tax basis goes up to the 5 million, they could turn around and sell it doesn't talk about, that's the federal thing on the state side. It's totally different in California. It has to be a primary residence and all this other stuff.

Then you could sell it, but there are also capital gains, influence, or implications that you have to deal with and talk to your tax advisor about. Okay, and then there are local jurisdictional tax taxes as well that you have to be concerned with. 

Los Gatos Home of the Week

Spotlight on Los Gatos: Home of the Week and Market Insights

All right Let's talk about list price decreases.

Now there are 81 in Santa Clara County, 81 total, but I want to go back to Alexander because Alexander is still on the market. I think this is a fantastic house. For people that might be wanting to buy it. Now it's been on the market for 28 days. It's already lowered its price to 4. 75 from the original 5 million.

It's a beautiful house. And the reason why I like this house is because it's within walking distance to downtown. Now, if you're looking at moving to Los Gatos, this perfect home for people, I know it's a little expensive for people I know, but there's a lot of aggregate wealth in this County. And if you can't afford it, if we couldn't all afford it, If the higher end, the higher 50 percent of this population can't afford it, then they wouldn't be buying 5 million houses.

So just keep in mind if there's something that's out there, this one right here, four bedrooms, three full baths. This is a beautiful house. Everything about it is just immaculate.

I don't know if you can hear my dog, but she's snoring. It's sweet. It's a gorgeous house. If you want to learn more about it, let me know. And

yeah, so we talked about, Oh, Las Gatos house of the week. I know another one in Las Gatos. Now this one is technically it's walking distance to downtown. It's a little bit more in the Hills. It's a two-bedroom, one-bath for 858 square feet. And it's a mere 1. 5 million house. But look at this. It's, you're basically buying the land.

It's three-quarters of an acre. about. And that's basically what you get. So septic, probably propane. Yeah, no heating. This is yeah, you're buying this forget for for cat or for the land. If it's something that you want to do, if you want to be near Los Gatos, walking distance to Los Gatos, and this is seriously walking distance to Los Gatos.

This is a great opportunity for you to take that land, tear this thing down, and put up a nice McMansion. All right. 

Enhancing Home Value: The Appeal of Adding a Patio

Patio appeal. Now, I know this isn't really on the same subject, but if you're looking at selling your house or thinking about putting a patio in your house, in your backyard, you do that not for value, but for enjoyment.

Now I did that a few years back. I put a big pergola on the thing. I have electricity fans and lights and heaters and a TV. And I go out there when it's nice and warm. When it's blazing hot, I don't go out there, but I do enjoy it. And the reason why I do that is because I like being outside and the dogs like being outside and you get a little bit of fresh air and you get out of the house and you get a little bit of rays.

I do want to warn you that having a backyard that is all concrete is not a good thing. You do want to have green, you want to have grass or ground cover, you want to have a little garden, maybe do some vegetables or what have you, make sure you have some greenery around. When it's all concrete, it tends to radiate the heat and that's not good either.

And obviously, you want to have it close to a door. Mine is close to a door. I don't have it attached to my house. I have it closer to the fence because I wanted to have light coming into my house, just the way I designed it. Maintenance. It's another structure and yes you do have to maintain it. I've had to rewire some stuff, I've had to do some extra, I have to do some extra painting on it because over time stuff just tends to go away and or to deteriorate, right?

And when you think about it, it's another, it's an addition to your house. It's an addition to your house. It's another living space or another area to congregate or relax or be a part of and enjoy your life in your house. So my, my pergola, it's almost 25 feet long and about 12 feet wide. And it's a big, huge structure that takes up a majority of the backyard, but we enjoy it.

There's a place to eat. There's a place to relax and watch TV, or I go out there and tap on my little laptop. And enjoy the outdoors. So having a patio, having a covered patio is a good thing. And I highly suggest you do it. If you don't have it. There's a lot of different places out there that I look at.

It's just grass or dirt. Having a patio is just another way to invite people to your home and enjoy the outdoors instead of being crowded in the kitchen unless it's pouring rain. 

This Week's Real Estate Highs and Lows: A Comprehensive Analysis

Price Reductions

Today's highs and lows. I think I have this done right. Today's the highest is 5. 6 million sold. The lowest was 770, which is nowhere near a record.

That's pretty medium for the low ends. And the highest day on the market was 288, 000 or 288 days. The highest list price went for almost 40 percent over the list price. Let's take a look at these houses. So this is the top core. This is the lowest-priced home in Santa Clara that sold this last week. And it's right by the railroad, right by the freeway.

