Facebook Meta Layoffs California is dry
Facebook Meta Layoffs_ California is drying up. Housing Market sees Layoff
Blog http://blog.abitano.com/2022/11/facebook-meta-layoffs-california-is.html
https://youtu.be/yUXY_UevJto
Podcast https://spotifyanchor-web.app.link/e/KhkXTdJf4ub
hey, welcome. Lots of stuff going on today. Lot of layoffs that we're talking about, but that's not the best part. There's a lot of other things that are happening. First and foremost, tomorrow is. The Marine Corps birthday, happy Birthday Marines. I'm not gonna sing this, the theme or anything, but you know it.
You know exactly what that means. Lot of craziness, lot of fun, lot of celebrating, a lot of memories gonna be made tomorrow. And there are actually a lot of 'em were made this last weekend too. But here's one I want to share with you that just tickled me. . That was hilarious. . So funny. Think about it, dude.
it's the, this is the oldest weapon that's authorized in the Marine Corps today is the NCO sort. I have one that's in the back over here, and it's one of the things the Marine NCO is the only enlist. Personnel allowed to carry a sword. And that's it right there. That's what happens when Marines have fun.
All week I've been sending out little funny memes and stuff like that. Tomorrow's a great day. 247 day years. Emper Fi. All right, enough of that. Tomorrow is Veteran's Day, and if you hang on till the end, I'm gonna have a little walkthrough of what freebies are around for veterans. So there you go.
That'll be fun. Let's see. Let's get back to what we're talking about here. Actually, I didn't even show it to you. Let me show this to you real quick. There you go.
That NCO sword right there. That's what I was talking about. That's the oldest weapon authorized in the Marine Corps today. So there you go.
Tomorrow's Veteran's Day. We already talked about that. Everybody that sent in their informa their request or their vote on the thumbnails. Thank you very much. I wanna bring 'em up. Let me see if I can find them real. That was one of 'em. That was two of 'em. That was three of 'em. And now, the kitchen sink, which I thought was newsworthy or noteworthy at least because of, you know what Alon Musk said?
I thought that was funny. But nobody liked it. Nobody wanted the kitchen sink. So we went with this one. This is why we did it. But your voices were heard. Thank you for voting and I appreciate it. There you go. I'll shut that down. Have some fun with it later. All right. Let's talk about.
Now where is it? It's, I think it's this one right here. It's a new one I'm using. It's a little more accurate. It's not as it's more news outlet not branded by a company. Obviously it's a news outlet, so they buy a, or they sell advertising, but this one's a little more accurate and I like this graph a little bit better.
It's a lot easier for me to work with. So 7.21. That has a lot to do with what's going on. Slowing down the economy, slowing down housing market, slowing down a lot of things. But at the same time, it's something we need to have happen. And if you look at some of the highlights that I have in the news, I'm gonna put this little thing on real quick.
All right, so you're like veto layoffs aren't happening. The news is telling me that we have tons of job openings. Everybody I talk to right now, And I don't care what industry you're in. A lot of different industries right now are seeing a slow down, which, and it's end of year means that corporations have to do their end of year reporting.
And that means there's gonna be layoffs there too. But also those job openings don't necessarily mean that jobs are gonna get filled. So let's just take Cisco and I don't wanna beat up on Cisco cause I like them. They might have a thousand job racks open throughout the year. It's probably more, but each individual department might have that allotment so that they can look for the cream of the crop, right?
They're looking for their people, the right people for that job. And it's not saying that they're not hiring people, but. A lot of those job openings that you're seeing here. This actually this is a great news source. If you're in real estate at all, watch these guys. They're straightforward, they're chicken little versus Pollyanna, but they give it to you straight, right?
10 million job openings. They're not gonna get. Probably half of 'em are not gonna get filled by the end of the year, right? One people don't wanna work cuz the feds, the government pays them to stay at home. Companies are contracting because their revenues aren't coming in, their earnings aren't coming in, and it's just a part of the, part of a cycle, right?
