These housing markets will feel the biggest impact from the ‘Silver Tsunami’
These housing markets will feel the biggest impact from the ‘Silver Tsunami’
Introduction to the Silver Tsunami
Which of these housing markets will feel the biggest impact from the silver tsunami? We'll also talk about list price reductions Los Gatos homes of the week and Santa Clara County highs and lows Let's get moving into this now.
Understanding the Silver Tsunami
What's the silver tsunami? Is anybody over 60? Aging out of their house and needing to empty nest down Shift gets into smaller-story homes, that kind of stuff.
I'm 55 and I have a two-story house and my daughter is, I would rather have a single-story house because going up and down will be dangerous when I get older, I just had an uncle pass away last week, a couple of weeks ago, and he has. They had a 7,000-square-foot mansion and he was struggling to get up and down the stairs to get to his bed.
Impact on Housing Market
So one in three homes owned by someone 60 or older, that kind of makes sense, right? But what's going to happen is Right now we're seeing about 700, 900, 000 homes hit the market because people are aging out, meaning they're empty nesting or passing on and selling the house and getting into a small condo or something.
Here's one thing that you have to realize. Now, as I go through this, these are the areas that are going to be the most impacted, just so you can see it. If you have parents living in that, you might want to talk to them about selling now rather than later, because once this hits, it's going to be a big splash and the market will get, overwhelmed and there'll be more supply than demand unless things shake out.
Now, this is. Three years from now, this is 13 years from now. And this is just speculation, but here's what you have to realize. Are you going to move into the house? Are you going to rent it completely up to you? How do you decide how to manage that home.
It could be a house you lived in. It could be the house that they moved up to and then no longer need But these areas are going to be hit pretty hard because. When you have 30 percent of the housing coming in from empty nesters, it's a different type of market. There'll be different types of buyers, right?
Deferred Maintenance and Buyer Expectations
Remember, when you have a house owned by somebody older, typically, not to pigeonhole them, but you're going to have deferred maintenance. You're going to have houses that don't need anymore, but also because they don't need it, they're probably not taking care of it.
The appliances are probably not working. Some of the switches might not be working, and might not be as clean as you need them to be. So just be aware that some things are going to need to be done. And the kitchen and the bathrooms. We talked about what people are looking for, and what buyers are looking for when it comes to buying a house.
Now they want curb appeal. They want new kitchens. They want new bathrooms, and they also want. Air conditioning and a lot of these houses probably don't have that. They probably don't have nice new kitchens or nice new bathrooms or the curb appeals off, or maybe they just said, I never needed air conditioning, but when you go to sell your house, have your realtor do a survey and find out if air conditioning is required.
It's a worthwhile investment, not saying you have to do it. Saying don't expect your house to sell for a premium price or the top price. If it's deferred maintenance, it's a little dirty and doesn't have a new kitchen new bathrooms, or air conditioning. So just keep that in mind.
There's going to be a huge rut of, younger people that can't afford these houses if they're completely turnkey and that's okay.
Selling Strategies for Older Homes
What I tell people is I give them a choice. We can sell your house as is, as it is right now. You're not going to get top dollar for it. I don't care either way.
We could put some money into it, bring my project manager into it, and then manage the whole thing, make it look nice and turnkey. We're doing that to a house right now, where the parent passed on. We're fixing up the house.
We're going to clean it. We're going to leave it just where it is. Now it's a beautiful house, doesn't really need a lot of work on it, just needs to be cleaned and cleaned out. They're doing it all themselves, right? They're just doing it yourself and I'm waiting for them to get ready to go and they're slowly moving along and they're bringing in a painter, one of my painters, so we're just massaging.
Current Market Trends and Price Reductions
This is good because right now we have a very tight inventory and most of the U. S. now is Salt Lake Austin and Florida and a lot of these places where people flock to, they're getting out saying this is not really for me.
I want to go back to California because that's what I like. I like being by the beach or what have you, whatever their reasons are. People are squeezing out, of where they decided to move. Austin is being impacted pretty hard because it was one of the top places people went to move to when they moved out of New York.
Those prices went up, and they skyrocketed. And what they realized is they didn't have Proposition 13 like we have in California where it protects you from huge price increases, which hurt the people who are retired.
And now it's worth it. It was worth 200, 000. So their taxes went up and then when this mass migration came in and affected all the home prices, now the assessed value is up to 500, 000. And somebody that was on a limited budget, now they have to pay taxes on that and they're getting squeezed out.
FREE HOME BUYER CHECKLIST HERE
So the good news is this will be an influx of inventory. That we desperately need. I think 2027 is a little too late. We need it now, but that's where we are. Okay. This episode is brought to you by the free home buyers checklist. If you're looking for a house, download this checklist. It allows you to go look at three, four, five, or six houses at a time and compare and contrast the kitchen and the windows and the air conditioning and all the different parts of a house.
So you don't get mixed up. It's just a little checklist. Say, is it new, good, fair, poor, that kind of stuff? So you can remember when you're going back a couple of days later, and it's hard to remember house one from house three. And that's what this checklist allows you to do.
