Well folks, it shouldn't be to anyone's surprise that rates are around 7% right now. This is a factor that cannot be ignored when calculating the monthly payments on your mortgage. There are several ways to try and subvert this; however, I'm not a fan of loan programs that get creative. There's always the down side to them.
Most people are holding steady at this point. If you already own a house, then you likely have a rate in the 3's, or better yet in the 2's. I'm right there with you at 1.99% on a 15 year. I'll never sell! Like myself, this is driving the inventory to lows we haven't seen since 1994.
The majority of listing right now are divorce sales, forced sales, hardships situations. It's become a tough environment for real estate agents. There simply isn't enough sales to support the amount of licensed agents in the area. It's effecting loan officers too. People are having to leave the business in order to get a pay check. I've been fortunate that I've been doing this for 20 years and I've been able to build up my relationships where I've staying busy, but it's much slower than last year.
I think most people were expecting prices to recede when rates got up this high. It makes sense when you're thinking about affordability, but this really hasn't been the case. Prices are still holding steady. It looks much more likely for rates to come down by the end of the year and more next year going into an election year.
I'm working with some developers as new construction is still going strong. We have a shortage of properties so the home builders haven't slowed down. Costs are up and they're doing some creative financing to get rates down in the 5's for buyers. I have a new project in El Dorado Hills that I'm working on. This is a new gated community with 1 acre lots. These lots have views of downtown Sacramento and Folsom Lake. There's a total of 42 lots that span out among 113 acres. Prices start at $465,000. We're taking reservations at this point. Final map is expected in 3 months.
I have another development in Roseville on Main St. On the corner of Main St. and Porter is 2.5 acres that I've mapped for 10 lots. These are .25 acre lots. This is a good size where you can put a main house and an ADU. It's not on MLS as I'm still awaiting the final map. Currently in the 2nd final map submission. It's likely going to take 4 submittals.
I have several new listings coming up soon. A duplex in Roseville, 2 partition sales in Sacramento, small house in Orangevale.
Let me know if you have questions!
Re/Max Gold - Chad Phillips
916-390-1476