It's not to, it's not forever. It's just for the next three to six months, right? And whatever happened in the vote yesterday, if you didn't vote, shame on you. I don't care what side of the aisle you sit on, vote, right? I voted. A lot of people I know voted so good for you. There are layoffs coming on mass.
And it's not just meta, not just, Twitter or whatever it's gonna be a lot of different companies. Our company's tightening up too, right? Even so much so that open doors laying off 18. That's a competitor of ours. They buy houses, they tell you there's no commission, but then they swap you with fees, which are 10% versus 6%.
Where's the other one? This just in Redfin just announced 13% of their people. Going down and the IBU thing is shutting down Open door showed that there were a it wasn't a failure, but Zillow did it and they closed up Open Door, did it, and now they're closing up and now Redfin's doing it or did it.
And they shut their doors on the IBU platform goes to show that they're, in order for them to compete, they have to get, buy their houses at market. . So if it's worth a million dollars, they're not gonna buy it for, they have to buy it at a million dollars. And their bet and their gamble is that in three to six months, it's.
Increase in equity because the market goes up, which hasn't happened in the last six months, but when the market goes up, you are gonna see, home values go up, and then they can turn around and sell it for a little bit of a profit, and it helps everybody along. That's going away because the market's flattening out in certain areas and market's contracting in certain areas and it just doesn't make sense.
We didn't see a lot of this happening. I saw one in Gilroy, I saw a few up. Greater Bay Area, but not in San Jose or Santa Clara County. On the whole, there were a few, just not a bunch, because it just didn't make sense for them to spend that kind of money and risk the market contracting like it is doing right now.
So that said, if you work for Redfin and you know you're getting laid off, give me a call. I will hire you in a he. That's how we work. We take care of our own. I understand you work for the bad guy, but you know what? All fair and love and war. Come on work for the good guys now. Okay. Enough of that.
I think we talked about this a little bit last week. The eviction moratorium at LA County is now. Been ex I think they just retracted it. That means there's gonna be a lot more people that were landlords saying, you know what? I'm done with this. I just spent two years trying to figure out how to make this thing work.
I had renters that to pay. Now I'm gonna get rid of 'em. It's gonna cost me, I don't know, 30, $40,000 to get rid of. and shame on you if you were one of those deadbeat landlords because these people are now gonna turn around and sell their house, that house or that apartment or that condo or whatever it is.
It put people into a bad position and it's all because of policy makers. So shame on policy makers and shame on the about bad landlords. It's the same thing. Oh yeah. Congratulations. Open door for, that's why they closed their . They lost a billion. A billion dollars in one quarter. They lost a billion dollars. Their publicly traded company was a bad hit. It's not gonna put them under, but that's not a business model, right? You have to sell houses and make equity.
Make commissions so you can pay your people. And yes, it sucks that you have to pay people more money, there's always gonna be those one percenter guys out there and they're gonna do a half-ass job. You can go with them absolutely. But if you want somebody that's gonna work with you and walk you through the entire process, work with, companies like Compass and Century 21 and Red Remax.
I don't know about this. If anybody knows more about this, I heard this somewhere and I didn't link it and I apologize, but if you're seeing this where China is losing man ground to manufacturers because they're taking the ip they're, it's known. It's a known factor. When you bring manufacturing over to China, they're gonna take your technology and copy it, and now more people are going to different places.
and now that we are having this issue, I guess politically with China, we have to figure out where you're gonna get your manufacturing done. And I've been telling people this for, I don't know, 30 years move out of China, or at least have a secondary manufacturing place. And a lot of people are like, nah, we don't do it.
We have great relationships with our people. But then, there you go. Tomorrow is not only. My Marine CORs birthday, but yeah, it's also the CPI announcement and I'm guessing 10%, probably way off. A lot of my mentors are saying six, seven, maybe even eight, but I think it's a lot worse than that, and I'm probably I'm 99.9% certain that I'm wrong.
