Feds Suggest Rates to go down
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Introduction: Market Overview
Lower rates coming soon. The automotive market crashing. So much to go through. Let's just get started.
Economic Insights: Powell's Testimony
Yesterday, Chairman Powell testified that the economy is doing great. You can believe that if you want. Unemployment's down. Stock market's doing great. I don't see it. But here are some other points to think about. Rates might be coming down. Not this month. Possibly September. I wonder why. Election cycle, maybe? I don't know. I'm just tired of the crap that the news is bringing us.
And yeah, sometimes I get my news tidbits from TikTok. This guy goes through it and talks about it, but one thing he doesn't say is, what is that going to mean over the next month?
Housing Market Trends
And over the next month, people are going to anticipate lower rates in September. They're going to hold off on purchasing a house, possibly.
Could it be possible? Yeah, I think we'll see sales volume and houses. Slow down just a tad bit more than what we're used to seeing. And in certain areas like where he lives in Florida or in Texas or Arizona, or even some of the Northern states, you're going to see more of a contraction in the number of homes that are selling right now.
And we're going to go back pressure people into date the rate, not the, whatever.
People are tired of the high interest rates. People are tired of the high inflation. People are tired of it. Struggling day to day and the government needs to do something for you. That means we have to go through and figure this out ourselves.
Automotive Market Concerns
This one right here, it's just a scary one. Remember I tell you about the little house of cards right here, little house of cards, this one right here, 3, 800 vehicles at this one dealership are giving back to the manufacturer 3, 800 means, and these are The ones that go to the businesses, right?
They buy Their fleet vehicles on consignment and go, here you go. I'll sell it and I'll make a little bit of profit on it. They haven't been able to sell 3, 800 of them. They're sending them back to the manufacturer. It's one dealership.
If a dealership can't sell cars, it means one of those houses of cards, is going to start to collapse. Automotive.
Is it going to happen? I don't know. I'm just telling you what I'm seeing and putting it together and seeing if it's a soupy mix.
Real Estate Tips and Tricks
Home Inspection Checklist. If you're thinking about selling your house, download this thing today because it's free. Then I get to help you sell your house.
Here's another thing that goes on the pro side or the positive side of this economy. As people are being forced to come back to work and go to the office, they're moving back to the cities, which means cities are going to see prices go up. I think prices are going to continue to go up. Over the next 10 to 15 years, not the same rate that we saw over the last two years, 2020, 2021, and 2022 is when the tide started turning and now we're going into a slower volume because of the higher interest rates and nobody's moving and we don't have the supply rates are still nominal.
You can buy it down to 5. 956. 1. I don't think it's going to help. I tell you 5. 5 is the magic number. And then maybe we'll get there in September. Maybe they'll just give you a little bit because in October they'll give you a little bit more and then they'll make you happy again to vote for whoever you want to vote for.
I'm never going to tell you who to vote for. I don't really care because I don't think it matters to me. If you're thinking about buying a house, download this checklist. When you go to open houses or you go to multiple houses one day, it becomes a big blur.
Feds Suggest Rates to Go Down.
You can't remember which house had which kitchen or which one had air conditioning or which one had dual pane windows. This checklist helps you figure that out. Existing home sales have plummeted. Not really plummet. If you look at this one right here, housing inventory.
So the number of sales has gone down 3. 89. So let's call it 4 million from the high of 4. 3 million in 2024. But inventory that's housing active listing count in the United States has gone up and it's gone up a little bit. 1. 3. We're at half of where we need to be. If I could drop this into a five-year, let's see if I can do that.
I don't think that's going to work. These never work for me. So what's going down is the volume of sales is going down and inventory is starting to go up. No, or we're at half capacity where we need to be to have a balanced market, but in the rest of the United States, outside of a few metropolitan pockets, You're seeing houses sit on the market longer.
