Rates below 7% Opportunity: rates drop to 2024 low point + Deal of the week

 
 

Introduction and Today's Agenda
Race below 7%. We're almost there getting close today. We'll talk about today's mortgage rates and what the Federal Reserve is reporting regarding jobs and the fund rate. And then we'll go through what you get for 2 million and what you get for a million dollars in Santa Clara County. Let's get moving here.

Current Mortgage Rates and Market Trends
Opportunity unlock mortgage rates drop below 2024 low point. We're seeing the federal fund rate below 6%. We're at about five and change. This is expected to go even lower. And that's good. Told you that the magic rate for home buyers is five and a half percent.
We're not there as far as the mortgage is concerned, but I suggest you take a look at this. It's good news for everybody. It's going to bring people back into the market. We'll go to the live slide and talk about why the market will start turning up again.


As far as more buyers, if you have a 2 million house, which is the median price in Santa Clara County, you're looking at anywhere from 7. 2 to 7. 15. So rates are getting really aggressive right now, right? Not the five and a half that we're promising, but if you look down here, chump in the same numbers with 20 percent down, you're looking at 6.

25, 6. 375. Again, those are 30-year conventionals. And that's when you pay a point down, imagine what it would be if you paid 3 percent down, something to think about. I know it's a lot of money, but money now to lower the rate, you're saving a whole lot more over time. So just something to think about.

If you're thinking about getting into the market right now, we think rates are going to come down again in September. And then again, in November, common sense says that because it's an election year, but there you go. 

Federal Reserve Updates and Economic Outlook

Fed fund target range is 5. 25 to five and a half. We're saying inflation is down to 2.

5, which, over time you think about the total, the factual number of that, just the amortized value going up over time yet we're paying over month, Now, I don't know how they're measuring these things. And yesterday I talked about how they're redefining inflation, redefining, a recession, redefining unemployment, 
There are a lot of people I know who are not. Gainfully employed or employed in their profession. A lot of people have been laid off Dell, Intel, Amazon, you name it. There's a lot of layoffs coming. So we don't know. Might be a cyclical thing. And that's kind of a normal thing for stakeholders when they're showing their PNL statements for the stock market.

All indications state that it's going to be a dreary next couple of years.
I'd love to see something on consumer confidence cause that would be pretty amazing. This episode is brought to you by AIDA. AIDA is the platform that I use to collect leads and communicate with clients. allows me to text, send out video texts and emails, everything. It does it all for me. It's almost like having an automated salesperson doing my job.

Just for the follow-up and the lead generation and all that, something that I don't have to deal with. It's just done for me from collateral to advertising to everything. And I tell you, it's, it's a great service. So if you're interested in learning about it, Tom Vito sent you this right here, talking about how when rates go down, the economy gets better, and more competition enters the market.
When there's more competition, prices go up, right? As prices go up, the market stays heated until something shakes the market and then it starts to go down. Prices are shaving outside of the Bay Area, outside of metropolitan areas.

You look at areas that have an abundance of listings, going from a real estate standpoint, you look at Tampa, you look at Austin, you look at St. Louis, you look at Chicago, the metropolitan areas are doing much better than the outlying areas because people are pushing back into the cities.

That's just an ebb and flow of how our society is working. there's more competition when rates go in every percent. I heard something and I don't know how true this is, but for every percent that goes down in rate, it goes from seven and a half to six and a half, 8 million more buyers enter the market across the U S and that's not including having to deal with institutional buyers, mom and pop investors, that kind of thing.

So it's going to be kind of a difficult transition here. So if you look over here on this edge, this is where we are as rates go down. Well, you're going to see more competition enter the market, meaning it's going to be more difficult for you to buy a house.

Or what have you? There you go. Home inspection checklist. Jeremy drive. 

Real Estate Listings: $2 Million Homes in Santa Clara County
This is what you get for 2 million in Santa Clara County. This is in, where is it? Almaden area right here. Jeremy Drive, is not my listing three-bedroom, two-bath, 1, 900 square feet, detached single-family home.

