Sacramento Market Update 10.23.2024

View this email in your browser       Let's hop right into it today.  Above is one of many weekly reports I look at for my business and this newsletter.  The Market Action Index is an indicator specific to Altos Research, but basically it is a compilation of various supply and demand metrics to identify and give a score to the market as a buyer's or seller's market.  A score of 30 is seen as neutral, and above that the higher the number, the stronger the seller's market.  We currently sit at 51 in Sacramento County.  If we look below to the actual chart, you'll see 2021 and 2022 were extreme seller markets.  We are now in a more balanced market as more supply has come online, and demand has ebbed and flowed with mortgage rates.  The market action index is in a clear downtrend.  This downtrend is the exact reason why I speculate this current time frame to be a possible opportunity to take advantage as a buyer (assuming we are okay with the financial requirements and monthly payment).   Why do I say this? Reply to this email with your answer and I'll pick someone for a $25 Amazon gift card. At the very least, for someone thinking of getting into the market in the next 3, 6, 9 months, now is the time to prepare.  I probably sound like a broken record at this point, but I'm going to continue to beat the drums on getting prepared early.My Halloween Mailers went out this week to my clients, past clients and top referrers.  Building relationships and referrals are the core of my business.  I am grateful for those I've been able to help and look forward to guiding many more on this real estate journey.What are you seeing or hearing? I'd love to know paul@guiderealestate.comVisit www.paulpelettarealtor.com Curious About Your Home's Current Value?   Halloween Mailers!     Article of the Week Trends   Consumer Guide to Written Buyer Agreements  

Sacramento Market Update 10.16.2024

View this email in your browser     Welcome to the 3rd Wednesday of the Month!  Halloween is only 15 days away.  Is the market getting scary?  Let's check it out.A couple months ago I lost out on a listing to a discount broker offering to do the work for less commission.  That's totally fine. I wished him the best.  Just recently that same home went on "hold" after 37 DOM.  I only bring this up to hammer home the importance of pricing and understanding the current market dynamics.  Pricing a home correctly is the single most important thing when it comes to selling a home.  I take a lot of pride in being able to properly price a home, and use quality comparable properties as my guide.  If you have a question about your home's value whether you're thinking of selling, refinancing or updating your homeowner's insurance for proper replacement value, please reach out, I really enjoy it.Let's get into the stats.  Last month saw a small 2% increase to active listings.  This is quite the difference from Augusts 8.2% increase.  Seasonal slow down seems to be in effect.   The good bit of news for buyers is the 56% YoY increase in listings from this time last year.  Simply, there are more options.  The interesting bit is the closed sales data down over 13% last month, and another 13% from this time last month to now.  Buyers really do seem to be stubborn in waiting for lower interest rates.  If we combo this data with 38% of sellers decreasing their prices, I can make a strong argument to start getting into the market action now rather than later.  To answer my question, the market isn't that scary, in fact it may be opportunity.Does the market seem scary? Let me know by replying directly to this e-mail.  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 Ever Pay Off a Low-Interest Mortgage Early? The Pros and Cons  

