Who is buying up Silicon Valley Homes?
Introduction: Who is Buying Silicon Valley Homes?
Who is buying up all the Silicon Valley homes? We'll look into that as commercial properties continue to crash. We'll also look at the luxury home of the week and the 12 Bay Area County market report. Let's get moving here. Let's see.
Let me put this here. So it's bigger for you.
Commercial Property Market Troubles
Commercial Property Crashing everywhere
First, I want to go over this. This isn't super commercial property. This is a hotel and they're going into trouble as well It's just another thing to look at and you might be going well, you keep on picking on The Southern States, the, well, I don't know.
I see it all over the place. I see him in New York. I see him in San Francisco. I see him all over. This guy just happens to pop into my feed and I send it to myself so I can at least show it to you. The link is down in my blog. The link to my blog is down in all of the comments. So please make sure you take a look at it.
Why is it important? Because it's one of the cards within our house of cards. It's the stock. That is keeping our economy up and floating. And if that collapses, which we say it is along with the automotive market, as well as all these other things, something to be aware of. I'm not saying that the sky is falling.
I'm not trying to be a crash, bro. I'm just saying something to be aware of. It might help you understand where we are in this real estate market that we are.
Silicon Valley Home Buyers: The Affluent Advantage
Who is buying up Silicon Valley Homes?
Speaking of the market, who's buying all the homes in Silicon Valley, people with stock, people that work at high-tech firms, they're opting to take their 6 percent gains and put it into real estate and get 12 to 15 percent gains.
It just makes common financial sense. And when you have homes that are going up over 10%, value every year. It's just a smart place to put your money, which is why you have more competition. Remember, I always say you have institutional buyers. You have mom-and-pop buyers. You have home buyers that are buying up real estate, and institutional buyers around here.
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You don't see a whole bunch of, them because it's easier for them to buy three and 400, 000 homes versus a million-dollar home or a 1. 5 million dollar home. Or in our case, Santa Clara County, we're at 2 million. So if you buy a house for 2 million, yeah, it's going to increase 10%, but you don't get to buy as many houses and you can't control the market.
And institutional buyers aren't there just for the equity. They're there to control a lot of other aspects of owning homes in one area, one region, one town, or even one development. There are a whole lot of other reasons for it. And I've spoken about that before. So it's just something to be aware of here.
We're seeing. Affluent people, they have a ton of money. And instead of buying the 60 million home, they're buying multiple million dollar homes for 2 million homes, watching their equity built that way. And there's nothing you can do about it. It's just part of life. There's certain regulations that they're trying to put out.
You can only write three contracts. I don't know. There's all sorts of stuff. It's not going to help 📍 the problem. Right. And here it says the median price has gone up 7. 1%, but I can tell you that if you look at the averages in specific areas, it's gone up 10 to 15%, especially in Cupertino, Palo Alto, and Mountain View.
Those places are not hurting at all. Whatever gets put on the market gets bit up, and taken up pretty quickly. On the East side where you see less affluent buyers, they're struggling to buy 1 million homes, but it's still a struggle because when you don't have the money, it's a lot harder to buy homes, obviously.
Right? So this guy, you can read about this guy. I don't want to really want to talk about him too much, but Median home prices are, they say it's at 1. 95 and it's actually less this week. It was at 1. 7, but on average over months, you're looking 📍 at, 2 million, or San Mateo is much higher because there are more affluent buyers in San Mateo. After all, that's where all the PC money is.
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Willow Glen House of the Month
Willow Glen Home of the Week
Willow Glen house of the month. Not my listing. It's a two-bedroom, one-bath, 1300 square feet built in 1939. It's a little bungalow right here. Bunch of joy. It's a trustee sale and it just got put on the market. So four days on the market and there you go. Take a look real quick. It looks like they made some improvements to it.
They fixed it up, but not a whole lot.
Original kitchen,
original bathroom, old pergola out there that needs to be taken down. Here you go. Okay. And then this one is 1. 8 million. For a two-bedroom, one-bath house in Willow Glen, San Jose, California. There you go. Let me move this over here. There we go. That's a little better.
Luxury Home of the Week
Luxury Home of the Week
Today's luxury home of the week. Again, not my listing. This is a mere 18, 000 square feet, eight bedrooms, eight and two half baths built in 1924. Might have been an original. I don't think it was 17, 18, 000 square feet in the original, what do I know? Maybe it was this little tiny hole right here.
I have 147 pictures. Are you really going to sit back and watch 147 pictures of a house, even though it's worth 68 million providing value, really how much value is there? It's been on the market for 558 days, guys. When you're trying to be a market maker, look, it was 58 million. Now it's 68 million. Isn't that awesome?
I agree with some people when maybe they were in a contract and it fell out of contract and then they got a contract for 68 million. Like, screw it. If you're going to buy my house, this is what you're going to buy it for. And when you have 68 million in one home, You know, you're not struggling so you can sit and wait for the market to come to you.
It's a beautiful house. I might go write a check today. All right.
Bay Area Market Report
YTD SALES 12 Bay Area Counties
Nothing really going crazy outside of the fact that we're getting close to 12 billion in volume in Santa Clara County. We've still the highest listing count, but Alameda is coming up quick, and let's see what else. Nothing really else to worry about.
We sold 341 million worth of real estate last week. It's crazy. And so far this year, we've had over 5, 000 homes, but Contra Costa and Alameda are coming up really close. They're only 500 homes away, 500 units away. There's a lot of volume being sold in this area. Not as crazy as it was in 2021, but it is what it is.
We have higher interest rates. It makes it more difficult for people to move. Cause if you're at 2 percent or two and a half percent and now you're looking at 7%, why would you move? You would just stay there. So certain things to look at.
Conclusion and Final Thoughts
All right, that's it for now. I'm making this one quick. It's only eight minutes.
That's great. I'm Vito with Abitano. I'll see you out there.
Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 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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