Fed won't wait to cut interest rates until inflation rate hits 2%
Fed won't wait to cut interest rates until the inflation rate hits 2%
Introduction and Overview
It looks like rates are going to come down, even if inflation doesn't go down by 2%. We'll talk about that and Apple Home for the Week, Mountain View Home of the Week, Distressed Home of the Week, and a survey of how much Americans need, and feel they need to earn for them to feel comfortable. And then a quick rundown on what's going on in the market.
All right, let's get moving here.
Real Estate Market Insights
Feds won't cut rates, cut interest, or won't wait to cut interest. I don't think they can. The market's slowing down enough that they can drop it and still provide. The volume of sales that are coming in.
This is from a real estate perspective, right? Now this also goes into business banking and credit cards and auto loans and all sorts of stuff. So understand that this is a perspective from real estate, right? We need the rates to come down just a little bit to bring in more buyers.
every percent, the rate goes down. We bring in 800, 000 new buyers or 80, 000 new buyers or something like that. I don't think it's going to go down a whole percent. I don't, I think it's just going to come down because if it went down that much values would go up and affordability would go out the door even further.
And right now we're dealing with houses. Here in Silicon Valley, they're two, three, four, or 5 million as a regular house. What does this mean to the average American? It's going to be less and less affordable. And unfortunately, there's nothing I can do about it.
And there's nothing the politicians can do about it. They already lit the fire on the keg that was going to explode the ship. There's inflation is just not going to come down. The rate of inflation will come down. Okay. That makes sense. So enjoy eating those 15 sandwiches at fast food restaurants. It's not going to go away.
Just not, I don't know what to tell you. I did see the other day that there's gas available. I want to say, Aborn and King, Aborn and Tully in that area. I saw gas below 4 and I think it was a gimmick, but I had to go take a look anyway. But yeah, it was under 4. Pretty cool. So inflation. The rate of inflation is going to come down. I don't think it will, but it's not like we're going to go into a depression or deflation where now we're not paying 15 for a gallon. Sorry for the sandwich. We might pay 10. That's not how that works. When we have deflation, the value of your dollar becomes less and less as well.
Anyway, let's get into this.
Apple Home of the Week
This is an Apple house of the week. And this is, you can brag to your friends that you're living in the Hamptons or on Hampton Drive, depending on what you want. And if you want a nice, basic home without a backyard and very old cabinets and Ooh, new flooring, gray flooring.
You guys, I don't know if you caught how much this thing was, but this is a flat roof, right? This is a flat-roof house. It looks like they took out the garage and made it into a garage to make it a three-bedroom, but it's 2. 4 million. Let's see how long it's been on the market. 55 days. Oh, my house is worth 2.
4 million because I have the square footage. Guys, buyers going to look at all the other houses in that area and compare it. This is Hampton right here. And look at this one right here. Eleanor. That's a decent-looking house, but 3. 4 million, 3. 9, 2. 6. Why are these going for so much, so expensive? Because right here, that's where Apple headquarters is.
Let's take a look at Hudson. Say, I would rather pay 2. 1 for a four bedroom, two bath, 1300 square feet. It's right next to Homestead High School. I can have my kids walk to school. So what would you rather have? Hudson living on the Hudson or living on the Hamptons. If you were in New York, it'd be a totally different story, but this house is 10 times better than New. I love the rich old oak flooring. Looks like it was redone. Let's take a look at the kitchen. It was, that's the original kitchen, but they put countertops on it. I like that look and feel. Let's look so much better than a cruddy old thing.
There you go. It's a little dated but you know what that'll work. Let's take a look and see how long Hudson's been on the market Six days 2. 1 million dollars and it's right by Kaiser Permanente I want to say I guess it's Cupertino High School would be we're here somewhere. Okay, There you go.
