Investor Home Purchases Fall to Lowest Level Since 2020 | Wednesday Real Estate Snapshot 🦅 🌎 ⚓️




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Investor Home Purchases Fall to Lowest Level Since 2020
Reddit Question of the week! 
A data center is being built across the street, the developer said, and property values will go up.
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Neighborhood Blowup Clip

And an apology became 
a neighborhood event. What, what are you gonna do? You've been driving around my neighborhood like a fucking lunatic! Hit me, you piece of shit! 

Gladly, this summer, don't be a little bitch 

I never liked that neighbor.

 That's hilarious. I don't care what side of the fence you're on that one. A few months ago, this happened, and I thought it was just... I saw it, and I was like, just a great reminder to tell your neighbors not to mess around with you if you're, yeah, if you're capable. 

All right. 

Let's see what's going on.






Data Center Next Door
A data center is being built across the street, the developer says, and property values will go up. What do you think? Talk about shitty neighbors, right? Now, the developer's it's gonna go up no matter what, so w- you might as well deal with it," right? At the end of the day, could you imagine yourself being next to an AI s- data center?

Or whatever it is they're using it for. Me personally, no. I would rather have the view of a park, of mountains, of oceans, but having a data center is absolutely not ever, has never been a thing. And you can go through these, the link is in the, in my blog, and take a look at these links or these comments.

The comment is, the top comment is "If you move to another neighborhood and one option is the house that faces the data center, what's your choice?" Nah. There's your answer. Some people don't care. 

Noise Tinnitus Resale

Some people are like, "Oh, that's fine." But you're going to have a hum that will just... Like my tinnitus, it rings in my ear all the time.

And when I wake up in the middle of the night, I can't go back to sleep unless I have a fan or something going on in my room, next to me, so it just drowns out all the time, right? Realtors are perfect for people with ADHD. 

Maybe it might be something worth my while. But for resale values, I would n- I don't know.

I don't know. My husband is severely ADHD. He has to listen to something all the time. Maybe that's what I have: ADHD. But the tinnitus is what kills me. It drives me nuts. Anyway, just thought I'd bring that to your attention. Take a look at it, and if you have any comments, let me know. What? I had another...

Oh, yeah. Why did this not pop up? There we go. Let's bring that over here. Okay. 







Investor Buying Slows

Investor home purchases fall to the lowest level since 2020. Yesterday, we talked about where the homes are not selling, and if you stick with me, I'll show you. But here's something that I want you to understand. 

How Investors Profit

An investor's not going to buy a $25 million house.

They're not gonna buy a $5 million house, 'cause there's no ROI on it. They're gonna buy the shittiest house in a nice neighborhood and fix it up. Or they're gonna buy a nice house in a shitty neighborhood and rent it out, or fix it up a little bit and make some profit, right? So understand that when investors look at it, it's not, "Oh, I want to provide for a poor family."

It's all about how much money they can make. And when you're struggling, and you're a fix and flipper or a renter, a buy and holder, or a BRRRR or what have you, it has to make sense for you to buy it. Because 90% of your profit comes at the buy, not at the back end

Sakoo housing market, investor gains are losing steam. Yeah, th- there are still houses to be had that are good value and good ROI if you buy them upright. Yesterday, we saw one that came in at 65% of the original list price. That one was severely overpriced for its size and location. So there are houses out there that can be overpriced and in bad condition.

There's one REO that is a great opportunity for somebody who's looking to buy. I guarantee you that'll be gone here pretty quick. Economic uncertainty, investor activity is normalizing after the pandemic, fa-la-la. The bottom line is that investors are out there taking their money and putting it elsewhere right now, which makes sense.

They're trying to find parking lots and storage and what have you to buy, and that's where the money's going, so that's also drying up the market. Hate to tell you that. 

