Here in Ventura County, especially along the coast, the only homes not getting top dollar are homes in need of Major repairs. Homes in good shape, especially if they are remodeled by the current owner (not a flipper), get above asking even. Two streets over, my home model sold for $930K....last year they were going for $850k or so. The insanity continues. A building project by the new High School has been in the works for about 200 homes and condos....for more than a decade, and ground has not even been broken yet. We are doing this to ourselves.
Buying a house today is WAY different than pre-covid. If you go back and plug 2019 numbers into an amortization schedule, and then do today’s numbers, you find yourself wondering if you really should buy. Bottom line, and generally, if you take a 30 year mortgage you will need to live there for 15-20 years before you see “real” equity. Run the numbers if you do not believe me. Add a few % each month for repairs over the life of the home too if you really want to understand just how bad it has gotten. This is what sales folk will not readily reveal about the current situation.
Jason doesn’t believe a crash is possible, that is why he gave a random statement, but many people know that there is something wrong. I think the money printing is where the problem lies dormant.
@@JuanRodriguez-ql2zu There are waaaay more people in this state than there are homes. And there are millions who have recently entered the state that are willing to live with eight adults in a home in order to afford it. Purchase and rental prices are not going down. Prove me wrong?
Agree with this. I’m in Marin and I’m seeing a lot of old bad houses sell fairly quickly still and the good remodeled houses selling private sale for top dollar.
Very similar to GB. All property around London and the South of England are not affordable . A crash is unavoidable ; as it requires 2 big earners to make the huge mortgage repayments ; and Construction Companies have been building less homes to keep prices high. We have a bubble that just has to pop anytime soon 🤔
Home prices didnt gain value, its the American dollar that is losing value. This was accelerared during Covid where everyone was so happy to receive $1200. As the national debt increases, the dollar will continue to weaken and all asset prices will continue to climb. There are too much rich people that will not allow assets to go down.
Exactly! You nailed it. The USD has lost value since 2020...and that's why prices seem so crazy high. And I would venture to guess our incoming president will probably print more currency again, making it even worse 😮
What you are describing is cost-push inflation. Real estate generally does not do well under such condition because overhead costs keep rising faster than the price does. Rich people have a multitude of other investments and therefore will not be tied down by one under-performing asset. Hence, financial institutions are net selling their real estate portfolios.
@@toinengwyn3935 California has a lot of things causing cost push inflation. In addition to money print inflation. Costs due to lawmakers decisions in CA have caused prices of housing to go up more here. Building codes, title 24 and Green agenda making house building costs way more than every other state. Also driving builders to build elsewhere.
Fun fact, less than 5% of home buyers complete and understand an amortization schedule before buying. Today’s numbers and WAY different than pre-2019. If you take a 30 year loan with the average home in CA, how long do you need to live there, making normal payments, before you gain real equity? Also, what phantom costs can you add to those values? 😅 You’d be better off investing the difference in rent for 20 years. Edit: the only good reason to buy short term right now is that you just have to have the house, or it’s a biz as well, or location that you are willing to over pay for. Period.
Can you do a derp dive into SFR in napa County. Filtering out any property with acreage, vineyard etc. it's an interesting market. Thanks for your work.
Hi Jason. Thanks for ur analysis. Where do u see rental properties heading in Elk Grove? I was thinking of getting a house there but found out there are so many new homes now and all are now listed for rent. So I bought one in Reno (no tax) and hoping to push it for rent there. I am thinking of maybe retiring Elk Grove 3 years from now and sell my primary residence in Bay and then have additional $ to purchase couple rental. I see Elk Groove to be very appealing. City is well planned with wide roads, trees, good schools and good infrastructure. Could Elk Grove be a boom town in 5 years? Appreciate ur insight.
I’m new to the Bay Area and honestly, I’m very disappointed. I expected this region, known for its high-tech companies, to be more developed. The homes here are old and in poor condition, despite the sky-high prices. There aren't many high-rise buildings, the infrastructure is lacking, public transportation isn’t great, and the roads are in poor shape. I’m left asking myself, ‘Is this California? Is this Silicon Valley?’ Totally let down by the reality
Yea but whoooooo is buying the houses. Not ordinary families. It's all investors and cash offers. So they can just rent them out. Let's get some stats on the actual working class of America
Investor purchases have been low overall for a couple of years since prices have outpaced rents by a long shot. The people I'm seeing buying are well qualified individuals who have saved a lot of money. High credit scores, good income.
