Welcome to Silicon Valley Living! This is a community-based blog focused on events, updates, and things that are happening in the Silicon Valley!
Abitano– is a community based real estate company that is involved, experts, and gives back in order to make all our lives better.
– Local Family owned business since 2003.
Get link
Facebook
X
Pinterest
Email
Other Apps
It’s a buyer and seller standoff. Who will blink first? - Ryan Lundquist
Ah, nothing better than coffee. Buyers are being persnickety, and buyers are holding off. Buyers are. In the control seat. They're driving the bus today. The market has slowed down now.
Buyers' Market Dynamics
Well-priced houses that are positioned well, that are completely done up, they're going to get a lot of attention.
There are still buyers out there. They're being picky, though. They want a fully turnkey house. They want to pay the right price for it, and they're taking their time.
Insights from Ryan Lundquist
I. Ryan Lundquist, who is an appraiser up in Sacramento, IE, the Sacramento Appraisal blog. He's my muse. He does a lot of great graphs and charts, and great information fothe r Sacramento area.
While I don't service it a lot, I take his information and use it for my own. And share it with him. When you see his name as a hashtag, that's 'cause I'm sharing the information that he sparked my interest. So that's why I use him a lot. But here, this thing right here, it makes a lot of sense, right?
Buyers and sellers are talking. They're like, hey. I don't know if I wanna buy your house. I think I'll eat a little bit. I think I want to take some time to buy your house.
Current Market Conditions
Now, there's a lack of urgency today, right? Four years ago, in 2021, we had a firestorm. I had 15, 20 offers on every house.
People were desperate to get in because the rates were so low. Today we're at 7%. This gives buyers some breathing room, and I think it's healthy.
Historical Market Comparison
And I always say that we're at 2000 homes for sale to be a balanced market, but I think we're at a balanced market right now, at like 1400 ish, simply because the rates are so high.
Buyers are waiting, and actually our inventory has kind of peaked..d So I think right now we're at a good, happy median place for buyers and sellers to come together. Is the seller gonna get that high price that he was hoping for? 'cause that house sold 3, 4, 5 months ago at that price, maybe.
If it's in great shape, but if your house is dialed in and it's priced right and you attract the market, you're going to sell. Buyers are willing to stay and wait. And guess what? They have a lot of houses to choose from.
So if your house goes into contract, there are five other houses that they can look at that they've been waiting on. So demand has absolutely been shrinking. I did something like this. Sales volume comes in May. Oh, there it is. This is year to date, January through June, 2001 to 2025. We're the lowest right now. We have been in 25 years, guys, 24 years. If you take that. Aggregate.
This is the Santa Clara County homes aggregate year-to-date stack. That means it goes all the way to December. It shows something similar, alarmingly, but in 2004, we had 17,000 homes for sale or sold. Right now we're at. 3000 homes per sale. In 2004, we had 8,000-ish homes sold by June of last year.
Now this is just mid-June. This was done a couple of days ago, so it's not exact, but we're still so pathetically low.
Because rates are down now. Economic uncertainty, job loss, uncertainty. We don't know where we're going, right? If you're thinking about buying, this is a great time to buy, right?
Fannie Mae forecasts a sharp dip in mortgage rates by the end of the year. Next week, June 17th or 18th, the Feds are going to testify and talk about lowering the rates. We're expecting a quarter percent. We would like to see half a percent. Don't know if that's gonna happen or not, but we need to see rates come down for buyers to get active again.
Beware, though, if rates do come down, more buyers will enter the market, meaning more competition. So just keep that in your head. Rates today are 7%, but if you buy a $2.3 million house, you can buy it down with a point or so and drop it down to 6%. You're still paying $10,000 a month. The median household income is 1 59, and the median income was 77,000. How do people afford it? People are affording it. I don't know how they're doing it.
Buyer's Net Sheet Explained
Okay, let's go into this real quick buyer's net sheet. I'm gonna open this up so you can take a quick look. There we go.
San Jose Property Transfer Tax
Okay, so the reason why I picked 2.3 is because the San Jose just opened up their property transfer tax to $2.3 million. We're going to be at $2.3 million on average pretty quick.
That means everything on the bottom end, on the lower end, people don't have to worry about it, but it's something to be concerned about. $2.3 million after the transfer tax takes effect. What does that mean to you? It means a whole lot more money because I will open this up so you can see this real quick.
