Home Prices Hit New Peak 🚀

Welcome to Keys, your daily dose of (expensive) real estate! Today's headlines:

• Home prices hit another high despite rate hikes

• Nightmare Airbnb bat attack fuels lawsuit

• Bidding war for Silicon Valley "affordable" homes

• 🔥 Deal of the Day! 🔥: 3 bd | 2 ba | Fawnskin, CA

Home Prices Skyrocket to New Heights

The latest Case-Shiller index shows home prices in 20 major US metros rose 0.2% month-over-month and hit yet another all-time high in December, up 6.1% from the prior year. The national index similarly reached a new peak, increasing 0.2% and 5.5% over the past 12 months. San Diego led gains with a sizable jump of 8.8% year-over-year.

Behind the upward momentum is an ongoing inventory shortage placing pressure on pricing, paired with mortgage rates dipping below 7% in December to reenergize buyer demand. Prices have proven resilient even in the face of 2023's rate surge to 8% that slowed the market.

Further robust home price growth is forecasted for 2024 as lack of supply and renewing demand continue driving gains. Another year of record highs is likely as buyers anxiously wait to jump back in as rates fall.

The key takeaway for investors is that persistent tight inventories and recovering demand could lengthen the home price growth streak. This pricing power should factor prominently into 2024 return projections across portfolios.

Michigan Airbnb From Hell Plagued by Rabid Bats

Here’s a fun one for you… if you’re into horror movies. A group of high school friends who rented an Airbnb called "The Castle" to celebrate their 50th reunion endured a terrifying ordeal after bats invaded the home.

The first three nights were uneventful. But on the fourth night, screams echoed as bats flooded the turret bedroom two women shared. They fled to the hallway, stuffing blankets under the door, only to find more bats swarming the stairwell.

Retreating to their rooms, the women blocked doors with furniture as countless bats swirled in through cracks and crevices. They cowered under sheets as bats tangled in their hair and bit exposed skin. The shrieking horror continued all night until sunrise when the bats finally retreated.

An exterminator discovered a huge bat colony with years of accumulated droppings and urine soaking the attic and walls. All the women underwent rabies shots.

The victims filed a lawsuit alleging Airbnb negligently allowed the listing despite the egregious health hazards. They also sued the homeowners for failing to ensure guest safety.

As one attorney put it, "What was supposed to be a fun vacation turned into a house of horror. This played out like a scene from a Halloween horror movie."

No one expects attacking bats during a peaceful getaway. This nightmare on bat street could spell legal trouble for the property owners.

Affordable Homes? $2 Million Sparks Bidding Frenzy

The housing market in Santa Clara, California is fiercely competitive, but not solely due to tech giant Nvidia's meteoric stock rise. More impactful are sparse inventory and relatively affordable pricing luring prospective homeowners priced out of the Valley.

Despite Nvidia's valuation ballooning to over $2 trillion in February 2024, the median single-family home price in Santa Clara held steady around $1.5 million to $2.1 million. Entry-level housing draws mid-tier tech talent rather than top executives buying multimillion-dollar homes in tonier zip codes. With Nvidia employing just a fraction of the region's massive tech workforce, its growth only incrementally impacts housing demand.

What fuels ferocious bidding is Santa Clara's location, quality ranch-style housing stock, and prices 25-50% below nearby cities. Listings average a mere 10 days on market. One recent remodeled ranch home fetched $2.445 million after attracting 11 offers in just over a week.

Nvidia's earnings success may stir more tech-money confidence. But the root driver of Santa Clara's ultra competitive and costly housing market remains a severe supply-demand imbalance as Silicon Valley job growth massively outpaces new construction. Savvy buyers must move swiftly and bid boldly to capture one of these scarce properties.

🔥 Deal of the Day! 🔥

Address: 1127 Crags Ln, Fawnskin, CA 92333

This turnkey vacation home in Fawnskin offers an unbeatable blend of modern luxury and natural beauty, with its panoramic mountain views, updated amenities including a modern kitchen and large outdoor decks with a hot tub, and a prime location close to Big Bear Lake, hiking trails, and ski slopes, making it an ideal choice for a memorable vacation rental.

Airdna data:

Estimated monthly payment: $4,107/month (if financed)

Estimated monthly revenue: $3,750/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

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