Sacramento Market Update 8/28/2024

      View this email in your browser   Well, my fine readers of this newsletter, we made it.  As of last Friday, in beautiful Jackson Hole, Wyoming, Mr. Powell all but guaranteed we should expect the first Fed rate cuts in September, followed by a couple more to end 2024.  There are three meetings left, and the cuts are projected to be anywhere from .75 to 1.00 bps in total.  We've been tracking this very closely as it greatly affects the housing market directly both locally and nationally.  I have been saying almost every edition of this newsletter for months that interested buyers need to start preparing sooner than later.  I expect as the rate cuts come we will continue to see purchase applications rise.  This will be the competition getting themselves in position to purchase.  If you know someone interested in buying over the next 3,6,9,12 months, I cannot express how important it is to start their journey yesterday.  The changes in real estate in August means you need to know your financial numbers with a lender, and means you need to be interviewing a realtor or realtors.  The theme of the last 4 years has been low supply and pent up demand.  NOTHING has changed, and these rate cuts means even lower mortgage rates...the pent up demand will be coming to a market near you.If you've been reading my newsletter, what do we think that means for potential sellers?  Reply directly to this email and let me know!I'll see you next week in September!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 ticket to Buckhorn BBQ + Grill's Bourbon Bash in two weeks. ($78 value)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   Article of the Week Trends   How To Be ‘Very Demure, Very Mindful’ When Buying a Home: Real Estate Experts Reveal ‘Respectful, Modest’ Etiquette Tips   Well, my fine readers of this newsletter, we made it.  As of last Friday, in beautiful Jackson Hole, Wyoming, Mr. Powell all but guaranteed we should expect the first Fed rate cuts in September, followed by a couple more to end 2024.  There are three meetings left, and the cuts are projected to be anywhere from .75 to 1.00 bps in total.  We've been tracking this very closely as it greatly affects the housing market directly both locally and nationally.  I have been saying almost every edition of this newsletter for months that interested buyers need to start preparing sooner than later.  I expect as the rate cuts come we will continue to see purchase applications rise.  This will be the competition getting themselves in position to purchase.  If you know someone interested in buying over the next 3,6,9,12 months, I cannot express how important it is to start their journey yesterday.  The changes in real estate in August means you need to know your financial numbers with a lender, and means you need to be interviewing a realtor or realtors.  The theme of the last 4 years has been low supply and pent up demand.  NOTHING has changed, and these rate cuts means even lower mortgage rates...the pent up demand will be coming to a market near you.I'll see you next week in September!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 gift card to Buddha Bowls + Rolls.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   Article of the Week Trends   How To Be ‘Very Demure, Very Mindful’ When Buying a Home: Real Estate Experts Reveal ‘Respectful, Modest’ Etiquette Tips  

Sacramento Market Update 8.21.2024

View this email in your browser     Wow.  How far we've come on interest rates.  My clients buying a home in Vacaville just locked in 6.625% conventional 30yr with only 10% down payment, and no rate buydown, just straight rate lock.  We've come a long way.  Refinance applications are up over 35% WoW (week over week), and 117% from this time last year.  This is no surprise, as most likely those refinances are homes bought last year that had to lock in at 7.25% - 7.5%.  Now, interestingly, purchase applications are only up 3% WoW and down -8% from this time last year.  As I've pointed out multiple times over the last few weeks and months, buyers will want to see stability here at these levels before diving in head first.  With that said, 3% increase ain't nothing, and if we continue to see weekly increases then we can expect some more demand and activity come back into the market.  This comes at a time when we usually hit our inventory peak.  The supply we've been building over the first 7 months of the year could see a turn back down, which will maintain price levels and also increase competition again with less supply.  If you know someone thinking about buying, I wouldn't advise them to wait to get the ball rolling.On a success note, two of my most recent transactions representing buyers have resulted in appraisals coming in OVER value.  This is the results of good timing and being aware of the market dynamics.  The current home in escrow that appraised OVER value is in Vacaville.  Now, I am not familiar with Vacaville or Solano County, at all.  However, I can become familiar within one or two trips and a deep dive into recent area activity and comp sales, and I did.  My clients will now be walking into their new homes with a house worth more than what they paid.  It's a beautiful thing. What are you seeing or hearing? I'd love to know paul@guiderealestate.comVisit www.paulpelettarealtor.com Curious About Your Home's Current Value?   Client Review     Article of the Week Trends   Is It a Good Time To Refinance Now That Mortgage Rates Are Finally Falling?  

