Iran Conflict Stalls Big Purchases Like Homes and Cars For 25% of Americans, But Most are Undeterred
Iran Conflict Stalls Big Purchases Like Homes and Cars For 25% of Americans,
California has 15 of the 25 priciest places to live in the US
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Iran Conflict Stalls Big Purchases Like Homes and Cars For 25% of Americans,
War Fears and Spending
Most Americans are undeterred by the conflict in Iran. Now I Understand. It puts a stall in the market. It absolutely does. When we hear war. It's just it is what it is, right? Is it a good thing or a bad thing? Not here to judge that. I'm not here to debate or discuss any political points of view on what's going on.
This is a purely economic one. Let's talk about this. I ran conflict stalls, big purchases like homes and cars for one in four Americans, but most are undeterred. Now.
Why Markets React to Fear
Let's talk about why there will always be enough fear in the market to put a hiccup in it. 25%. That's a pretty huge ding in the market, especially when we're talking about hundreds of homes in one specific area like the county of Santa Clara.
Nationwide Nation. Why Fear? Fear drives everything. It drives the stock market. It drives your insurance purchases. It drives everything. Fear. Fear of missing out, fear of loss, fear of everything. That's why we have insurance, right? It's totally, absolutely normal to feel this way,
If you think about it, a hiccup like this is a great time to take advantage of the market. Last couple of weeks, we saw the market kind of slow down just because of what's going on in the world. It just is what it is, right?
Tariffs, Jobs and Unease
House Hunter is pausing plans due to uneasiness about tensions in the Middle East. Here's what's really bothering Americans, the tariffs and the fear of job loss. And it says it's somewhere around here. I read it here, but if you wanna look at this article, the link is in my blog.
All right?
California has 15 of the 25 priciest places to live in the US
California Cost of Living
California has 15 of the 25 best places to live in the United States. It's crazy, right? I clicked on this and we're gonna go into it a bit, but here's, it's not a surprise, rather, a stark reminder that the state's biggest economic CHO challenge is the cost of living everything is expensive insurance. In most places, a lot of places in California, you can't afford the insurance 'cause you have to have the California Fair Plan, which is the fire plan.
The cost of gas is higher. The cost of living is higher. It's the most expensive taxed state in the union, right? But still, people want to live here. We're going to see things change, abundantly change, right? California, by far, next to Hawaii, is one of the most expensive states compared to Tennessee and Nevada. And the Carolinas, Arkansas, and Mississippi, where do they want to live? I get it. I understand Mississippi's a fun place to live or visit, but would you really, what?
What economic value do I perceive? To live there or am I just gonna live there poorly? So maybe somewhere in the middle, like Ohio or Indiana, Tennessee, a lot of people are moving to Tennessee 'cause it's tax-free, there's no income tax. My parents lived there for seven years.
And then I moved them to Nevada next to my sister because my sister's there full-time. 'Cause they're aging, I wanna make sure that they're taken care of. So, just something to take note of is California's got weather, but they also have everything else. That costs more, a lot more. Like, I think the last time I was in Nevada, I paid around $3 a gallon for gas, and here I'm paying close to five.
Moving Parents and Care
Talking about moving parents into older, adult care situations. We have our parents in an adult 55 and over community. And the reason why we put them there is so that they can be communal. They're still semi-active.
We need to get them more active, right? So we got them a golf cart so they can go to the clubhouse, which we call the country club. It's really a clubhouse. And they can have dinner there with their friends, meet friends, and play Mahjong and Bingo or whatever, and it allows them to do that. We moved them.
We relied heavily on the real estate agent in Tennessee to take care of that. A lot of the heavy moving, a lot of the heavy lifting, and that's what we do here in California for you. If you need to move your parents into an adult community or a memory care facility or anything in between, let me know 'cause I can help guide you with that.
Listing Marketing Playbook
Here's my listing. We talked about it all last week. It's gotten a crazy amount of views, like 40, almost 40,000 views. Looks like we have an offer coming in.
