We're in full swing with Biden policies and inflation is steady at around 8.2%. Isn't this awesome? Don't expect things to change anytime soon. The idea of printing more money to stop inflation is WRONG. With that said, the world will not stop spinning. For us real estate agents in Roseville, we need to stay on top of the market changes. Looks like interest rates are going to go up another 3/4 point at the next fed meeting.
We're seeing real estate prices in our area (Placer and Sacramento County) come down. We're roughly down about 5% this year with what I'm seeing. There's pocket areas like Sun city Roseville that are holding steady, but the new construction is slowing way down. JMC home has 20 out of 21 escrows fall apart in Aug. The problem is that buyers cannot lock rates until the homes are ready. By the time the houses are built, rates went from 3-4% to 5-6%. The new homes in Roseville and Rocklin are trying to keep the prices up for the neighborhood; however, they're having to offer upgrades and incentives to attract the buyers now. Some builders we're giving roseville realtors a commission, but now we're their best friend and getting the full 3% commission.
Seems we're going to continue to see prices pull back with interest rates going up. When is the ideal time for a buyer to jump in and buy real estate? The monthly payment is balanced out with lower prices and higher rates. The one advantage to lower prices is lower property taxes.
When we see home prices come down where you can rent the house out and make the payment is coming. Currently you still need to put down around 25% and have it pay for itself.
Looking forward to home prices and what Roseville home prices will do this winter.
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