Home Purchases Are Getting Canceled at a Record Rate

 







 




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Hey, welcome back. I am recording live from Las Vegas. I'm at my wonderful sister's house, who's now acting like my assistant, giving me some water. Today, we're talking about does the orientation or the direction of your house affects the value.?
Can the direction the home faces affect the value? Yeah. Maybe depends on the people. Depends on their mindset, their beliefs. Yeah. Absolutely. It can. My argument is that if you price it correctly, your house is gonna sell for what the value is, not the direction it sits. You might lose a couple of buyers because it might face north or south or west, but if it faces East, then I don't know, maybe it can. Arash, who met with my appraiser and my stats muse. Ryan Lundquist had an interview and discussed how Certain houses in certain directions tend to sit a little bit longer. He states that ones that face South sell faster, but ones that face North don't sell as fast.

Do I believe that maybe if you're attracting a certain type of clientele? Or a certain ethnicity, but I don't care which way it goes. That's all into the belief of feng shui and all this other stuff. Does it work? Yeah, I understand it. I'm versed in it. I understand the mindset behind it.

But here's the thing. For me, a house I want to face west or east. Or North doesn't really matter. I want the front to face away from the sun. I want the backyard to have at least a morning, full, or evening shape. That's just me. Am I gonna-poo-poo a house that faces south? No, this house right here that I'm sitting in right now doesn't look anything like, well, it does.

No, it doesn't look anything like these houses. It's facing south. You get the evening sun, and it's in Henderson. So yeah, you're talking about hot days. A lot of hot days don't really matter because here electricity is a lot, lot less expensive.

This chart talks about how new construction sales in Sacramento have plummeted by 15%. Its affecting is the east-facing home, and this is an east-facing home. So yeah, they tend to want to have, some buyers want that, some do not. I work with a lot of different people, and maybe 2% of the time it comes up.

So, out of all the ordinary, does that really matter? I don't think so. If they're gonna be that picky to walk away from a great deal on a house that fits every need, I don't believe that one bit. 




Home Purchases Are Getting Canceled at a Record Rate
Market Trends and Buyer Behavior
Home purchases are getting canceled at our record rate is true. I've seen it.

It's happening to a lot of my clients. People are getting skittish. They're afraid of what the media is telling you. They're afraid that the economy's gonna collapse. They're afraid that their job might go away. They're afraid that housing prices might plummet, and I doubt that will happen.

All sorts of stuff can happen. You have to move forward on it. What happens if you buy today a house that's worth a million dollars and tomorrow it's worth 800,000, but you hold it until it's worth 1.2 million? It's. Not the short-term gain that wins, it's the long-term gain that wins. It's the same thing in stock market buying.

It's the same thing. Investing. 




Investment Strategies and Long-Term Gains

You know, I'm looking at buying private money loans or notes. I'm also looking at buying syndications. And there's a long-term mindset to this. You're not gonna get that money back tomorrow. You're definitely not gonna get 20% back in.

Two months, it just doesn't work that way in real estate. It's a long-term. Investment. If you lose $200,000 tomorrow, you hold onto that asset until it comes back and pays you back. Does it suck? Yeah. Bad timing. It is what it is. If you're gonna hold off and wait for the rates to go down, then everybody else is waiting for the rates to go down.

Guess what? Now you're paying more for a house that was worth a million dollars, you're probably gonna pay 1.2 to $1.3 million for that house. Because you get better rates, you get better interest. It's more affordable. Yeah, I get it. But people who are sitting on the fence waiting for the rate to come down will ultimately lose because they're paying more for an asset, a house, a car, or whatever, when rates come down.

 


Foreclosure Concerns and Market Stability
Delinquency rates. This is adjusted to April of this year. We're not seeing a lot of that happen in San Jose, Silicon Valley, California. We are seeing some homes in the Dallas-Fort Worth area. We're seeing it happen in San Antonio and Austin, we're seeing it happen here in Vegas. There's a rumbling of nods or pre-foreclosures happening here.