Help With Estates

Now, if you have a house... If you ha- if you have a parent with h- o- that's in an older home that needs some work, and you're thinking about putting them into an adult community, or your parents passed away, apology, my condolences, but it is part of life, ta- death and taxes.

And that's part of our business is we are here to help you go through that whole process with our vendors. We have lawyers, we have estate salespeople, we have contractors, we have landscapers. We have everybody who can take care of that house for you if you're somewhere else, and you don't have the ability or the time or the gumption to take care of it.

There you go. Download that information or just give me a call.

90 Day Market Map
Okay, so this is 90-day-plus in Santa Clara County, and I have it all the way down here to Gilroy. But I want to make sure that you look at this picture right here, 'cause it's a huge thing that you f- you're, we're missing here, right? 

Have And Have Nots

It's the difference between the haves and the have-nots, and we identify it through 17, right?

17 is the difference between where the people have money, and they don't, and you don't have money. Now, there are certain neighborhoods in that area, like Willow Glen and Morgan Hill, and I don't know, certain areas of Milpitas. But this side of 880 or 17, they have a lot fewer people with...

or a lot more people with less money. And over here, they have people with a whole lot more money. If you look, it's a huge bastion of people that go all the way up to San Mateo, and a lot of these people work for big companies. They make $300,000, $400,000, $500,000. Now, if you're older like me, you only have to make $200,000, $300,000 a year to be able to afford that, 'cause technically if you bought 20, 30 years ago, you can afford it.

You get economically locked in. We've talked about that before. That said, there are still houses that are overpriced or in poorer neighborhoods, not the greatest neighborhoods like EPA, where houses are just overpriced based on ego, seller ego, or what have you. But I just wanted to make sure we understand that's a...
It's a great way to look at it. Now, it's not perfect because we still have houses over here that have been on the market for over 90 days. After all, they're overpriced: 2.6, 2.9, 2.9, 2.7. I don't need... I'm looking for the right buyer. These guys are looking for the right buyer too, but for 1.6, 1.1, and 2,3 that's close to Silver Creek.

This is Silver Creek over here. A lot of these houses are gonna be on the market for a long time, and there's... They're gonna sit there until rates come down. That's what sucks about being on this side of 17. All right. Now, you see a few of them here in Minnesota, which are Willow Glen and downtown. W- those areas are those with haves, but they just are in San Jose.

So there you go. And then this is- This is... What is this? 









Distressed House Pick
Oh, Distressed House of the Week, Aisling Court, and this is right by Hillsdale. I sold a house right over here a couple of years ago. I sold multiple houses up in Communication Hill. This is a nice older home built in 1997, a four-bedroom, three-bath, Aisling Court.

Not my listing, $1.2 million, brand new, and it is a bank-owned property, so it's gonna go pretty quick. So if you wanna take a look at it, let me know. I'll make up the appointment, and we can go take a look. 

Days On Market Rising
And here are the 40 days on market, 90-day r- report. You can see that this number's getting higher and higher, and it's gonna continue to go high.
32 hasn't been that high in a long time. Those are the number of single-family homes in Santa Clara County that have gone over 40 days on market.

Weekly Charts Outlook

San Jose weekly charts. The numbers are situated, going up and down a little bit, but these are homes for sale right now. I think that number is gonna start falling because we did not see a selling season. It was a matter of a weekend that we had when rates went down to 5.99, and the market shuddered, had a little earthquake, and then rates went right back up, and then rates have been slowly creeping up.

And those houses that are on... Those people who can't really afford nice, bigger houses, more expensive houses, are stuck here, and they're still stuck not being able to afford it. Same thing in Santa Clara County. We're gonna see our inventory start to shrink in the next couple of weeks. So there you go.

And these are all on my blog. All right.

Wrap Up And Goodbye

That's it for now. Thanks for watching. I'm Vito with Al Pitano. We'll see you out there.e

Wednesday Real Estate Snapshot 🦅 🌎 ⚓️

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Vito Scarnecchia
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