California home sales bounced back solidly in July, as prices moderated, and housing supply...
The anticipated increase in the statewide population in the coming years and a strong desire for many renters to buy in the near future are encouraging news that should help push housing demand to a higher level in the next few years. On the other hand, sticky inflation and elevated interest rates in recent weeks continued to present challenges for buyers and sellers in the near term, resulting in slow home sales activity so far in the homebuying season.
California experienced positive population growth for the first time in four years in 2023. Across the state, 31 counties increased in population, with positive growth largely in the Bay Area, Central Valley, and the Inland Empire.
Renters in particular, are wishing to move into their own dwellings. Despite a high level of uncertainty among renters, 81% of the prospective buyers consider renting as a temporary arrangement, while 76% plan to buy a home within the next five years. Many of them, however, lack the confidence needed to navigate through the homebuying process. Half of them (51%), for example, are not confident in their understanding of homebuying grant programs, while 41% do not have a good understanding of how to finance or secure a mortgage.
If you are a renter unsure of the process, reach out to a REALTOR® or lender to find out about these programs (or use the link below to book a 30 minute meeting with me).
Locally, the Modesto market continues to heat up, almost leaning into buyer’s market territory. Currently in Modesto, there are 181 homes available in the price range of $300k - $800k, the highest amount of homes available in the last six months (see chart below for a a current breakdown by price segment). In the surrounding area (Turlock, Ceres, Salida, Ripon) 78 home are available in the same pricing segment.
These homes are located in all parts of town and offer range of bed/bath configurations and amenities (you’d be surprised at how many homes with pools are available). Newly available homes continue to flood the market, with 44 homes being listed in the last seven days. This brings our Months-of-Inventory level to 1.6 (meaning that it would take roughly six weeks to sell all currently available homes if no more were added).
The median price for a home in Modesto is currently $460,000, while the median days on market is 11 days. In May, the number of homes for sale increased month over month by 16.5%, however, homes sold dipped slightly.
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?
Click here to book a 30-minute meeting to get started!
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
