Fed chair says 'time has come' to cut interest rates

 




 It is time. The rates are finally down below six. We're getting close to five and a half. That's our target rate. It's a good thing. 

Fire Hazard Zones and Home Insurance Costs
For most of us, we'll get into that as well as a fire hazard map, talking about fire season, something to be aware of.

So if you're buying a house, make sure you don't buy a house in the fire zone. Or if you understand what issues you might face. Rates are coming down. Fed chair even talks about it. Talked about it on August 23rd. We're going to go into that and then see what you get for 2 million and 1 million in Santa Clara County, as well as the 12-month Bay Area County inventory report.

Let's get moving here. First, let's check this out Look at that. All these orange yellow and red areas. it's just around the Bay area. That's really bad. Seems except for these little set areas right here. But yeah, Oakland Hills, San Mateo Hills, Las Gatos, Saratoga Hills.

Even in Morgan Hill, we're looking at a house for a client right here and this house landed right inside this yellow zone somewhere. 4, 900 a year for fire, just for the structure. So rule of thumb, I'm showing people if you're anywhere near this. It's going to cost you three times, four times more than it would.
If you were inside the gray area, just be aware. This is about where I live right here. Imagine that.

So I live in suburbia here, but any houses up here, you're paying a whole lot more. if you're on the Ridge right here, you got yourself a 10 million house, but. You're paying for it. 

Home Selling Tips and Inspection Checklist

Thinking about selling your house, make sure you get everything done before you put it on the market because that way you can maximize the value of your house.
This home inspection checklist walks through every nook and cranny of your house and allows you to figure out if you want to fix it or not and adjust your price accordingly. download it. It's free. 

Current Mortgage Rates and Market Analysis

Rates are below 5. 76, 30-year VA, 30-year FHA, and 15-year fix are down below 6%.

We needed to get it down to five and a half. these are unquoted rates. teaser rates. if you put a point down, you're at five and a half, even here, you do two points, 30-year jumbo. You can get close to five and a half, maybe 5.
I don't know. You have to depend on your. Your lender and your criteria. Let's see. Yep. There you go. U S existing month supply closed. July just got it for months. This is a two-month trailing. FedEx Fed chair says the time has come.

It is time to lower the rates. And this is very biased. This article, I suggest you watch it with open eyes and understand that it's very biased. It's a lot of poking and prodding at one candidate and saying they don't really have control, but the reality is they have control.

Over the Fed, because the Fed is mixed into politics and the politics and the government needs to keep the economy moving. if the economy stops, then everybody gets screwed, including him, Mr. Powell here. Yes, there's a Twitch, there's an acknowledgment there, but the fact is the inflation has come down.

We're still hurt by it because now we're paying. Twice as much for bread and gas and food and house, whatever. The inflation has already been hurt. So now that they have it in control, everything is better. So just keep it at that. Dell Jones. I saw some reports yesterday that we saw a little mini hiccup.

Yeah, nothing's really gonna hurt, this happened last week. There's nothing really bad going on. All right, let's take a look at this one. 

Real Estate Listings: What You Get for $2 Million and $1 Million
Why is your house?

I didn't think it was Huckleberry. What in the world? These are the Palmeo ones, that's why. built in 1998, with four bedrooms, and three baths, just listed, let's do a smart thing and not put the front of the house as the first picture. Boggles my mind. I sold one of these, the same model, about four or five years ago for 1. 6 now they're worth 2 million.

So after five years, you're only increasing your equity by 400, 500, 000. And let's see on the market for 22 days, probably going to sit there mostly because there are two houses. But that's what you get for 2 million. And if you look, there's not a whole lot to choose from. Now, this is just a 50,000 difference between 2 million.