Santa Clara County High's and Low's
Santa Clara County Real Estate Insights
We've had 164 price reductions in Santa Clara County. This one just caught my eye because it's in nine, five, one, three, and sixth, which is Blossom Valley still. And I think this is a really nice-looking house. When you overpriced the house, the original list price is one seven. Now it's one six. Why is it so expensive?
A couple of weeks ago we had news reports saying that the median sales price in Santa Clara County. Is 2 million. So why shouldn't I be able to sell my house for 2 million? The area depends on the area where you live. Now this is on the East side of 87 and that's the delineation mark of haves and have-nots.
And if you don't have a. bunch of money. You really can't afford to pay over 2 million. So houses on the east side of 87, let's get over here. I can show you this. It's actually quite smart to look at it this way. Anything on this side of 87, they're going to be pretty much 2 million. Anything on this side, you're still under 2 million.
So median sales price has nothing to do with it. What the houses go for in your specific target area. You have to be very careful about pricing it. And when you price it over a hundred thousand dollars, and quite frankly, this should have been listed at 1. 5 and let the buyers bid it up. However, we're seeing more, and I want to say we're about 10 percent of the houses.
That is listed right now because we're about 1080, I think, listed active 1080 homes for sale in Santa Clara, and this is just a little bit over 10%. So going back to landfare. That's a pretty house. It's overpriced. You're seeing a lot more houses here and guys, if you're struggling to get into a house and you're like, I just keep getting overbid.
These are great houses for you to look at because you won't have to go through the whole bidding aspect, right? Remember real estate is like little league soccer. Everybody starts out playing the position and when the ball gets put into that little area, like right here, all the kids run over here and then the ball gets kicked over here and all the kids run over here.
When you look at new houses on the market, there's always a huge influx of people looking at them. If it goes over 10, 15, or 20 days, there's not going to be as much volume of people coming through. They've already picked through that house and they've already compared that house because they've used my checklist and they decided they don't want that house.
For that price. Because when they're looking at five different houses and about the same square footage and about the same bedroom count, and they're looking at your house compared to four other houses and you don't have a new kitchen, you don't have a new bathroom, you don't have a nice curb appeal, you don't have air conditioning.
And then the other four houses have brand new everything. They're going to go to those houses first. So I'm not trying to be a hole. I'm just telling you that's just human nature and buyers are smart. They know they have a lot to pick from, but they're going to go and buy the house they feel is the best value.
And if you overprice it by a hundred thousand or 200, 000, your house is going to sit on the market. So let's get back to Landfair, which is this guy right here. It's been on the market for 39 days. You should have had that thing listed at 1. 5 and let buyers come in and decide what that house is sold for.
Every agent will tell you the same thing, right? The magic happens in project management, marketing, and negotiation. If you want a pit bull, you hire me. I am not nice to other agents. They know that I don't lie. I don't cheat. I'm hard, but I'm fair. And they know that when they come up against me and they negotiate, I tell them, this is how it is.
Don't play any stupid games. This is what we're looking at. This is what you need to be. It's a nice house. It's overpriced.
Los Gatos House of the Week, Woodland Ave. Again, this is not my listing. Wish it was.
It's a pretty house and it's within walking distance to downtown. It's been on the market for 24 days. Three bedroom, two and a half bath, 1, 900 square feet. The only negative thing is it's 2, 700 square feet, which is really small. And I like it because it's brand spanking new.
So this is almost like townhouse living to me. Everything feels like a townhouse, even though it's a single-family house. I tend to stay away from townhouses and condos, mostly because I don't agree with the whole concept of an HOA. I just don't like pushing buyers into condos.
And the reason why is that they have no control of the HOA outside of their land. Yeah, the positive thing is that the landscape and the roads and everything are taken care of. So it's less maintenance, but a lot of times you're seeing houses now with 600, 700 a month for HOAs, and that's just run away.
There's no control. There's no regulation. So there you go.
Highs and Lows of Santa Clara County
Highs and lows. Magdalena Road, Los Altos Hills is the highest sold home in Santa Clara County, four bedroom, three and a half baths, 3, 500 with,
an AP, an ADU, but it doesn't say how big the ADU is. So I don't know about that. This is sold. They took the pictures off. There are some maintenance issues with this house too.
So it's not completely updated. But still almost 8 million. This is the lowest-priced home in Santa Clara County. And that was in San Martin
values in the land. It's 30 million, five bedrooms, six and a half baths. We've already seen this once before.
It's been around for a while. And Loma Chiquita, the compound, it's been on the market for 193 days. Now it comes and goes guys. If you want a compound, you want to live off the grid, some rustic living. There you go. That's what it's all about right there. Look at that. Oh yeah. That's how you sell houses. There you go.
Again, all of these listings, all these data, all the pictures are all in my blog and you can come to it anytime you want.
Conclusion and Personal Note
The reason why you might notice that I'm actually recording this on Monday, leaving. Tomorrow to go help my son move from one apartment to the next. He's up in Chico getting his degree and he just wants to move into a bedroom, not rent an apartment with another guy.
If you have any questions or what have you, please feel free to let me know. I'm Vito with Avatano. We'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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