HUD pumps brakes on 50-year mortgage plan Wednesday Real Estate Snapshot πŸ¦… 🌎 ⚓️







 


HUD puts the brakes on 50-year mortgage plan
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50-Year Mortgage Concept
In case you were wondering where that whole 50-year mortgage thing was gonna wind up.

I could have told you that. Actually, I'm pretty sure I did. 

Impact of Market Competition on Affordability

Here's the thing: when you make things more affordable, then more competition hits the market, which means that things become less affordable. Let's break it down. Let's say that. You can afford a thousand dollars a month for mortgage, PITI, the whole nine yards, right?

A thousand dollars a month. And you stopped by trying to buy a house because a thousand dollars was way too much, what you could buy was just frustrating, and youwere always getting beat out. 





Challenges in the Current Housing Market
And then all of a sudden, 2021 happened. All of a sudden, the cost of money went to zero. And then there was A ton of competition, which drove prices even higher, meaning that you couldn't really compete and you needed a three bedroom, two bath, and you were looking at semi fixed up homes, but now all you saw were homes that were leaning over or burnt down or 10, 15 miles away further than what you want or could.

So you decided to put it on hold and are thinking, oh, you know what? Now things are going u,p and now rates are too expensive. So now the cost of money is super expensive, and now what you could afford is now a house maybe 40, 50 miles away. Put that in perspective. You were probably looking in, I don't know, south San Jose, maybe Morgan Hill.

Now you're looking at Hollister or Salinas. Not saying it's a bad thing, but that's exactly what happened. And you're like, screw that. I don't wanna move to Hollister. Hollister's not a bad place. I sell houses in Hollister all the time. But in your head, I used to be able to afford a house in South San Jose.

How come I can't afford a house in South San Jose? Now I have to go down to Morgan Hill, I have to go down to Hollister, I have to go down to Salinas. Ridiculous. Forget it. I'm not gonna do it. And then you don't. 

The 50-Year Loan Proposal

All of a sudden, and the secretary sai" or Trump comes up with this great idea, let's just do 50-year loans.

That's the best idea ever. Whatever. Not the best baked-in plan he ever came up with. I'll tell you that right now. This makes it just as unaffordable for you. As if the rates came down to 2.5% because more people would enter the market, more competition, and like everything else, when there's a good reason for people to buy, then there's more competition.

See that? See? So price, prices go up, competition goes up, you become less affordable. Your house or your house search becomes less affordable. Okay. 

Market Realities and Buyer Frustrations

That's why I never thought about why this was a good idea. I think the only way we're gonna do it is by trickling it down until we figure out what the parody is, and right now we're at about 5.75.

And if you buy it down, you're at parity. So technically, you should be atae place where you can afford to buy a house. You're not gonna get a house at 4%. We're not gonna get sea loans at 4% for a while. It's just not gonna happen. So stop that. Thinking the market's not gonna crash. 

But the market's not gonna crash. The housing market's not going to deplete itself because there are too many people with two-and-a-half, 3% loans. There's not enough supply to meet the demand. So even if we dropped it down to twoand a half percent, your million-dollar house would now be worth one and a half million dollars.

Your million and a half dollar house would now be worth 2 million. See what I mean? Great for sellers, not so great for buyers. Buyers are frustrated. They're taking a breather. And because the rates have been so high for the last two years, that's what's gonna happen. 






Probate and Estate Sales
Probate sales. Probate and estate sales. And if your parents need to go into elder care facilities or what have you, there you go. The last couple of years, I've really developed a lot of connections and relationships to make this a very smooth transition for your adult parents and help them get to where they need to be.

If you have questions, gimme a call. Happy to help out 90 days on market. What I call the stubborn guy. My house is worth $1.6 million. I'm not gonna change it. I'm not going anywhere. If you don't like it, I'm not gonna sell it.

I don't need to sell. These are just thewispsp of desperate sellers. I'm not trying to call 'em desperate. They're just stuck in their head that their house is worth this much money. And maybe it is. Maybe this house on Lynette is worth $3 million. Why hasn't it sold? Maybe it got into contract, and it fell out, or maybe it's, yeah, you know what this is? That's a great listing. That's a great price for it because those are going for about three to $4 million. So why is that one not looking? I don't know. I think this is a great listing anyway. You don't know, right? Houses are gonna go, houses are not gonna go. I was looking at it. It's Santa Rosa. 





Bank-Owned Property Insights

This is your bank-owned property of the week. Santa Rosa. We looked at it last week. Nevermind. No.
This one right here, guys.

I look at this, and I think, nah, it is overpriced for what it is. Itt started even higher. It's a hundred, 151 days on market. It started at 1,000,270. Now it's 1,000,001, and it's in the middle of downtown San Jose. Right off a heading. I say we go write a $500,000 offer on it. The bank doesn't care.
They want this thing off the books. It's right next to a commercial property, and it's not in that great a condition. That's your side yard. That's your backyard. Nothing great to look at, right? Why would anybody pay a million dollars for this? I don't know. They're just waiting to see.
So write an offer. Let's go write an offer. 500,000. See what happens. Oh, we talked about that already. And there you go. There's your little chart. 

Winter Market Trends and Selling Tips
For 40 days on market, everything's kind of flatlining right now. Again, we're in the middle of winter. It's 50 degrees out. Nobody's thinking about buying or selling a house unless you're thinking about selling your house.
March, April, May. Then let's download this pre-inspection checklist. This will get you started. I have all my contractors out there running around at all my listings, and it's just chunk, chunk, chunk, chunk. You can do it yourself. You can have me do it, totally up to you. Let me know if thinking about it.

All right. 

Conclusion and Final Thoughts

That's it for now. Thanks for watching. I'll see you out there. 



πŸ”΄ Insurance Adjuster What You Should Know https://youtu.be/8IWgof1qvnc
πŸ”΄ Renters losing MORE than Rent! (Bay Area Median Home Prices) https://youtu.be/VwLrwX2YuHo?t=41
πŸ”΄ MoonBeans Coffee https://www.youtube.com/watch?v=OmHpGXVu5sQ&feature=youtu.be
Videos edited by Vydeoease.com Use Exemption code VEASY
Vito Scarnecchia
Real Estate Broker, Veteran, Dad
DRE#: 01407676
408-479-2427
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!
πŸ”΄ Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg



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