Transfer tax versus conveyance tax. A house sold at $2.3 million at 0.75 would be $17,000. This is a one-time transfer tax. A house sold at 2.29999 would be at 33%, or 0.33% would be $7,500. So if you sold it for $1 less, you're saving $17,000. This is from the city. If a property sold at $2.3 million, there would be a conveyance tax, plus a transfer tax of 17,250, which means your total out to the city of San Jose would be 24 4,840.
So yeah, $300,000 more gives you a little bit more leeway if your house is edging up towards $2 million. That's good because this is from last year. When you look at the volume of homes sold over $2 million sharply declines. As it does with the other homes in different cities. However, it's not a normal thing to see that.
I think they're smart to do that. I think it should have been two and a half million dollars, but there you go. Let's go to the buyer's net sheet, $2.3 million. How much do you need to earn? For the 36 DTI. There are exceptions. You don't have to make $500,000. You have to make $5 million.
Is that right? 5, 3, 6. For your debt-to-income ratio, you need to be making $5 million. No, it's times five. You need to make $662,000. In order to qualify to buy $2.3 million, that's a household income. So both of you have to be making about $300,000. There are exceptions. What happens if you only make $500,000 combined?
Yeah, you can still get into it, but there's gonna be an exception, meaning your points are gonna be a little bit higher, and your total out would be about $13,000. A month an exception means you're gonna be paying like a quarter percent more. So let's make that 6.2,5, and now you're paying $14,000 a month.
But if you're making $500,000, $600,000, that's a great write-off right there. Are there people out there who are making that kind of money? This is Silicon Valley, right?
It costs a lot of money to live here. You need to make a lot of money. And if you don't have that mindset, then you're making the median price, right? I make more than the median price or income, but still, I can't afford a $2 million house or $a 2.3 million house. If you're thinking about selling right now, this is a great time to drop.
Download this checklist. It helps you walk through every nook and cranny of or house so you can get your house ready to sell, so you can repair all the little tiny things. And if you need a handyman, Gimme a call. I have plumbers, I have handymen, I have landscapers, I have painters.
They're all super busy right now, working on the different houses I have coming up for sale. Just be Aware that this is how we do it. We want you to have your house repaired. I know a lot of people are like, I'm not gonna fix this. I'm not gonna fix that. Well, you don't have to, but that's going to distract a buyer's eyeball.
And remember, we just talked about buyers being patient. Their sense of urgency has waned is good because sellers have gotten complacent about presenting their house. Now it's time for you to do it. I'm seeing it all over the place.
We have homes that are on the market. We have over 300 homes on the market for over 40 days because it's overpriced for the condition and the market location condition market. All right. Get your house looking pretty. Set realistic expectations for yourself on price. The list is a little bit low. Attract the market. Get your house sold without a lot of drama.
Okay, what do you get for $2 million in San Jose? This is a four-bedroom, two-bath, 2200 square foot home built in 1979. It's a beautiful house. This is against the hills, so it faces north, and it's staged beautifully. Great little house, the older kitchen, but I still love it.
I prefer wood. I prefer granite over quartz. Buyers tend to like light and airy, so they want the white quartz and the bright painted cabinets. If you look closely at this, maybe they have newer floors, but everything was upgraded back in the nineties and two thousand.
And remember, I said that this house is set against the hills. You're gonna have a sloped grade. But that's nice 'cause you have a nice backyard. You can see over and take a look at the views of the city. Beautiful house. Nice views of the power towers, which you get for a million dollars.
Four bedroom, two bath. 1,260 square feet. Built in 1958 and this is a 9 5 1 1 1 over by Heller Park. You can walk to Heller Park, and there's a nice bike path that goes all the way down to Morgan Hill, Gilroy. It's an awesome ride if you ever do that.
Let's take a look inside. This one looks like it's been done up, but I can't tell you why they got rid of the grass, probably 'cause this tree destroys the grass. So they mulched it, got rid of the grass, and put low maintenance yard in.
It's been a windy day, 'cause that looks like the for sale sign. Okay. I like this feature right here. It really helps the house pop out because it's a standard house, right? But at least you did something nice to it. This looks nice. It's been updated. It looks like it's been flipped. Yeah, this is definitely flipped.
You can tell because they put it in stainless steel, but they put in the cheap stainless steel stuff, and it's brand-new. Everything is brand spanking new in this house. So yeah, while this is flipped, I would take a closer look at the workmanship, and that's the finer details. That's why you have an agent who knows how to look through and find different things.
See, they cheaped out. They want mulch instead of grass. I would've put a lawn back there and probably gotten rid of this, whatever this is. Looks like a deck. Maybe it was a pad for a hot tub at one time. Yeah. There you go. And thank you for putting the floor plan on so few and far between.
