It's still a seller's market in Ceres and Stanislaus counties, but surprisingly, owners aren't selling as much.
In fact, “For Sale” signs in front of homes are as rare as gnats in a rainstorm.
Local real estate agent Eric Ingwerson said the reason sellers aren't selling is because they have few options to buy new homes other than to leave California, where housing construction is in such short supply.
“When Joe Biden stepped in there, I'm not saying he's to blame, but when Trumpster was president, interest rates weren't like that,” said a representative from the PMZ office in Turlock. People Ingwarson said.
“When we were in a normal market, there were always at least 75 homes on the east side of the freeway. There were 75 homes on the west side of the freeway. Ceres' normal average inventory was 150 units. .Now it sometimes hovers around 30, which is very low, low, low.”
Ingwerson explained that the 2008 mortgage crisis brought housing construction to a grinding halt.
“If you buy land and want to build a subdivision on it, it will take at least two years to complete all the processes and make off-site improvements like curbs, gutters, and sidewalks before you can start building a home. ”
He cited how long it took for KB housing to be built in Hughson, just east of Ceres.
High interest rates have also dampened the housing market. Ingwerson said the 2.5-3% interest rate some current homeowners enjoy disappears when they sell their home, and the 5.5-3% interest rate that some current homeowners enjoy disappears when they sell their home, and the 5.5-3% interest rate that some current homeowners enjoy disappears when they sell their home, and the 5.5% to 3% interest rate that some current homeowners enjoy disappears when they sell their home. He said he would have to pay a much higher interest rate of 7%.
If and when the federal government lowers interest rates, “there will be another frenzy for buyers,” said Lenny Ledbetter, with EXIT Realty Consultants in Ceres.
“Buyers remain cautious because interest rates haven't come down,” Ledbetter said.
He said sellers who don't have enough equity are unlikely to be willing to forgo a 2% interest rate to cover the shortfall on their next home.
Industry predictions are that interest rates will be lowered before the election. No one knows when.
Ledbetter said he focuses on educating buyers to give them a head start if they plan to seek down payment assistance or get pre-approved for a loan. The CalHFA (California Dream For All) assistance program certification is valid for 12 months.
“Even if they're not ready to buy right now and want to wait a few months, at least they've got that requirement out of the way, so when the house they want to build comes on the market, they can We want to build.’ If we get an offer, they’re ready and ready.” ”
Ledbetter said the market is favorable to sellers, with many offering incentives such as credits for closing costs and repair costs.
“It's still a seller's market because there's not enough inventory and there's still a lot of buyer demand, but buyers are being very careful and very cautious.”
Ledbetter said many sellers are leaving California and relocating primarily to Idaho, Arizona, Texas and Tennessee.
Ledbetter observed that homes in the $300,000 to $500,000 range are selling the fastest, while homes priced over $600,000 are taking longer to sell.
