The Latest Central Valley Housing Market Update - A Great Time to Downsize!

[Transcript Below]

0:00 Hey, everybody, Caleb O'Hara here, the Red Shoe Realtor with the core team at Remax bringing you your weekly Central Valley housing market update.

0:08 We don't waste your time, so let's go. As we look at the numbers this week to see what's been going on, you'll notice the Turlock had 75 active listings down from 76 the week prior.

0:18 That's just one less 60 pending up one from the week prior 10 close desk road down from 13 the week prior and again the average number of offers is still holding tight at 2.8 average number of offers submitted on all listings that went pending.

0:31 It's important for buyers to understand. Modesto 212 active listings or we passed that 200 mark. We've creeped up a little bit to 212.

0:38 That's up from 202 the week prior. 168. Pending up from 166 the week prior. 27 closed escrow up from 25 the week prior.

0:47 And look at this average number of offers and Modesto 3.8 offers on all listings that went pending. Very important pay attention to that was buyer.

0:54 You Ripon 13 active listings finally broke the 10 mark up into the teens there were 13 active listings up from eight the week prior 11 pending up from nine the week prior one closed escrow down from five the week prior and the average number of offers and Ripon just one in Manteca we are actually

1:12 down 93 active listings down from 96 week prior 101 when pending 96 week prior 100 excuse me 111 close escrow up from Thanks for watching!

1:22 And the average number of offers in Manteca 1.8. What does that all mean to us? Well, keep in mind, remember, the current mortgage is in the United States.

1:31 92% of people holding a mortgage have an interest rate of 6% or less. 82% for the US. 92% of people holding a mortgage have 5% or less.

1:38 62% of people with a mortgage have 4% or less. And 25% of mortgage holders have a 3% or less interest rates and interest rate and with rates in the 7s for conventional loans again.

1:49 . It's very difficult for somebody to let go of their low interest rate to purchase another property and take on that 7% interest rate.

1:56 Unless you absolutely have to, then you're going to anyway, right? What's the summary? What does this all mean? Well, it means inventory is still low, but it has slowly been increasing.

2:06 Listen, this is the perfect time if you are a downsizer. What is a downsizer? Well, let's say you've got a big house.

2:12 You had a bunch of kids and now you've got to point in life. The kids are gone and you've got this.

2:16 It's a big huge two-story house and you really want a smaller, more manageable, single-story home. And many of you have so much equity built up in your house.

2:25 You have an opportunity to sell your house and purchase a smaller, downsized one for cash. And then you don't have an interest rate.

2:32 So listen, you can capitalize on this market by selling with super low inventory, getting a great deal selling your property, and then you can go purchase that other property with cash for a very small loan so that the interest rate doesn't affect you much.

2:43 If you were a down-sizer, this is your market to buy in right now. If you're a seller, it's still a seller's market with a low inventory.

2:53 However, keep in mind, don't expect the moon with current interest rates affecting the buyers. There's a lot of things. Some of them can't offer more like they could in the past, so they're filling the squeeze for sure because of the interest rates.

3:03 If you're a buyer, remember, it's still a great time to buy as inventory shortage has absolutely no end in sight.

3:08 But now, if you can afford it, You should buy rates go up. You'll be happy you bought at this price range.

3:15 If they go down, you can re-fight. It's a win-win for you as a buyer in this particular market. Caleb O'Hara here, the red shoe realtor with the core team at Remax.

3:23 We want to be your resource source. For all things real estate, we keep you moving forward. Call our Texas anytime with any questions.

3:29 209-237-0303. We will see you next week.