I don't think they did the floor plan. It costs literally nothing for us to do a floor plan. It allows a buyer, I actually put them right up front. I do the front of the house, the door, and then I put the floor plan in because the floor plan helps the buyer visualize where the placement of all the rooms is, and if they like the flow.
It's not about curb appeal, it's about the secondary thought. How is this house gonna flow? When you're looking at a picture, you can't really tell that Nothing's changed. I haven't touched these because we're still in the middle of June.
We're still in a seller's market, but the rates are so high. We're seeing houses sit on the market a little bit longer. We're going to see houses sit on the market 40, 50, 60 days, and I think that's gonna be the norm until we see rates come down again. If you price your house correctly, complete all necessary repairs, and make it look attractive, you'll attract buyers.
You're gonna attract offers. If you don't do anything to your house, you have a price that is what the last house sold for, you're gonna be sitting. Have a fantastic weekend. I'm Vito with Abano. Thank you for watching. We'll see you out there.
🔴 Video Living in San Jose in the No. 4 spot. in US https://youtu.be/hxw5k739OKU?t=521
If you are moving anywhere in the world, let me know! I know a lot of amazing agents!
🔴 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg
#abitano, #realestatesherpa, #rewtf, Silver Tsunami, 2035 Housing, 2025 tax lien investing Ja son Walter, home staging kitchen, Cost Of Living Calculator, Fraud, Homebuyer workshop, Bay Area housing stats, Veteran Home, best time of the year to buy a house, Bay Area Luxury homes, next housing crash prediction, housing market projections, Should I Buy A House Now Or Wait?, should I buy a house now or wait until 2025, Why You'll Regret Buying A House in 2026, realestatemindset, Housing Market 2025: 5 Options If You Regret Buying a Home, when will the housing market crash again
What should a realtor do to sell your house,What should you not do when selling a house,Why is home not selling,Is it better to sell as is or fix up,Home much money is lost when selling a house,Is it bas to sell a house as is,Where should I sell my house for money is 2021,Is money from the sale of a house considered income,Do you get all the money when you sell your house,Do you have to buy another home to active capital gains,What happens when you sell a house and make a profit,Can I sell my house and keep the money ,What month is the best to sell a house,How much money do I keep when I sell my house,How to I avoid paying taxes when I sell my house,How do I sell my house in 5 days,Whats the quickest way to sell a house,How can I sell my house quickly ,Is it better to sell my house or rent it out,How do I sell my house in 30 days,What does teh seller have to pay when selling a house,How p[ays closing costs on for sale by owner ,Who pays the title company at closing,Who pays for appraisal buyer or seller,How do I calculate my closing costs as a seller,Can a realtor lie about other offers,Do sellers always pick the highest offer,Can ou sue a real estate agent for lying,How do you make sure your offer is accepted,Can buyer talk to seller directly,What do you say when you reach out to a realtor,Do you tip your realtor,Why do realtors now want buyers and sellers to meet,Do I have to pay my realtor if I decide not to sell,Can you work with multiple realtors,Can you fire your real estate agent,Are realtors rich,Should I interview multiple realtors,Are you obligated to a real estate agent,What should I do to my house before selling ,What sells a house fast,What brings more value to a house,What features sell a house,What to do if a house is not selling,Do vacant homes sell faster,What are the worst months to sell a house,Which month is best to sell a house,Is 2021 a good year to sell a house,What adds most value to a home,How can I increase my chances of selling my house,What makes a house harder to sell,What brings down property value,What are houses not selling 2021,What adds teh most value to a house,What is the most common reason a property fails to sell,What should you not fix when selling a house,What adds teh most value to a house,Does Zillow pay fair prices for homes,How to I sell my house that need repairs,Do sellers have to fix everything on home inspection,Can you sell your own property as a real estate agents,Does a realtor make money on a for sale by owner,Can I use a real estate attorney instead of an agent,Can I be my own buyers agent,Do real estate agents make more than lawyers,Do realtors