Welcome to September! I want to buy everyone a scoop of Gunther's Ice Cream on Thursday, August 31st to celebrate the awesome Summer we just had, and being back in school. I will be there from 4-6pm. Anyone and everyone is welcome, simply find me at Gunther's, pick up a business card and free pen, show the cashier, and every person in your group will get a free scoop of ice cream or fruit freeze on me! As we head into the new month, inventory continues to shrivel up. There just aren't enough new listings coming to the market. This is likely due to the higher interest rates. They moved higher at the beginning of last week, but were able to finish lower around 7.35%. In order to see more listings come into the market we will need rates to move lower. Simply, the traditional seller is also a buyer. This means that under normal circumstances a seller is usually selling their current home to upgrade to a larger home, relocate or downsize to a smaller home. Well, these aren't normal circumstances, and majority of homeowners took advantage of the low interest rates from years past. If they were to sell their home now, they would be trading a 3.5% interest rate for a 7%. It's just the reality of the market currently and most homeowners are staying put regardless of wanting that larger home or new neighborhood. Surprisingly, there is still enough buyers (take a look at the image below) to continue moving us along, which is why we are not seeing huge jumps in the housing supply. As long as these buyers stick around this market will continue to grind away. Let's not get it twisted either, the buyers moving us forward are first timers and financed offers. Buyers that understand their finances and feel comfortable with the mortgage payment should take advantage of this market while the competition is low. I continue to do my part on the listing side. Tomorrow, my brother and I will be putting our grandparent's home on the market. Our mom and her nine siblings grew up in the house. My 27 cousins and I grew up at the house for parties, events and Christmas. The home will be missed deeply but the memories will last forever. The family would love another large family to fall in love with it, so if you know of anyone, please let me know. 5220 Fitzwilliam Way, Sacramento, CA 95823. What are you seeing or hearing? I'd love to know paul@guiderealestate.com |