So, wanted to go here and talk about the marketing that we do. Obviously, I have my drive folder and then analytics and then the CMA, which is a comparative mal market analysis. But I also have a video tour you can watch right here if you want. Not going to make you run through that.
The link is in the blog below, and the link is on the listing as well. That's the drone. And then we have the 360.
Get the Matterport. That takes a bit to load. You get the whole Matterport thing, right? And then you have your website, and then obviously you have access to all the photos right here. And then disclosures, et cetera. Why is this important? Well, this is how I walk you through the entire process of selling your house from timeline to the facing sheet, to the marketing, to contract dates.
Once we get into a contract that helps us understand it, and then you do the net sheets and follow up, et cetera. If you have an offer sheet, we have multiple offers, that kind of thing. So I walk you through it so that you understand what we're doing, as well as getting your house ready to sell, that kind of stuff.
But I did want to mention something here.
Pricing to Sell Fast
If the price list is above market value, you're only reaching 5% of the market. If you are a $20 million mansion, you want to be a market maker. If you're a standard run-of-the-mill developed house, right? You're a standard house. You're not gonna be a market maker.
You need to attract a market. So you wanna be 5% below what you think your house is going to sell for. And 99% of the time, houses don't sell because the seller's ego, you think your house is worth much more, and then your house doesn't sell.
So, when you list the price way too high, you're not attracting the right people. You wanna attract as much of the market as you can and let them decide what your house is worth.
And I understand this happens to me all the time, right? We're putting another house back on the market because they had fear. They were like, " My house is worth $50,000 more. Okay, we can do that. But then, when we dropped it, the listing.
Dried up. So we had to wait 30 days for the days on market to reset and refresh the market. So now we're gonna get it back on the market today, and then we're off and running. So the more eyes you get on your listing, i.e., the more market share, the more market you can attract, and the more eyeballs you can get.
The better, because the more eyeballs you can get, the more showings you'll receive, the more downloads you'll get. You'll get more offers, right? The house that we have here is listed right at the top of the market, like right here, so we're only tracking 5% of the market. Unfortunately, that's just the way the sellers decided.
Remember, I always tell you about having air conditioning 'cause it's not an option anymore. It's a requirement. If you can't have your house with air conditioning, your house is going to sit by the wayside. If your house is not updated, your house continues to go lower and lower and lower because people see not your house, but everything else in that one-mile radius.
They see everything in that county that they're looking at, or five or six different areas that they're looking at, and they're gonna make their buy based on what makes them feel the best. And if your house doesn't look the best, doesn't smell the best, doesn't feel the best, they're gonna move on and get something else at that same price range.
And it could be five zip codes away from here from your house. Because they don't really care until they set up roots. Once you set up roots, like I live in Blossom Valley, and I love it,t and it's great. I have roots here. I've raised my kids here. I've taught my kids how to do, I mean, live in nature over here, and I have friends and family here, right?
So this, my roots are here. If you're looking to buy and you're starting a family, it doesn't really where you matter where you live until you sit there and then you decide, yes, this is the place I wanna raise my kids. And then you spend 20 years there.
Why Homes Don't Sell
Because 99% of the houses that don't sell are due to high prices.
Let's get into that real quick, right here. This is important right here, back on the market. Withdrawn, back on market, expired, canceled. How? Cars, houses that don't sell, they cancel out. Typically sixty, ninety, a hundred twenty days. Some agents like to do six months.
I'd rather keep it around three months because if your house isn't going to sell in three months, it's not the agent. My process works, right? It's the price. Just keep that in mind. Okay. We have plenty of houses to sell.
A lot of 'em are selling where Santa Clara County is the highest volume and highest, revenue-wise and units. Your houses will sell if you price them correctly. All this other stuff that is combined inside there doesn't matter. It just doesn't matter.
Houses of the Week Tour
Let's really quickly talk about the Houses of the week.
Cupertino House of the week is Brett Ave, and this is brand new; it looks like it's brand new. Maybe it's, yep, it's built. Looks like this is a rendering, though, so weird. Yeah. This is a rendering. We're not gonna go do this one, we're gonna do this one.
