Sacramento Market Update 7.31.2024

View this email in your browser           Check out this short video on the upcoming changes to the Real Estate industry this month. Welcome to August!  The biggest changes in years are coming to the real estate industry this month.  Please click on the image above to see a few of the major changes for buyers of real estate and their agents.  It will affect everyone, but I'm still struggling to see who it actually benefits.  There will be loads more forms, contracts and disclosures that's for sure.  My first impression is it actually doesn't help the consumer at all.  Sure, sellers won't be required to offer compensation to the buyer's agent (they never had to before either), but it's really stupid not to...the numbers prove it.  Homes that are listed below the average offered compensation sit longer and sell for less.  Ok, so now we have sellers trying to save money wondering why their house isn't selling. On the flip side, buyers will now have to sign a contract with a buyer's agent to see homes and write offers, and also will be responsible for paying them if they choose to even use one.  Granted, I don't see many scenarios where the buyer will actually be coming out of pocket to pay the agent they choose to represent them.  My guess is maybe 10% (although this does become a very strong negotiation tactic).  There will be a variety of ways to negotiate how the agent representative gets paid.  Most likely it will be the seller who ends up paying in some form or fashion.  Seem confusing?Let's recap.  Sellers of homes are no longer required (never were), nor allowed to advertise on the MLS an offer of compensation.  Buyers of homes will be required to sign a contract before viewing homes with an agent and are responsible for paying their agent.  There will be many ways within the negotiation process for the buyer's agent to be paid without actually coming out of the buyer's pocket.  So, who does this benefit?This benefits the agents in my opinion.  This benefits really good, relationship based, highly communicative agents that can differentiate themselves and hold themselves to a high standard.  I foresee a lot of shady business coming from these changes.It is IMPERATIVE that you, your friends and family do their due diligence when choosing an agent on both the listing side and buy side.  It is IMPERATIVE that you read anything before signing it, and ask questions.PLEASE, PLEASE, PLEASE reach out if you have any questions.I'll go over in more detail on both the sell side and buy side in the coming weeks and months as these changes develop.  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? Aug 1st Sensory Friendly Play Sacramento Children's Museum Aug 3rd The Murder Mystery Company Presents: I Love the '80s to Death Old Spaghetti Factory Aug 3rd - 4th Effie Yeaw Weekend Programs Effie Yeaw Nature Center Aug 9th Sac Song and Wine Series Miner's Leap Winery Aug 11th Single Mom Strong's Backpack and School Supply Distribution The Empowerment Center Aug 16th - 18th Monster Jam The Golden 1 Center Aug 18th Sacramento Wedding Festival Cal Expo Aug 24th Tales and Ales Brewfest Fairytale Town Aug 25th Twenty One Pilots The Golden 1 Center Aug 1st - Aug 28th Sunset Sips Downtown Sacramento - Participating Locations Aug 14th - Sep 15th Pickleball The Sofia Tsakopoulos Center for the Arts  

Sacramento Market Update 7.24.2024

View this email in your browser     What a Summer.  All Star baseball season is officially over.  The boys went 2-2 in pool play last week and did not make it to the next round.  They lost a nail biter on Monday to Visalia, and lost 4-8 to Hawaii Kai Elite on Friday.  Hawaii Kai would go on to win the regionals on Saturday.  Peter's team was the only team in the tournament to score on them.  The boys had a great season.  The siblings had a great Summer playing with each other too.  The group of families and parents on this team is really fun and special to be apart of, we look forward to Fall ball now, flag football and soccer.Do you know anyone in Fairfield or Vacaville looking to make a move?  I have some referral clients and we just wrapped up our second round of showings along the Hwy 80 West corridor.  If you've heard whispers of anyone in that area thinking of moving, I'd love to speak with them.Home prices feel like they have peaked as is typical seasonality here in the back half of July.  That doesn't mean to expect drastic price changes, but more than likely just a stagnation of price.  Locally, as I said in last week's newsletter, it does feel like we are in a micro buyer's market.  A buyer's market within an overall seller's market.  Deals can most certainly be found with preparedness and the right approach.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   The U.S. Housing Market Is Stuck in a Mortgage Rate Lock-In Gap—but Some States Have It Worse Than Others  

Sacramento Market Update 7.17.2024

    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!    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   Rising Home Values Are Driving Property Taxes Higher—These States Are Trying to Do Something About It  

Sacramento Market Update 7.10.2024

View this email in your browser     I hope everyone had a wonderful and safe Fourth of July holiday and weekend.  It was scorching here in Sacramento.  Do you know what isn't scorching?  The labor market and inflation.  The end of last week gave us June's labor numbers, and also revisions to May's numbers.  The revisions were pretty significant, and the combined reports brought unemployment up to 4.1%, we haven't been over 4% in some time.  This is a sign of a cooling labor market, which The Fed is watching very closely in order to determine their first rate cut.  The 10yr bond yields we like to track acted favorably, continuing to hang in a downtrend.  The question remains, will The Fed act proactively, or reactively?  I continue to hope for the latter.  The CPI report comes out on Thursday, so we'll see what that brings to the equation.The listing highlight of the month is a home for sale in Santa Cruz, CA.  I personally love Santa Cruz, my whole family does, but a 3/1 over a millie isn't in my price range.  If you know of someone looking along the coast, please let me know.I mentioned some of my activity last week.  I'll be adding another to that list shortly.  It will be another state transfer, both clients moving to CA.  One client is moving from Nevada, the other from Texas.  Family is playing a huge role in those decisions.  If you know someone looking to move out or move in, I am here to advise, help, refer in any way I possibly can.  Feel free to give my information to anyone whether it's 1 month or 12 months away.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 Step into a charming piece of history located in the heart of Santa Cruz. This lovingly maintained 1900's Victorian home offers old-world allure with modern-day amenities. You'll be welcomed by a living room with an intimate atmosphere. The kitchen features a quaint nook with a sink and counters ideal for a cozy coffee bar, with additional counters near the fridge and stove for meal prep. The versatile upstairs space features 2 bedrooms that would be ideal for a work-from-home office, kids' rooms, or a creative playroom. The eccentric layout sparks imagination and offers endless possibilities for customization to suit your needs. The narrow staircase adds to the home's unique character, enhancing its historical charm. Enjoy being just a 0.5-mile stroll from the iconic Santa Cruz Beach Boardwalk, offering endless fun and entertainment. With a walkability score of 92 and a bike score of 86, public transportation and biking are easily accessible, ensuring convenient exploration. Nestled on a large lot with a converted garage, providing potential for an ADU. If you're seeking a home that stands out, this place is the perfect match. Embrace the charm, relish the uniqueness, and make this your canvas; where history and character blend seamlessly with modern living!  Listed at $1,115,000 by Alexis N. Womack - GUIDE Real Estate542 Ocean View Ave, Santa Cruz, CA 95062Know 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   4 To-Do’s for July to Save Money & Get Ready for Fall