Uncategorized July 18, 2022

The Housing Market Continues To Cool Down

The housing market in California continues to cool down, according to the California Association of Realtors’ report today. Existing family home sales in June declined 8.4 percent from May and nearly 21 percent from a year ago. In addition the median home price statewide was 863,790 which is down 4 percent from May but up 5.4 percent from last June. 

in Contra Costa County home sales dropped 18 percent in June from May and 31 percent from a year ago. The average sold price lsat month stood at $976,940 which is 14 percent lower than May and 1.3 percent lower than June 2021. 

“Excluding the three-month pandemic lockdown period in 2020, June’s sales level was the lowest since April 2008, explained CAR Chief Economist Jordan Levine. “Pending sales data also suggests we can expect additional retreating in the coming months. With inflation remaining high and interest rates expected to climb further in the coming months, the market will normalize further in the second half of the year with softer sales and more moderate price growth.”

Uncategorized July 13, 2022

Easy Steps To Save Water As Severe Drought Continues

Californians have been asked to voluntarily reduce water use by a 15 percent. If conservation efforts don’t work, the state may impose mandatory water restrictions.

Considering the 50 percent of home water use is for outdoor purposes, here are some steps you can take to make a difference.

  1. Turn off your sprinklers when rain is in the forecast. 
  2. Water trees first.  Trees are an investment.  It will take more water and money to replace them.
  3. Replace grass with drought-resistant landscaping or turf. 
  4. Install automatic shot-off valves for your outdoor sprinkler systems. Installing an irrigation system and smart controller can save each time you water.
  5. Plant water-wise plants.
  6. Spread mulch around your plants. It can keep the soil moist and reduce water use.
Uncategorized July 8, 2022

30-Year Fixed-Rate Mortgage Drops

Over the last two weeks the 30-year fixed-rate mortgage dropped by half a percent, while concerns about a potential recession continue to rise, Freddie Mac reported today. The average for the 30-year fixed-rate mortgage this week now stands 5.3 percent, while the 15-year firm is 4.45 percent.

Freddie Mac also noted that “while the drop provides minor relief to buyers, the housing market will continue to nomalize if home price growth materially slows due to the combination of low housing affordability and an expected econo0mic slowdown.”

Uncategorized July 6, 2022

Housing Inventory Growing

Housing inventory nationwide was 19 percent higher in June than a year ago but it’s still nearly half of what it was before Covid, according to Realtor.com. “We expect to see additional inventory growth in July, building on accelerated improvements see throughout June,” saidDanielle Hale, chief economist at Realtor.com. 

The expanding supply has not yet eased the high prices. The median listing price in June hit another record high of $450,000, according to Realtor.com. Annual gains are moderating slightly but are still up nearly 17 percent, in part because the share of larger, more expensive homes is rising. 

Uncategorized July 2, 2022

Walnut Creek June Sales Snapshot

Uncategorized July 2, 2022

Lafayette June Home Sales Snapshot

Uncategorized June 16, 2022

Inflation Concerns Behind Mortgage Rates’ Steep Rise

Freddie Mac reported today the 30-year fixed-rate mortgage rate moved up more than a half a percentage point, making this the largest one-week increase in the its survey since 1987. This rate is well above the 2.93 percent recorded just one year ago and is the steepest level since 2008. The Freddie Mac average is based on its survey of lenders which was conducted prior to the central bank’s Wednesday meeting in which the rates were increased by three-quarters of a point. Some rates climbed as high as 6 percent after the meeting.

“These higher rates are the result of a shift in expectations about inflation, and the course of monetary policy,” said Sam Khater, Freddie Mac’s chief economist. “Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market.”

Uncategorized June 15, 2022

Mortgage Rates Surge, Applications Fall

Total mortgage application volume was down 52.7 percent last week from a year ago, according to the Mortgage Bankers Association.  Sharply rising interest rates are curtailing refinancing and those rates, along with high home prices, are curbing buyer demand.  

“Mortgage rates followed Treasury yields up in response to higher-than-expected inflation and anticipation that the Federal Reserve will need to raise rates at a faster pace” said Joel Kan, a MBA economist. 

Last week the average interest rate for a 30-year fixed-rate mortgage for a conforming loan increased to 5.65 percent from 5.4 percent, according to the Mortgage News Daily.  This week they surged again hitting 6.28 percent yesterday, MND reported.

Uncategorized June 14, 2022

The Housing Market Is Shifting

There’s still a lot of motivation for buyers and sellers in the market and that’s not likely to change much in the coming months. With experts projecting a rise in inventory and mortgage rates remaining relatively low, both sides in the real estate transaction stand to benefit from making a move this year. However,  the market is changing, impacted largely by rising mortgage rates. Nonetheless, there still an incentive for sellers to make a move. Waiting until next year could mean losing out on a less competitive market and better affordability–two of the biggest factors positively impacting buyers and sellers today.

Fannie Mae expects home prices to rise 10.6 percent in 2022. However, a number of industry experts are projecting a more modest appreciation of 5.1 percent this year compared to the nearly 20 percent rise on average that occurred in 2021.  Driving the continued rise in home prices is the fact that inventory remains low. Meanwhile the rising mortgage rates that have occurred over the past two months have been particularly hard on first-time buyers, notes Joel Kan of the Mortgage Bankers Association. The average rate on the 30-year fixed rate mortgage was 5.23 percent last week, up from the low 3 percent in January.