It's a 47-year-old home built in 1977, four bedroom, three, two and a half bath, 1190 square feet.

But it looks like it's a pretty house. Actually, I haven't looked at these. So this is a really pretty house. Look at this. Nicely done. It's like it's tile floor or maybe. Yeah, so that's laminate on the ground there. So there you go. That's the lowest price house. So affordable ish. This one is a Milpitas.

It's the highest list price to sales price. This is not an order. This one is 61. You know what I did?

It's the highest list price-to-sales price ratio started off at 1. 2, sold at 1. 65. And sold for 37 percent over the list price. That's crazy. Now you look at it and it's a really pretty house. If you think about it. They're attracting the market. They're not crying, trying to be a market maker. They sold this thing quickly.

They updated it and made it look good. This could be a flip. I haven't really looked into this one, but it's done nicely. When you look inside all the different little pieces you want to look at the little things that they do, but it looks like they really updated this house, with dual pane windows everywhere.

So this is a nice house. This is well-built. Milpitas. This is a three-bedroom, two-bath, 11, 1064 square feet, and it's 58 years old. Take a look at the next one.

This is the highest list, the highest sold house. And it's up in the hills, Los Gatos Hills, not the mountains. That's cheesy.

So you can actually put an ADU here if you want. So this is a nice old house. Big, humungi, it's nice. This is 8, 000 square feet, five bedrooms, and six full baths built in 1997, and took 233 days. And that still is not the highest day on the market. This one right here was the highest day on the market. And let's see why.

Oh, that's why. The last one we did was the lowest list price to sales price ratio, as well as the highest price. If you look at it, it started off at 7. 5 million and it sold for. 76 percent of the original list price. So they tried to be a market maker that makes sense, right? You don't know what the, in these types of homes, you don't know what the house is worth until a buyer comes and tells you how much they're willing to pay for it.

That's a fact right there, right? It's proof. This one is the low, the highest days on the market and it's like they took it out. Four bedrooms, two baths, 1, 600 square feet. Built in 1978, 288 days on the market. This one was probably just a total pain for people, to access. I think it was priced. Just about right.

Just sometimes you might have a tenant in there or what have you. I would have listed it probably a little bit lower. Alright, the next one is, this is

the lowest days on the market sold off the market. Who in the hell would paint their house yellow? Again, they took all the pictures off, which is fine. Five bedrooms, three baths. 71 square feet. When you sell it off the market, you don't necessarily have to

do a lot of marketing to it. I don't believe that's a great way to sell a house because you don't know. Go back to this one. I don't believe it's a good way to sell a house because you don't know what the market, the entire market is willing to pay. So I don't think this is a good idea when you sell your house and you put it on Coming soon.

And then you take the first offer that comes in. I can't tell you that it's worth 2. 1 million or 2. 188 or 2. 4. You don't know because you don't know. Period. You can't tell me that you come in and put it on the market and you get one offer. You can't compare it to other offers that are out there and you can't negotiate it up.

So I don't believe that this is a good strategy.

And again, this is the same one. It's not a single-family house. This is a hotel and I don't know why they still have this up for sale. And then this is the lowest list price active home for sale. San Jose one bedroom, one bath, 700 square feet. And it's 535, 000 been on the market for 33 days built in 1960. I have no idea why anybody would have a one-bedroom house.

Virtually it's staged. So

My thoughts are that the little side building, this is a hobble.

This one's going to be hard to sell because it looks like this was an addition. Didn't have a garage. There's a carport there. All you get is a living room. And then I don't even know how to explain this. This might be the addition. Yeah, that's the addition.

That's probably not even legal. And there's one bedroom right there. So if you want to live downtown, And rent an affordable house. There you go. All right. 

Concluding Thoughts on Real Estate Trends and Advice

Today we talked about the Silver Tsunami.

All right. Today we talked about the silver tsunami and what the aging population means economically, healthcare, being active, aging in place, tax implications, et cetera. And we also talked about the Los Gatos home of the week and list price reductions. Both of those were in Los Gatos. Should you get a patio or should you put a patio in?

Yes, you should. Absolutely. And then we also talked about this week's highs and lows. I'm Vito with Abitano. Hope this is helpful. We'll see you out there.

Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Website: update your home value: RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: Home Buyers Course YT IG FB LI Blog POD Professional Photography by Kim E / Local Real Estate Market and Home Value Report Financial Intelligence Willow Glen's five most expensive homes

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