Commercial Real Estate Foreclosure boom

 

youtube

blog

podcast

Introduction: Real Estate Market Overview Commercial real estate crashing. Bankruptcies on the rise, unemployment. There are people I know who have been unemployed for two years. Today, we will talk about Los Gatos home of the week, list price reductions, home inspections, and the highs and lows of the week.

Commercial Real Estate Foreclosure boom

Commercial Real Estate Crisis commercial real estate is crashing all around us and we're not discussing it in the media. Nobody's talking about it. A few good souls are coming out and saying, Hey, this is really what's happening. And the reason why I want you to be aware of this is because it could affect you. Remember the whole economy is stacked on a house of cards and one little thing could disrupt the industry. The automotive industry is stacked up. Economic Indicators and Personal Impact Days on the market. They're going forever. New cars are not selling the way they're expecting them to, the stock market. I don't know why it's still going, Am I saying that I 'mash bro? I don't think I'm a crash bro. I'm sitting back watching, giving you the information so you can make that decision, right? I'm not here to tell you which way's up or which way's down, who to vote for, or whatever. I've never been that person, but I want you to be educated on all the different aspects that could affect you. If you own a house or you're thinking about buying a house or you're a renter, this all affects you no matter how you look at it. Case Studies of Real Estate Failures

So this guy goes on and he's been telling us for the last couple of weeks now that multiple hundred million dollar investment schemes, real estate investment trusts, syndications, et cetera, are losing their ass on commercial property. This guy right here, this one happens to be in Indianapolis and they overbuilt an apartment unit, for a hundred million dollars. And now there it's on foreclosure. So I'll bet you anything it sells for 10 to 20 million. We'll see what happens. But if you look at this guy, he has a ton of different, all of these right here. This is Copper Creek. Riverside Ranch, Texas seems to be happening a lot in Texas right now, right? That's probably cause that's where he lives, but he also showed me one lake forest that's in LA there's class a office space in New Jersey. And it's right here, a 45 percent discount. This is the one that we just saw in San Diego, 82 apartments, 1200 units, San Francisco. Let's take a look at this one. Those numbers, 678 million apartment notes, 615 million. So that one goes into foreclosure. That's going to be devastating to them, to the whole economy. This is your stack of cards, your deck of cards that is your house of cards that are looking to fall. And I'm not saying this is going to be the trigger point, the tipping point could be just be aware of it. Insights from Industry Experts Bankruptcies are in high gear.

Bankruptcy Cycle In ‘High Gear’ | DiMartino

I've been watching this for a couple of days. If you don't know who this lady is, Daniel DeMartino Booth, was a former fed employee. And now she's like a whistleblower inside She's just telling us what it is. She has an opinion. I don't give opinions, but the idea here is. The feds are lying to you. Period. That's the way I see it. The feds are telling you that inflation is coming down, but it really sucks because I'm still paying 15 for a sandwich at Togo's. I'm still paying 5 a gallon for gas, other than my Safeway over there is under 4 right now. That's great. That's awesome. I can tell you that the employment numbers that the governments are reporting. I don't think that's truthful because there are a lot of people I know who are underemployed or unemployed or so stressed because they're overburdened because they don't have enough employees for what they're doing. Everybody I talked to. There's a bunch of smoke and mirrors happening here. So again, I would tell you, take 25 minutes on the way to work or back home today, take your time and watch this, or listen to it on your way back. Be aware of what's going on and don't listen to the news. The news isn't correct. They're propaganda and I don't care what side it is. It's all propaganda. All right.

Los Gatos Home of the Week

Los Gatos Home of the Week Los Gatos home of the week. And I had to do this cause you know, it's awesome. 10 bedroom, seven and one-half baths, 1. 3 acres, 13, 000 square foot home. This is not my listing. It's in the Las Gatos Montessorino area. And let's take a look at it real quick. They're not going to be able to do that today. Let's see if this one pops up. But again, we have it on my blog, so you can take a look at it. 8 million total remodel. Truly reflective of enormous European luxury as a state. It says 1. 37 here and it says 1. 38. So I don't know, but you get everything you need. A pool, tennis court, in-law unit there, an ADU, there's your garage, everything you need. Let's go get it. Come on. It's only 20 million. Ridiculous. Okay.