Sacramento Market Update 8.14.2024

    Major changes? No problem!  On the first day of the new rules, I was able to successfully negotiate for my clients and get an offer accepted for a home in Vacaville, CA.  Five rounds of showings over five weekends.  We were able to throw out Dixon and Fairfield early on in our search, solely focusing on Vacaville after round three.  There were a couple neighborhoods we identified as well to focus our search further.  Once we identified some stellar neighborhoods, I pulled some lists to send buyer letters to homes that were off market just in case none of the current active homes worked out!  My clients were already pre-approved and ready to move when the right house came along.  We discussed this last Sunday the new changes being implemented, and they were fully on board.  My brokerage and I have been preparing for this week for over three months now.  So far so good, I'd say.  I do expect a lot of turbulence over the next six months as the changes set in and reverberate through the system.  How do you combat that?  You do so with preparation, team support, competence and COMMUNICATION.   Cheers to my clients, and we look forward to a smooth transaction.Rates ticked up towards the end of last week, but as of this writing are resuming their descent lower.  We have CPI news early Wednesday morning.  We really want to see a soft print in this inflation data to justify the projected Fed rate cuts in September.In the housing market update below, we see a very small increase in active homes (seasonality).  We also see more activity in home buying with pending and closed sales increasing.  I expect to see more of that if rates can continue their descent.  That's why it was really important for me to get my clients searching in Vacaville something soon.  House shopping is hard enough, house shopping with lots of competition is even harder.See you next week!  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   Cheap Tricks: How To Prep Your House To Sell When You’re Broke  

Sacramento Market Update 8.07.2024

    The beginning of August started with a bang, aye?  The FOMC was last Wednesday and everything seemed calm and cool...and then Thursday and Friday job reports came out.  Friday's report showed a surprise to the downside.  The number of jobs added in the last month was a big miss.  This further brings into the light a cooling job market.  This was the beginning of the fear that the Fed is, once again, waiting to long to make a move.  The stock market crashed as a result.  I personally believe it's a big overreaction.  The job market is simply showing signs of cooling.  GDP economic growth earlier in the month was 2%+.  If you remember, the Fed has a dual mandate, to keep inflation at bay AND to keep employment in balance.  We are here now, and we will see how the Fed tightropes the next few weeks.  It is widely expected for them to lower the Fed's interest rates in September.  What does this mean for housing?  Exactly what we've been looking for this whole year of 2024.  We have been waiting for the jobs market to soften.  The 10yr yield has responded accordingly and with it 30yr mortgage rates are comfortably below 7%.  If you notice below, a standard 30yr mortgage can be had at 6.625% without points paid.  You love to see it.Now, how does that affect the market moving forward?  Well, we are still in a seasonally slow period as vacations wind down and school begins.  There isn't a lot of motivation to move around these times.  We'll need to watch purchase applications over the next few weeks to see how potential buyers respond.  I would not be surprised to see a steady increase in purchase applications with demand slowing picking up every week.  The key will be mortgage rates holding steady here while we wait for the next Fed meeting in September.  Buyers want to see steady rates before diving back into the market.  If we can see some steadiness, sidelined buyers will trickle back in, competition should descend on the higher inventory and home prices could start to work their way back up.  Let's see!Have you heard anyone talk about moving to Texas recently?  The main picture above (5 acre country estate), and this week's listing highlight is my client's home for sale in Burleson, TX.  Check out the pictures and the listing on Zillow.  If you've heard whispers, please let me know!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 SPECTACULAR COUNTRY ESTATE JUST MINUTES FROM THE CITY! This gorgeous property is tucked away on 5 acres with STUNNING LANDSCAPE, PRIVACY AND PASTURE! Enjoy looking out on your property from both FRONT AND BACK PORCHES, both spanning the length of the home! Inside, you will love the updates! LAMINATE FLOORING, NEW CARPET AND FRESH PAINT throughout! WELL-APPOINTED KITCHEN WITH ISLAND, built-ins in the family room, TONS OF STORAGE SPACE, FUNCTIONAL LAYOUT, generous room sizes, SO MUCH NATURAL LIGHT, just to name a few of the fantastic features. There is so much to LOVE, INSIDE AND OUT!! This is a MUST SEE!  Listed at $650,000 by Stephanie Deeds - Point Realty3411 Trails End Rd, Burleson, TX 76028Know 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   You’ll Be Glad You Did These 4 August Tasks When January Comes