Sacramento Market Update 10.09.2024

View this email in your browser     Whoa, did you hear what happened to mortgage rates last Friday?  That was quite the shock to the system.  Will that be enough to kill the buyer momentum before it really kicks off?  I guess we will continue to do what we do here, follow the data, and let it be our guide.  Anyone in the process of getting their pre-approval, offering on homes or in escrow to buy a home woke up Friday morning to a huge shock.  Mortgage rates jumped almost .5% overnight, a huge and rare move.  This is why trying to time the market is such a gamble.  I've been talking about Fed rate cuts, inflation, employment data and mortgage rates for weeks on end, and more recently I specifically highlighted that mortgage rates would need weaker economic data before seeing mortgage rates in the 5s.  The big news last week was the job reports, and specifically the Non Farm Payrolls which were estimated to only be around 147k in added jobs.  The actual number turned out to be 254k, over 100k jobs over the estimate.  This did not show weakness, in fact it showed growth in the only economic data that matters right now.  This created a lot of questions regarding the Fed rate cut path, and big reactions in the bonds and mortgage markets.  A quick look below will show Dara's current 30yr mortgage rate sitting at 6.625%...six days ago it was at 6.125%.This move can really throw a wrench in the market moving forward.  Sellers that were starting to lean forward may now take a step back.   We do have some pretty important news later this week with the inflation reports of CPI and PPI.  Those two can definitely shake things up again for better or worse.  I've been hearing multiple people talk about waiting for the election to pass.  The election is still  27 days away in November, and then we have the major holidays around the corner.  At this point, my advice to sellers may be to wait until Spring if possible, but again, every situation is different.  Preparation is key.  Asking questions now is key.  Talking to a lender now is key, even if the goal is a year out.No matter what, home sales happen every single day regardless of market environments.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 Welcome to your dream home in the prestigious Canyon View Estates! This stunning five-bedroom, 5 bath residence offers luxury living at its finest. As you enter, you'll be captivated by the spacious open floor plan, flooded with natural light and designed for both entertaining and everyday living. The gourmet kitchen features top-of-the-line GE Monogram appliances, elegant countertops, and a generous island, perfect for gathering with family and friends. The inviting living areas boast high ceilings and exquisite finishes, seamlessly blending comfort with sophistication. Retreat to the expansive master suite, complete with a spa-like ensuite bath and a private balcony overlooking the serene surroundings. Each additional bedroom offers ample space and its own bathroom, ensuring privacy and convenience for family and guests. Step outside to your outdoor oasis, where you can enjoy the beautifully landscaped yard with an in-ground spa and breathtaking views of the surrounding hills. With an oversized three-car garage and plenty of storage throughout, this home truly has it all. Located in a desirable neighborhood with easy access to local amenities, parks, and top-rated schools, this property is a must-see. Don't miss your chance to own a piece of paradise in Auburn!  Listed at $995,000 by Bryan B. Lewis - GUIDE Real Estate13615 Harlequin WAY, Auburn, CA 95603Know 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   6 Tasks That Every Smart Homeowner Does in October  

Sacramento Market Update 10.02.2024

View this email in your browser         Welcome to October!  Q4, Halloween and the final run into our presidential elections. We get our first week started off with a bunch of monthly job reports.  If you remember from last week, I stated we will most likely need to see some weakness in economic data in order to get a deeper move down on mortgage rates.  The problem is weaker economic data like the job reports this week means that not enough jobs were added in September, or a larger than expected move in people filing unemployment claims.  I am definitely not rooting for others to lose their jobs or not get hired so that interest rates can go down further, but as things sit that is how I am seeing things moving forward.  The reason being is the Fed made their jumbo .50% cut.  The market was ahead of the cut, and now will be reacting to economic news in one of two ways, either the Fed needs to cut more (weakness), or the Fed nailed it and more cuts are not needed at this time (strength).  To drive it home, we will be looking at weakness to predict more rate cuts, and strength/growth to predict less rate cuts.We saw a 1.44% increase to WoW purchase applications last week.  The YoY purchase applications are now positive at 2.35%.  It is widely surmised that buyers were holding off a couple weeks ago to see how much further mortgage rates would go after the Fed's decision.  Well, as you know, mortgage rates basically did nothing, in fact they actually went up a bit and are now stagnating.  So, buyers more than likely realized and were advised by their mortgage officers to not expect to much more of a drop and it is safe to submit their application leaving behind any FOMO.  For all my current homeowners, refinance applications are up 232% YoY!I personally am starting to get more inquiries on the listing side of things in the last week.  It is never too early to start preparations, and I encourage anyone thinking/considering/hoping of buying or selling in 2025 to start now.See you next week!  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? Oct 3rd Sensory Friendly Play Sacramento Children's Museum Oct 4th Rob Schneider Hard Rock Live Oct 4th - 5th Harry Potter and the Chamber of Secrets™ in Concert SAFE Credit Union Performing Arts Center Oct 4th - 6th Sacramento Greek Festival Greek Orthodox Church Oct 5th I Can Fight Cancer Brew Fest 2024 The Village Green, Rancho Cordova Oct 9th Preseason: Sacramento Kings vs. Golden State Warriors Golden 1 Center Oct 12th Sacramento Armenian Food Festival Saint James Armenian Apostolic Church Oct 12th Youth Empowerment Summit Florin Square Oct 12th - 13th Sacramento Adventure Playground's Dirty Kid Obstacle Race Sacramento Adventure Playground Oct 18th - 20th Sacramento Card Show SAFE Credit Union Convention Center Oct 24th Opening Night: Sacramento Kings vs. Minnesota Timberwolves Golden 1 Center       6 Fall Bedroom Decor Ideas That Are So Cozy, You’ll Want To Snuggle Up Until Spring