Top listing agent in December and 2019 Forecast

Here we are 2019 folks.  I typically have a slow down this time of year but I've been able to ride the wave and stay busy.  Overall the market is certainly doing its cyclical thing here in Sacramento and Placer county.  Good time for home buyers in my opinion.  Demand is down and we're rarely seeing multiple offers.  We've seen the Sacramento real estate market prices pull back over the last 6 months.  A small correction was in order, the year over year gains we've had since 2012 are unsustainable.  I foresee the Roseville and Rocklin real estate market picking back up come spring time so if you're a buyer, my advise is not to wait.  Get a game plan put together with an experience broker like myself and a good local lender. ( I can recommend several ).  For sellers, I think we're going to see a lot of inventory come on this year.  I think there's a number of people fed up with California and looking to take there money and run.  I already know of some investors that are looking to liquidate. 

  Even though the feds raised rates 1/4 pt last month mortgage rates took a dip.  Go figure!  Loan programs are loosening too.  This makes me a little nervous after what we went thru last time.  I understand the greed and to keep the party going; however, that just a recipe for a strong hangover.  Let me be clear though, loans aren't anything like they were back in 2006, so we're not going to repeat that same mistake.  We might see the market peak in 2019.  Too much uncertainty in our economy.  The Dow is like a ping bong ball, government is shut down and all this over a wall.

At the end of the day folks, if you can afford to buy and not be house poor, then do it.  I don't want to see you with a 50% DTI...  Under 40 is preferred!  Let me help find you a good house and negotiate a better deal. 

Placer County Real Estate - Days on Market and Sales Price/List price percentage

I always like this graph that Trend Micro puts out every month.  It's very easy to read and it give a good visual of how the real estate market is going in Sacramento and Placer county.  The green line is simply showing that sellers are having to come off their asking price around 5% to get it sold.  This is a solid indicator that the market has shifted to more of a buyers market.  Back in the spring of 2018, sellers were getting almost 100% of ask.  Some sellers were getting over asking, that's how that percentage is almost at 100%.
The orange graph is representing the days on market to sell.  I'm scratching my head a bit with these numbers because on another graph I noticed the months of inventory is at 2.7.  There's a correlation here...  We can see that the DOM has increased along with the number of houses for sale so that does make sense.
The biggest thing to take away from this is that properties are selling on average 95% of asking price. 
Prop 5 not passing is going to add to the slow down.  I was holding out hope that prop 5 would pass.  That would have helped seniors move closer to their families and bring their property tax basis with them.  I had several folks from the bay area that were counting on that; however, looks like they're not moving now.  Can't say I blame them!
If you have any real estate questions, feel free to give me a call.

Thank you,
Chad Phillips
Remax Gold
916-3901476
DRE# 01405825

reverse mortgages

I just went to a lunch and learn about reverse mortgages yesterday.  Being in the business I had a rough idea of what a reverse mortgage was and how it works, but I really didn't.  There's multiple different reverse products and some can really make sense for some folks in particular situations.   I was made aware of a new where you obtain a reverse mortgage but it becomes a credit line.  You get the going rate plus a half a point and it will compound.  The longer you wait to pull the cash the more it grows.  Very interesting, it also get the gears going for me wondering where they put that money.  They have to be putting it somewhere in order to pay the gains.  The question is out to Big Valley mortgage now. 
The traditional reverse can work for people that are looking to more financial freedom in the golden years.  If you don't have kids and not really worried about leaving an inheritance, then a reverse is perfect.  Maybe you do have kids but you have other assets that you set aside for them.  Using a reverse mortgage can be the ticket.  It's becoming more popular that I ever imagined.  The baby boomers are getting to the age and they like the bigger and better.  They're not as conservative as their parents were.  I'm skeptical of the stat, but I was told 47% of the baby boomers are moving up, not down.  I thought it would have been around 10% of boomers moving up.  Typically seniors buy down, the kids are gone, don't need as big a place anymore.  Not our boomers!  lol.  A true testament to capitalism.
If you have questions about reverse mortgages, you can get in touch with Jeff Silver 916-204-4653