Modesto Market Update - May 2024

Mortgage rates rose further last week as the latest macroeconomic report shows that the U.S. economy continued to grow moderately with inflation remaining sticky and declining slower than expected. The average 30 year fixed-rate mortgage reached its recent bottom in mid-January but has since climbed more than 50 bps in the last three months.

Despite being in an environment where rates stay higher for longer, there are signs that suggest that housing consumers are gradually adjusting to the new normal. New home sales bouncing back strongly in March, for example, is an indication that homebuyers still want to buy if they could find a way to get back into the market.

This is confirmed locally as the market the showed some fire with 191 Modesto homes listing  for sale in April, a 26% rise over last month’s figure of 151 homes for sale. This brings our Months-of-Inventory up to 1.5 (meaning it would take nearly a month and a half to sell the current inventory of homes if no more were added), 50% higher than last month. The median price for a Modesto home is $499k.

The $300k-$500k range continues to sizzle. Currently, 78 homes are listed in that price range (including 24 new listings in the last seven days!), up nearly 30% from last month’s total of 58. Of note also is the under-$300k segment, where four down-to-the-stud fixer uppers have recently been listed. Flippers take note! Below is a look at available homes by various price distributions:

Mortgage rates reached the highest levels since late November as recent economic reports indicate that inflation has remained stubbornly high in the past couple of months. The average 30 year fixed-rate mortgage reached its recent bottom in mid-January but has since climbed more than 50 bps in the last three months.

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