It's gonna be less than that, but, If I said it comes mid 10, I'll be like, I told you so you probably can't hear this and I don't want you hearing it. This is a national rule. State post. I already told you about these guys over here. This is their website. I listen to them all the time. And this keeps coming. So I thought I'd take a look a little bit more about it. California, the aquifers.
In this particular video, Brian talks about central Valley actually lowering an elevation by 10 feet because of the aquifers drying up. And that's scary to me. I don't know how accurate that is, but I went and dug around. And here's a pbs and they're a little left side of center and more center, but there's something for you to be aware of.
Right? And Brian in this video talks about Coalinga and if, Coalinga used to be calling Station A and it became a town. Now there's 20, 28,000 people. Maybe 50,000 people that live there. But and the average income per capita is $28,000. So it's not a really well to do area in the first place.
And because of this water issue that we're having they're having to go out and buy. And back in June they're, back in, before June, they were buying water and, I don't know, I wanna say it like per thousand gallons or whatever, they're paying 220, 200 $20. Now it's $1,200. And it's actually going back down because obviously we've had rain in the last couple days and we were forecasting that so the value of water went down.
But $1,200 per whatever unit, that's five, six times more than what they were paying before. That's crazy. For a small. Not very well to do city. And then you have to go out and buy $1.1 million worth of water to water your people. That's an issue, right? So there's gonna be like a mass exodus out of Coalinga because people can't afford to live there because of the water.
And that's the same thing here. Just do some of your own work. Figure out what's going on here. Also if you're watching, you have comment. By all means, if you think that I'm full of crap, let me know. If you think I'm spot on or if you have another opinion, please let me know. I'm happy to bring you on as well.
So this was for Wells Fargo's, bracing for layoffs. Again, I think this is two of the same. Again, this is what we set up here, right? Job openings versus hiring. It doesn't matter who you are or where you are. If you're, if you are trying to hire people right now, it's probably not a good thing because your business is not gonna do as well in the next three to six months technically, because you see the market contract and you see your sales slowing.
Commodity cells slowing. , right? So why is this important and why am I bringing this up? Part of the reasons why we want to keep track of this is not to scare people. is to get you prepared and get you in the right mindset to be able to buy houses. Because now is a good time to buy right now.
Why wouldn't you buy a house? Because you fear job loss. If you have a job and you've been there for five to 20 years and you're like, holy crap, they're talking about layoffs again. You're not gonna buy a house, right? Even though the market's flat. Where am I? I wanna bring this back up here real quick.
Even though the market's flattening out, threatening to go down, this is a great time to buy, but you might have bad credit or high debt or whatever. By the way, we have a program that we're putting together that talks about financial intelligence, right? It's talking about living below your means, building credit, building savings.
Putting money towards investing in the future, buying houses, investing, that kind of thing. It's a big program where we bring in a lot of professional services to talk about it and teach people how to get ready for, their future and build a legacy for their family. F. If you wanna learn more, let me know.
I will just te text me, dm me, whatever I'll respond to you. But here's the biggest thing right now, threatening people, right? And I know we don't know which way we're gonna be headed into this next, after the elections, right? Red, blue, whatever. It doesn't matter because we have to fight. We have to fight.
Inflation that's happened over the last two years. That's a big, huge issue. We just spent, I wanna say $16 for deli meat. That's ridiculous. Used to be five, $6. Now it's that when I thought that was crazy. So gotta beat this inflation. The big fear though now is deflation. There's a lot of talk about that and we'll talk about that next week.
But right now
Oh yeah. Here's another reason why you might not want it. You want to time the market, right? Want to time the market where it's right at the bottom. At the bottom of the market. Yeah. So do I. Everybody does, right? And when it's like this, you have so much competition, right? I don't know if you saw my last video.
Oh, it was one house for 17 buyers. That was what it was like all the way up until April, and now it's 17 houses for every buyer. So there's so much supply. There's so many people being very picky. I was in my office meeting yesterday and everybody's I have buyer needs. And I'm like, why aren't you going out to the MLS and.
