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Let's get into it. We received CPI reports last Thursday indicating inflation continues its downward descent towards the Fed's 2% target. It is now expected for the Fed to make their first interest rate cut in September. This brought down the 10yr yield and with it 30yr mortgage rates. As of today we are hovering around 6.85%.
In our local market, we are starting to get some more balance. More listings are coming onto the market, a 10% increase, while mispriced homes continue to stale and sit. 36% of Current listings on the market saw a price reduction last month. Pending sales saw a small decrease of 2%. Closed sales had a draw down of 16% MoM. If you're following along with me then you'll notice supply has been increasing and sales are dwindling. Supply is increasing from very low numbers, historically low levels, which means that a couple months of increases changes nothing in the overall picture. We would need a massive influx of home sellers and builders to start bumping out new homes in the order of millions, not happening. However, in this tiny little blip of time, we find ourselves in a mini buyers market. The sellers that are sitting now for 50+ days are probably beyond nervous now, they're pissed. What is a number they would accept? How long can they stay stubborn? Is their agent giving them real time advice? My guess is my readers of this newsletter are getting more advice every Wednesday morning then some current sellers sitting on the market right now.
The Pacific Southwest Regional Cal Ripken tournament started on Monday in Galt, CA. It will continue with pool play through Friday. If you need me, you can find me at the baseball field!
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