"the new normal, bouncing around 5.5%-6.5%."

 


"the new normal, bouncing around 5.5%-6.5%."





 Market Forecast and Interest Rates

NAR Chief Economist Lawrence Yun Forecasts 9%

increase in Home Sales for 2025 and 13% for 2026, with Mortgage Rates Stabilizing Near 6%

NAR chief Lawrence Yoon forecasts a 9 percent increase next year and 13 percent for 26, as well as bouncing back and forth between five and a half and six and a half, averaging six for interest rates. This is important, guys because even if you're a homeowner or a renter, which all of us are, it's important to understand where the market's going.


Recession and Home Values


Are we going to head into a recession? However, we see a recession value and home values go up. Do we see that home prices actually decrease? And that was from 2008 to 2012, whatever that date was. It says 10 here, but it was from 2008 to 2012. We were in that recession, but every other time values went up even during COVID. If we do go into a recession your home values will most likely go up. It's an important thing to understand. 


Advice for Home Buyers


So if you're a home buyer and you're sitting on the fence thinking I'm just going to wait for a recession to happen. You're going to screw yourself. Now's the time to buy. We've been telling you that all year long. Get in and buy a house. Yes, things are changing. 


Current Market Changes


Things are changing rapidly with the NAR lawsuit, with the interest rates, with the election, and all this other stuff. Things are changing, but it still stays the same. That's why I say I don't care who the president is. People will still continue to buy houses continue to move for jobs for retirement or just get out of California because they don't like California people are going to continue to move it's going to consistently happen. The most important thing is That the new normal will be bouncing between 5. And that is something that I've been telling you for the last couple of years, since we were experiencing 2. 5, 3 percent interest rates back in 2020, and 2021 to get the economy going again. Value still kicked up. 


Bay Area Real Estate Insights


And the problem is we don't have enough supply, especially here in the Bay area, outside of the Bay area. I'm not concerned about it because it doesn't really sell there. This message is going to all of you in the Bay area. Should you sell and move? Do you need to sell and move? Do you have a parent who needs to be put into a care facility, and you have to offload that house? That's what we're here to do.


Client Stories and Market Timing


I have this buyer that I've been working with for three years he floats in and out, and every time he says, Hey, I think I want to buy something. The market starts cooking up again. So his timing is horrible, but that's just. That's life. If you bought three years ago, he would already have 100, 200, 300, 000 in equity, but he couldn't manage the deal in his head. Didn't make sense to him. Let that be a lesson to you we just got into contract on two, two, six, five. Miss Aaliyah, We had multiple offers that went well over asking.


I'm not going to disclose it until we close. This is an all-cash offer. This is a teardown. It's an almost 9,000-square-foot lot. Sold as property, even though it has a structure on it. We have to disclose all that stuff. This doesn't have utilities. It's beat up. It's old. This is the last house. In this area that was owned by one family. This was a family farm and over the last 50 years, they subdivided it. This is the last parcel. I'm happy for him.  


Property Highlight: San Jose REO

REO of the Week

This is REO of the week, San Jose's brand new listing, not my listing. It's on the East side of San Jose in the alum rock area. Look at this house. It's beautiful. 1. 6 million dollars. It's a brand-new bank-owned property. Four bedrooms, three baths, 2, 700 square feet, half an acre lot, and it's 25 years old. Let's take a look inside. Guys, this is a fantastic buy. This thing's going to sell for well over 1. maybe close to 1. 8. It's in the hills. There you go. 


Property Highlight: Apple House

Homes for sale near Apple

Bancon property Apple house of the week, 2. 3 million dollars. It's amazing when you think about where this is right by Apple campus, right? It's within walking distance to the Apple campus. It has three bedrooms, one and a half baths, 1, and 100 square feet. This was 2, 700 square feet and was built in 1950. 6, 900 square foot lot. 2. 3 versus 1. 6, 1. 7. Crazy, right? 

So what you're buying here is the value of the land because what people tend to do is take these old homes, tear them down, and just like what happened in Mazaglia, they subdivided this lot. It was originally like a quarter acre. 

It's this entire piece right here. They subdivided it, pulled the utilities out, and then built this McMansion. That's what they're going to do to this one, and that's probably what's going to happen to Hampton right here. Is it sad? Yeah, it is, but that's just the way it is. 

This is in the market in this village, in this little village that we live in called Silicon Valley. It's upward and onward, right? Our price is going to come down. It could, but I don't see how it will ever do that. 


This is Mountain View home of the week. 

Mountain View home of the week

And this is Castro Street right here. That's why I picked it because it's within walking distance of Castro. It's a two bedroom, two bath, 1400 square foot house built in 1938. And yeah, it's really nicely trimmed out. This is a nice higher-end house for what you get. You have a little loft upstairs. Pretty nice. 3 million. Crazy, right? It is what it is. 


Home Buyer's Checklist

FREE HOME BUYER CHECKLIST HERE https://abitanogroup.com/Homebuyerchecklist

Hey, this is what the home buyer's checklist looks like. It's easy for you to compare and contrast different houses as you go through. If it's landscaping, you can put some comments on there it gives you a more precise look at each house should you be there with the checklist going through everything? No, as you're driving from house 1 to house 2, you should be filling this in, because after 5 or 6 houses, you're going to be exhausted.

You're going to be done and you won't be able to remember which house doesn't have dual pane windows, which house doesn't have air conditioning, which house has cracks in the foundation, so this checklist right here is free for you to download and it's easy for you to print up as you go home shopping.


Market Report and Analysis


40 days on the market, we have 185 of them. These are 90 days on the market. We have 69 that are 90 days on the market. This one is beautiful, but I took a look at this one real quick and the reason why I decided not to make a big deal out of it is five acres, five bedrooms, this huge compound on top of a hill.

Let's take a look and see how long it would take you to get There in the middle of destiny. They're crazy, but it's a beautiful house. Beautiful, older houses built in 1985, but it has some old-world charm. This is definitely a compound. So if you're planning on, the zombie apocalypse coming, this is a perfect house to live in luxury as people are dying and killing each other. 


What am I saying?


Down in the Valley below. But yeah, there you go. This very 1980s needs some serious updates. This has been on the market for hundred, 237 days. And they reduced it from 2. 1 down to 1. 9. I bet if this is your style, you can get it for about one, five, one, six.

Home Inspection CHECKLIST HERE https://abitanogroup.com/homeinspectionchecklist

Home inspection checklist. Same thing. If you want to do your honey, do list. Here are the 40 days on mark the port, 185 homes on sale over 40 days. 69 of them have been on the market thee r 90 days or more. We have 79 Bankstown bank-owned, which is nothing. Compared to what it was in 2008, and 2009. Samand e thing with our California's.


We have 400 looks like they opened up the top a little bit for us, and we're still well below the numbers we need for supply, for homes, for sale in San Jose and Santa Clara County. This needs to be about 800 to 1200, really close to a thousand, and this needs to be closer to 2000. So that's why our prices will continue to go up.


The supply just is not there to make it a balanced market. And there's a little chart for you to look at based on these numbers that I put in here, just to give you a little bit of a visual. Yep, there you go. All right. 


Conclusion and Upcoming Events


That's it for now. Thanks for watching. I'm off to San Jose State to do my talk to veterans about the VA home loan process.


Have a great day. 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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