Here are the latest trends, Nationally and Locally

The National Association of Realtors report that buyers still prefer single family homes in the suburbs over city dwellings. Half of all buyers headed to the suburbs where larger homes with multiple bedrooms and big yards are plentiful. When picking a location, home buyers primarily focused on the quality of the neighborhood, proximity to friends and family, commute times and affordability. Note that home buyers are getting much older. Their median age was 45 in 2021 and was much older than 1981’s median age of 31.The largest share of home buyers remain young adults. Millenials…people between the ages of 25 and 41…accounted for 43% of buyers last year.

Rates for owner occupied homes are now in the 5-5.25%, up from 3.5-4% a year ago. One way to look at interest rates is the net interest rate. Let’s say you get a 5% owner-occupied interest rate, and you are in a 35% tax bracket. The interest you pay is tax deductible. So, a 5% interest rate multiplied by 35% yields a net interest rate of 3.25%. Compare that rate to renting. When you rent you are paying someone else’s mortgage, you don’t get the appreciation you would have if you owned, and you are subject to regular rent increases.

Solution? Don’t worry about the interest rates, worry about prices going up if you don’t buy now. You may have to buy less of a home than you could have bought when interest rates were lower, but you are still better off owning than renting. Have you tried to rent a home lately? They are very hard to find and very expensive.

The big news is Tracy! The median price of a home in Tracy was above $800,000 for the first time at $818,000! Stockton, the low price point in San Joaquin County, is $455,000, Lodi-$593,000, Manteca-$635,000, and Rio Vista-$500,000.

Overall San Joaquin County’s median price was $550,000. The Median price last year was $459,000 which resulted in an appreciation rate of 20% and a price increase of $91,000. Average days on the market are only 15 days, the lowest amount of time I have ever witnessed. Almost every property that is listed sells. Some are sold before they ever get on the market and are reported as listed and sold on the same day. Multiple offers are the norm, sometimes 15-20 offers. Buyers need to be very competitive and make attractive offers to sellers that have very few conditions.

HOME SALE FAST FACTS: March 2022 to March 2021.

SAN JOAQUIN COUNTY
MEDIAN SALES PRICE: $530,000 (+20%)
FOR SALE: 390 Homes (+37%)
HOMES SOLD & CLOSED: 528 (3%)
INVENTORY: .7 MO.

STOCKTON
MEDIAN SALES PRICE: $455,000 (+20%)
FOR SALE: 171 Homes (+24%)
HOMES SOLD & CLOSED: 259 (4%)
INVENTORY:.7 MO.

LODI AREA
MEDIAN SALES PRICE: $593,000 (33%)
FOR SALE: 68 Homes (-8%)
HOMES SOLD & CLOSED: 72 (-32%)
INVENTORY:1.3 MO.

MANTECA-LATHROP AREA
MEDIAN SALES PRICE: $635,000 (+22%)
FOR SALE: 90 Homes (55%)
HOMES SOLD & CLOSED: 128 (17%)
INVENTORY: .7 MO.

TRACY AREA
MEDIAN SALES PRICE: $818,000 (+23%)
FOR SALE: 31 Homes (3%)
HOMES SOLD & CLOSED: 70 (-9%)
INVENTORY: .4 MO.