Mortgage rates rose further last week as the latest macroeconomic report shows that the U.S....
It's a new month. Let's take a look at how Modesto home sales panned out in March.
The Fed delayed lowering the federal funds rate for at least six more weeks, but its latest projection suggested that the central bank still intends to have three rate cuts by the end of the year. Since the announcement, mortgage rates have moderated and should help mortgage application activity bounce back in the upcoming weeks.
Meanwhile, the lack of inventory and the belief of lower rates ahead continued to lift builders’ confidence, as evidenced by a strong rebound in residential construction, a nearly two-year high in building permits, and an almost 10% growth pace in completed projects.
Whether that affects the market here in Modesto remains ot be seen. Even with the addition of 527 new homes this year in the new Crossings development at Claus Road and Briggsmore, planners do not see a dip in demand forecasted.
At their latest meeting last week, the Federal Open Market Committee (FOMC) decided to leave the federal funds rate unchanged. The decision was widely anticipated, after recent economic reports suggested that inflation remained sticky, and the overall economy continued to be solid. However, California was one of the seven states with a contraction in employment last month. The decline of 3,400 jobs in payroll growth in the Golden State ended its six-month streak of solid monthly gains. The state's unemployment rate inched up to 5.3% in February from 5.2% in January and has risen above its pre-pandemic average.
Locally, home sales continued trending solidly in Modesto, as 133 homes were sold in the month of March, up nearly 20% from February. That uptick in sales has pushed our Months of Inventory down to a quarterly low of one month (meaning it would take one full month to sell all homes in the current inventory if no more homes were added). Below is a breakdown of homes available within several price ranges.
Digging a bit deeper, the $400k - $500k segment seems to be the hottest segment at the moment. Out of the 40 homes available, 30% are either new to market, or back on market after an initial offering.
NAR Settlement
No doubt you’ve heard much about the settlement agreement between the National Association of Realtors and the Sitzer-Burnett class action suit. Please note that the current settlement must be approved by a judge, and this will most likely not happen until July. Until then, all current real estate laws, regulations, and procedures remain in effect.
Once approved though, a major change is that buyers will need to sign a compensation agreement with agents prior to visiting a prospective property. What this will look like is yet to be determined as state and local realtor associations will be hammering out the forms and procedures in the next few months. Rest assured though, your local REALTOR® will provide you with everything you need to know moving forward.
A quick guide to buying a home
Buying a house is a big decision, but with some basic steps, you can make the process easier. Here’s a simple guide to help you navigate buying a house:
Determine your budget: Before you start looking at houses, figure out how much you can afford. Consider your income, expenses, and any debts you have.
Get pre-approved for a mortgage: This will give you a better idea of what you can afford and make you a more attractive buyer to sellers.
Find a real estate agent: A good agent can help you find houses that meet your criteria, negotiate with sellers, and guide you through the buying process.
Start house hunting: Look for houses that fit your budget and meet your needs in terms of size, location, and amenities.
Make an offer: Once you find a house you like, work with your agent to make an offer. Consider factors like the condition of the house, the current real estate market, and the seller’s asking price.
Get a home inspection: Before closing the deal, hire a professional to inspect the house for any issues that could be expensive to fix.
Finalize the mortgage: Work with your lender to finalize your mortgage and ensure all necessary paperwork is in order.
Close the deal: Sign the final paperwork, pay any closing costs, and take possession of your new home.
Move in: Once you’ve closed the deal, it’s time to move in and start enjoying your new home!
Remember, buying a house can be a complex process, so don’t hesitate to ask questions and seek guidance from professionals along the way.
Interested in buying or selling a home?
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Ed Justen -DRE: 02221512 - Affiliated with Keller Williams. Portions of this blog post created via artificial intelligence and lightly edited by the post author. All information presented here sourced from publicly available websites , including the CAR Market Minute Write-up