New Home Sales Drop 10.5%. Should You Care? | Santa Clara County High's and Low's

 




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New Home Sales Dropped 10.5%. Should You Care? 

Introduction: New Home Sales Drop

New home sales dropped 10 and a half percent. Why should you care? Let's jump into that real quick. 

Understanding the Market Trends Census Bureau released new home sales data for January this week. It was winter. Winter things slow down. 10. 5 percent is nothing. Look at this chart right here, right? 


Regional Housing Issues


The problem with new home sales is we're not building enough homes for the population growth, and it doesn't matter where you are. You can be in Nevada. You can be in Missouri. You can be in Ohio You can be in Florida.


Florida is different right now because it's overpriced, and there's an insurance issue going on there. The same goes for Texas. Some issues are going on, and California is soon to be hit. Not necessarily in Silicon Valley, but because of our insurance rates, we're going to see major price adjustments.


If you live in high fire zones, I've just been to a few different houses where they're in the high moderately high, and very high zones and insurance will not carry it. That means you have to go to the California fair plan, which means it's three or four times more than normal insurance because of the high fire risk.


We'll go into that in a second. New home sales. 


Seasonal Sales Fluctuations


Home sales are lower than last month. It was from December to January. Everything ticks down until March when we start taking back up. So that's totally normal. This is absolutely normal. There's nothing to worry about here.


Even if the data were error-free Cause that's what statisticians do to make themselves important.


Houses will continue to sell. They continue to sell. In Sacramento. Things have slowed down a little bit, but that's just because prices are still high, 


Interest Rates and Economic Predictions


The interest rates. I saw a report yesterday that rates are subject to coming down this year.


We're at seven and change right now and we're thinking that it might come down. We've been telling you this, it might come down for a long time. We don't know when it's going to come down. That's totally up to the feds and all the little sorcerers up in, fed land that'll tell us exactly what's happening here.


Will it come down? I'd love that to happen, but I think what we need to have happen first is a recession to help promote that into lowering the rates. Some say that we're already in a recession. Some already say that we've hit the downward tick in our economy. Those are crash bros. Those guys are coming out.


I don't know what's going to happen. 


Home Pricing Strategies


It doesn't matter when you sell your house. It doesn't matter when you buy your house. You could buy a house for a million dollars and it goes down to 500, 000 tomorrow. In time it will come back to normal. Some might say they are, in Florida, in DC, in Texas. Absolutely. In the Central Valley. Yes. Absolutely. Central Valley, California. Prices are artificially high, but demand will decide if it's too high or not. If your house doesn't sell in days, then you should do a price. Adjustment, which is a reduction, Going up is just fruitless. And if you say you don't have to sell, don't waste the realtors. Seriously. If you don't have to sell and you have the mindset of I'm only going to sell at this price, don't waste the realtor's time. Don't waste your time. Don't waste the energy behind it because your house will sell.


But for what buyers determine your price is worth, your house is worth, right? And if you price it high, the house is going to sit on the market for a bit. And that means you're going to get a lower offer. Talk about that in Los Gatos here in a second. So do you have anything to worry about? Not for home sales. I think what you're seeing is just a seasonal tick. That's all we're really worried about. 


Home Inspection Checklist

If you're thinking about selling your house, download this home inspection checklist. Thiss will get you started on your honey-do list and in no way should this ever be replaced Your home inspection is a third-party professional that you pay to point out imperfections of your house.


No house is perfect. You're going to have cracks. Things in the baseboard. You're going to have broken dishwashers. You're going to, I'm just thinking about my house right now. You're going to have popped tiles.


You're going to have cracks in the grout. You're going to have certain things that just will stand out. You're going to have burnt-out plugs. You're going to have a ceiling fan that doesn't work or wobbles or what have you. If you want to get it fixed. Great. If you don't just disclose it. Enough said.


That's what my home inspection checklist looks like. There you go. 

Los Gatos Home of the Week

Los Gatos Home of the Week

Los Gatos home of the week. This is under 2 million new listings. Not my listing. Creekside village, three bedroom, two and a half bath, 1500 square feet. Built in 2005. This is what it looks like, but let's take a look and see what it really looks like.