And in fact, we're seeing houses sit on the market longer in certain counties. And we talk about that on Thursdays, I'm sorry, Wednesday. So inventory is going up. Demand looks like it's going down except for metropolitan areas. This is all across the United States. Okay. Right now we're at 4. 1, but this is, why I reported this last week.
Okay. I want to take this real quick. Five things you can do if you can't sell your property. If you're going to write an article, make sure it has five things. If you say that there are five things you can do, I only count four changes, real estate agents, ask about a guaranteed purchase program, make your home look like what buyers want, and rent it out.
That's one, two, three, four. The last one is to lower the price or make the price attractive to buyers. If your real estate isn't doing their job and being responsive and talking to you and saying this is, and they're not driving it for you, then maybe that's not the right agent for you.
Guaranteed purchase program. Sure. We have that too. Everybody has that. I think that's a crock of crap because I'm going to buy it 5 percent lower than what that goes for. What's your house should go for. That's just, that's how the guarantee purchase program works. Sometimes it's 10%, sometimes it's 40 percent lower.
Make your home look like what buyers want. That's what I talk about every day. You have to make your house look pretty and attractive for somebody to want to marry it. If your house doesn't sell and you're not getting the price you demand, then rent it out. But here's the thing. If your agent can't promise you, which no agent will ever promise you that you're gonna get some kind of erroneous crazy price, like $2 million for a $1 million house, I wouldn't waste my time, I wouldn't waste my efforts 'cause it does cost me time, energy, and money to list your house, my suggestions right here, make your house look attractive and make the price attractive. If you can't live with the price that they're talking about, rent it out. There you go. Enough said.
Bay Area Housing Analysis
Inventory And Supply Charts
What'd you get for 2 million in Santa Clara County? I didn't even look at this. So let's look at Willow Glen, pop this guy right here.
Newport. Wow. That one looks like it's rough. That is a funky-looking house.
For a bedroom, two and a half bath, 1, 959 square feet, built in 1936, 2, 000, 024, not my listing, Newport Avenue, it's in Willow Glen, still walking distance to, downtown Willow Glen, Lincoln Ave.
Talk about curb appeal, right? That thing just did not make me smile. And what's with that, yeah. You're not even supposed to have a fire here in Silicon Valley because we're protecting the air people.
That has central air, AC. So that's what you get for 2 million. I didn't do the, what you get for a million dollars. Let's take a look at that. Let's see in our own backyard, right along the freeway. That is a beater. Look at that thing. When I take the pictures of your house to list your house for sale, make sure you put your truck on the line because that really helps sell the market. Not only that, but you're also on the freeway and you have a bunch of renters and you don't take care of it.
You don't worry about the curb appeal. Oh yeah, there you go. Three bedroom, two bath, 1, 457 square feet. I don't even know when it was born.
Central AC. Oh, there you go. And it's on Blossom Ave. So not only that you're close to the freeway, but you're on a busy street. So good luck with that one. All right. 12 Bay area County months of inventory. Remember I told you for it to be a buyer's market, it has to be over six months for the volume of sales.
You have to be for it to be a balanced market. You have to have about 2000 homes for sale. In the county in Santa Clara County right now, Santa Clara County is. Yellow, one of the lowest in San Francisco is now the lowest. Imagine that San Francisco, people wanting to move back to San Francisco,
That's probably why that volume is going up. But again, our inventory is so low. We're so far away from a balanced market, from a buyer's market, nothing really to worry about. Same thing here. Every one of these cities except for Montecerino and Montecerino is a luxury buy. So you're really at an average of 1.
8 by an eyeball. That's that yellow Santa Clara in Santa Clara City. Just so you know, just to make sure you understand that.
So yeah, it's an election season. So rates are going to fluctuate and be delivered to you to make you happy when it's their biting their choice. Yep. There you go. All right.
Conclusion and Recap
Today we talked about rates. We talked about the automotive market. We talked about selling your house making common-sense decisions and making sure that you have five things that you want to talk about when you have five things on your title.
And a report that you're putting out to the public. I'm Vito with Abitano. Have a great weekend. 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
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