They bought homes with the intention to refinance. Now they’re stuck

Youtube

Blog

Podcast

Introduction: Home Buying Challenges

They bought a home intending to refinance and are now stuck. Yeah. That's really unnerving. We'll talk about that along with 102 affordable apartments near the Great Mall being popped open today or last week and then mortgage rates are coming down slightly. And what you get for 1, 000, 000 and the inventory across 10, 12 Bay Area counties. Let's get moving quick. There you go. Okay. Let's get moving.

Affordable Housing in Milpitas

Milpitas unveils 102 affordable apartments near Great Mall

The first one I want to talk about is good for you. Milpitas. They opened up 102 affordable apartments and here's the thing. 51 of those are dedicated to those transitioning out of homelessness.

This is exactly what we need, right? Is it perfect? No. I'm just saying that, look, let's get these people off the streets and get them transitioned because that's one more most important thing is to clean up our streets. They don't want to be there.

They just don't have any choice. Some people do, right? I know veterans that are PTSD and they can't be inside of a house. They just need to be outside. I get that. I totally understand that. That's a totally different problem, but some people just have lost their way. They overspent or didn't take care of their funds or something.

And then they got themselves homeless. So good for you to do this. This link is in my blog. So please do take a minute to read this and give them kudos for doing this. I think it's a great thing, good for you. Milpitas gate. Good for you. Mayor Carmen Montano for doing this again. Is this the right answer? I'm not here to judge. I'm here to tell you that this is a good thing. We've got to get more and more people off the streets, right? Santa Clara County says there are only seven or 8, 000 people. And I can tell you that there's a whole lot more, and this is a small dent.

It's a good start. Okay.

Current Mortgage Rates and Refinancing Issues

Mortgage Rates this week Mortgage Rates and Refinancing Woes

Today's mortgage rates are coming down just a little bit, which is a good segue because the next article is very frustrating to me.

You could still buy a house. You can get it lower. You can get it at 5%. If you really push this one right here, this is not a jumbo. It doesn't look like, let's see what they say here. You can buy this stuff down. These points right here are to get it to here. You probably double it and drop it down a little bit more.

So something to be aware of the, they bought a home with the intention to refinance. Now they're stuck. I know that lenders were being pushed on this and lenders were pushing the public on this. They have these ones called a three-to-one buy down and all these other things. And I think they're bullshit and held my tongue about it because it was the same thing as the pick-a-pay or the negative amortization.

Or what have you, they, people think that they can get into it and then they can afford it. Look, if you can't afford a 7,000-a-month housing bill, don't buy a house, right? Because there's no promise that the rates are going to go down. There's no way you're going to be able to refinance. You can refinance and then maybe get some more equity and then buy the points down.

But guess who that helps? Not you. As a buyer. So shame on you. If you push people on this and you made money on this, I got to tell you that it was right here. I only bought it because a loan company really pushed that interest rates were going to go down and never said rates would go down. I don't think we're going to see rates go down.

Will we see it go down to 4. 5%? Maybe I think 5. 5 percent is going to be where our equilibrium is. Right now with all that inventory, we're not seeing that for another couple of years, maybe five, 10 years. So just understand that when your rates, the rate you get is the rate you get, and you have to make it sustainable.

If you can't afford your monthly payment, don't buy that house. Know what it's going to cost. Talk to the lender and a good lender will walk you through every cost, everything. And don't assume that it's going to go down. The cost of living will not go down guys. It will not go down. So if you have questions about this, give me a call.

I'll walk you through it. I'm more conservative. I don't like taking risks when it comes to this kind of stuff. But look at this poor family. They're scuffed, they're screwed. And I can bet you a dollar. There's a whole lot more people feeling the pinch right now. On the flip side, if you take the family out of this, it's good because it's going to increase the inventory, right?

So six and one half a dozen or the other, I know it's callous, but that's what it is. Real Estate Tools and Tips AIDA Attract, Interest, Desire, Action

I use this website called AIDA Dash for this lead stuff. The great thing about it is they take care of everything for me.

They do everything from funnel management, workflow automation, social campaigns, and pillar pages. I even see who's doing what, and then they do the communications. I can go in and follow up once a week. Instead of having to be tied to my computer, I think it's a great opportunity for you to at least take a look at this.

If you're in a small business, right? I know they really focus on real estate, but I know that they do other small businesses too. They want to help you do the small bit of marketing stuff. That's a day-to-day routine that keeps you trapped in front of your computer instead of in front of your clients, which you get for a million dollars. In Santa Clara County. This one's a million dollars, three bedroom, two bath. Not my listing. It's on Rodeo Place. Rodeo Place. 1, 100. 76 square feet built in 1976. Guys, this is crazy. By Andrew Hill High School. The one positive thing I can tell you is it's in a cul de sac, even though it's Rodeo Place, should have been Rodeo Court.

