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Rates, real estate & recession | Redfin hot homes I Tesla leased solar roofs I bay area real estate - YouTube
Channel: Nagaraj Annaiah
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The
real estate market in the Bay Area is HOT.
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So here's some Bay Area real estate small
talk.
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If you're looking to buy or sell a house or
condo, call me now for a complimentary consultation!
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In this episode, I will be touching upon three
burning topics in the Bay Area housing market
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today.
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Story 1: Beware if you are buying a property
with a leased solar system.
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Story 2: Are we in an economic recession?
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In Story 3, I try to figure out the logic
behind Redfin's 'hot homes' category.
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Don't forget to like and subscribe to this
video to stay in the real estate loop and
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be better informed every week.
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You can also jump through the timeline and
check out your favourite topic right away.
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Lets get started.
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STORY 1: Beware if you are buying a property
with a leased solar system
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We've all seen the commercials and heard about
Tesla's solar roof.
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It sounds like a great idea: you get a sleek
new look for your house, and it's also environmentally
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friendly.
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But what if you want to sell your home?
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Well, if your home has solar panels installed
by Tesla, it might be hard to transfer the
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title of those panels over to the buyer of
your property.
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That's because the seller is not able to transfer
the lease; he needs to buy out the solar panels
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before selling the property, making it hard
for him or her to do so, and leaving both
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parties in an awkward situation.
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The company states that it's not their fault
if this happens, and that it's all in the
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hands of the purchaser.
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They say that they have a clear process for
transferring lease ownership, but many applicants
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have found themselves waiting for months without
any response from the company.
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The Tesla solar roofs are a great way to go
green and save money on your electric bill.
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But the after sales service of Tesla is despicable.
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Although Tesla claims on their website that
98% of applicants who have applied for a lease
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transfer were cleared, the truth is somewhere
in-between.
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Experts suggest that it's best to buy out
the remaining lease payments before listing
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your home, or price your home lower to get
a buyer.
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Importantly, if you have a lease, make sure
the buyer takes over the lease or you will
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be stuck.
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And if you are a buyer and in the market for
a new home with a leased solar system, you
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may want to think twice before signing on
the dotted line!
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STORY 2: Are we in an economic recession?
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Are we in an economic recession?
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This question isn't an exaggeration because
tech stocks plunged in value and many big
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tech firms froze further hiring.
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But to really understand the economic situation,
we need to look at the mortgage rates and
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the stock market.
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Last week, we saw a refreshing exception to
the rule: Mortgage rates moved higher at the
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fastest pace in decades, but stocks did not
follow suit.
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To understand why this happened, we first
need to examine the relationship between stocks
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and bonds—which isn't as simple as many
people assume.
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Conventional wisdom holds that stock prices
and bond yields correlate with each other.
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This makes good logical sense from the standpoint
of selling one to buy the other.
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For instance, if you sold bonds to buy stocks,
bond yields and stock prices would both move
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higher together.
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But what if you don't want to sell bonds?
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What if you just want to hold them?
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While it's true that bond prices have been
falling and yields have risen over the past
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few weeks, they haven't fallen by as much
as stocks have risen—and they haven't risen
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by as much as mortgage rates have gone up!
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In short: Bonds are still down overall since
March 1st when rates started moving higher
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at such an alarming pace.
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When the pandemic hit, it was a golden age
for tech companies.
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People stayed at home, and they spent more
time on their computers than ever before.
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As a result, the tech sector flourished.
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Now that people are returning to work, though,
and spending less time at home—and because
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interest rates are rising—the tech sector
is suffering deep losses as investors fear
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that companies boosted by the pandemic are
running out of steam.
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The reason for this is simple: people see
their wages going up with inflation at its
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highest levels in 40 years, so they don't
want to spend as much money on technology
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or entertainment as they want to save for
their retirement or children's college education.
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They're also worried about the economy's direction—with
interest rates rising and inflationary pressures
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building up, there's concern about whether
or not we'll be able to avoid an economic
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recession.
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STORY 3: Redfin's 'hot homes' logic beats
me
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I've been thinking about the Redfin 'hot homes'
criteria and how it relates to my experience
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as a seller.
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I currently have a listing in Communications
Hill that is not being shown as a hot home,
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even though I believe it's priced competitively.
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The Redfin “Hot Homes” program is intended
to give consumers information about homes
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that are likely to sell quickly, but the criteria
used to determine whether a home is a hot
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home seems pretty vague.
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My price of my listing is just a little bit
higher than the Redfin estimate.
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However, I figure that when there is 120k-130k
difference between the redfin estimate and
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the listed price, the algorithm considers
it a 'hot home'.
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According to Redfin, they have 500 ranking
factors to determine a ranking factor.
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But they also caution buyers that they should
not make a decision regarding the purchase
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of real estate based on whether a home is,
or is not, designated a Hot Home.
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I would do the same.
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Redfin estimates are just that: Estimates!
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So take them with a pinch of salt.
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CONCLUSION
As a realtor in the Bay Area, I've had quite
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a few conversations about people moving to
San Francisco and getting jobs in start-ups
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and growing companies.
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Most people move for new jobs or for grad
school or simply to find love or settle down
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without your partners.
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But that's not the primary reason why most
people move here, it's actually because of
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the weather.
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People from colder climates want to be where
it is warm, so after college or office, they
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can flock to the place where they can wear
sandals all the year round, and that place
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is the Bay Area.
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Want to invest in a piece of real estate here,
I am the Jeeves you are looking for.
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Call me now.
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And if you are a first-time buyer, watch this
video if you want 0% interest downpayment
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loan.
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