Sacramento Market Update 11.20.2024

    Is a housing crash coming?No.A really good article came out of HousingWire this past weekend.  It included a lot of charts, including one of them below.  All were pointing to the surprising strength of homeowners despite some hot takes on social media or YouTube.  A crash is simply not in the cards, however hopeful one may be to buy property or make a move at lower prices.  First and foremost, you simply can't fight supply and demand dynamics.  There is just not enough homes on the market or due to come on the market unless something crazy happens and a flood of two million homes magically pop up for sale.  Beyond that, foreclosures and bankruptcies are still below pre-pandemic levels, homeowners and buyers of homes have strong FICO scores, credit delinquencies are below pre-pandemic levels, and we are currently hovering at the lowest percentages ever of homeowners underwater.  Another fun fact, 40% of homeowners don't even carry a mortgage.  Check out the image below.  Remember a couple months ago when the news and others were ringing the alarm bells about the all-time highs of consumer debt?...Well, yeah, alerts can be deceiving.  American wages have actually been outpacing inflation.We will continue to monitor all of this, just don't get your hopes up for dramatically lower prices.  As we take a look at the monthly numbers from September to October, a couple of things are standing out to me.  The average DOM continues to rise, and interestingly, the % of sellers price reductions are flattening out.  Let's see if there are some activity changes now that the election is well passed us and we head into the end of year.Finally, I will be attending this event and I would love to see you there too!  Head to my Instagram account to follow the steps to win two free tickets! ($156 value)Click the image below to see the event's page, what each ticket includes, the whiskey, the cocktail hour, and the loaded buffet dinner menu. Curious About Your Home's Current Value? What are you seeing or hearing? I'd love to know paul@guiderealestate.comVisit www.paulpelettarealtor.com   Market Update   Article of the Week Trends   Should You Renovate or Relocate? Here’s What You Need To Know  

Sacramento Market Update 11/13/2024

View this email in your browser     Happy belated Veteran's Day to all current and former servicemen & women.  Thank you for your service to our country!Well, it seems bond traders are more reliable than polling data.  I'll try to remember that for 2028.Welcome back to the newsletter post-election.  I wrote two weeks ago about the financial markets and the bets bond traders were making in their anticipation of the next US President.  I don't know about you, but I think it is kind of cool to put those pieces together in real time and watch them play out.   Regardless of politics or preferred candidates we literally pieced it together and the results were clear.With the election out of the way, we can wait and see how the real estate market plays out through the remainder of the year.  Many of the things I heard, and the rumblings I saw online were people waiting for the election to be over.  I never quite understood what there was to wait for, but now we can see how the data rolls in over the coming weeks and notate any changes.  As things sit, mortgage rates are back above 7%, purchase applications have recorded six straight weeks of negative prints, the market action index for Sacramento County is still at 50 and median DOM is around 35 days give or take across all price ranges.  Given the current dynamic, my recommendation to would-be sellers is to wait if possible, and my advice to savvy buyers comfortable with the estimated monthly payment is to get shopping.We had a ton of fun in Santa Cruz this past weekend.  The weather is just perfect during this time of year.  Our dinner Friday night at Shadowbrook was fantastic.  I can not recommend it enough.  It is celebrating 77 years, and is considered a top 100 most romantic restaurant.  The ambiance and service are just incredible.What are you seeing or hearing? I'd love to know paul@guiderealestate.comVisit www.paulpelettarealtor.com Curious About Your Home's Current Value?   Listing Highlight Experience the comfort of mountain living in this charming residence, featuring a spacious deck ideal for entertaining. The desirable open floor plan showcases soaring cathedral ceilings and striking exposed wooden beams, fostering an ambiance of refined coziness. Nestled on a large, forested lot, the property includes a workshop and ample garage storage. The newly installed HVAC system from January 2021 ensures year-round comfort. Located just moments from Jenkinson Lake and Sly Park Recreation, this home serves as a perfect retreat or vacation spot for outdoor enthusiasts.  Listed at $390,000 by Dawn A. Reddoch - GUIDE Real Estate6170 Bucktail LN, Pollock Pines, CA 95726Know someone who may be interested? Let me know at paul@guiderealestate.com   Interest Rate Update *These rates are courtesy of Dara Delgado - Home Loans*   Article of the Week Trends   Donald Trump Will Return to the White House: What His Presidency Means for the Housing Market  

