Check out what's going on in your local real estate market this past week:

Analysis: As we're wrapping up the finals days of June we're continuing to see a bit of stagnation in our local real estate market. While homes are still moving and deals are still happening, the speed at which homes are selling and the volume of sales that are occuring remains lower than what many experts had predicted to begin the year. With mortgage rates remaining near 6.5% and local home prices still either appreciating or remaining near all-time high's, many first-time homebuyers remain on the sidelines as prices remain higher than most families are comfortable committing to. For those who already own and have low mortgage rates, moving simply doesn't make sense as buying a smaller, less expensive home is still going to cost more per month than what they're currently affording. As we've mentioned previously, this has been one of the leading contributors to where home prices are today. 

This week Zillow published it's monthly market update which shared projections of price stagnation, fewer home sales, and increased rental growth. They foresee home sales growth declining month-over-month from May, resulting in slower appreciation for homeowners year-over-year. Despite the slowdown our nation's overall total housing inventory remains below pre-pandemic levels which is keeping both home prices near all-time high's and helping to sustain consistent rental growth. The good news for would-be homebuyers is that we've seen steady increases in our total housing inventory in recent years along with a rising vacancy rate for rentals, trends that should promote price cooling if things continue.

Mortgage rates remained near 6.5% this week as tensions overseas continue to hamper any possible downward momentum. With high energy prices leading to prolonged inflation concerns, consumers have been stuck with stagnant rates for the better part of 4 months now. With news coming each week that a deal could be on the horizon and things may return to normal, we will continue to wait for one to actually materialize before we can expect to see a change. In the meantime we do not foresee any downward momentum for mortgage rates without a concrete resolution to the conflict. What is more likely is we will see mortgage rates increase later on in the year, something that we covered in last week's weekly market update.  

If you found this information useful then stay tuned for more of our weekly and monthly market updates and don't hesitate to give us a call with any of your real estate-related questions or needs! 

Fernando Mota

Fernando@TheMotaTeam.com

(916)494-9543

DRE # 02080149