Multiple offers are back here in Woodland and Sacramento!

Reginald Powell, DRE # 02143105 (530) 650-5549 reginaldp@kw.com Your Yolo County Real Estate Agent

Multiple offers are back!

This graph shows the history of mortgage rates in the U.S. since 1970. Based on this, 5% is pretty great!

Yes. You read that right. It’s getting competitive for home buyers again. With the recent drop in mortgage rates and the beginning of the new year, we are seeing a lot more competition in the housing market. It’s still too early to see it in the data, since housing market data lags about 1 month (homes go pending for 20-35 days typically before they finally close on the home, so we don’t see the actual numbers until much later), but based on what I’m seeing, you can expect to see this reflected in the DOM (days on market) info in our next monthly market update. As an example, I am currently working with 2 buyers in 2 different local markets here in the Woodland/Sacramento area. One house we looked at has been on the market for 5 days. The seller put in a deadline to have all offers in yesterday by noon. I called the listing agent to see if the sellers were holding firm to that, and she told me they had 5 offers in hand already. 5 offers. In only 5 days! Another home we were looking at had been on the market for 4 days before they got an offer in. Within the next 2 days, they received another offer and it became a bidding war. This is happening throughout our market. Homes are being listed for sale and offers are coming in within the first few days of them hitting the market. This does not mean that prices are the same as they were last year. It is true that prices have come down from last year’s highs, but, demand is growing. Now that mortgage rates have come down, there is a lot more interest in buying a home. This is great news if you are thinking about selling your home. If priced right, you will get multiple offers in and sell quickly. On the other hand, if you are a buyer, you won’t be able to ask for as many concessions and you can’t offer under ask and expect to get the house.

Here are today’s mortgage rates. We are getting closer to a 5% rate on a 15 year term! Of course, these numbers will vary depending on personal circumstances. You also have the option to buy down points to get your interest rate even lower. 1 point is equal to 1% of the purchase price. So, as an example, if you were going to buy down 1 point on a $400,000 home, that would cost $4,000 plus any other fees your lender may charge.

As always, if you know anyone that needs a real estate agent, please have them reach out to me. I would love the opportunity to work with them. I will help them find the home they are looking for at a fair price. If they are looking to sell, we will market their home in such a way that it gets multiple offers. If you have questions specific to your neighborhood, please reach out and I will get you the most current information available.