Mountain View Home of the Week
Mountain View home of the week. This one is really close to Castro Street right here. There are fewer and fewer pickings, but this one's a poultry. Anemic 3. 3 million for a three bedroom, one bath, 3, 100 square feet built in 1952. Let's see if there's a better picture because it looks completely overgrown.
Remember we talk about curb appeal guys. If you're asking 3. 3 million, spend a couple thousand dollars to have your trees trimmed up, because this looks like hell. The
The problem is it's still probably going to sell. Look, and look at, you could take a look at this gutter or nonexistent gutter. The fascia needs to be done. This guy's asking for a premium, mostly probably because it's like a big lot. It looks like a big lot and a big property. It looks like a farm lot. So yeah, there you go.
Let's see how long this one's been on the market. Six days. I'm going to keep an eye on this guy right here.
Distressed Home of the Week
REO of the week. Another total beater. It's affordable guys. Salinas. look at that. Awesome. The roof needs to be redone. Need to trim everything down. This is bank-owned. The bank repossessed this house. Three bedroom, two bath, 1, 356 square feet, 1. 4 acres. The value is in the land guys.
Let's take a look at where it is compared to everything else. Hey, it's affordable. What can I tell you? An affordable, fixer-upper, All right.
Financial Security Survey
A survey here says the average American feels they need to earn over 186, 000 a year, just to live comfortably across the United States. rising feelings of financial insecurity, just one in four, 25 percent of Americans are completely financially secure down from 28 percent in 2023, whereas 72 percent of Americans indicated they were not completely financially secure in 2023 comfortably on average feel they need to make over 186, 000 to feel comfortable, not to be rich.
They need to make over $520,000 a year to feel comfortable. And just a year ago, that was 483. Talk about inflation. Even the rich are feeling it.
How many Americans make over a hundred thousand dollars a year? It's less than 5%. Think about it that way. Americans' levels of financial security are declining. I am not completely financially secure, but I will be one day. That's great. I am completely financially secure.
few adults are making enough to feel comfortable. Highly likely. 16 percent of Americans feel that they're making enough money to feel comfortable. 16%. Yep. And yet we have houses flying off the shelf at two and 3 million, right? I don't want to tell you there. Okay.
Market Trends and Analysis
Let's take a quick look at this right here.
40 days on the market has jumped up. Slightly. this is a two-week stint, but it's still climbing just like it has been nothing to be concerned about just yet. 90 days on the market, still hovering about 30, 30, 40 bank owns properties are in the Bay area is 81, which again, it's not jumping anywhere.
Three, or five weeks ago, it looks like it was at 81 again. And REO in all of California was 170. Again, nothing really to worry about because even back in April, we were looking at 170. Anyway, we have 518 homes for sale right now, single-family homes for sale in San Jose. We needed to be at a thousand to make it a balanced market, which is why prices are holding still.
Even if the economy collapsed yesterday or tomorrow, this would take a while for this to correct itself in Santa Clara County, in the Bay area. Napa Valley is seeing 98 cents on the dollar. Whereas San Francisco is seeing a dollar 10 on the dollar.
So if you're buying a house, expect to pay 10 percent over in San Francisco, in Santa Clara County, it's 8 percent in Napa. It's 98%. Same thing with Hollister, San Benito County. San Benito County, you're looking at 98 cents on the dollar.
Napa is the best place. 97%, and it's affordable, right? Compared to Santa Clara County. So there you go. Santa Clara County, we have 1100 homes for sale. We need 2000 to make it a balanced market. Tell you if it gets close, but it seems like it's shrinking.
I don't think we're going to see that go up anytime soon. And the pending and close are pretty nominal. There you go. All right.
Conclusion and Viewer Engagement
Hope this is helpful. This is always fun for me to do cause it helps me generate numbers when I'm on the street talking to people. if you have any questions, or you want to learn more about something specific, or something that I'm not covering, please let me know.
I'm happy to help you out. I'm Vito with Abitano. Thanks for watching. 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
Comments
Post a Comment