Wow people are still buying in this way overpriced environment. People have to be maxing out their budgets and I wonder what happens when property taxes start to bite. Will people be able to pay 10’s of thousands of dollars for the privilege of having a mortgage on a house that could burn them financially in the end 🤔
Wow , American people living their lives and buying homes about to lose their homes is funny to you ? Cali doom ? So Americans losing homes and family’s losing their homes is funny to you ? Grown up do better .
Always remember its in the states best interest to keep home prices as elevated as possible
why? Bay area is too expensive
Here in Ventura County, especially along the coast, the only homes not getting top dollar are homes in need of Major repairs. Homes in good shape, especially if they are remodeled by the current owner (not a flipper), get above asking even. Two streets over, my home model sold for $930K....last year they were going for $850k or so. The insanity continues. A building project by the new High School has been in the works for about 200 homes and condos....for more than a decade, and ground has not even been broken yet. We are doing this to ourselves.
Wow! Sounds like a competitive market still. In Sacramento we have more inventory but the ones sitting on the market are often cheap looking flips.
That is what happens when overregulation and high permit/impact fees limit building.
The best time to buy a house is always 10 years ago 🤷🏻♀️
Buying a house today is WAY different than pre-covid. If you go back and plug 2019 numbers into an amortization schedule, and then do today’s numbers, you find yourself wondering if you really should buy. Bottom line, and generally, if you take a 30 year mortgage you will need to live there for 15-20 years before you see “real” equity. Run the numbers if you do not believe me. Add a few % each month for repairs over the life of the home too if you really want to understand just how bad it has gotten. This is what sales folk will not readily reveal about the current situation.
@ we made nearly 1M$ in 8 years on our house! But that’s So Cal
@@katieheense5269 its only on paper until you sell it. Prices will adjust. Coming soon.
@@Mikefngarage we sold and bought multiple properties with the money
House prices will never be affordable in California. There's going have to be a huge crash for house to be affordable again.
We definitely pay to live here but it’s a beautiful state.
More taxes dollars for our invited guests The undocumented immigrant families❤❤ ❤❤❤
Affordable is a relevant term. Will you ever be able to keep your job at 7-11 and buy a home? Probably not! 😂
Jason doesn’t believe a crash is possible, that is why he gave a random statement, but many people know that there is something wrong. I think the money printing is where the problem lies dormant.
@@JuanRodriguez-ql2zu There are waaaay more people in this state than there are homes. And there are millions who have recently entered the state that are willing to live with eight adults in a home in order to afford it. Purchase and rental prices are not going down. Prove me wrong?
Thank you Jason ... prices are up here also ... SF Bay Area. and selling fast... Thank you
I bet! Thank you for sharing, Cathy.
Agree with this. I’m in Marin and I’m seeing a lot of old bad houses sell fairly quickly still and the good remodeled houses selling private sale for top dollar.
Same in East Bay. Especially in Livermore. Anything less than a million if you can find one, sales very fast.
Very similar to GB. All property around London and the South of England are not affordable . A crash is unavoidable ; as it requires 2 big earners to make the huge mortgage repayments ; and Construction Companies have been building less homes to keep prices high. We have a bubble that just has to pop anytime soon 🤔
Great update Jason! Haven't watched in a while. You've really hit your stride. Will be checkin in more often going into 2025.
Welcome back!
Home prices didnt gain value, its the American dollar that is losing value. This was accelerared during Covid where everyone was so happy to receive $1200. As the national debt increases, the dollar will continue to weaken and all asset prices will continue to climb. There are too much rich people that will not allow assets to go down.