Those homes and they say we already have, they don't want those homes. They want something else. So they're being picky. That was the exact opposite of what was happening back in April and before. They're like, I'm desperate to buy a house. I don't care if it's gonna fall over tomorrow.
I need to buy a house. Now people are like, you know what? I'm taking my time. I'm gonna buy the house that I want, and I'm gonna be very picky about what I buy and. And I'm not gonna pay what they're asking for, which is where we're gonna go to next, right? So we're right here.
If you're in a position to buy, this is a good time to buy, and you're like, veto, I should wait until the market collapses. But then you're competing against right now. Once the market starts crashing, then the buyers come back into the market. Then you have one house for 17 buyers every again, and then the seller has to leverage.
So there's a good time to buy, which is like right now, right at the peak. And if you can time it right here, right when the market shakes, there is less competition. But you don't know when that's actually gonna happen cuz it's very volatile. All right.
Mortgage demand is nearly half of what it is year ago, guys. So is sales. Where is it? Closes? Closes? This last week. Closes last year. Last week, right? Basic math right there. It's about half. This is the last week. This is the last seven days. We had 57 closes last year. Same seven days. We had 129 closes.
Roughly half, absolutely half, right? That's these numbers right here. These are the average. It's not news, it's just something we need to talk about. And again, if you look at the volume of HO Houses sold over the last 20 years, 57, 60, 75, 95. That was average about two, three years ago. That was about the average of homes being sold the last couple years.
The last year was a massive anomaly. Go back to this number right here. Remember? And the mic house spiked up because where our house, our, the price of money was artificially low. So low in fact that it was foolish for people not to buy houses. Zero cost of money, right? Two and a half percent. People were getting houses at two and a half percent, so just brace yourself for a long winter.
I've heard people saying that we're gonna see rates go back down to four and a half, 5%. I would love that to happen. I don't know if it's gonna happen. I don't know. Okay, so let's do this real quick.
sorry, I have to do that to you, this is the segment where we talk about numbers and I'm the number nerd. Supply is dwindling, right? What we're having right now is just houses are selling, but not at the same clip that we were having last year. People are choosing to take houses off market or not put it on market.
Houses are still going on market, not at the same clip that we were seeing last year. But we're still seeing houses go into mar, go into contract. As a matter of fact, we had 52 pendings last week. That's San Jose, not Santa Clara County. It's just San Jose. This is all just San Jose. Three bedrooms and more.
Less than $2 million. I don't track anything else. Last year. List price to sales price ratio was 9% over. This one actually was skewed. I wanna show this to you some knucklehead. Where is it? Oh, right here. No, that's not it. Some knucklehead listed it so low. It was. It was stupid. They're right there. 120%, 700,000 right there.
159%. That totally skews it, right? So you gotta take that number out. We still have a lot of houses getting sold for over list price, but understand that this is really what the market value is. They're just the agents putting it down to this level, this price to attract. Multiple offers so you can pop it up to the market and get it sold quickly, right?
Based on it condition. So $700,000 and within 26 days, it's sold for 1.1111 million. It wasn't worth $700,000 was worth 1.1 million, 159%. Over original list price, but that's not what the market was saying. This is what the market is saying, right?
Oh, I want to show you this number again. 33% of homes sold in San Jose last week sold over list price. So two-thirds are. Or below, actually, below a hundred percent. This is at or a hundred? At a hundred percent. Or over. So 33% last week was 49%. Okay. So these numbers are skewed because really it shouldn't be 158%.
That's ridiculous. Okay.
It does sell the house I get. But you're not really doing anything to help them make sure that you're getting the right people. So average sales price is 1.5. The median sales price is 1.375. So median meaning houses. Or selling for a little bit less, even though there's more houses that sell for, there's a few more houses that sell for more that skews it up.
Last year, the average sales price was 1.6, so don't freak out when you look at these two numbers to compare it, because this is the running average over the last six months or so, right? It's only 20,000 difference. This shows that it's over a hundred thousand dollars difference in one week over year.
