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🔴[LIVE] Real Estate Crash... in Inventory
🔴[LIVE] Thursday US REAL ESTATE INVENTORY WATCH. 40 Days on Market Report -
All these questions and more are unpacked in this edition of Silicon Valley Living!
We’re talking about affordability right now.
FHA and VA are big options right now.
Map tour of Willow Glen
https://www.youtube.com/watch?v=LQgOUjf2QCc
California Housing Market Trends | Real Estate Inventory is spiraling across the US
Get out and buy now. If you think the market will fail, then don't. If you wait, and rates go lower, you will see 2021 all over again.
selling a house in a bad location
Little quick story about tips for selling a house in a bad location. We're gonna get into the market crash, the inventory crash. It's not as salacious as you think. Before I ever got into real estate, I was told three things you need to know about real estate location, location, and location, right? And the whole idea behind it is people want to live in a specific area or specific. Thing, for whatever reason it is. Could be for schools. It could be proximity to work. It could be proximity to family. It could be, that's where the life that they wanna live is, whether it's in the country or the city, or suburbia.
It could be Los Gatos, it could be Saratoga, it could be Cupertino, it could be suburbia San Jose. It could be wherever people want to go. It could be based on cost and values and what they can afford or what they want to look at. They could be Venture Capitalists and move to Menlo Park or Palo Alto and buy 10, 20 million homes because they have to have that look and feel, right?
So what happens when you're, trying to sell a house that's not in a perfect location. Now, a perfect location, or not a perfect location, could be possibly behind or near a school, in front of a school. For Example, we're at Taylor Elementary and those homes right across there, they see a lot of traffic two, or three times a day.
Location, location, location
That might not be the best thing for certain people. But if you have small kids and you want to go and just have a quick walk across the street to Taylor Elementary or an elementary school, or in middle school or a high school, then you're, it's perfect for you. What happens if you're house backs up to a freeway?
I'm looking at a duplex right now, which backs up to a busy, corridor. and that is not as optimal to me as a home that's within a neighborhood. What's in tighten tighter away from a busy street or a filter street, or a major avenue, or a freeway or a highway, right? You know what a highway and freeway are.
You know what boulevards are, those major access arteries to neighborhoods and to stores. It's like San Teresa Boulevard. DeAnza Boulevard. Those are major arteries. Those are boulevards. But when you go into a main street, like a filter street, that could be, I don't know McClellan, which that's south of De Anza College.
It could be Monterey Ave., which is a major boulevard really, but they're little arteries that feed into it, Neighborhoods. And then you have the filter streets or the yeah, we'll call 'em filter streets because you filter 'em out, right? It's like the main trunk of your lungs and it goes down to the little tiny art parts of the lungs to get to the, to your house.
That's, those homes tend to not sell for as much as if you are on a cul-de-sac. So let's say, so I'm taking another new listing. It's just north of here and it's right off of Snell. Yeah. Snell or lean, whatever, one. And. , it's the address is on an artery or like a regular street. It is on the corner of that busy street.
And it's not busy. It's not like you're, hearing motorcycles go by all the time, or cars go by all the time, but some cars go by that's not going to lead to. A great sale as far as pricing and buyers are gonna be picky, especially in a market like now, markets are going to take a little bit, or this market takes a little bit longer to sell houses that are not in the best condition or in the best location or what have you.
So real quick, go through this article I just saw, I want to tell you, Fair House happens to be not in a perfect or ideal situation, right? My ideal situation for me would be on a cul-de-sac. Further away, maybe in the country somewhere where people don't really see me and I don't see traffic.
The only thing I'd see is maybe the ups guy dropping off a package or the mail person or my neighbors, right? So my street happens to do something like that. We do get some traffic, but not a lot because it has a jog or an L at the end, so we don't get a lot of traffic. So as much as I can say, I have a perfect location, obviously, you wanna work with an agent to be able to explain that to you, to understand that your house might not be as wanted or valuable to a buyer versus another house. Vito, you should just go and sell it. Yeah, you're absolutely right. I can go and sell it, but there are certain things where you might detract, say, 20-25% of the buyers because of your location.
Or the current buyers that are looking for that specific area, for that specific price range, right? And then you would need to know your audience. So part of what we do is help you market your house. We have to understand who is gonna buy your house. Now, again, it depends on how we create this idea, right?
Pricing
Are we looking for that one specific person that's going to fall in love with your house? Because it has, I don't know, orange walls and brown. I don't know. Burnt sienna on the exterior walls and they just happen to love that. No, you want to paint your walls to what people are looking for today. It's like going to the furniture store or let's say the carpet store because that's a great one.