Okay. This is Stern Ave. I know. Stern, yeah. I sold a house on here many years ago, not when it was $3.6 million, probably closer to one and a half, which is about the median price in Santa Clara County right now.
Five-bedroom, four-bath, built in 2005. Nothing great about it. Nothing fantastic about it. Why is it $4 million? Because it's close to Apple. Apple's right there. But the reason why houses are so expensive here is that it's an easy walk, an easy drive to your Apple campus. If you work for Apple and you're not gonna live in Cupertino unless you live there, or you have another company that supports Apple, here you go.
Let's see. I wanna see this one right here. It's a two-bedroom, two-bath. No, we already looked at that one.
Oh, this price decrease. I think we talked about this one already. $1.175 million for a two-bedroom, one bath, one-thousand-square-foot home. Here's the problem, guys. That one's, this one looks like it's right on the corner of Lincoln. Yeah, it's on a busy street. Oh no. Well, that's what you're facing, right? There is a junkyard. Look at that. A parking lot. I don't know. Why is this house not selling? It's been on the market 44 days. The original list price was $1.3 million. If everything was said and done, maybe this house was right. It's a very small lot, though.
This house isn't gonna solve for that because look, even if you're gonna put a. McMansion on it. Your surrounding area is so small that it just doesn't make sense to spend a million dollars on 3000 square feet, 'cause that's really what you're buying. You're taking this house, you tear it down, and put a McMansion on it.
I wouldn't spend a million dollars on it, especially because I would really need the lot next door to make it viable. The standard lot is about six to 8,000 square feet, so we're roughly talking about half the size. So there you go.
Luxury Pick Atherton
Luxury house of the week, brand new. And Atherton, $32 million. Love how they round it down by $5,000.
'cause that's gonna matter.
Six bedrooms, seven and a half baths. 11,000 square feet on an acre lot. 4, 3, 5, 6 oh is an acre, so it's just under an acre, Scot. And it's right here in Atherton, right there. Beautiful castle-like mansion. Yep. If you wanna see it, you have to go to their website.
Market Pace and Inventory
Let's talk about the pacing. Okay. The last few years, we ended up around seven to 8,000 homes sold every year on pace. We're at half that, or two-thirds of that; we need to sell more homes. Right now, this early on in the year, we're just getting into the market where the first month of the selling season, right?
So that's all gonna change. But we need to see more houses. We need to see more inventory, we need to see more traffic out there. And a lot of people are holding off. I thought we were gonna have a whizzbang of a month. But we're not really; it's kind of slowing things down, mostly because of the fear of the war, but it's also the fear of the economy, et cetera.
And I'm not gonna deny that. Right. Santa Clara, we're at 1100 sales this so far this year, and we're at 2.6 billion,
2.6 billion. San Mateo's 1.4, and they've only sold half of that. So if you think about it, it's way more expensive, right? $2.4 million is the average price of a home in Santa Clara County.
It's crazy. It's $2 million. 2.1 in San Mateo to $2.2 million is the median price of a home in Santa Clara County. And we're still selling homes for about 5% over list price on average, if it's priced right. And so far we've had 2,500. We need far more than that. Right. We have 1100 active homes for sale in Santa Clara County. We need to be about 2000. And I talk about this all the time, right? We need to be about 2000 homes for sale, and we're not going tto we're nowhere near that. So are we on parody? Yeah. I think we're about balanced right now for the number of buyers that are out there.
They're being picky. They're being persnickety. They're waiting for the house to sit. If the house goes, then that's fine, 'cause there are others, right? They're getting the mindset right, saying, I'm not gonna go crazy and bid over for a house that I really don't care about, or I'm gonna have to put work into.
So there you go. All right.
Wrap Up and Thanks
That's it for now. Thanks for watching. We'll see you out there.
Please like and share!
Vito Scarnecchia
Real Estate Broker, Veteran, Dad
DRE#: 01407676
408-705-6817
Vitos@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!
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