Price Reductions

Price Reductions and Market Trends This is a price reduction. We had, I think 182 price reductions. So it popped up slowly going up, but that's because the inventory is slowly going up again, nothing super bad to worry about when it gets to 25%, then I'll worry about it. But I don't think price reductions are a rule of thumb or something to be aware of right now or be cautious about this one on Snell Avenue. Now Snell Avenue, if you don't know, is a busy street. It's a main thoroughfare. And when you sell a house on that, you have to attract the market. This one was listed way too high. It's a four bedroom, two bath. Sure. It looks nice inside. Can't take a look because my bandwidth just isn't supporting it. But let's see, it's 53 years old on the market, 28 days. It dropped 8, 000 guys. If I was going to list this, I have a listing coming up right now. And it's right on a busy street. It doesn't face a busy street. my attitude is let's list it low and see what the market brings. I'm going to say, we're going to list it around 1. 5, and hopefully, we'll get 1. 9, but all the other houses, which are inside the neighborhood. Are getting 1. 95 to 2 million. So when you have a house on a busy street, that's functionally obsolete, something that people do not want. You have to give them a reason to want to buy it. Now, if it's inside and completely beautiful, completely turnkey and gorgeous inside attract them and buyers will tell you what they're willing to pay. That's how it is. That's how it's always been. And when it's a market and you're getting 25 offers and 400, 000 over list price, that's something you don't have to worry about. But today we're in a different market. It's still a seller's market. But buyers have a little bit more choice, even though inventory is low, they'll be nitpicky they'll wait a couple of weeks or a couple of months to find the house that matches them. Plug in this at 1. 38. And everything around there is 1. Let's see. This is smell right here, right? Like this one's right off the freeway. This one's right on the freeway. This one's on Blossom Hill, right? I would rather have this house. Why? Because you're going to get traffic noise from Blossom Hill, but this is right on the street. This one right here, this is Paula Mesa. This is one of the newer homes over there. And this one right here is on Comanche, but it's, right off of Blossom Hill. So again, you get freeway noise. It's going to detract from the value of your house. So when you price it accordingly. Take a look at this one, Bernal. If Bernal, Bernal is a major street. But you're still backed away. So you're not getting, you're still, you still get a little bit. This one should have sold 1. 4, but I think what it is that they sold it way too, listed it way too high. I would have gone 1. 3, 1. 25 and brought the market in, not have to wait 78 days. So there you go.

Home Inspection CHECKLIST HERE

Home Inspection Checklist This episode is brought to you by the home inspection checklist. Think about selling your house. This does not take over the idea of what a professional inspector does, but it'll give you an idea of what inspectors will look at, and then you can fix them up and again, disclose it right. Talks about landscaping, house structure, interior house, window doors, trim, attic, interior, kitchen, bathroom, appliances, plumbing, et cetera.

FREE HOME BUYER CHECKLIST HERE

It gives you everything you need so you can walk through it. And when the inspector comes through, you can give that to them or you can have already fixed it, send it out to a handyman, or do the honey-do list and get that all fixed up for you.

Santa Clara County High's and Low's

Market Statistics and Final Thoughts The highest sole price is 8. 4 million at 93%, 94 percent of the list price guys. The lowest sale price is, that was 440, 000 or something. Yeah. 440, 000 I think it was. And then that came in at 70 percent and then these two have been for sale for the longest time we have. We have almost 1100 homes for sale, single-family homes for sale in Santa Clara County. Of that, 182 have price reductions, which means almost 20%. Again, I would start worrying about this when we get to 25%. Or close to it, but it's not something we have to worry about. This isn't really an indicator of the market. It's an indicator of sellers. They think their house is worth more than what the market is willing to accept. Period. And when your house is on the market for 78 days your agent's done everything that they could, and the price is still high and your house still hasn't sold, you have one thing to tell you. Price. It's not a location. It's condition, market, and price. There you go. All right. Conclusion and Sign-Off That's it for now. Three more days to go to the weekend guys. I know it's Tuesday, so I didn't really count today. So really four days, but there you go. I'm Vito with Apotano. Thanks for watching. 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

Silver Tsunami, home staging kitchen, Cost Of Living Calculator, Fraud, Homebuyer workshop, Bay Area housing stats, Veteran Home, the best time of the year to buy a house, Bay Area Luxury homes, next housing crash prediction, housing market projections, Should I Buy A House Now Or Wait?, should I buy a house now or wait until 2024, Why You'll Regret Buying A House in 2024, Housing Market 2024: 5 Options If You Regret Buying a Home, when will the housing market crash again