Everybody's, if you're looking for carpet or flooring, you think gray, beige, maybe a little gray flooring or maybe. Carpet that's a lighter brown or light gray. Right light, not burnt orange or olive drab or that golden rod color. That was back in the seventies, right? , that's not gonna attract the right kind of people.
People want to come in and just buy their house. I can just give you a credit for that. Great. I understand that. But when you come in and see that, a buyer's gonna say, I want that house cuz I don't have to put that in. I understand. I get the value out of that, I get the whatever, but it's something I have to do.
Buyers want turnkey
And buyers, for the most part, I'm gonna say 60 to 70% don't want. Do stuff to the home. They want to move in. They want to turnkey home. That's why we talk about fixing things in your home, making your home look appealing to buyers, to a greater swath of buyers, right? So there you go. And then curb appeal, right?
If your house looks dark and dank because you have. Trees falling over it and it's not bringing in a lot of natural sunlight. Your home's gonna look dark. So there are things that we can do. We can lighten up the outside, right? We can paint it. We can trim up the trees and the bushes, but on the inside, we can paint the walls lighter, gray or beige, or what have you.
There you go. Pricing. It's important. It's very important to understand that when pricing comes in and you say,. I think my health is worth 10 million and I come back and break the noose. You say it's really only worth 5 million. Of course. Those are erroneous numbers. I'm gonna show you why I think it's worth that and why we should price it there and not here, and.
If you don't listen to me, you're gonna be fraught with issues and angst, and you'll be winding up getting angry at me because the house won't sell. It's a tried and true way of selling your home, pricing it a little bit lower under the market, and getting it in. You do not set the, as a seller, you don't set.
Price
You don't set the final price, you set the list price, and the higher the price you start with, the fewer people you're going to attract for that price range. That's just a, I'm not gonna argue more, about that. And then obviously, upgrade the interior of your home. Let them fall in love with the inside of your home.
That house that I was talking about north of where I am right now, burned down and the seller came in and did a fantastic job on the house, right? You have a house that's on a busy corner, nothing you can do about that, but. She had the money and she added more money from what the insurance gave her.
And then, the house looks beautiful inside. It's gorgeous. I can't wait to show you guys the photos of this and the videos of this is just amazing picture. And I said realistically, this is where we are. And she questioned, this is what I thought it was last year. Yeah, that was last year. Right?
Prices have chunked down a little bit as you, if you watch my videos every day, you see the prices coming down a. Nothing you can do about that. All right. Enough of that. That's the article. If you want it, it's in the link. If it's not in the link, text me or email me and I'm happy to send it to you.
Inventory is low - lower than we want.
All right, March 2nd. Let me put on my eyeballs real quick. Actually, I'm just gonna increase this so you don't have to squint either. There you go. March 2nd, San Jose. My title was Real Estate Crash of Inventory or whatever I said in inventory. It's not crashing. I mean it is but like I've been telling you, the market is ebbing and flowing.
It's ebbing right now because the market is waiting for the start of the season. today, yesterday, marks March, the start of our selling season. And what we're gonna see in the next coming weeks is inventory starting to grow. At least that's what I think. I'm a human being. I'm not perfect. And I can tell you straight up that I'm 90% confident that we're gonna see inventory grow.
Am I right? We'll see. In three months, we'll see how this thing plays. Okay. But what we're seeing is inventory shortening down right now, which means houses are selling, houses are coming off the market, whether they're expiring or they're selling or what have you. But out of all the houses that I, out of all the cities that I looked at, I think there were only two.
Yeah, two. Cause that one's actually supposed to be red. This is a new area I'm looking at. Inventory is coming down little by little, even though we're seeing it pop up here and there. I think overall we're just gonna see this We're, at the end of the bottom of the trough and now we're gonna see it curtail and go up March, April, May.
That's what I'm thinking.
And anybody who wants to bet me a dollar, I'll do a $1 bet for one person and that's it. I'm not gonna do it to a thousand people because my wife would kill me, but I'm bling it on the line. I whole dollar saying that. I will bet you that we are gonna see inventory go up. Rates go down just a tad bit below 6% in Hector.
If you're watching this, I know those are teaser rates. That's what I explained. You helped me understand and define what those are. Yesterday I was talking about, oh, I don't even think I have it anymore. I was we get rate teaser rates all the time from these people and it's under 6%. You can absolutely do it.
You have to have 70% L T V and a couple points to write it down. But yeah, you can get it below 6%. I think we're gonna see it come down even more in the coming. That's it. Hope this was helpful. If you have questions or thoughts or you want to see other numbers, let me know. Text me down below, or text or DM me down below.