That's totally different. We're down 44%, 53% over last year. That's what Wells Fargo said about loans. No crap. The refi market has tried up. If you didn't refinance at two and a half or 3%, then you're gonna wait and you're stuck at the rate that you are that you have. So those are out the door.
A lot of people are sitting on the fence, so those people are out the door. You have people that are seriously buying right now, right? You have 52 people buying houses in San Jose versus, 129 from last. So those people are serious, right? Prices are contracting a little bit. If you look at these numbers, you're seeing that they actually are going down quite a bit.
And you look at these numbers overall, they are going down quite a bit, but not hugely. And you're gonna ask me veto, do you think the values of houses are gonna go down? I don't, I think we're gonna be in a dark rut for about three, six months and then it's gonna come right back. So when you look at these numbers, I think we're like right here and we're at a point where it's just gonna continue to go off.
So I think the layoffs are gonna be temporary. The rates are temporary right now, and once rates go, come back down, you're gonna see the market be reinvigorated. Cancellations have just dwindled down to nothing. But I think what's happening is there's less people putting houses on market, less people doing wish pricing.
So on average, we're still seeing 35 cancellations per week. TFTs that's back on market, cancel canceling the contract. And this is a running total of 171. I'm not doing it by week. This is a running total, right? So last week to this week, we've had 40 decreases. All right? And then this is the US numbers, right?
Half of 'em have decreased in supply.
Houses are selling less. People are putting houses on market. Natural attrition. That's what you're seeing right now. You don't see it dwindling like a massive delve down. All these numbers are very small. Whenever you see these numbers are very, they're less than a hundred for the most part, right? So not everybody.
Going away and saying I'm done. But there's a lot less houses being sold, about half. So the market's staying where it is, the supply is starting to dwindle, just like what we're seeing here in San Jose, right? We're seeing the market kind of dwindle and houses are still being sold. If you're serious, think about it.
I'm not telling you. You absolutely should. If it makes sense, if you're getting evicted from a house, call me. I have programs that are available. I'll bring in my lenders and we'll figure out if we can get you into a house. I'll put that down. All right, that's it for this week. Again, standby. If you want to talk about, if you wanna listen to me, look in, look at all the freebies for the Veterans
I'm Vito Scarne with Theono Group, powered by Compass. We'll see you out there. Separate five. Happy birthday, Ariba Dechy.
All right. Let's go into something else here. People actually hanging on. Wow, that's cool. . Isn't that great? so great. Oh. Look at this was what my buddy Mark said that cake looks like a real purse. . That's beautiful. . Okay here we go.
Let's see if I'm gonna put this back real quick. So I wanna see what these people are saying if I'm getting any other comments.
Alrighty. First of all, thank you for serving. I did 87 and 99. Marines mostly reserve. I was, oh, 3 41, there you go. Oh 3 41. Part of the reason why I'm doing it so early today is because I have a veteran's thing at San Jose State and we do support. The vsr VSO over there. I know the people very well and we're just gonna go out there and hand out tchotchke and shake hands and talk to them about different programs.
So there's a bunch of different programs you can go to the Bay area, see California, I'm not doing anything that anybody else isn't doing. Living on the cheap right patch. You can just free stuff for veterans. San Jose, California, right? So Applebee's, AHI Poke. There's one right down the street from me, AHI Poke.
There's Apple Bes, which I don't really care for because every time I eat there I get the, yeah, stomach issues. Aroma. Joe's never heard of it. Black Angus Ruggers. Chick-fil-A Chili. Ooh, dude, I should go to Chick-fil-A. Chilies. All right. Denny's obviously, again, it's like Applebee's. It just works.
My stomach is over. Famous Dave, I don't think we have one here. Do we actually have one Hard Rock cafe? Yeah. I'm not gonna go to San Francisco, I don't think we have a Hooters ihop. There's a high hop. There was a IHOP couple of them. They're gone. I guess Ikea. A free adult entree. You get free Swedish meatballs, Joe's Crab Shack, you get 20% off.
