Modesto Market Update - September 2024

California home sales bounced back solidly in July, as prices moderated, and housing supply continued to grow from last year. While the rebound is not a V-shaped recovery, the turn-around is encouraging nevertheless, and offers hope that the boost in sales could kickstart the second half of the year.

With the Fed signaling a policy rate cut in September and additional cuts to follow in the near term, mortgage rates will moderate further - albeit slowly- in the next couple quarters.

Assuming that the economy will continue to slow but at a gradual pace, the housing market is expected to see more improvement in the next few months.

That’s  good new locally, as the market remains stingy for buyers. The number of homes sold in Aug stood at 111, down from July’s 151 (hello the end of of moving season!). The number of available homes increased significantly in the $500k - $800k range, growing from 89 at the beginning of August, to 125 today, an increase of 40%. Meanwhile, the number of homes available  for all other price segments, remains steady. Months-of-inventory  (the length of time it would take to sell all houses if none were aded ) peaked at YTD high of 2.2.    

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