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

Octoberfest in Roseville Real Estate update

I can't recall how long it's been since my last Placer County / Sacramento County real estate update, but I know it's been a couple months.  Just like the season changing to fall, our market has hit the breaks.  We're seeing the market shift to more of a buyers market.  Inventory is up and less buyers out and about.  Rates are along climbing so it's having a negative effect on prices too.
We have real estate investors out there that are on the fence.  As investors we want to buy when the market is low and sell high... just like stock market and there's the general consensus that the market will continue to decline.  In my opinion, yes.  I think the market will pull back more; however, I just bought a rental property last month.  When I ran the numbers, it made sense to do the deal.  I put down 25% and I'm cash flowing $500 a month.  I did also have to put in 15,000 in improvements after closing escrow, but it should be a solid property with little to no issues for me in the near future.  I needed a write off, this is also going to help me come tax time.  There are a multitude of factors that go into an informed decision to buy a rental.  Having a good realtor/broker like myself to help guide you is important.  With me you'll get my experience in construction too.  I'm not saying I'm a licensed contractor, but I've worked for a home remodeling company and I've done enough work on my own properties to know what needs to be done and what it should cost.  I also have the people to recommend to get work done too. 
Back to the market, I do think we'll see a pull back in pricing.  It's not going to be substantial, 2-5% and we've already see a portion of that.  Interest rates are going to effect what people can afford to buy in Roseville.  I have clients that are considering parts of Citrus Heights because the prices are lower compared to Roseville.  There are pros and cons, school scores, different county! 
After checking the stats we're seeing a tend that is to be expected this time of year.  A decline in sales and values are part of the normal trend, it's cyclical.  Is there more to it?  I think we dealing with both a market correction and normal trend that the market slows this time of year.  We've been going up and up since 2012.  Cannot go on forever!  At the end of the day, if you're needing a place to live and you can qualify and comfortable with the payments, buy it.  It will be better for you in the long run vs renting.  Any questions, feel free to give me a call.  Your roseville real estate agent singing off.

-Chad Phillips
Re/Max Gold
916-390-1476
DRE # 01405825

I think its about time for another real estate update.  We're at the end of summer here in 2018, the kiddos are back in school now.  What can we expect the housing prices to do in Placer county for the rest of this year and next?  It certainly seems like we're in the mist of uncertainty.  It's like we're in a holding pattern right now and more inventory keeps coming.  The market has shifted from a sellers market in the spring, to a buyers market now.  The demand is lower than the inventory.  Interest rates also have influenced buyers and investors in Roseville & Rocklin area.  Historically 5% is really good, but people got used to rates in the 3's then 4's.  I'm in escrow buying an income property and I've locked my rate at 5.25%.  The numbers work with me putting down 25%.  It's a house in citrus heights that I'll be able to cash flow $400 a month.  I couldn't think of a better place to park some cash. 
I have 5 listings on the market right now that are all priced well.  One in cirby ranch in Roseville, one in Fair Oaks, one in Rancho Cordova and a condo in Rocklin.  With several more listings coming soon we're wondering where the buyers are.  The condo shows like it's a brand new model.  3 bed 2 bath for 227,000 and we have nada.  We hope that this dip is more indicative to the time of the year because this is normal and not a precursor to a market correction that we're due for.  Your guess is as good as any.  My advise would be to buy and hold as long as the numbers make sense.  If it's for your primary then make sure you're comfortable with the payments because you might be looking to stay put for a while.    Let's not use our houses as penny banks and refi out the equity.  As you can probably guess, I'm pretty conservative, much more so than some of the investors I work with.  Until next time...  Feel free to call me with your roseville real estate needs.
Chad Phillips - Re/Max Gold
916-390-1476

Folsom Real Estate Market Update

It's easy to say that a seller in Folsom is ideal.  I just ran a quick market summary and the findings weren't that suprising to me because I have buyers that I can't find a house for in Folsom right now.  Take a gander at this:



List price / Sales price at 100%  Days on market 18. 
If you take into account the houses that are way over priced and sitting on the market, the real picture here is that houses coming on the market priced accordingly are selling in the first week and at or over asking price. 
Multiple offers are driving this market even higher.  We're starting to see appraisal issues, but we're still getting deals done. 

 We need more inventory!  They can't build the new homes in Folsom fast enough.  This trend looks to be strong and go to the end of Trumps first term.  What happens from there is anybodies guess.  

If you have questions or looking to buy/sell, give me a call.

Chad Phillips Real Estate Broker Associate  RE/MAX GOLD 916-390-1476 | 2998 Douglas Blvd #125 Roseville CA.  95661 |chad.remaxgold@gmail.com | www.RealEstate-Roseville.com LIC # 01405825

Placer County 1st Quarter Update - Real Estate

Re/Max Gold - Chad Phillips

It should be to no surprise that our real estate market is strong and continuing upward.  I pasted 3 graphs below to help illustrate what is more precisely occurring.   I want to point out on the last graph.  The sales price vs list price for the month of April was at 100%.  This is something to take note of and it means that properties are being priced appropriately and there's little to no room to negotiate as a buyer.  Well priced properties are selling over asking with multiple offers.  

You can see on the 2nd graph that the average price sqft has continued to climb with only a little dip in Dec. 

We have the influx of buyer from the bay area and the millennial buyers are a growing market segment.  It looks like we'll have a continued strong year, too early to say for next year.  I'm always skeptical because I know the real estate market is cyclical and we're about due for a correction.

To bring this current, I've notice a slow down over the past week or so.  I think its attributed to all the graduations and holiday weekend coming up.

If you have any real estate questions, feel free to contact me.

For Sale Vs Sold & Pending

Average Price Per Sqft

Average Days on Market / Sales Price vs. List price

Chad Phillips Real Estate Broker Associate, Re/Max Gold 916-390-1476 | 2998 Douglas Blvd #125 Roseville CA. 95661 | chad.remaxgold@gmail.com | www.RealEstate-Roseville.com  LIC # 01405825    Get your own email signature