get paid if a house doesn’t sell,Do agents get paid for open house,Can I ask my realtor to take a lower commission,How much does a real estate agent make monthly,Which real estate agent has the lowest commission,Can I represent myself as a real estate agent,Do brokers make more than real estate agents,Can you bypass a real estate agent,Can I represent myself in buying a house,Can you buy a house yourself,Do Realtors get commission on for sale by owner,Is it better sell your house by owner or realtor,How do you negotiated for sale by owner,Is it hard to sell a house without a realtor,Can you ask a realtor to take a lower commission,What home improvements add the most value,What should you not fix when selling a house,What color carpet is best for selling a house,Which home renovations are your best investments,Which home improvements pay off,What is the best way to renovate a house,What is the most expensive part of a kitch remodel,What home improvements do not add value,Is a 4 bedroom house worth more than a 3 bedroom house,Do home improvements increase value,What features sell a house,What order do you renovate a house,What renovations are worth doing,Is it better to renovate or move,Is it cheaper to renovate or build new,How much does it cost to fully renovate a house ,What should I renovate first,What makes property value increase ,What negatively affects home appraisal,Do home appraisers look in cabinets,Do appraisers look in showers,What matters in a home appraisal,How can I maximize my home appraisal,Is land a good investment 2020,Is buying land a building a house cheaper,Is it better to buy land first,How to I buy money with no money,Is land a bad investment,Does age of house affect value,Are 100 year old houses safe,What is the average age of a house,What age is a house considered old,How do I price my house,How is property value determined,What are the 5 methods of valuation,How do I determine fair market value of my home,How does a bank value a house,Why is my tax assessment so high,What brings down,calhoun.savingmoneyonhomes.com
Santa Rosa Real Estate,Petaluma Real Estate,Rohnert Park Real Estate,Sonoma Real Estate,Sebastopol Real Estate,Windsor Real Estate,Healdsburg Real Estate,Cloverdale Real Estate,Cotati Real Estate,Calistoga Real Estate,Forestville Real Estate,Guerneville Real Estate,Penngrove Real Estate,Glen Ellen Real Estate,Geyserville Real Estate,Occidental Real Estate,Kenwood Real Estate,Cazadero Real Estate,Fulton Real Estate,Monte Rio Real Estate,Bodega Bay Real Estate,Stewarts Point Real Estate,Jenner Real Estate,The Sea Ranch Real Estate,Bodega Real Estate,Graton Real Estate,Annapolis Real Estate,Valley Ford Real Estate,Duncans Mills Real Estate,Camp Meeker Real Estate,Concord Real Estate,Richmond Real Estate,Antioch Real Estate,Pittsburg Real Estate,Walnut Creek Real Estate,San Ramon Real Estate,Brentwood Real Estate,Danville Real Estate,Martinez Real Estate,San Pablo Real Estate,Oakley Real Estate,Pleasant Hill Real Estate,Lafayette Real Estate,El Cerrito Real Estate,Hercules Real Estate,Orinda Real Estate,Pinole Real Estate,Moraga Real Estate,Alamo Real Estate,Clayton Real Estate,El Sobrante Real Estate,Discovery Bay Real Estate,Rodeo Real Estate,Kensington Real Estate,Byron Real Estate,Crockett Real Estate,Bethel Island Real Estate,Diablo Real Estate,Canyon Real Estate,Port Costa Real Estate,Napa Real Estate,American Canyon Real Estate,Saint Helena Real Estate,Calistoga Real Estate,Angwin Real Estate,Yountville Real Estate,Pope Valley Real Estate,Deer Park Real Estate,Napa Real Estate,American Canyon Real Estate,Saint Helena Real Estate,Calistoga Real Estate,Angwin Real Estate,Yountville Real Estate,Pope Valley Real Estate,Deer Park Real Estate,Oakland Real Estate,Fremont Real Estate,Hayward Real Estate,Berkeley Real Estate,San Leandro Real Estate,Livermore Real Estate,Pleasanton Real Estate,Alameda Real Estate,Union City Real Estate,Dublin Real Estate,Castro Valley Real Estate,Newark Real Estate,San Lorenzo Real Estate,Albany Real Estate,Emeryville Real Estate,hayward real estate,Piedmont Real Estate,Byron Real Estate,Sunol Real Estate,Canyon Real Estate,Farwell Real Estate,Brookshire Real Estate,Concord Real Estate,Richmond Real Estate,Antioch Real Estate,Pittsburg Real Estate,Walnut Creek Real Estate,San Ramon Real Estate,Brentwood Real Estate,Danville Real Estate,Martinez Real Estate,San Pablo Real Estate,Oakley Real Estate,Pleasant Hill Real Estate,Lafayette Real Estate,El Cerrito Real Estate,Hercules Real Estate,Orinda Real Estate,Pinole Real Estate,Moraga Real Estate,Alamo Real Estate,Clayton Real Estate,E
Comments
Post a Comment