So that's why you see this or maybe a hundred thousand, but look at this one right here. This is in West San Jose, I sold a house like this. Right down the street from us. Same floor plan. That's what you get for two million dollars. And then let's see what you get for a million dollars.
Not a whole lot to pick from. The list price decreased. This is right by Valley Fair. Really close to the freeway. Burbank. This is the Burbank area. these houses are older, but it's a nicer area. They're trying to gentrify it. If you look at what's going on here in San Carlos, it's really nice because They're really spending a lot of money cleaning up San Carlos right here.

these homes are adding value So million dollars for a house with no garage.

That's the same thing in Pacific growth. This one, at least looks flipped. It's like they put in new everything.

My opinion on this is mine and not proven by seeing the houses and the value of the houses. 

Home Improvement Advice and Market Trends

If you fix up a house today, especially since we're at the ridge of a recession, I don't think it's worth putting a ton of money into fixing it up.

either enjoy what you do, like a remodel of a kitchen or new windows or a new air conditioner do it before you ever think about selling it because I don't think you're going to get the value out of it right now. Two years ago, three years ago, it was a totally different market.

right now we're seeing the market hedge and edge. I don't think we're going to see if I say spend, 50, 000 on a new kitchen or 60, 75, 000 on a new kitchen. I don't think you're going to get that money back. You will with air conditioning. we can go through each house based on your location and recent sales to make a better decision.

I don't think buying a house and fixing and flipping it is a good thing right now 

August Market Numbers and Inventory Issues

Inventory And Supply Charts

August numbers are in. So these numbers are always very fluid and I don't understand why, it's the MLS not exactly accurate, but I thought I'd throw these numbers at you anyway.

If you look here, Napa kind of edging up toward a buyer's market. So if you're thinking about getting a good deal. Look at Napa. I've been telling people this for the last six, seven months. Napa, There's not enough houses, there's not enough demand and the prices are contracting right now.
So what you're seeing is how to sit on the market a lot longer in Napa versus Santa Clara. We're at 1. 3 months, right? San Jose, I think it's 1. 7. we're so far away from it being a balanced market versus a seller's market and buyer's market. If you're asking me, an active number of homes for Santa Clara County, single-family homes needs to be about 2000.
That's this line right here. We're at about a thousand. Months of inventory, you need to be about six months. That's the definition of it to make it a buyer's. We're so far away from that. It's not even funny. There's just not enough supply to meet demand in Santa Clara County. And I'm showing you these numbers.
I know it's a lot of squiggly here, but you look at Santa Clara. this is Santa Clara City, single-family residents are right here. Why can't I get it? I can't be there. We're at 0. 7 months of inventory. San Jose is 1. 1 month. We have 400 homes for sale. We need to be about a thousand to make that a balanced market. So our inventory right now in Santa Clara County, I don't think we're going to see an issue with major contraction in the Valley, in Santa Clara County.

If and when this recession happens in the North Valley, the North Bay might happen, but I don't see that there's enough inventory right now. The fact that the rates are coming down might loosen up a whole lot more people to get them to be able to move. But that doesn't really help with the inventory.

If they move from, say, Cupertino to Campbell or Campbell to Los Altos or wherever that's not going to help with the inventory. What we need is for people to move out of the area, empty nests, or build new houses for this inventory problem to go away. Those are the numbers. 

Measure E Impact on San Jose Real Estate
Nothing's really changed here since last week, so Measure E is still an issue for San Jose.

My thoughts are if Measure E wasn't around, we would have a whole lot more homes in San Jose that sold for 10, 20, 30 million dollars. We're not seeing that. We're not seeing the investment that's happening versus what you're seeing in Palo Alto, Cupertino, and Saratoga. You don't see people buying big swaths of land, Everything over here in Palo Alto, Sunnyville, Saratoga, they're all expanding past 2 million freely. Measure E cuts us at the ankles and it prevents our values from expanding further than what it would in other cities in Santa Clara. I don't think Measure E is a great deal for us.

I'd love to hear your opinion. I'd love to see if you've got any positive effect from Measure E that we voted for. 

Conclusion and Final Thoughts

Alright, that's it for now. Have a fantastic weekend. I'm Vito with Abitano. 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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