The Fall Central Valley Real Estate Market Update - If Your Thinking About Downsizing Pay Attention

[Transcript Below]

0:00 Hello real estate lovers and those of you that are just curious what's happening in real estate. This is this week's edition of the Central Valley real estate market update September 15th, 2023. 0:10 Let's go look at the numbers. When we take a look and see what's happening here. In the Central Valley, we can see that the market is starting to do about the same. 

0:20 It's been doing 71 active listings in Turlock down from 73 the week prior 55 went pending. That's down from 61 the week prior. 

0:27 12. That's up from 6th week prior. Average number of offers 1.3. I'd have you take a note here. Turlock, Modesto, Ripon and Manteca. 

0:37 Of course, Ripon's always difficult because there's not a lot of transactions happening. But. Bye! You can see that there seems to be a downward trend so there is definitely a little bit of a chill in the air like fall is starting to creep into the scene. 

0:51 And it is. Average number of offers are down a little bit. Modesto 206. Active listings that's up from 204 the week prior 159 went pending that's down from 169 the week prior. 

1:02 29 closed escrow that's up from 20 the week prior and average number of offers again is 1.9 rippin 15. Active listings that's up from 13 the week prior. 

1:12 Pending's 11 that's down from 12 the week prior so not much of a difference. One closed escrow. Hey, that's up from the zero the week prior and the average number of offers on everything that went pending this week is one and Ripon. 

1:22 Thank you. Pending is up to 122 active homes for sale. 97 went pending. That's down from 106 the week prior. 

1:29 16 closed escrow. That's up from five the week prior and again, the average number of offers down to 1.9. So the good news is instead of going up again it's three people right now when you're trying to buy a home. 

1:39 On average you're only going up against about two people. So that's good news for you if you are a home buyer trying to buy a home in this crazy real estate market. 

1:48 When you take a look at what's happening you can definitely family. Feel the effects of mortgage interest rates right now a fixed 30 year conventional loan is averaging around 7.29% FHA is averaging around 6.75. 

2:02 So these high maintaining these higher area. We'll see you next week. See you next week. Have super low inventory. Current mortgages in the United States. 

2:22 26% of people that have a mortgage on their home. It's at 3% or less. 44.7% of people have a 3% 3.01% to 4% interest rate. 

2:32 That Thanks for watching! That means that 70.7% of mortgages in the United States right now have 4% or less. That means if you've got that interest rate and you've got it recently and you don't have a lot of equity in the home, the only way that you're probably gonna let go of that interest rate. 2:46 Is if you absolutely need to move, if you got a real strong desire to move, there's got to be a compelling reason for it. 

2:52 Otherwise, you don't want to surrender these low interest rates. There's a lot of equity out there. So if you own a home right now, 7 and 28 point, excuse me, 7, 38.7% of people own their home free and clear. 

3:06 That means almost 40% of you out there, you own your home free and clear. That means look, interest rates don't matter to you if you're looking at downsides especially. 

3:13 Especially. It really is the perfect opportunity in a downsizer's market with the low inventory. You can sell your home really high and you're able to purchase with strength with cash not worrying about the interest rate and how that affects your payment because you won't have. 

3:27 You have one if you reinvest that money into another purchase. 30% of people have 50% or greater equity so even if you work to sell your home in downsizes especially you're going to be taking out probably a very small loan if alone at all. 

3:41 Please do not forget to subscribe to ours. It's been a beautiful day. I'll see you next time. We'll see you in the next video. Bye bye! See you next time. So, if you're a down-sizer, listen to me, this is the perfect time to capitalize on this opportunity. 

4:23 If you're a seller, it's still a seller's market with low inventory. However, you know, don't expect the moon of what we saw happen during their unicorn COVID years when the super high-over asking price offers. 

4:33 They still happen occasionally, but remember interest rates are really pinching the body. If you're a buyer, it's still a great time to buy. 

4:40 There's an inventory shortage that has literally no end in sight. So buy now if you can afford it. If rates go up like many are predicting, then you're going to be happy that you buy down here and if they go down, you can refinance. 

4:50 Caleb O'Hara, the red shoe realtor with the core team at Remax. Any real estate questions, 209-237-0303. See you next week.