Election 2024: Homebuyers Waiting for Results Could Finally Come Off the Sidelines

 



Election 2024: Homebuyers Waiting for Results Could Finally Come Off the Sidelines




Introduction and Overview


Election 2024 homebuyers waiting for results could finally come off the sidelines. You're probably not okay. We'll talk about that as well as what else last gatos home of the week list price productions and This week's highs and lows. Let's get moving.  


Market Trends: Highs and Lows

Santa Clara County High's and Low's

Let's knock these out highs and lows I created a little list here for you so you can see The last few months of closes. I just looked at it Thought I'd grab these, close, and see where we are. If you look at the median, it's probably around one 52, one 53. The average is about there.

I should go back like 10, or 15 years to compare it. When we had the firestorm, we were looking at 300, or 400 closes a week. But the supply was there the demand was there our supply right now is so low that it doesn't matter how many homes are being sold. We're still at 0.7 months. So less than a month of inventory. If we closed off the spigot and stopped putting new houses on the market. Our inventory would pretty much go to zero in less than a month, because the demand is still there in the Silicon Valley, in Santa Clara County, in San Mateo County, in Alameda, and, all over the Bay Area.

Rates have gone up commensurate to the amount of supply that we have currently. And here's the problem. If you have a two-and-a-half or 3 percent loan, you're hard-pressed to move. If you're facing a 7%. Interest rate That's a major part of why Our inventory is so low if it dropped down to four percent the market would open up Prices would go sky high because demand would come back in the people who bought a house in desperation during 2020 2021 They're not in their forever home.

And if they could Their druthers would be to move into a home that they love their fairy tale princess castle. A lot of them are making do because they're holding on to that low interest rate, low monthly payment. 


Featured Listings: High-End and Affordable Homes

Price Reductions



Highs in this week were, let's see if I can get these for you. The Tevis Place is not my listing. Look at this gorgeous castle. 139 days on the market, sold for roughly 101.6 million less than the original sales price. This is what I'm talking about when we're making markets. If you're a market maker, you have a 5 bedroom, 6 and 2 half bath, 5400 square foot mansion, and you don't care if you sell it or not.



And it's not going to kill you if you sell it for 14 or 15 million, you could be a market maker, right? Conversely, which is the other active, One is an attached home on East Edmondson Road. This is half of a property listed at 745 sold for 565 and it took 33 days.

It's a two bedroom, two bath. These are basically duplexes that were chopped up into two different parcels and sold individually, which in my mind is just silly why they would ever do that. These are meant for. Rentals, but it's affordable pricing. 500, 000 in Santa Clara County is hard to come by for a single-family home, even though it's attached.

Let's take a look at these pictures.

Ooh, they put a new refrigerator in there. That's nice. But they still have the old 1980s cabinets. All right. So there you go. And then let's see, the activities are the same. Look, Loma Chiquita is the same one that's been around for almost a year now. It's the lowest-priced home actively for sale this one right here, La Vida Real, is still on the market. This is a Santa Clara County, One 39. 9 million. It's going to be around for a while. If this Tevis place in Palo Alto has anything in common with the other one that I just showed you, it's going to take about five, or six months to sell. There you go.

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Los Gatos Home of the Week

Los Gatos Home of the Week.

Los Gatos is the home of the week. I want to compare and contrast two different homes. Okay, and just sit with me here. We're going to look at Los Cerritos. Again, it's not my listing, nor is this Cypress Way. This one is 4.3 million, right? This one is 6,600 square feet.

This one has four bedrooms, four baths, and 3,000 square feet. Still huge, right? Five bed, five bath, four bed, four bath. This one here was built in 1973 and this one is brand new. Now let's go look at Los Cerritos real quick, and take a look at the quality of this house, and the upgrades, On the outside it's meh, not super estate looking, but inside it's gorgeous. I can guarantee you that the other one, Brand Spankin New, is going to look just like this on the inside. So really, when you're looking at homes, you're looking at flow, upgrades, look and feel the style. Like the little under-the-toe kick, lighting, whatever.

Looks like everything in here was gutted at one time, but no floors or walls were moved. So you have a nice Thing now this is expected right, especially at 5. 6 million dollars, but then you look at the outside It's drab and dreary And you're on a hill in here. It looks nice. This looks nice, but there's no landscaping, right?

I don't know. And then let's look at the other one for bedroom four bath.

Okay, I'm going to make it difficult for me. Everything is modern. Everything looks new, just like the last one we saw. The view, the railing, the exterior, the elevation, the landscaping, even though it's smaller. The landscaping is designed to be modern, right? So I don't know, which one would you buy? You let me know.  


Election Impact on Real Estate

Oh, buyers waiting for the results could finally come off the sidelines. Now, I don't know who you voted for. My daughters and my son got to vote for the first time this year. My imperative to them was to vote with their heart, vote with their brain I will never tell anybody who to vote for. Election hesitation might be a real thing, but I don't think it really affects the market that much because as we're seeing houses are still selling, especially here, maybe in the Midwest, maybe in Fresno or, Modesto or Sacramento. Still, here we have Such a low inventory and the man is pretty steady.

I don't think it matters. So if you'reTrumpsterter or a Harris, whatever, I don't care. It doesn't matter to me. I don't think they're going to affect mortgage rates, the market, or what have you, they might stick a big iron rod into the cogs and screw things up.

It's always possible, but the feds could do that too, The only thing is they're scapegoats. If something happens and the economy falls, it's their fault. So Lawrence Yoon is the NAR's chief economist. He says home buying is clearly a major decision and we know the country is in a polarized state.

Maybe people are just waiting to see the results of the election. Yesterday I told you about the lady looking to buy something in Idaho. She's underwhelmed. I don't like what I see out there for the value. And I'm just going to wait.

Here's the problem, right? Let's say that rates do go down to five and a half percent. Cause that's our research parody. If to bring people, more people into the market, we're thinking five and a half percent would Bring sellers to the market as well as buyers Five and a half percent.

Probably not going to see 4 percent for a long time, but who knows if we went down to five and a half percent, more sellers would enter the market, but a whole lot more buyers would enter the market, which would drive prices up. If there's a federal mandate to do the 25, 000 thing for first-time homebuyers. I don't see that as a value to anybody except for the seller.

Because what's going to happen is it's going to artificially increase the price of homes 25, 000. If you did that, it would be a further burden on our financial structure within the economy meaning we're printing more money, which would mean we would realize inflation and Congress or the Senate has to agree to it and pass it.

These are just wild hair and hair of the goat promises that they're just saying just to get your vote. So you vote with your conscience. Will there bepost-electionion home sale bump? Yeah, probably there'll be some people coming back into the market, but here's the thing. It's also the winter's historically slower than the summer. And our summer was pathetic because the rates were so high. We're not going to see what we saw in 2021 when we saw a firestorm, right?

We're just not going to see that until rates come down. Yeah, I think it's, a smoke screen. I think it's just a reason for fence-sitting home buyers to remain on the fence. That's my opinion. So afterward we might see a bump up.

We only have 900 active listings for sale. And of those 197 of them have come down. That's roughly 20%. It's 22%. If this continues as a trend and we see these numbers getting larger, I don't see them getting like a hockey stick.

I'm talking about 25-35 percent in reductions. I don't think we're having anything to worry about. I started tracking this in the summer we saw 9%, and 10 percent but we're in a slow time. I don't think it's a big deal right now. 

Thanks for watching. I'm Vito with Abitano. 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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