PPP loans, low rates, money printing, too many dollars chasing too few goods. 10+ years inflation in 18 months
Exactly! You nailed it. The USD has lost value since 2020...and that's why prices seem so crazy high. And I would venture to guess our incoming president will probably print more currency again, making it even worse 😮
What you are describing is cost-push inflation. Real estate generally does not do well under such condition because overhead costs keep rising faster than the price does. Rich people have a multitude of other investments and therefore will not be tied down by one under-performing asset. Hence, financial institutions are net selling their real estate portfolios.
@@toinengwyn3935 California has a lot of things causing cost push inflation. In addition to money print inflation. Costs due to lawmakers decisions in CA have caused prices of housing to go up more here. Building codes, title 24 and Green agenda making house building costs way more than every other state. Also driving builders to build elsewhere.
They didn’t gain value?🤨
Fun fact, less than 5% of home buyers complete and understand an amortization schedule before buying. Today’s numbers and WAY different than pre-2019. If you take a 30 year loan with the average home in CA, how long do you need to live there, making normal payments, before you gain real equity? Also, what phantom costs can you add to those values? 😅 You’d be better off investing the difference in rent for 20 years. Edit: the only good reason to buy short term right now is that you just have to have the house, or it’s a biz as well, or location that you are willing to over pay for. Period.
@@LockedUpLarry if you can pay an extra 10 or 20 k a year on your home you can get around that and pay off your 30 year in 10.
@ don’t tell me this… tell the ever growing FHA buyers this. 😂
@ but to your point, add that amount to your overall costs. Math it out!
Can you do a derp dive into SFR in napa County. Filtering out any property with acreage, vineyard etc. it's an interesting market. Thanks for your work.
Hi Jason. Thanks for ur analysis. Where do u see rental properties heading in Elk Grove? I was thinking of getting a house there but found out there are so many new homes now and all are now listed for rent. So I bought one in Reno (no tax) and hoping to push it for rent there. I am thinking of maybe retiring Elk Grove 3 years from now and sell my primary residence in Bay and then have additional $ to purchase couple rental. I see Elk Groove to be very appealing. City is well planned with wide roads, trees, good schools and good infrastructure. Could Elk Grove be a boom town in 5 years?
Appreciate ur insight.
Great questions and a lot to unpack there so please email me.
Good Morning, Jason
Good morning Courtney! Great to see you here.
I’m new to the Bay Area and honestly, I’m very disappointed. I expected this region, known for its high-tech companies, to be more developed. The homes here are old and in poor condition, despite the sky-high prices. There aren't many high-rise buildings, the infrastructure is lacking, public transportation isn’t great, and the roads are in poor shape. I’m left asking myself, ‘Is this California? Is this Silicon Valley?’ Totally let down by the reality
Sellers not lowering prices because they have a 3% interest rate. This will change if unemployment breaks above 5%.
I would not be able to afford a home today if I had not bought mine several years ago.
Um, so why put yourself in a hypothetical situation?
Mahalo 🤙🏽🤙🏽🤙🏽
Thank you for watching the vid and for commenting
Yea but whoooooo is buying the houses. Not ordinary families. It's all investors and cash offers. So they can just rent them out. Let's get some stats on the actual working class of America
Investor purchases have been low overall for a couple of years since prices have outpaced rents by a long shot. The people I'm seeing buying are well qualified individuals who have saved a lot of money. High credit scores, good income.
@JasonWalter1 yes or people getting down payment from parents. I live in stockton and al you see is brand new empty warehouses
And here’s one for the #algorithm!😊
Much appreciated! Happy Sunday Steve.
#1 Happy Saturday Jason!
#LETSGETNERDY😊
Happy Saturday, Steve!
Wonder what Kamala has been up to? 😅
Wow people are still buying in this way overpriced environment. People have to be maxing out their budgets and I wonder what happens when property taxes start to bite. Will people be able to pay 10’s of thousands of dollars for the privilege of having a mortgage on a house that could burn them financially in the end 🤔
hahahahahahahahahahahahahahahaaaaaaaaaaaaaaaaaaaa cali doom 🤠
Wow , American people living their lives and buying homes about to lose their homes is funny to you ? Cali doom ? So Americans losing homes and family’s losing their homes is funny to you ? Grown up do better .