If you’re planning to buy or sell a home in 2024

It wasn’t that long ago that we were
talking about 8% mortgage interest rates.

HOWEVER… we’ve gotten an early Christmas present for 2024. Rates are finally back under 7%, allowing buyers and sellers to start making plans for next year. All indications are that we’ll be seeing multiple rate cuts in the months to come.  It’s been 18 months since the Federal Reserve made the 11 rate hikes faster than anyone expected, but that’s now in our rearview mirror.

So let’s talk about what you should do if
you’re planning to buy or sell a home in 2024

Buyers:

• First things first – Call me to discuss a plan and the steps to buying a home or finding a different home that meets your current needs.
  
  
• Second – Get your financial plans in order.  The preapproval process is something you should do before you start looking at homes. This will tell us what payment you’re comfortable with and determine the home we can be searching for. You’ll know when you find the right home, but if you don’t have your loan ready to go, you could miss out so do it now.  If you need a referral for a lender, I have a great mortgage broker who will guide you through the process.  This is the least exciting part of the process but when you’re done, like paying your taxes, you can breathe a sigh of relief and get on with the fun part of finding a home.
  
  
• And finally – Let’s start looking!  I look at homes every day and would love to help you find exactly what you’re looking for.  Why would you want to wait until the spring market comes and there’s more competition!  Let’s start soon so that you can beat the rush.

Check out my BUYER services at WhyBuyWithCarol.com

Sellers:

• Buyers are just waiting for homes like yours to come on the market.  They’re excited about the recent rate cuts and are searching every day to find your home.  Do you need to have somewhere to go??  We can help you coordinate that, too.
  
  
• When the available homes for sale are sparse, you may think it’s not a good time but actually, that’s the time that you’ll get the most for your home AND be able to sell contingent on finding your next home in the process. We do it all the time!  Most sellers, unless you’re moving out of town, need to have a replacement home but can’t without the sale of their current home.  That’s called ‘selling contingent’.  It simply means that the buyer we find has to be willing to give you time to negotiate your purchase.
  
  
• The best time to sell is when there’s less on the market – less homes on the market can mean more buyer interest in your home.  That time is typically in the first quarter of the year AND with interest rates coming down, buyers are more excited than ever at the prospect of owning a home in 2024.  Be one of the smart sellers who doesn’t wait for spring when everyone else sells.  Get ahead of the game and take advantage of the fact there are many buyers on the sidelines just waiting for a home like yours to come on the market.
  
  
• Not sure what your options are?  Call me to discuss a plan and the steps we can take now to get you ready for the market.

Check out my SELLER services at WhyHireCarol.com

Spring Selling Season is going to be a crazy time.  Get ahead of the curve and be settled into your new home before the rest of the buyers and sellers wake up from their long winter’s nap.

Wishing you a happy, healthy and prosperous 2024

  Carol Kellogg, REALTOR®
   Coldwell Banker Realty

   (916) 390-2437
   CarolKellogg.com
   Cal DRE# 01150953

Season's Greetings

 

As someone who likes to be able to give a clear perspective on the real estate market, this year has been a challenge to predict.  As we began 2023 with mortgage interest rates in the mid-6% range, buyers seemed stunned by the quick rise from the 3.2% we enjoyed at the beginning of 2022, only to watch them skyrocket to a staggering mid-7%  Thankfully over the past weeks we’ve experienced an improvement in rates.  Amid these astronomical changes in the cost of money, we also are experiencing a critically low volume of ‘good’ inventory.  I say good because many of the homes today are overpriced and will languish on the market until sellers become realistic with pricing or take them off the market, turning it into a rental.

While the normal days on market have increased, some homes are clearly not priced according to what buyer demand would dictate.  Buyer demand drives the market and ultimately determines what a home is worth.  Again, this is where the challenge comes when we’re floating in uncharted waters with the high cost of money and few good homes to choose from. Buyers are still fighting to be chosen when they see something they want.  Hence why prices continue to remain stable.  Supply and demand will always be the driving force; that’s the easiest way to describe what’s happening.  If you have something that someone wants and it’s priced right, it will sell.  That’s real estate 101.

Now, if in the spring we see rates come back down to the 6% range, which they’re predicted to do, I think we’ll see more sellers jump into the market creating more supply for the buyers that are sitting on the fence – but someone has to jump first.  Sellers who need to purchase that replacement home are hesitant when they’re not seeing anything they like as a viable option to replace what they have; especially if they’re enjoying a 3% mortgage. The fact that rents have gone up significantly over the past decade also contributes to buyers no longer wanting to make their landlord’s house payment.  For those who haven’t paid attention, the average rent for apartments in Sacramento is between $1,650 and $2,100 a month (for an apartment)!   You can pay upwards of $4,000 a month to rent a large home in Sacramento County.

If you climbed under a rock for a few years and came back out today, you’d be shocked at what has changed about our real estate market.  For years we were the best kept secret but no longer is that the case.  From where I sit, it happened very quickly.  A lot of things contributed to the increases but I don’t think we’re turning back; at least not in a significant way AND there are promising signs for the 2024 market! This is almost completely dependent on mortgage rates and increased inventory.


Here are some interesting facts about today’s market:

• 22% of home purchases in the Sacramento region are cash
• 49.5% of home sales closed below the original list price
• Approximately 500,000 people have left California since 2020
• The top choices to relocate to were Texas, Arizona and Florida

While people are leaving California, they’re not leaving the Sacramento region; hence why we’re not seeing an increase in our homes for sale.  Greater Sacramento has been cited as one of the five "most livable" regions in America and the city was cited by TIME magazine years ago as America's Most Diverse City… all things to be proud of and blessed by.

Nationwide the market is challenging.  Regionally we’re down about 25% year over year.  There are a variety of predictions that I’m reading about next year’s market but as has been the case most of this year, we just have to see what happens.  My suggestion is if you see a home you like and you can afford it, call me.  We’ll help you negotiate a sale that works for you.  And, if you need to sell your home, we’d love to be your Realtor of Choice!  No matter what the market is, people always need to buy and sell real estate.

Whatever the case, my Christmas wish is that you’ll think of us when the discussion turns to Real Estate.  Whether you’re just curious, or have an immediate need, we are here to serve YOU and all of your referrals.  It’s because of YOU that we continue to enjoy success in our profession and love what we do.

Holiday time brings a multitude of reasons to reflect on just how fortunate we are.  May the holiday season find you beginning each day with a grateful heart.

Wishing you a Merry Christmas and a very Happy New Year

Be sure to watch for ‘Coffee with Carol” beginning in January every Thursday morning on Facebook and YouTube for a weekly update on our local market and a look into some beautiful homes for sale.

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