That's cool. Crispy cream. Yeah. I'm not a big fan of Crispy. I'm a huge donut fan, but not Crispy Cream Macaroni Grill. Macaroni Grill actually started here in Cupertino by a company, a restaurant called Fiorentino's or Florentino, and Florentino grew to three. Different restaurants within the Bay Area and then they franchise their menu and call it the Macaroni Grill.
Little Factoid. There you go. Mission Barbie, Outbacks Steakhouse, red Lobster. I don't think I've ever been to a Red Lobster. I know. I'm almost, that's almost Communist. Starbucks and Wendy's. Let's see. Which can you get at Wendy's other than free.
Free breakfast combo. All right there you go. All right. What else can you do? Bay Area a Adidas 30% offline. Whoa. I wear Adidas. Did you know that? Ah, I'm not gonna say it. American girl. Yeah. Applebee's. . My, I have a niece. Up in Canada, who lives in Burnaby, who used to be a model for one of the little girls when she was a little girl.
Used Hold the little thing. She was one of the models. It was pretty cool. Bed, bath and Beyond. BJs. Oh, right down the street. Buffalo right there. Yeah. There you go. California. Yeah. . Ccp. CPK Man.
When I was in publishing, when I first got into publishing, I got flown out to Garden City, New York. Not like a famous place like, Manhattan. I worked for Hearst Magazine and I was on, I worked for this little pimple on the But of Hearst, and it was this little company. It was all about electronics and they took me out to garden.
Which by the way, has a Marine center there, Marine Reserve Center, right across the street from the office I was at. And the president of the company takes me out to lunch and he takes me to California Pizza Kitchen cuz he thinks it's funny that he takes me all the way out to New York to make me eat California food.
Chilis. Denny's. Devil Dog. Devil Dog. Duns. I don't even know what the hell that is. Dollar General. What? No kidding. Oh, it has to be in store or online. You get 20% off. So that really brings it back down to a dollar . Cause everything's a dollar 25 now.
Dunking Donuts. Oh, foal. That's cool. Yeah, cuz we all need skis. Golden Corral, Hooters, hp, oh Hunter Fan. Ihop, iRobot, Kohl's. Boy, you guys and gals, Applebee's. Look at that big old thing. Denny's Olive Garden. Everybody does it. All the franchises do it right.
Long Beach. I'm not gonna go to Long Beach for a free thing. BJ's. I'll probably wind up going to BJ's. Cause it's like right down the street. You know what's funny is like Mimi's Cafe closed down, so that's not even available anymore. These are old.
All right, there you go. Seven 11. Oh, you got a. Quarter pound Big bite . That's worse than the Chow Arby's Aroma. Joe's big Daddy Bargo. There you go. All right, guys. If you have any thoughts on one cool thing, a little story, my daughter just started performing in color guard, band this year. Let me see if I can clock out of this one.
And the first competition they did, where is it?
There you are.
And the first competition they did was up in San Francisco during Fleet Week, which was cool. and my wife's Hey, you better get your ass up there and help out because you, there's a bunch of Marines. I'm like, oh, okay. I'll go up there and see my booties and all that. And it was cool. We went to golden Gate Park and there's this big place where the museums are and this big amphitheater and a big, concert area.
And the marine band were there and they were playing the bra, the brass. They were playing some jazz. It was really fun. Really cool. There were a bunch of recruiters hanging out. They were modified charlie's chilling out with their big covers.
And he's doing this little calculation. He goes, yeah. You're too old.
Oh man. So that was my last story. They don't want me anymore. And I would, I know a couple of guys that went from Marines to Army. I don't think I'd ever do that. I don't think I could ever do that. So anyway, tomorrow, happy Marine Corps.
And on the 11th Happy Veteran's Day. We'll see out there.
Vito Scarnecchia
Realtor®, Broker, Veteran, Dad
DRE#: 01407676
If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents!
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