Sacramento Market Update 11.06.2024

        Welcome to November!I am writing this on Monday.  I'm looking forward to getting through Tuesday and hopefully moving beyond the election without too much back and forth on results.  Historically, financial markets move favorably regardless of who wins unless there's a clean sweep for one party or there is extended uncertainty of the final results. There's been a lot of people talking about waiting for the election to pass before getting back into the process of buying or selling.  I'm interested to see what the lag is on that front, so obviously I'll be watching for signs and signals.  Inventory continues to rise as more homes sit on the market longer.  We are now at 35  median DOM (days on market) across Sacramento County.  The market action index has dipped and now hovers at a score of 50.  This is still indicative of a strong sellers market, however, I will continue to make the call that now could be a great opportunity for shrewd buyers that are okay with current rates and monthly payments.  I saw a video on Friday last week by Barbara Corcoran, the famed founder of her own real estate firm and Shark Tank business investor/advisor.  She was speaking on the opportunity within the market right now as everyone sits on the sidelines.  If everyone is sitting on the sideline because of this reason or that reason...well, that means there is little to no competition right now.  I have been talking about this for months now.  If Barbara and I are seeing eye to eye, well, I guess you have a really good free newsletter being sent to your inbox every Wednesday morning.  I digress.My family and I will be going on our annual trip to Santa Cruz this weekend.  We are going up Friday afternoon.  I was able to grab a reservation at Shawdowbrook Restaurant in Capitola.  If you haven't heard of it, it's the one that requires a tram to get down into the restaurant.  Check it out on IG here.  If you have heard of it, and if you've been, I would love to hear about your experience and your advice on what to order before Friday.  Cheers!  What are you seeing or hearing? I'd love to know paul@guiderealestate.comVisit www.paulpelettarealtor.com Curious About Your Home's Current Value?     When?          What?   Where? Nov 6th Sacramento Kings vs Toronto Raptors Golden 1 Center Nov 6th Downtown Sacramento Ice Rink Opening Day Ali Youssefi Square Nov 7th Sensory Friendly Play Sacramento Children's Museum Nov 8th Sacramento Kings vs Los Angeles Clippers Golden 1 Center Nov 9th  Vikingfest Masonic Center Nov 11th Veterans Day Open Cockpit Aerospace Museum of California Nov 13th  Sacramento Kings vs Phoenix Suns Golden 1 Center Nov 15th Emirates NBA Cup Round One: Kings vs Timberwolves Golden 1 Center Nov 16th A Taste of Tempranillo 2024 Scribner Bend Vineyards Nov 23rd Palladio Tree Lighting Piazza at Palladio, Folsom Nov 28th Run to Feed the Hungry CSU Sacramento       6 Tasks Every Homeowner Should Do in November  

Sacramento Market Update 10.30.2024

View this email in your browser   Welcome to another 5th week edition of the newsletter, 5th week editions are our referral specials.  Share this newsletter with friends or family for a chance to win a $50 gift card. Let me begin by saying this is NOT a political post.  However, it must be said, it seems the financial markets are placing their bets on the presidential election in six days (thank God, let's get this over with already).  The 10yr yield has rocketed higher to 4.30%.  The once anticipated 100bps of further cuts to the Fed funds rate before the end of the year has turned into maybe 50bps, or possibly even none.  This is a combination of multiple things.  Economic data, employment and the American consumer have proved resilient.  On top of that, prediction markets, polls and bond traders are placing their money on a Trump victory.  What does this mean?  Well, Trump is running on the back of eliminating an income tax and introducing tariffs.  Tariffs increase the costs of goods coming into the country.  The goal is to bring back American jobs, boost growth and earnings of the worker.  Now, this is where bond traders and the 10yr yield come into play, the downside of this proposed economic policy...inflation.  Tariffs increase the cost of goods coming into the country, which is inflationary to the price.  It's unclear how certain items will be affected, but the point being in that environment inflation may come into play again and cutting rates may become a distant memory.  Hence, the 10yr yield is back to 4.3% and 30yr mortgage rates are flirting with 7% again (sigh).Aren't you glad I write this newsletter every week?  When I conceived this newsletter I went back and forth on a monthly vs. weekly post.  Now, I couldn't imagine writing this once a month. So, how does this change the real estate market? Well, purchase applications have revolted.  The possibility of higher for longer interest rates is lingering again, and home prices aren't budging in any dramatic way due to lack of supply.  As usual, my advice is simply to be PREPARED.  Everything the market is predicting and the policies candidates are championing does not mean that they will come to fruition or be implemented.  Be ready to pounce.What are you seeing or hearing? I'd love to know paul@guiderealestate.comVisit www.paulpelettarealtor.com Home Value Estimate   Share & Win Fifth Week Special!Anyone who shares this newsletter with a friend or family member will be entered to win a $50 Amazon Gift Card.  Just in time for Christmas shopping!Simply hit the forward button below, fill out some info, and boom, entered. You can also reply directly to this email with the referral's email and boom, entered.I will notify a winner over the weekend!What are you seeing or hearing? I'd love to know paul@guiderealestate.com