FREE HOME BUYER CHECKLIST HERE

Home Inspection CHECKLIST HERE 

Yep, there's Andrew Hill High School right here. Here's the home buyers checklist guys. If you're looking for houses, this checklist helps you compare all the houses you look at for that day. It goes up to five, I think, but you can add columns. It's pretty easy. Walks you through so you can take a look at each house. If the house has a new kitchen and the next house doesn't, or this house has air conditioning and this one doesn't, this one has a pool and this one doesn't.

What you get for $2MM Santa Clara County

When you're looking at five or six houses, it's easy to get confused as to which houses you're looking at, and which ones you're trying to remember. So this one will help you walk through that whole process. What is this? This is what you get for 2 million and I picked this one mostly because it's But I like this scene.

I'm not a big fan of that being the first picture you look at, but it was eye-catching. So maybe that has something to do with it for a bedroom, two and a half bath built in 1974, 1973, 1974 square feet. This is a. Multi-level, tri-level, I just sold one of these. I think they're fantastic homes, they're fairly well built, they give you a lot of room and a lot of different spaces so that you have privacy if you have a lot of people in your family.

That's the downstairs, that's the upstairs, and then that's up here is, typically there's a bathroom back here and that would be a bar or a closet. Yep, there you go right here. It's right next to this park. This is a great little park and this is Alameda Camden Ave. And there's a nice, really tall Hill there.

So you're up in the Alameda Hills. It's a great property. It's been on the market for 54 days. Bay Area Real Estate Market Overview

Inventory and Market Balance

Inventory And Supply Charts

12 Bay area County months of inventory. We're looking, everything's starting to come down. Obviously, this one is Napa. Napa's the best buy out there.

We always talk about going to Napa if you're looking for a great buy. I think Napa has been postage stamp as the second home capital of the Bay Area. And this other one is San Benito. San Benito actually popped up. I want to point that out real quick. San Benito had a tough couple of months.

And mostly because I think they're starting to work on 25. 25 is the highway that gets you from 101 to Hollister. They're starting to work on it, but it's getting slower and slower. So during the summer months, it makes it really difficult. They'd rather stay in Santa Clara, and go to Gilroy San Martin or Morgan Hill. If they're going to do that drive. Some people are even choosing to go to Salinas versus Hollister because a little bit further, but it's a lot faster.

And again, we're not in a buyer's market. We're in a deeply depressed seller's market, mostly because there's a lack of inventory and rates are high. But people are not willing to give away their house, right? You need to have six months of inventory and right now we're at about three or one, 1 percent that's Santa Clara County, right? And for it to be a balanced market, as far as an active number of single-family homes, you need to be about 2000. An active number of homes is Where are you? Why aren't you coming here? There it is. It's like 1100. I could tell you right now. It's like 1100. Right here, 1042. So that's why you need to be twice that for it to be a balanced market, not a buyer's market or a seller's market.

It's got to be a balanced market at about 2000 could be 1800, 1900, depending on whatever it is, but historically you need to be at. Be at about 2000 active homes to make it a balanced market. That means people are freely trading houses without any pain. And the same thing with the cities here, the different 15 cities.

So I don't there are more than 15 cities in Santa Clara County, right? Los Altos Hills and East Palo Alto and all that other stuff. And you're looking at mostly everything is under two months' supply. So, guys, it's still a seller's market. There you go. All right. Conclusion and Personal Updates

If your lender's telling you that rates are going to come down, so buy now and you can refinance later. That's a scary thing to think about. Seriously. And good for you. Milpitas with the 102. Keep going. 102 new units for low-income housing. Keep doing it. We need to do that more. And that's it for now.

I'm going sailing this weekend. I'll send out pictures on Facebook if you want. And then I'm going car shopping with my daughter. So there you go. Have a great weekend. I'm Vito with Abitano. Thanks for watching. We'll see you out there.

Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 We’re Hiring! 408-705-6817 Vito@abitano.com Website: abitano.com https://www.onereal.com/vito-scarnecchia-1 update your home value: https://hmbt.co/bT7qRJ RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: https://calendly.com/abitano/15min Home Buyers 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://docs.google.com/forms/d/e/1FAIpQLSc0R5pjHIAPguZ5GDEB-fTbGJXKpWK3coK9Khymv_GTWkMnyQ/viewform?usp=send_form https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg

Fraud, Homebuyer workshop, Bay Area housing stats, Veteran Home, best time of the year to buy a house, Bay Area Luxury homes, next housing crash prediction, housing market projections, Should I Buy A House Now Or Wait?, should I buy a house now or wait until 2024, Why You'll Regret Buying A House in 2024, Housing Market 2024: 5 Options If You Regret Buying a Home, when will the housing market crash again