It looks like a row house. I'm not even sure what style of house this is. I did sell something like this in Gilroy a while back exactly the same floor plan. Feels like


Not for 2 million and it has a nice pool in the backyard. Your whole backyard. There's a little bit of grass for your dog, so it's nice. The little clubhouse there. Let's take a look and see if there is an HOA here. Yep. 270 a month. And the reason why I chose it was it's semi-close to downtown. It's right along the Creek. You can jump onto the Creek and go down to Vasona or go up to the lake. Totally up to you. So it might be a good buy for you.



Santa Clara County Price Reductions 

Price reductions. We have 108, I believe, so far this week. Suisse Drive, which is right down the street. This one does not back against Santa Teresa High School. This is 1. 7 million. 1. 899, I think. 1. 899. And 4 bedroom, 3 bath. Has some kind of funky thing over here. Not sure why they just didn't extend the rooms out, but that's how they did it.

Back in 1966. 2274 square feet. And here you go. It does back up against Santa Teresa. So understand that if you do buy this house, you are going to be seeing lights from the football field. You're going to be hearing the band play over the summer. So remember what I say about location.


If your house backs up into a high school, you're going to have high school noises. I don't mind it. My kids are in the band, One girl's a flag girl. One girl's the band minor I love the people I hang out with there and it's a fun thing, but I would never buy a house that backs up into high school.


There you go. 



Santa Clara County High's and Low's

Highs and Lows in the Market

Highs and lows. This is the highest-sold house in Santa Clara County this week. Not my listing, six bedrooms, four and two half baths, 5, 000 square feet, and a very small hunk of land. Started off at 12, 555. Days later, it sold for 11, 000.


They didn't care how long it took to sell this house. They decided I was going to take this price and I was going to wait for the right buyer to come along.


And almost six months later, they sold the house at 94 percent of that list price. It's a market maker. When you're talking about standard track homes, you really don't have that option unless your house is an architectural delight and has brand-new decor, doesn't have any cracked tiles, and doesn't have 1990s red cherry cabinets.


So this house feels brand new, right? When was it built? 2015. It's nine years old and in great shape. It's a beautiful house. So let's take a look at the lowest. Of the week little Orchard Street in San Jose is right the plant. Why is that not working? Oh, there it is. So this is a little Orchard Street 


There it is. Kirchner goes here. Alma's here. The plant is right here. Little Orchard Street, zigzags. And this is where Home Depot is and all that other stuff. But there you go. It's listed at 500, 006 days. It's sold for 683, 000. Yeah. This thing is a total piece of crap, but guess what?


This place is rife for development. Even though you're under the flight path, this whole area is going to get scraped pretty quick for new housing, which is why people are buying it at a big pop.  


Impact of Economic Policies


I did have another thing about Trump and the impact of what Doge is doing, but it's gated and I don't pay for gated news communities.

Thee point here is. It's important to understand The crazy thing that's happening right now is not only is residential real estate going to crash or crashing in DC, but commercial real estate is going to have a massive impact because Of all the slashes that are happening.


I seem to remember back in Bill Clinton's days that they killed off a ton of bases. I remember Fort Ord got killed off and now that's public land. There are developments on it. There's the Marina, there's the seaside, there's all these different places that tribute to, they're still active.


They still have a communication hub there. I seem to remember there are 377, 000. I think I saw a news report, 377, 000, federal jobs back in the nineties. It happened. And now it's happening again. I'm not a big fan of Trump. Or Elon, They're doing what they promise they're going to do or whatever, but everyone has to agree that the government is bloated and they're going to be chopping heads and that just sucks. What's going to happen is a lot of people, they're doing broad swipes right now, broad swords, One time settle out in the next year or two, if your division or department gets slashed, you're going to be able to bring people that really mean a lot to you back in. So I think it's just a temporary problem. Don't take my word for this. I'm just a fricking real estate guy.


Conclusion and Final Thoughts


All right, that's it. I'm Vito with Abottano. Thanks for watching. 



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Vito Scarnecchia

Real Estate Broker, Veteran, Dad

DRE#: 01407676

408-705-6817

Vito@abitano.com

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