August 6th 2019 - Real Estate Update - Placer
I like to do the quarterly updates and relay my observations as it keeps me more aware of what the market is doing. As a full time real estate agent in Roseville we see trends and deal with things daily. When you get down to it the market adjusts mostly on the basis of supply and demand. Of course there are countless other factors that come into play, such as rates, job markets, economy as a whole, building fees, government regulations and taxes...
It's been 10 years now since I joined Remax in Roseville Ca. I like reviewing the trend graphics as its a good visual representation of what the market is doing. Below is a graph showing the number of homes that are active pending and sold for Placer county month over month. Since winter we're seeing and increase in the amount of homes for sale and pendings and solds have dropped off. July's numbers aren't showing up yet, but they will show the continuing trend. Buyers will have a better chance of scoring that house they want to buy, but keep in mind the nice houses priced right will still gain multiple offers.
I think it's more interesting to see the graph of the value ranges where people have been buying houses and how that's changed since 2012. As you can expect the 200's and 300's where hot back in 2012 and now it's 400's and 500's. People have gained equity and are buying up and it's hard to even find properties sub 300k in Roseville / Rocklin area.
Interest rates have been great, they keep coming down too. If you think about it, the feds need the rates low due to the national debt problem they have. Interest payments alone are almost a run away train. If rates were at 6%, I'm not sure we'd be able to pay. My point is, don't worry about rates going up any time soon!
We are due for a market correction though. Are we seeing that now? I don't think so! I think we're seeing the normal trend of the end of summer slow down. We're getting closer to an election year and that seems to be a factor. Trump will do what he can to keep the ball rolling but inevitably we'll see a correction. For those investors out there, stack some chips. In a couple years I think we'll see a good time to pick up some rentals. For home buyers, find something and go with it as long as the payments are comfortable. Even if the market drops 10-15 percent, over time 5-10 years you will be fine.
If you have any specific real estate questions, feel free to give me a call. I work on commercial property, land developments, partition sales, trustee sales... It's a fun business that is always changing!
Re/Max Gold - Chad Phillips
2998 Douglas Blvd Ste 125
Roseville, CA. 95661
916-390-1476
Real Estate Broker #01405825
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