So could it happen in California? Absolutely. There are a lot of people who have a lot of money tied up in their homes who might lose their jobs. The number of foreclosures happening in California is minimal compared to what happened from 2008 to 2010.

I sold a lot of bank-owned properties back then, and I can tell you that there's more equity in these homes today. And we don't have those toxic loans, absolutely. Phys is coming next year. And one slight millisecond calculation could mean that our entire world gets destroyed. And then we won't have to worry about this anymore. At least you have a nice place to live until that happens. That's the way I'm looking at it. 

San Jose, we voted on Proposition E back in 2020, and now, as of last July. A couple of months ago, we increased it from 2 million to $2.3 million. This is great for homes that are hedging up to $2 million. Buyers are free to go above that margin line, that median price, that brick wall we're waiting for buyers to jump into.

For years, I've been showing you charts about how San Jose was hurt by this measure because the median price was below $2 million at that point, which was preventing it from going higher like other cities in Santa Clara County. So this is actually a good thing. I think it needs to be 2.5, though.

That's my thought. I'm not a politician, so don't ask me how that works. 




Featured Properties of the Week
Cupertino House of the week, not my listing. Stuck stucco mirror. Court, four bedroom, three bath, built in 1977. It's right here, right along the creek, Stevens Creek, and let's see, that's the outside of the house.

Not a very good front picture. Let's go all the way to the bottom. There it is. That's what the house looks like.

So this is a four-bedroom. Two and a half bath built in 1977. Everything's nicely updated. It is worth $2.9 million. If you're interested in looking, you wanna be in Cupertino for the Cupertino schools, for being close to Apple, for being all sorts of different stuff. Gimme a call, I'll take you to it. Let me know.


This is Willow Glen, house of the week. Three-bedroom, two-bath bungalow. 1800 square feet, built in 1942, valued at $0.2 million, and it is within walking distance of Lincoln Ave. That's why I picked it. Let's take a look inside. Oh, old world charm. You got the little half-circle doorways, older, oak wood all the way through, which is nice, original.

Counters. It looks like it was refaced with Corian countertops. Yeah, that's ta only bathroom. You have a basement. See, look, this agent's smart. They took off the screens to make their house look brighter, airier, and bigger. There you go. That's a detached garage right there.



All right. And then the luxury home of the week, not my listing. Tenon Avenue. Five bedrooms, six and a half baths, 8,000 square feet. Built in 2007, $25 million. If you're interested in looking, gimme a call. I will set it up.

Pretty nice-looking house. I wonder if the wine comes with the house. I love this right here. Look at that. That is nice. You can spend your evenings out there at the fire, drinking your wine.e 

Final Thoughts and Advice
We've sold over 5,000 homes in Santa Clara County. We're a high-volume county like Alameda and Contra Costa, versus San Mateo, where we're half of that. But we're still enjoying $2.4 million average and 2 million. Median price, whereas Blossom Valley is 1.5 million median price, and 1.574 or $1.575 million average sales price.
If you're looking for a good, affordable home close to high-paying jobs, high-tech jobs, Blossom Valley is the place to be. However, you have to be smart about your pricing if you overprice it. You're gonna walk buyers away, and be frustrated with your agent, buyers, and lack of feedback.

And I tell you this over and over again, you get one shot with every buyer that comes through their door. The curb appeal needs to be nice. It has to look nice. It has to look fresh and freshly painted. If you're pricing it high, it better have a nice kitchen. It better have air conditioning.

You better not have a shitty roof, and the pool needs to work. If you come in and gimme the As is ploy and it's not worth 1.6 and it's really worth 1.3, you're wasting everybody's time. Thanks for watching Vito with Abitano. We'll see you out there. 


🔴 Gorgeous Custom Built Estate 1036 Ridgemark Dr https://www.youtube.com/watch?v=SiP41bXXA0E

Vito Scarnecchia

Real Estate Broker, Veteran, Dad

DRE#: 01407676

408-705-6817

Vito@abitano.com

Update your home value: https://hmbt.co/bT7qRJ      

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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

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