Housing is ‘impossibly unaffordable’ San Jose is Top US City
Housing is ‘impossibly unaffordable’
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Introduction: The Cost of Housing in San Jose
San Jose is the most expensive place to buy a house in the US, but it's not the top in the world. We'll also talk about crazy insurance policy problems, and mortgage rates, of course, because that helps with affordability and what you get for a million dollars, what you get for 2 million, and just the rates of the charts and all that other stuff.
Let's get moving. This is the housing is impossibly unaffordable in these five us cities.
Global Housing Market Comparison
Hong Kong is the most expensive place to live, to buy a house. The rankings were based on each Metro's price-to-income ratio, which is always important when you're qualifying for a mortgage.
Which is the median house price divided by the median household income. The report found the gap between housing costs and income was widened since the pandemic triggering a cost of living crisis for many American families. Hong Kong, Sydney, Vancouver, and San Jose are the fourth, most expensive homes in the world.
San Jose is by far not the most expensive place to live in Silicon Valley, goes to San Mateo. I'm sorry, Palo Alto Cupertino, Las Gatos, Saratoga. So just think that this whole metro area, which is Santa Clara County costs about 2 million on the median price. We're seeing houses sell for. Over 20, 30 million crazy, Los Angeles, Honolulu, San Francisco, which is crazy to me.
So in San Diego, there are five places. Funny how they're all On the West Coast. Just notice that the most affordable places to live are Pittsburgh, Rochester, St. Louis, Cleveland, Edmonton, Buffalo, Detroit, Oklahoma City, Cincinnati, and Louisville.
San Jose is the top spot. Yay. Congratulations
And don't worry if you want to the link to my blog is in all the descriptions and all the copy And you can go right to this.
Insurance Policy Issues in Real Estate
I have a link right to this article so you can source it yourself. This lady is a real estate agent down in Malibu and She is an escrow with sellers who put a claim on a TV that broke. Now they claimed that the TV was worth 15, 000. No matter what the insurance company declined it and still put a mark on The house policy. And now that it's an escrow, the buyers are having issues finding insurance for that house.
The moral of the story is you have to have insurance, but you can't use it because it puts a big stigma on you and it's crooked. It's almost illegal, but that's the power of the insurance lobby, especially in California. It's getting more and more expensive.
So hold on guys, there's a lot more stuff to come. I
Current Mortgage Rates and Strategies
today's rates are six and a half. They're actually quoted at 7%, which is nice. They're a little bit lower than they have been over the last six months. But if you buy a point, this is for a 2 million house, 400, 000. And great credit, you're looking at six and a half percent with 0. 6 percent or 0. 6 points. Yeah. So here's the thing about these rates, right? All the lenders are going to put you into a three-to-one or a two-to-one, one where it's low for the first couple of months or years.
And then it goes up because they're expecting the rates to go down. Then they want you to refine it. Screw that. Buy the rate down. Now put some extra money down 20, 000 down. Dude, if you can afford a 2 million house, your down payment's already 400, 000. You might as well drop another 20 grand.
Into points to lower this down to what you can, because I don't think you're going to see anything lower than 5 percent for a very long time. Your goal should be five to five and a half percent and pay that sucker off. Yeah.
What You Get for $2 Million in San Jose
What'd you get for 2 million? This is San Jose, Jonathan Abb, not my listing, four bedroom, two full bath built in 1961, 2, 000 square feet in the Willow Glen area. Now it's not downtown, but it is within walking distance to downtown. You can definitely walk off your buzz by the time you get back home.
What I like about it is the proximity to downtown, to the main street, but it's been lightly updated. A little bit older. There's a fireplace in the kitchen. Cause that makes sense.
It keeps bugging me about that fireplace in the notes that they're not using it or they're not really pushing it. This doesn't make sense to me. What they did is this was probably part of a living room at one time, and they just didn't want to take it down.
I don't know. That's weird. I think that's going to be a big issue there.
Home Inspection Checklist and Real Estate Tips
This segment is brought to you by the Home Inspection Checklist. If you're thinking about selling your house, download this checklist. Yes, I will follow up with you. It gives you an idea of what to put on your honey-do list before you put your house on Leave it at that.
And if you're watching this and you're a real estate agent, I use AIDA. AIDA is attention, desire, interest, and something else. But AIDA does all the funnel, the sales funnel, the sales collateral, the CRM, the follow-up, and all that other stuff. It alerts me when a new lead comes in. It's a great product to have, a service to have.
It's a CRM that does everything for you. And I know that. Of all the salespeople I've ever met, maybe one out of a hundred actually actively use their CRM every day. they live inside their CRM. What this does is it allows me to be outside meeting people, and talking to people. This does all the busy work, which is.
You're not making money when you're doing busy work. You're making money when you're shaking hands and talking to people and networking, all that other stuff.
What You Get for $1 Million in San Jose
What you get for a million dollars in San Jose, Santa Clara County. This is a nine-five one, one right 1, 260 square foot building in 1958.
Very bright and airy. See, this is what you get when you sell it as is. You could tell that the realtor took the photos. Been on the market for 25 days.
Market Inventory and Conclusion
Inventory And Supply Charts
And then nothing really crazy to talk about what the charts were still hovering at low inventory.
We need to be at about six months' supply to make it a buyer's market. We're nowhere near that. And here is your active number for months of inventory and an active number of units. And if it's several units, you need to be about 2000 for this county. And we're nowhere near it. We're nowhere near where we need to be.
And the same thing with months of inventory, which is red. We need to be at six months to make it a balanced market, but we need to be about six, to make it a buyer's market. And we haven't been there since 2008, 2009. And here's the same thing. Inventory needs to be about four months to make it a balanced market.
We just don't have the inventory because rates are too high. There are a lot of reasons I've talked about that before.
This article was brought to me by one of my agents, Steve Gold. I want to give him credit for that. So there you go. All right. I'm Vito with Abitano. Thanks for watching. Have a great weekend. 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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