Let's take a look at it. There's an open house this weekend. You should go take a look at it. Yeah, the wood shingle roof, and semi-maintained front yard. Actually, the first photo we'll get back to in a minute. the grass was unkempt and had soil marks everywhere, dirt marks. So, yeah, it's a nice house.

I like it. It's a little darker, but nothing that paints can't help. So with the fans must be hot in there. Let's see if there's cooling

kind of a smaller backyard, but I like the shady trees. I wish my Elm tree never fell over. I had an Elm tree in the back that was taller than my second-story roof. It was amazing. And then the first year we had a massive windstorm and it blew it over. Kind of sucked. 

1, 900 square feet. Guys, this is a great buy for 2 million. See this thing right here, all the soil that all the grass, the brown grass, if you're going to sell your house, curb appeal is super important. Right.  That's why you watch this to learn about how to sell your house and get more money for it.

Scratch that up, compost on it, seed it, water the hell out of it. And in two weeks, you'll get some grass back and it'll look a lot better than a big brown spot. 

Real Estate Listings: $1 Million Homes in Santa Clara County
What'd you get for a million dollars? It's just amazing.

Three bedrooms, two baths, 1400 square feet built in 1961 Why is it in Sunnyvale then?

Well, obviously the map is messed up here. Let's take a look at this one. Let's go to the maps real quick.

Yep. the map on this is wrong. This looks like it's in Sunnyvale.

That's going to make it more difficult to sell. Been on the market for 42 days and yet the listing agent hasn't given a shit to take a look at. Let's take a look inside. Oh, some old-looking laminate floor. you have a wall heater. No, central heat, no central air. I bet there's no air conditioning in it.

There's your air conditioning. You open the front door and It's on a busy street. that's the original kitchen right there, boy. Tell you what,

look, there's no light there.

Are you WTF?

They took the time to clean the rooms, right? I appreciate that. Look, I'm not saying that this is. The most luxurious house in the world, but at least the people took the time to clean up the yard and the house to make it look nice. I've been in houses where you actually have to kick stuff aside to walk through the room.


So good for them. There you go. That's the buyer of the week right there. A million dollars for that. it's 42 days. I bet you can go in at seven 50, piss them off. And then a couple of weeks later, you'll get the deal. If you want to do it, nothing's really changed here. inventory is kind of trending down from the last couple of months, which is normal. We're in August end of the summer. My kids just went to school today. they started school today, so they're back to their norm. And with that mindset, people will start going, Hey, maybe it's time for us to move again. There'll be another bump in traffic and flow of new buyers coming through, people who wanted to buy in the spring, March, April, and May. couldn't. They couldn't find the right house and now they'll look at houses here, in August, September, and October, and then go into the winter months and go into hibernation.

That's absolutely normal here. We're talking about months of inventory versus the number of active homes. We need to have about 2000 homes, single-family homes in Santa Clara County. That's this blue number right here. Right now we're at an abysmal 629. Oh, that's San Jose

plus we're at 1. 4 months of inventory. And for it to become a buyer's market, you need to be at six months. So something to think about, it's still a seller's market question is, where would you move, right? I have people who go, I want to move. I want to sell my house. Where are you going to move?

So a lot of people I know are getting out of the area and getting a lot of business that way. And another part of the business is I'm helping, the children of elder parents sell their houses. And I have a strategy behind that, that makes sure that they maximize the value of what they get back versus what they have to pay in taxes.

So if you want to learn about that, let me know. Happy to help you with that. The same thing here. We're seeing a trend down of inventory in Santa Clara County, single-family homes. So these are all the cities and these are all the counties, the 12 Bay area counties that I track. 

Conclusion and Contact Information

So if you have any questions, let me know I'm here.

not really doing anything this weekend other than hanging out with the dogs. Cause my kids are off playing with their friends and I'm off. Have a great weekend.

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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