Our mild, sunny California weather has finally arrived for spring!
Below I have put together some financial and real estate market updates about what is happening in our greater Sacramento area.
Current Rate Trends & Financial Markets
Rates are slowly rising (and sometimes slightly falling) once again. However, financial markets are still filled with uncertainty including the Fed raising rates, inflation worries and the overall cost of living increasing. I predict the unknown and instability in the markets lasting throughout this year.
Housing prices are also creeping back up and available housing is still in short supply. Houses are selling quickly in some circumstances, including houses over $1,000,000 in desirable areas getting multiple offers. Opportunities for sellers still exist in our local real estate market and we still have buyers moving into the Sacramento area from other markets like the Bay Area.
Dream for All Downpayment Program Update
Recently, the California Dream for All program offered $300 million in down payment assistance through CalHFA. Unfortunately, the program only lasted for 10 days and the funds were exhausted much sooner than expected.
While the program was designed to help borrowers who couldn’t afford a down payment, we saw some borrowers who were already in contract and approved switch to the Dream for All program to avoid using their own funds. As a result, many borrowers who truly needed the assistance were left with little to no options.
While there is no guarantee, more funding could be available when the State of California fiscal year starts on 10-1-2023. If you, a family member or a friend is in need of down payment assistance, I highly recommend giving me a call to discuss all the options available today and get ready to pounce on any future options.
In this current real estate and financial market, detailed preparation with an experienced lender is essential to reach the very best outcome for each specific client situation.
Hot Competition for 500K and Under Homes
Properties under 500K in our greater Sacramento area are currently selling very quickly. If you are someone close to you is considering properties around this price point, here is some advice from one of my trusted real estate professionals, Dave and Hollie Hallauer with Five Star Service Real Estate.
Top 5 Tips for Homebuyers Looking in the Competitive Under $500K Home Market
- Get Pre-Approved and Have Proof of Funds Ready –
In an investor-dominated market, having a pre-approval and proof of funds ready with an experienced lender will show sellers you are a serious and prepared buyer.
- Select, Trust and Follow the Guidance of an Experienced Realtor –
An experienced Realtor has more wisdom navigating a competitive market and can possibly have access to off-market properties. They can also help you negotiate and close deals with success and accuracy. Choose a seasoned agent that has successfully located, negotiated, and closed hundreds of deals for their clients.
- Be Patient, But Act Promptly:
Patience is key in a low inventory market. However, be prepared to act quickly when your real estate agent recommends viewing a property. The best ones go quickly!
- Let Your Agent Do the Homework –
Each property and situation is unique, so it’s important to let your agent do their homework by running comps, assessing special conditions, and understanding the seller’s needs and expectations before writing an offer. This helps craft the right negotiation strategy and increases your chances of getting your offer accepted. The lowest bid isn’t necessarily the most favorable to the seller.
- Write a Strong Offer with Clean Terms –
To show that you are qualified and prepared to move forward, write a strong offer with clean terms. A clear, well written offer should eliminate the need for a seller to counter and may give you the upper hand.
Be prepared…it’s a journey…but it doesn’t have to be a stressful one.
-Dave and Hollie Hallauer with Five Star Service Real Estate.
My years of lending experience helps in this unusual lending and real estate markets
In a time when many real estate and lending professionals may be leaving the industry, I am here to stay. I am here to answer your questions and concerns using my 35 years of lending wisdom to help you. Thank you for your continued support and referring your favorite family, friends, and coworkers to me for guidance on their journey to home ownership. Feel free to get in touch with me if you would like to say ‘hello’ or get your questions answered.
David Banks, Senior Mortgage Lender
Serving Northern California
35 Years of Lending Experience
Call or Text: 916-628-1864
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