I'm Vito Scarnecchia with the Abitano Group. We'll see you out there. Have a fantastic weekend.
"Now is the time to ask sellers for concessions. We have a system that helps our buyers buy homes for less and with terms that work for them. Buyers are still buying, and we're still putting people into homes. Sellers need to sell and smart ones know that they have to give a little today. "This isn't April 2022 anymore. Inflation, higher rates, Stock uncertainty, higher cost of living, and Unemployment loom. This wasn't the case a few short months ago. Today if you need to sell, sell. If you need to buy, buy. Contact Info@abitano.com to learn how buyers are turning into homeowners on their terms today"
1 Traffic - San Jose is the 3rd larger city LA and San Diego is larger- by a lot! San Jose, and Santa Clara County is surrounded by the Silicon Valley which makes urban sprawl a little more difficult. It also means we’re packing in more people with the land that we have. It also means that traffic is almost as bad as LA- that said LA traffic is pretty much 24/7 where in San Jose, bad traffic is only really during commute times.
2 Earthquakes - yes we have earthquakes but not that often. Most of them are smaller- less than a 4.0 and you hardly feel them. Authorities seem to think we’re about due for a major earthquake soon. Don’t worry though, California won't sink into the ocean, it’ll just shake, rattle and roll, scare you a little bit. But then it’s over.
When you buy real estate, you’re offered earthquake insurance- it’s costly, and I’ll leave it up to you to decide to get it or not.
3 Parking - Parking isn’t bad but it’s not great. Especially on weekends and weeknights - no matter where you go. San Jose always has something going on, whether it’s a festival or some other kind of event, so plan around it, give yourself an extra 15 minutes in case there's traffic and enough time to find your parking spot.
4 Wildfires- If you watch the news, you hear we have wildfires all up and down California- over the last almost a decade, we were in a drought and that has dried up a lot of california. San Jose does have grass fires and typically they’re put out pretty fast. But the big problem is air quality. When there's a bad fire going, and it could be 100’s of miles away, our air quality goes out the window.
It’s only for a few weeks and then we get back to normal. Most of the time we’re outside, and enjoying the great outdoors.
5 Expensive houses - houses are crazy expensive, but if you’re moving here because of a job - you’re better off buying instead of renting. When you rent, you’re subject to rent increases, bad landlords, and being kicked out when they decide to sell. Real Estate is a great investment and when you buy, you’ll enjoy seeing your property value go up probably a lot faster than where you’re coming from.
When the timing is right, jump in and take advantage of this great market.
So now let's jump in and talk about the 5 things I love about living in San Jose.
Moving to San Jose CA - THINGS I LOVE AND HATE ABOUT SAN JOSE
1. Day Trips San Jose is close to other cities and outdoor recreation that is hard to beat. About an hour, you can take a day trip to San Francisco, Berkeley, and the world-renowned Napa Valley wine region. The city is also a quick drive to beaches and only four hours to Yosemite. Located within 75 miles of the city are Monterey, Carmel, Pebble Beach and Santa Cruz, AND exploring the entire region is easy to do.
2 Jobs 1000’s of jobs available from working for big companies like google facebook or apple to working for starts up to everything in between- there are plenty of high paying jobs
3. Sports Sports fans will find a home in San Jose, which hosts the minor league SJ Giants! San Jose Sharks (National Hockey League) and San Jose Earthquakes (professional soccer). The city also has a women's roller derby team (Silicon Valley Roller Girls) and hosts events such as the Village Fest, Christmas in the Park, .
4. Weather: you can’t beat the weather in San Jose. Generally, the winters are mild, with occasional rainstorms. The summers can be warm, typically in the 80s & 90s, with the occasional heat wave. This summer was pretty warm we had 3-4 heat waves- the last one was a doozy, but you get over it, just stay inside until the heat breaks and then go outside and go to a park. It snowed only twice in the 44 years I’ve been in the area. The winters can be cold & rainy- but not dead of winter in Winnipeg!
5. Hockey! San Jose is a Hockey town-If you play hockey, or just want to throw on a pair of skates for an hour or two, you can always skate or play some pick up hockey San Jose ICE! San jose is home to 5 soon to be six ice rinks, and that’s not including San Jose’s Winter skating rink Downtown ICE’
That’s it! Now you know a few things that aren’t perfect, and the things I love Living in San Jose- hope you enjoyed it.Every place has its pros and cons.
Are you thinking about moving to San Jose? Click the link below to explore and dig around all the homes for sale- Just let me know if there’s anything I can help you with.
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