Homes are Taking Longer to Sell

 





Homes are Taking Longer to Sell


Introduction: Current Real Estate Market Overview

Homes are taking longer to sell. It's the fall. It's pretty normal. US commercial properties. Foreclosure rates are spiking. What does that mean to you? Time to register to vote. If you haven't voted or registered yet, get that done. REO of the week, homes of Apple or homes for sale around Apple, Mountain View home of the week, and the 40 days on the market report.

Let's get moving here. US commercial foreclosures spiked on September 24 with a significant year-over-year increase. This includes commercial property, apartments, and buildings. Anything over five units or more in residential is considered commercial. We're talking about strip malls.

We're talking about high-rise buildings. Everything foreclosures are spiking high. Are they as big as before? Not as big as in 2014, but they are spiking. Is this cyclical? Maybe. There's a whole reason behind it. It's because people bought into REITs and syndications for real estate, and they overbought based on what we call a proforma.

A proforma says, "This is what the current income is on this property because commercial is about income property, right?" You're a landlord, and you rent it out to tenants, whether they're businesses or individuals. The poor performer says the current rate says that the rent should be this per square foot or this for a three-bedroom apartment, so you should get it up there.

That means the current owner hasn't done their job in increasing rents, increasing value for those tenants,, and making everybody happy. So what they're doing is saying. Our high-rise building is worth 10 million more than what we think it's worth. And people willingly buy it because they say we can do it.
We can make those rents higher. We can make those improvements. That's typically how commercial property goes. What a lot of these REITs are doing is they go in and then they struggle to get rents up, especially in big apartments and all the commercial properties. Sometimes they do it, sometimes they don't, and it's a big risk.

So a REIT is basically a bunch of people throwing in 50, 000 up to 5 million into a REIT. that becomes a deposit or the down payment for a commercial loan. You get a bunch of people together, put a down payment on, and then you get a bank to finance it. Sometimes those REITs demand not only payment, either monthly, quarterly, or yearly, but they also have to provide capital for improvements and refinance.

Sometimes, they can't refinance because the market is withdrawing, which is why you're seeing foreclosures. 

Impact of Foreclosures on the Economy
I've been showing you this over the last few months. This is an issue for you. This could be one of the cards in the House of Cards that could collapse our economy, something to be aware of.
There's a lot of doomsday sayers out there, people that are saying the sky is falling, He's saying that the foreclosure market is going to start happening. However, this could be because the government and the policymakers are saying, let's just push this off.

Let's kick this can down the road, but home sale foreclosures are down. Foreclosure activity decreases in Q3 of 2024. Why is that? Is there a shadow inventory of nonperforming assets for these banks that they're not reporting 

Regional Foreclosure Trends


If you look regionally, the East Coast is fraught with some foreclosures.

Texas. I see a lot of reports On Texas facing a lot of foreclosures, especially in the Dallas Fort Worth area. You see a huge glut of inventory that's coming onto the market. Is this something where it's happening all over? I don't know. Is it something that could happen to us here in the Bay Area?

I don't know. We don't know that yet. That's behind the iron curtains and we just don't know what's going on, but it's something to be aware of. 

Home Buying and Selling Considerations
Are you ready to buy a house? Are you thinking about selling a house? Is this the right time? Or do you want to wait until after the elections to see what happens?

Is a recession really going to happen depends on who comes into office. We don't know. I'm not a fortune teller. So just understand that these are things that you have to be aware of. If you own a house, if you're thinking about buying a house or thinking about selling a house, they do affect you over the long term.
If you're thinking about buying a house, download this checklist. It allows you to look at five, six, seven houses at a time and compare and contrast each one so that when you go back at the end of looking at six houses, you forget which house had a brand new kitchen or which one needs a new kitchen, et cetera.

All right. So that's something you can do. 

Voting and Home Inspection Tips

Go out and vote. I'm not telling you which way to vote. Just something you have to do where citizens go out and vote. All of my family is registered to vote. 
All of my children are now over 18. My son, who's 21, almost 22, gets to vote for the first time It's pretty cool. I'm excited. A home inspection checklist. If you're thinking about selling your house, get this inspection checklist done, downloaded, checked off, and start your honey-do list.

Start doing some minor repairs so that when an inspector comes through, he sees a clean house. 

Essential Home Repair Disclosures

Always disclose what you've repaired in your house. Make sure that you go through that. With a fine-toothed comb get everything done so that the inspector gives you a clean report.

Don't do major repairs right now. I don't think it's necessary. 

Property Tour: Mantelli Drive



This is Mantelli Drive, not my listing. It's in Gilroy, five bedroom, three bath, 4, 000 square feet, built in 1997. Pool, 2. 8 million. Let's take a look at it.

I feel like I've been to this house before.

I love the blue carpets and the blue windows.

That's nice to have, especially on a super hot Gilroy day. No floor plan. REOs. Chapman. Is that right? No, we already looked at that one. I wanted to look at Vernice. Vernice. This is a bank-owned property, three bedroom, two bath, 1, 200 square feet, built in 1965. One million dollars. And it's in Park Pleasant.

Oh, the airport's over here. Okay. Let's take a quick look at it. This is going to be vacant. So it's nicely updated. It's not in perfect condition. You can paint it, but it looks like it's in decent condition. If you're looking for a relatively low-cost house, this is a good option for you.

I think it's priced right, especially for that area. And I think it's in good condition. Let's go take a look. 

Apple House of the Week
If you're interested, this is an apple house of the week, 3 million, not my listing four bedrooms, two baths, 1900 square feet built in 2024. Maybe it's completely redone.

Let's take a look. This is a really pretty house It's like a Rinconada house that was completely rebuilt to modern day accoutrement Nice blurred out tripod there.

Nice. This is nice. They did professional photos. I like that. And I love the fact that they have a floor plan. The floor plan really goes a long way. Because when people are looking at houses online, they want to know what the floor, the flow, and the house are before they look at it.

And this really helps you build an idea of what the value is of that house before you ever take a look at it. I just went and saw a house yesterday Matt is right here, did a video walkthrough for my client cause he lives down in San Diego and I did a video walkthrough, but it also has a floor plan and it's very nice because you can actually see what's on the inside.

He's looking for something with a side yard so he can park a trailer next to the house and I showed him on the video where it is. So floor plans are great, but sometimes you do have to get boots on the ground. 

Mountain View Home of the Week

This is Mountain View Home of the Week built in 1995. two bedroom, two and a half bath, 1, 258 square feet.

It is within walking distance of downtown Castro Street. This is a standard 90s, early 2000s floor plan. It's a nice house. One car garage, One day on the market.

Open house this weekend if you want to take a look. All right. 

Market Trends and Final Thoughts

And then the last thing is days on the market, 40 days on markets bumping up. So 90 days on the market and REOs are jumping up a little bit in, all of California.

San Jose. We have less inventory as well as Santa Clara proper and the closings have gone down except for Santa Clara went up a little bit. Here you go. That's it. Get your day on the run. Hope you have a great rest of your day.

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


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